Extends the transitional assessed value of parcels held in cooperative or condominium forms of ownership to twelve years.
Summary
Bill S00619 amends the real property tax law to introduce a transition assessment for parcels held in cooperative or condominium ownership. This transition assessment limits the increase in assessed value for these properties over a twelve-year period, allowing for a gradual adjustment to any increases in property assessments. The bill specifies a phased-in approach where the increase is applied incrementally over the years, starting at eight and one-third percent in the first year and reaching full assessment by the twelfth year. This aims to provide financial relief to owners by preventing sudden spikes in property taxes due to assessment increases.
Impact
The bill impacts state laws by modifying how assessments for cooperative and condominium properties are calculated and phased in over time. It establishes a clear framework for transition assessments, which will affect the taxation of these properties and potentially influence the overall real estate market dynamics in New York. The bill aims to stabilize tax obligations for owners of cooperative and condominium units, which may lead to increased affordability and predictability in property taxes.
Sentiment
The general sentiment around Bill S00619 appears to be supportive, as it addresses concerns regarding the financial burden of sudden property tax increases on cooperative and condominium owners. However, there may be some apprehension regarding the long-term implications of such phased assessments on overall tax revenue and equity among different property types.
Contention
Notable points of contention may arise from stakeholders who believe that the transition assessment could lead to inequities in the tax system, particularly if other property owners do not receive similar protections against sudden increases. Additionally, concerns may be raised about the potential impact on state revenue from property taxes, as the gradual increase could delay the realization of tax revenue from rising property values.
Implements transfer assessments for any class one or class two parcel in any special assessing unit wholly contained within a city which has had a transfer of title within the fiscal year where the market value of such parcel, as determined by the New York city department of finance, is greater than the assessed value of such parcel.
Relates to increasing the number of units subject to an assessment cap; provides that the assessment roll of a special assessing unit wholly contained within a city shall identify those parcels classified in class two which have fewer than thirty-five residential units.
Includes certain cooperative or limited-profit housing companies for purposes of conversions to cooperative or condominium ownership in the city of New York.
Relates to assessments of residential cooperative, condominium and rental property; defines the term "the assessment which would be placed upon such parcel were the parcel not owned or leased by a cooperative corporation or on a condominium basis".
Relates to assessments of residential cooperative, condominium and rental property; defines the term "the assessment which would be placed upon such parcel were the parcel not owned or leased by a cooperative corporation or on a condominium basis".
Provides that assessed values of cooperative units and condominiums shall not increase by more than 3% in the two years following resolution of tax certiorari proceedings.