|SAME AS||No Same As|
|Amd §1805, RPT L|
|Provides for transition assessment for a parcel classified in class three in New York city.|
|01/30/2017||referred to real property taxation|
Go to top
NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3772 SPONSOR: Quart
TITLE OF BILL: An act to amend the real property tax law, in relation to transition assessments for class three parcels in the city of New York   PURPOSE OR GENERAL IDEA OF BILL: To provide for a phase-in for any changes in assessment for parcels classified as utility property in New York City.   SUMMARY OF SPECIFIC PROVISIONS: Amends Section 1805 of the Real Property Tax Law to provide for a five- year phase-in of any assessment increases resulting from changes in market value for parcels classified in class three.   JUSTIFICATION: The New York City real property tax structure is comprised of two main mechanisms to moderate changes in assessed value from year-to-year. For most properties in New York City, changes in market value, and ultimate- ly assessments and the resulting tax bills, are phased in over a five- year period of time. For small residential properties (Class 1), there are caps on assessment growth to minimize annual assessment changes. Approximately 94% of New York City's taxable assessed value derives from properties that benefit from one of these two stabilizing mechanisms. Unlike the other classes, utility property in class three is not provided with such a stabilizing mechanism and is subject to annual spikes in market value and subsequent spikes in tax liability. It is the only class that realizes the full change in market value in the year it occurs. Energy customers subsequently absorb these sudden increases in their utility bills. This proposed legislation would provide Class 3 properties with the stabilization protections provided to properties in the other classes by enabling a five-year phase-in of assessment changes. Doing so would protect energy customers from sudden spikes in energy costs resulting from rapid changes in a public utility's property tax liability.   PRIOR LEGISLATIVE HISTORY: 2015-2016: A4692 referred to Real Property Taxation 2013-2014: A7651 referred to Real Property Taxation   EFFECTIVE DATE: Immediately and applicable to assessment rolls with a taxable status date following its effective date.
Go to top
STATE OF NEW YORK ________________________________________________________________________ 3772 2017-2018 Regular Sessions IN ASSEMBLY January 30, 2017 ___________ Introduced by M. of A. QUART -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law, in relation to transition assessments for class three parcels in the city of New York The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 3 of section 1805 of the real property tax law, 2 as amended by chapter 143 of the laws of 1989 and as further amended by 3 subdivision (b) of section 1 of part W of chapter 56 of the laws of 4 2010, is amended to read as follows: 5 3. If the assessment appearing on an assessment roll completed on or 6 after January first, nineteen hundred eighty-two for any parcel not 7 subject to the provisions of subdivision one or two of this section[ ,8 other than a parcel classified in class three,] is greater than the 9 assessment appearing on the previous year's assessment roll the assessor 10 shall determine a transition assessment for such parcel for the first 11 assessment roll on which such greater assessment appears and for each of 12 the succeeding four assessment rolls by computing the difference between 13 such greater assessment and the assessment appearing on such previous 14 year's assessment roll and adding the following percentages of such 15 difference to the assessment appearing on such previous year's assess- 16 ment roll: in the first year, twenty percent; in the second year, forty 17 percent; in the third year, sixty percent; in the fourth year, eighty 18 percent; and in the fifth year, one hundred percent. If the assessment 19 of a parcel is increased during a period for which transition assess- 20 ments have been established because of any prior assessment increases, 21 such new increase shall be phased-in over a five-year period as set 22 forth in this subdivision, and such phased-in increases shall be added 23 to the transitional assessments previously established for the prior 24 increase; provided, however, that if in any year any such transition 25 assessment exceeds the actual assessment for such year, taxes imposed on EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08922-01-7A. 3772 2 1 such parcel for such year shall be based on such lesser actual assess- 2 ment. Notwithstanding the foregoing, during the period of any such tran- 3 sition, the assessment roll shall contain an entry of the full amount of 4 such greater assessment which shall be used by the commissioner in its 5 determination of class ratios pursuant to paragraph (b) of subdivision 6 one of section twelve hundred two of this chapter. In establishing state 7 equalization rates, class equalization rates, special state equalization 8 rates and special state equalization ratios under article twelve, arti- 9 cle twelve-A and article twelve-B of this chapter, the commissioner 10 shall use the transition assessments as provided for in this subdivision 11 in its determinations, or where the actual assessment is the lesser, 12 such actual assessment shall be so used. 13 § 2. This act shall take effect immediately.