Extends for four years a real property tax abatement program for cooperative and condominium units in cities of one million or more, to address the inequitable tax treatment of co-op and condo owners.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10071
SPONSOR: Silver (MS) TITLE OF BILL: An act to amend the real property tax law, in relation
to partial abatement of real property taxes
PURPOSE OR GENERAL IDEA OF BILL: To extend for four years a real prop-
erty tax abatement program for cooperative and condominium units in
cities with populations of one million or more.
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends paragraph (c) of subdivision 2 of section 467-a of
the Real Property Tax Law to extend for four years a 25% partial real
property tax abatement for eligible residential cooperative and condo-
minium units in property whose average unit assessed value is $15,000 or
less.
Section two amends paragraph (d) of subdivision 2 of section 467-a of
the Real Property Tax Law to extend for four years a 17.5% partial real
property tax abatement for eligible residential cooperative and condo-
minium units in property whose average unit assessed value is greater
than $15,000.
Section three amends paragraph (a) and (c) of subdivision 3 of section
467-a of the Real Property Tax Law to establish abatement application
filing deadlines.
Section four amends paragraph (h) of subdivision 3 of section 467-a of
the Real Property Tax Law to add a set of provisions regarding the use
of information returns as tax abatement applications.
Section five adds subdivision 3-e to section 467-a of the Real Property
Tax Law to update the application filing procedure process.
Section six requires the city of New York to present a plan to the
Legislature, no later than February I, 2016, containing recommendations
to address the disparity in real property taxation between residential
real property in class one and residential real property in class two
held in the cooperative or condominium form of ownership.
Section seven provides the effective date.
JUSTIFICATION: The real property tax system in New York City places a
higher tax burden on co-op and condominium units than on comparably
valued one-, two- and three-family homes. Recognizing this inequity, New
York State authorized and the City of New York implemented a partial
property tax abatement program for co-op and condo owners beginning in
1996. While the abatement is no substitute for the long-overdue reform
of tax policy to correct this inequity, extending the current abatement
program will at least continue the current level of relief for hundreds
of thousands of New York City co-op and condo owners.
PRIOR LEGISLATIVE HISTORY: New bill. Similar legislation has been
adopted since 1996.
FISCAL IMPLICATIONS: None to State
EFFECTIVE DATE: Immediately
STATE OF NEW YORK
________________________________________________________________________
10071
IN ASSEMBLY
May 2, 2012
___________
Introduced by M. of A. SILVER, GOTTFRIED, FARRELL, DINOWITZ, O'DONNELL,
PERRY, MARKEY -- Multi-Sponsored by -- M. of A. BRAUNSTEIN, BRENNAN,
CLARK, COLTON, CYMBROWITZ, GLICK, HEASTIE, HIKIND, V. LOPEZ, MILLMAN,
NOLAN, ORTIZ, SCARBOROUGH, WEINSTEIN -- read once and referred to the
Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to partial abate-
ment of real property taxes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph (xvi) of paragraph (c) of subdivision 2 of
2 section 467-a of the real property tax law, as added by chapter 109 of
3 he laws of 2008, is amended and four new subparagraphs (xvii), (xviii),
4 (xix) and (xx) are added to read as follows:
5 (xvi) twenty-five percent in the fiscal year commencing in calendar
6 year two thousand eleven[.];
7 (xvii) twenty-five percent in the fiscal year commencing in calendar
8 year two thousand twelve;
9 (xviii) twenty-five percent in the fiscal year commencing in calendar
10 year two thousand thirteen;
11 (xix) twenty-five percent in the fiscal year commencing in calendar
12 year two thousand fourteen;
13 (xx) twenty-five percent in the fiscal year commencing in calendar
14 year two thousand fifteen.
15 § 2. Subparagraph (xvi) of paragraph (d) of subdivision 2 of section
16 467-a of the real property tax law, as added by chapter 109 of the laws
17 of 2008, is amended and four new subparagraphs (xvii), (xviii), (xix)
18 and (xx) are added to read as follows:
19 (xvi) seventeen and one-half percent in the fiscal year commencing in
20 calendar year two thousand eleven[.];
21 (xvii) seventeen and one-half percent in the fiscal year commencing in
22 calendar year two thousand twelve;
23 (xviii) seventeen and one-half percent in the fiscal year commencing
24 in calendar year two thousand thirteen;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15543-01-2
A. 10071 2
1 (xix) seventeen and one-half percent in the fiscal year commencing in
2 calendar year two thousand fourteen;
3 (xx) seventeen and one-half percent in the fiscal year commencing in
4 calendar year two thousand fifteen.
5 § 3. Paragraphs (a) and (c) of subdivision 3 of section 467-a of the
6 real property tax law, as amended by chapter 109 of the laws of 2008,
7 are amended to read as follows:
8 (a) An application for an abatement pursuant to this section for the
9 fiscal year commencing in calendar year nineteen hundred ninety-six
10 shall be made no later than the fifteenth day of September, nineteen
11 hundred ninety-six. An application for an abatement pursuant to this
12 section for the fiscal year commencing in calendar year nineteen hundred
13 ninety-seven shall be made no later than the first day of April, nine-
14 teen hundred ninety-seven. An application for an abatement pursuant to
15 this section for the fiscal year commencing in calendar year nineteen
16 hundred ninety-eight shall be made no later than the first day of April,
17 nineteen hundred ninety-eight. An application for an abatement pursuant
18 to this section for the fiscal year commencing in calendar year nineteen
19 hundred ninety-nine shall be made in accordance with this subdivision
20 and subdivision three-a of this section. An application for an abatement
21 pursuant to this section for the fiscal year commencing in calendar year
22 two thousand shall be made no later than the fifteenth day of February,
23 two thousand. An application for an abatement pursuant to this section
24 for the fiscal year commencing in calendar year two thousand one shall
25 be made in accordance with this subdivision and subdivision three-b of
26 this section. An application for an abatement pursuant to this section
27 for the fiscal year commencing in calendar year two thousand two shall
28 be made no later than the fifteenth day of February, two thousand two.
29 An application for an abatement pursuant to this section for the fiscal
30 year commencing in calendar year two thousand three shall be made no
31 later than the fifteenth day of February, two thousand three. An appli-
32 cation for an abatement pursuant to this section for the fiscal year
33 commencing in calendar year two thousand four shall be made in accord-
34 ance with this subdivision and subdivision three-c of this section. An
35 application for an abatement pursuant to this section for the fiscal
36 year commencing in calendar year two thousand five shall be made no
37 later than the fifteenth day of February, two thousand five. An applica-
38 tion for an abatement pursuant to this section for the fiscal year
39 commencing in calendar year two thousand six shall be made no later than
40 the fifteenth day of February, two thousand six. An application for an
41 abatement pursuant to this section for the fiscal year commencing in
42 calendar year two thousand seven shall be made no later than the
43 fifteenth day of February, two thousand seven. An application for abate-
44 ment pursuant to this section for the fiscal year commencing in calendar
45 year two thousand eight shall be made in accordance with this subdivi-
46 sion and subdivision three-d of this section. An application for an
47 abatement pursuant to this section for the fiscal year commencing in
48 calendar year two thousand nine shall be made no later than the
49 fifteenth day of February, two thousand nine. An application for an
50 abatement pursuant to this section for the fiscal year commencing in
51 calendar year two thousand ten shall be made no later than the fifteenth
52 day of February, two thousand ten. An application for an abatement
53 pursuant to this section for the fiscal year commencing in calendar year
54 two thousand eleven shall be made no later than the fifteenth day of
55 February, two thousand eleven. An application for abatement pursuant to
56 this section for the fiscal year commencing in calendar year two thou-
A. 10071 3
1 sand twelve shall be made in accordance with this subdivision and subdi-
2 vision three-e of this section. An application for an abatement pursuant
3 to this section for the fiscal year commencing in calendar year two
4 thousand thirteen shall be made no later than the fifteenth day of
5 February, two thousand thirteen. An application for an abatement pursu-
6 ant to this section for the fiscal year commencing in calendar year two
7 thousand fourteen shall be made no later then the fifteenth day of
8 February, two thousand fourteen. An application for an abatement pursu-
9 ant to this section for the fiscal year commencing in calendar year two
10 thousand fifteen shall be made no later then the fifteenth day of Febru-
11 ary, two thousand fifteen.
12 (c) No abatement pursuant to this section shall be granted unless the
13 applicant files an application for an abatement within the time periods
14 prescribed in paragraph (a) of this subdivision or subdivision three-a,
15 three-b, three-c [or], three-d or three-e of this section, provided,
16 however, that the commissioner of finance may, for good cause shown,
17 extend the time for filing an application.
18 § 4. Paragraph (h) of subdivision 3 of section 467-a of the real prop-
19 erty tax law, as amended by chapter 109 of the laws of 2008, is amended
20 to read as follows:
21 (h) Notwithstanding any other provision of law to the contrary, appli-
22 cation by the board of directors of a cooperative apartment corporation
23 for an abatement pursuant to this section for either the fiscal year
24 commencing in calendar year two thousand five or the fiscal year
25 commencing in the calendar year two thousand six or the fiscal year
26 commencing in the calendar year two thousand seven or the fiscal year
27 commencing in the calendar year two thousand eight or the fiscal year
28 commencing in the calendar year two thousand nine or the fiscal year
29 commencing in the calendar year two thousand ten or the fiscal year
30 commencing in the calendar year two thousand eleven or the fiscal year
31 commencing in the calendar year two thousand twelve or the fiscal year
32 commencing in the calendar year two thousand thirteen or the fiscal year
33 commencing in the calendar year two thousand fourteen or the fiscal year
34 commencing in the calendar year two thousand fifteen shall be made by
35 the filing of an information return pursuant to subdivision (g) of
36 section 11-2105 of the administrative code of the city of New York, as
37 added by local law number fifty-eight of the city of New York for the
38 year nineteen hundred eighty-nine, including an election by such board
39 of directors that such information return be deemed an application for
40 an abatement pursuant to this section for such fiscal year, provided,
41 however, that where the board of directors files an application on
42 behalf of a cooperative apartment corporation that is not receiving an
43 abatement pursuant to this section for the fiscal year immediately
44 preceding the fiscal year for which the application is filed, then the
45 board of directors shall be required to file, in addition to the infor-
46 mation return pursuant to subdivision (g) of section 11-2105 of the
47 administrative code of the city of New York, as added by local law
48 number fifty-eight of the city of New York for the year nineteen hundred
49 eighty-nine, any information return covering a reporting period begin-
50 ning on or after January first, nineteen hundred ninety-six, that has
51 not been filed previously. Information returns that are deemed to be
52 applications for an abatement pursuant to this paragraph shall be
53 subject to the provisions of this section relating to such applications
54 including, but not limited to, the provisions of this subdivision and
55 subdivision four of this section.
A. 10071 4
1 § 5. Section 467-a of the real property tax law is amended by adding a
2 new subdivision 3-e to read as follows:
3 3-e. (a) An applicant whose property did not receive an abatement
4 pursuant to this section for the fiscal year commencing in calendar year
5 two thousand eleven shall submit an application for an abatement pursu-
6 ant to this section for the fiscal year commencing in calendar year two
7 thousand twelve no later than sixty days following the effective date of
8 this subdivision.
9 (b) The abatement for the fiscal year commencing in calendar year two
10 thousand twelve of a cooperative apartment corporation that received an
11 abatement pursuant to this section for the fiscal year commencing in
12 calendar year two thousand eleven and that submitted an information
13 return on or before February fifteenth, two thousand twelve, that
14 included an election by the board of directors of such cooperative
15 apartment corporation that such information return be deemed an applica-
16 tion for an abatement pursuant to this section for such fiscal year,
17 shall be based on the information contained in such information return.
18 (c) The abatement for the fiscal year commencing in calendar year two
19 thousand twelve of a cooperative apartment corporation that received an
20 abatement pursuant to this section for the fiscal year commencing in
21 calendar year two thousand eleven and that submitted an information
22 return on or before February fifteenth, two thousand twelve, that did
23 not include an election by the board of directors of such cooperative
24 apartment corporation that such information return be deemed an applica-
25 tion for an abatement pursuant to this section for such fiscal year,
26 shall be based on the information contained in the application submitted
27 in two thousand eleven or on the information contained in such informa-
28 tion return, or both, provided that nothing in this paragraph shall
29 authorize or require the commissioner of finance to grant an abatement
30 with respect to a property or a dwelling unit that is not eligible as of
31 the applicable taxable status date for the fiscal year commencing in
32 calendar year two thousand twelve.
33 (d) The board of managers of a condominium that received an abatement
34 pursuant to this section for the fiscal year commencing in calendar year
35 two thousand eleven shall submit an application for an abatement pursu-
36 ant to this section for the fiscal year commencing in calendar year two
37 thousand twelve no later than sixty days following the effective date of
38 this subdivision. If such board of managers does not submit such appli-
39 cation within sixty days following the effective date of this subdivi-
40 sion, then the abatement for the fiscal year commencing in calendar year
41 two thousand twelve for such condominium shall be based on the informa-
42 tion contained in the application submitted in two thousand eleven,
43 provided that nothing in this paragraph shall authorize or require the
44 commissioner of finance to grant an abatement with respect to a property
45 or a dwelling unit that is not eligible as of the applicable taxable
46 status date for the fiscal year commencing in calendar year two thousand
47 twelve.
48 § 6. The city of New York shall present a plan to the legislature, no
49 later than February 1, 2016, containing recommendations to address the
50 disparity in real property taxation between residential real property in
51 class one and residential real property in class two held in the cooper-
52 ative or condominium form of ownership.
53 § 7. This act shall take effect immediately.
