Relates to financial statements for assessments of condos, cooperative buildings and cooperative communities; requires financial statements to be prepared using GAAP; requires auditing for certain buildings by CPAs.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3830
SPONSOR: Rosenthal L TITLE OF BILL:
An act to amend the real property tax law, in relation to financial
statements for assessments of condominiums, cooperative buildings and
cooperative communities
PURPOSE:
This bill requires that all financial statements prepared in the course
of auditing or otherwise accessing the value of a condominium building,
cooperative building or cooperative community, be prepared using Gener-
ally Accepted Accounting Principles (GAAP).
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends subdivision 2 of section 581 of the real property
tax law.
Section two sets forth the effective date.
JUSTIFICATION:
As there is currently no law that governs how disparate buildings
prepare financial documents, it is exceedingly difficult to make sound
comparisons between them. In order to increase transparency and encour-
age investor protections, buildings should be required to adopt the
standard framework of guidelines for financial accounting used in any
given jurisdiction.
LEGISLATIVE HISTORY:
2021-22: A.3277 - Referred to Real Property Taxation
2019-20: A.1379 - Referred to Real Property Taxation
2017-18: A.2897 - Referred to Real Property Taxation
2015-16: A.549 - Referred to Real Property Taxation
2013-14: A.894 - Referred to Real Property Taxation
2011-12: A.10369 - Referred to Real Property Taxation
FISCAL IMPLICATIONS:
Undetermined.
EFFECTIVE DATE:
This bill shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
3830
2023-2024 Regular Sessions
IN ASSEMBLY
February 8, 2023
___________
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the
Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to financial
statements for assessments of condominiums, cooperative buildings and
cooperative communities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 581 of the real property tax law
2 is amended by adding a new paragraph (f) to read as follows:
3 (f) (i) Notwithstanding any other provision of law, all financial
4 statements prepared in the course of assessing the value of a condomin-
5 ium building, cooperative building or cooperative community shall be
6 prepared using generally accepted accounting principles.
7 (ii) All financial statements provided annually to shareholders or to
8 prospective purchasers of units or shares must be prepared using the
9 accrual basis of accounting.
10 (iii) For purposes of this subdivision, "generally accepted accounting
11 principles" shall mean the principles of either governmental accounting
12 standards (GAS) or GAAP as specified by authoritative national stan-
13 dard-setting bodies.
14 (iv) Should International Financial Reporting Standards accounting
15 standards (IFRS) be adopted for use in the United States of America by
16 the U.S. Securities and Exchange Commission, these same standards shall
17 constitute using generally accepted accounting principles for the
18 purpose of this subdivision.
19 (v) For the purpose of this section, condominium buildings, cooper-
20 ative buildings or cooperative communities with over ten units must have
21 their financial statements annually audited by a fully licensed New York
22 state certified public accountant.
23 (vi) The attorney general's office shall have the appropriate authori-
24 ty to enforce the provisions of this paragraph.
25 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08815-01-3
