New York City Council Header
File #: Res 0654-2015    Version: * Name: Establish a new property tax classification for properties held in condominium and cooperative form. (S.4371/A.608)
Type: Resolution Status: Filed (End of Session)
Committee: Committee on Finance
On agenda: 4/16/2015
Enactment date: Law number:
Title: Resolution calling upon the New York State Legislature to pass, and the Governor to sign S.4371/A.608, legislation which would establish a new property tax classification for properties held in condominium and cooperative form.
Sponsors: Paul A. Vallone, Costa G. Constantinides, Andrew Cohen
Council Member Sponsors: 3
Attachments: 1. April 16, 2015 - Stated Meeting Agenda with Links to Files

Res. No. 654

 

Resolution calling upon the New York State Legislature to pass, and the Governor to sign  S.4371/A.608, legislation which would establish a new property tax classification for properties held in condominium and cooperative form.

 

By Council Members Vallone, Constantinides and Cohen 

 

Whereas, The New York City Department of Finance (DOF) assesses the value of all properties, collects property taxes and other property-related charges, maintains property records, administers exemptions and abatements and collects unpaid property taxes and other property-related charges through annual lien sales; and

Whereas, Property taxes are the city’s largest revenue source; and

Whereas, According to DOF, property tax represented 41% of all the city tax dollars collected in fiscal year 2013; and

Whereas, Currently, there are four different property tax classes in the city, each pay a different share of property taxes; and

Whereas, Class 1 consists of one- to three-unit residential properties, Class 2 consists of residential properties with more than 3 units, including cooperatives and condominiums, Class 3 consists of utility company equipment and special franchise properties and Class 4 consists of all other real property, including office buildings, factories, stores, hotels and lofts; and

Whereas, In the city, over half a million families reside in Class 2 cooperatives or condominiums; and

Whereas, Families residing in larger Class 2 cooperatives and condominiums are treated differently than families residing in smaller Class 2 cooperatives and condominiums and families residing in Class 1 one- to three-unit residential properties, the latter enjoy more favorable assessment caps; and

Whereas, Assessment caps limit the annual increase in the assessed value of an individual’s property, thereby limiting the amount an individual’s property tax bill may increase in any given year; and

Whereas, Property taxes are assessed differently for cooperatives and condominiums with 10 units or fewer and cooperatives and condominiums with 11 units or more; and

Whereas, State law places a cap on the amount the assessed value of Class 2 cooperatives and condominiums with 10 units or fewer may increase each year, the assessed value cannot increase more than 8% in any one year or 30% in any five years; and

Whereas, While State law allows Class 2 cooperatives and condominiums with 11 units or more to have changes in their assessed value phased in over a five-year period, they do not enjoy a fixed assessment cap like smaller Class 2 cooperatives and condominiums; and

Whereas, S.4371, sponsored by State Senator Toby Ann Stavisky, currently pending in the New York State Senate and A.608, sponsored by State Assembly Member Edward C. Braunstein, currently pending in the New York State Assembly, would establish a new property tax classification, Class 2, consisting solely of properties held in cooperative or condominium form; and

Whereas, Specifically, the legislation would amend the current property tax Class 2 to consist of only cooperatives or condominiums and add a new property tax Class 5 to consist of all residential property that is not classified as Class 1 or Class 2; and

Whereas, Further, the legislation would extend the assessment caps of 8% in any one year and 30% in any five years to all Class 2 properties, including cooperatives and condominiums with 11 units or more; and

Whereas, The legislation would ensure that all cooperatives and condominiums are treated equally for property tax purposes and that larger cooperatives and condominiums do not see dramatic increases in their property taxes in any given year; now, therefore, be it

Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass, and the Governor to sign  S.4371/A.608, legislation which would establish a new property tax classification for properties held in condominium and cooperative form.

 

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LS# 3423

03/18/2015