New York City Council Header
File #: Res 1524-2000    Version: * Name: Real Property Tax Law
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 9/13/2000
Enactment date: Law number:
Title: RESOLUTION AMENDING AND RESTATING THE RESOLUTION COMPUTING AND CERTIFYING BASE PERCENTAGE, CURRENT PERCENTAGE AND CURRENT BASE PROPORTION OF EACH CLASS OF REAL PROPERTY FOR FISCAL 2001 TO THE STATE BOARD OF REAL PROPERTY SERVICES PURSUANT TO SECTION 1803-a, REAL PROPERTY TAX LAW
Sponsors: Herbert E. Berman, Sheldon S. Leffler
Council Member Sponsors: 2
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
9/13/2000*Herbert E. Berman City Council Approved, by CouncilPass Action details Meeting details Not available
9/13/2000*Herbert E. Berman City Council Referred to Comm by Council  Action details Meeting details Not available
9/13/2000*Herbert E. Berman City Council Introduced by Council  Action details Meeting details Not available
9/13/2000*Herbert E. Berman Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
9/13/2000*Herbert E. Berman Committee on Finance P-C Item Approved by CommPass Action details Meeting details Not available
R E S O L U T I O N N O. 1524 By Council Member Berman; also Council Member Leffler Title RESOLUTION AMENDING AND RESTATING THE RESOLUTION COMPUTING AND CERTIFYING BASE PERCENTAGE, CURRENT PERCENTAGE AND CURRENT BASE PROPORTION OF EACH CLASS OF REAL PROPERTY FOR FISCAL 2001 TO THE STATE BOARD OF REAL PROPERTY SERVICES PURSUANT TO SECTION 1803-a, REAL PROPERTY TAX LAW Body Whereas, on March 24, 2000, the State Board of Real Property Services (the "SBRPS") certified the final state equalization rate, class ratios and class equalization rates for the City's Fiscal 2001 assessment rolls, required by Article 18, Real Property Tax Law; Whereas, Section 1803-a (1), Real Property Tax Law, requires the Council to compute and certify, to the SBRPS, for each tax levy, the base percentage, the current percentage and the current base proportion of each class of real property in the City subsequent to the date on which the SBRPS files with the Clerk of the Council a certification setting forth the final state equalization rate, class ratios and class equalization rates for the City's Fiscal 2001 assessment rolls, pursuant to Section 1212, Real Property Tax Law; Whereas, on June 6, 2000, the Council adopted a resolution computing and certifying the base percentage, current percentage and current base proportion of each class of real property for Fiscal 2001 to the State Board of Real Property Services pursuant to Section 1803-a, Real Property Tax Law (the?June 6th Resolution?); Whereas, the June 6th Resolution reflects a 5.0 percent cap on any increase in the current base proportion for any class of real property, as compared with the previous year?s adjusted base proportion; and Whereas, after the adoption of the June 6th Resolution, Section 1803-a, Real Property Tax Law, was amended to lower the percent of increase in the current base proportion as compared with the previous year?s adjusted base proportion to 2.0 percent; NOW, THEREFORE, be it resolved by The Council of The City of New York as follows: Section 1. Computation and Certification of Base Percentages, Current Base Percentages and Current Base Proportions for Fiscal 2001. (a) The Council hereby computes and certifies the base percentage, the current percentage and the current base percentage for the City's Fiscal 2001 assessment rolls as shown on SBRPS Form RP-6700, attached hereto as Exhibit A and incorporated herein by reference (the "CBP Certificate"). (b) The Clerk of the Council is hereby authorized and directed to execute the CBP Certificate and to file it with the SBRPS after the date on which the SBRPS filed with the Clerk of the Council a certification setting forth the final state equalization rate, class ratios and class equalization rates for the City's Fiscal 2001 assessment rolls, pursuant to Section 1212, Real Property Tax Law. Section 2. Effective Date. This resolution shall take effect as of the date hereof. REPORT OF THE COMMITTEE ON FINANCE FINANCE DIVISION HAEDA MIHALTSES, DIRECTOR RESOLUTION AMENDING AND RESTATING THE RESOLUTION COMPUTING AND CERTIFYING BASE PERCENTAGE, CURRENT PERCENTAGE AND CURRENT BASE PROPORTION OF EACH CLASS OF REAL PROPERTY FOR FISCAL 2001 TO THE STATE BOARD OF REAL PROPERTY SERVICES PURSUANT TO SECTION 1803-a, REAL PROPERTY TAX LAW Introduction. Section 1803-a, a Real Property Tax Law, requires the City Council to certify to the State Board of Real Property Services (the "SBRPS") certain calculations used in the process of updating the class shares from the previous year. These calculations are made every year by the Council to reflect the following changes in each class of real property: a. Changes in the market value of taxable real property (as determined by SBRPS sample studies), b. Physical changes as a result of new construction or demolitions, c. Changes in taxable status, and d. Transfers of real property among the four classes of real property as a result of changes in use or for other reasons. Under SBRPS regulations, the Council must update the class shares by making two separate certifications. The action to be taken in the above-referenced resolution constitutes the first step of establishing the class shares of the four classes of taxable real property in the City to which the tax levy for the Fiscal 2001 budget will be applied. The purpose of this step is to give effect to the latest class equalization rates required by Article 18, Real Property Tax Law. Using these rates, new estimates of market values for each class are calculated. The second step, certifying the "adjusted base proportions", is the subject of a separate resolution that takes account of all the changes that are included in the final assessment roll, after Tax Commission review of taxpayer protests. Attached hereto, as Exhibit A, are definitions of terms that are used in the analysis below. Analysis. The class equalization rates described above produce a prospective current base proportion which shows increases in Classes 1, 2 and 3 above the Fiscal 2001 adjusted base proportions, or "class shares" (as shown in column R of SBRPS Form RP-6700 attached to the above-captioned resolution), and a 2.71 percent decrease for Class 4. However, under the amendment to state law recently enacted, if the increase in any class exceeds 2 percent, the Council is directed to shift the excess (and only the excess) to any other class or classes as long as the shift does not cause the current base proportion of any other class to increase by more than the 2 percent limit. In the above-captioned resolution, the excess above 2 percent from Classes 1 and 3 would be shifted to Class 4. As shown below, despite the shift of the excesses from Classes 1 and 3 to Class 4, the current base proportion for Class 4 is still 1.8 percent below the Fiscal 2000 class share: Class Percent Change Before Shifting Excess to Class 4 Percent Change After Shifting Excess to Class 4 |1013| +2.69 +2.00 |1013| +1.12 +1.12 |1013| +6.60 +2.00 |1013| - 2.71 - 1.76 However, these "current base proportions" must still be adjusted for the physical changes and transfers among classes which are contained in the final assessment roll. These adjustments will be made in a separately amended and restated resolution constituting the Council's second step. The "adjusted base proportions" thus derived will be the class shares used for allocating the real property tax levy for Fiscal 2001. -2- EXHIBIT A "Class equalization rate" represents the percentage that the total assessed value of each class is of the market value of the class, as shown in SBRPS sample studies. "Base percentage" represents the percentage of total market value that each class constitutes in the 1989 base tax roll. The 1989 base tax roll is the one which was used in setting the tax levy for Fiscal 1990. "Current percentage" is similar to the base percentage, but applies to the most recent year for which the SBRPS has established class equalization rates (in this case, the 1999 tax roll). "Local base proportions" are the class tax shares used to fix the tax rates for Fiscal 1991. "Current base proportions" are the local base proportions modified to take into account the market value changes revealed by the latest class equalization rates.