Bill Text: NY A05598 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to the assessment of real property; provides that the assessed valuation of real property used for residential rental purposes may be determined using the actual net income; makes related provisions.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2020-07-16 - held for consideration in real property taxation [A05598 Detail]

Download: New_York-2019-A05598-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5598
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 13, 2019
                                       ___________
        Introduced  by  M.  of  A.  MANKTELOW  -- Multi-Sponsored by -- M. of A.
          HAWLEY, McDONOUGH -- read once and referred to the Committee  on  Real
          Property Taxation
        AN ACT to amend the real property tax law, in relation to the assessment
          of residential real property
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 581-a of the real property tax  law,  as  added  by
     2  chapter 714 of the laws of 2005, is amended to read as follows:
     3    §  581-a. Assessment of residential real property. Notwithstanding any
     4  other provision of law, the assessed valuation of real property used for
     5  residential rental purposes where at least twenty percent of  the  resi-
     6  dential  units  are  subject  to  an  agreement with a municipality, the
     7  state, the federal government,  or  an  instrumentality  thereof,  which
     8  agreement  restricts  occupancy of those units to tenants who qualify in
     9  accordance with an income test, [shall]  may  be  determined  using  the
    10  income  approach  as  applied  to the actual net operating income, after
    11  deducting for reserves required  by  any  federal,  state  or  municipal
    12  programs.  For the purposes of this section "net operating income" shall
    13  mean the actual or anticipated net income that remains after all operat-
    14  ing expenses are deducted from effective gross income, but before  mort-
    15  gage debt service and book depreciation are deducted. The assessed valu-
    16  ation of real property used for such residential rental purposes [shall]
    17  may  be  determined  using the actual net operating income, and, if such
    18  option is exercised, shall  not  include  federal,  state  or  municipal
    19  income  tax  credits,  subsidized mortgage financing, or project grants,
    20  where such subsidies are used to offset the project development cost  in
    21  order  to  provide  for lower initial rents as determined by regulations
    22  promulgated by the division of housing and community renewal.
    23    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08942-01-9