Bill Text: NY A04838 | 2021-2022 | 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 7-0)

Status: (Introduced - Dead) 2022-05-10 - held for consideration in real property taxation [A04838 Detail]

Download: New_York-2021-A04838-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4838

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    February 8, 2021
                                       ___________

        Introduced  by  M.  of  A.  MANKTELOW  --  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.
                                                                   LBD08457-01-1