Loading...
187.2023 Res. Supporting Legislation Allowing Towns to Assess Condominiums for Current Market Value RESOLUTION SUPPORTING LEGISLATION ALLOWING TOWNS THE OPTION TO ASSESS ALL NEWLY CONSTRUCTED CONDOMINIUMS IN A MANNER THAT REFLECTS MOST CURRENT MARKET VALUE RESOLUTION NO.: 187,2023 INTRODUCED BY: Mr. Timothy McNulty WHO MOVED ITS ADOPTION SECONDED BY: Mr.Anthony Metivier WHEREAS, in 1975, the New York State Real Property Tax Law §306 directed that, "All real property in each assessing unit shall be assessed at the full value thereof," and WHEREAS, residential condominium units in some municipalities incur less taxes than those of comparably priced homes under conventional forms of property ownership pursuant to the provisions of Real Property Tax Law §581.1(a) ("RPTL") which governs how condominium units are assessed for tax purposes, and WHEREAS, pursuant to the provisions of RPTL, §581.1(a) does not apply to a "converted condominium" unit in a municipal corporation which has adopted, prior to the taxable status date of the assessment roll upon which its taxes will be levied, a local law providing that the provisions of § 581.1(a) shall not apply to converted condominium units, and WHEREAS, the Queensbury Town Board believes that it is in the best interests of its municipalities to have the option to exempt "newly constructed" condominiums from the provisions of RPTL §581.1(a) in the same manner that RPTL §581.1(c) provides an exemption for converted condominiums, and WHEREAS, because of its attractive location, many towns are popular destinations for those seeking second homes, most of which would be characterized as expensive, and are intentionally condominimized by developers seeking preferential tax treatment, which shifts the tax burden to other residential property owners, often those who can least afford it, and WHEREAS, the New York State Assessors Association has a longstanding voice expressing support for a change in the methodology for condominium valuation for the purposes of taxation to reflect current market values, similarly to that of residential properties, and supports legislation that will allow municipalities to assess newly constructed condominiums to reflect the most current market values, and WHEREAS, condominiums are currently valued based on a restricted methodology that has no resemblance to market value, and WHEREAS, the Town of Queensbury seeks an amendment to RPTL §581.1(a) or legislation authorizing a Home Rule request or any other New York State legislation that would permit municipalities to opt for the ability to exempt "newly constructed" condominiums from the provisions of RPTL §581.1(a), and WHEREAS, as the New York State's Attorney General's Office states that a condominium(condo) is a single real estate unit in a multi-unit development in which an owner has both of the following: 1) separate (individual) ownership of a unit; and 2) undivided interest in the common elements of the building, and WHEREAS, Syracuse.com reported that, "One condo in Skaneateles sold for $2.2 million. It was assessed and taxed as if it were worth just$464,000,"and WHEREAS, legislation was introduced and passed in both houses to amend the RPTL (Assembly Bill A3491B and Senate Bill 55946), in relation to the taxation of property owned by a cooperative corporation and such legislation, passed by both houses of the New York 2 State Legislature, amended RPTL §581 allowing municipalities, if they choose, to treat future residential condominiums assessment based on market value, the same as for single family residential assessments, and WHEREAS, in December, 2022, Governor Hochul vetoed legislation that would have brought greater equity in the assessment of residential housing and would generate more revenue, and WHEREAS, Governor Hochul signed a law that enabled the Town of Greenburgh to tax future condominium construction as residential properties, and WHEREAS, there are many towns in New York, like Greenburgh, that have spent considerable time and money to assess properties at 100% equalization levels, and WHEREAS, the Town of Queensbury wishes to assure real property tax equity for all forms of housing in the Town, and WHEREAS, the Town of Queensbury supports legislation that would close the door on homebuilders who wish to seek unfair market advantages for their expensive homes classified as condominiums and giving big tax breaks to owners of big suburban homes classified as condominiums, and WHEREAS, the current law enables significant tax breaks for the owners of condominiums, often very expensive condominiums, and are tax breaks that all other property owners must burden, making single family homes, for example, more expensive to own, and school and local government tax burdens greater for single family homeowners, and WHEREAS, the Town of Queensbury also wishes to deter Town residential developers from abusing the current law and give significant tax breaks to expensive homeowners at the expense of the creation of more affordable homeowners, and 3 WHEREAS, the original bill, that was vetoed by the current Governor, would have allowed municipalities to decide for themselves if they wish to maintain the current condominium loophole or opt out,thus maintaining New York's long tradition of Home Rule, and WHEREAS, the Town of Queensbury's choice to abandon the Condominium loophole law would be in accordance with New York State's Municipal Home Rule Law §10, and WHEREAS, according to the Lake George Mirror, "It is estimated that under current law, condo owners' county, town and school tax bills are 30 to 40% less than what they ought to be—leaving other property owners to make up the difference," NOW, THEREFORE, BE IT RESOLVED, that the Town of Queensbury wishes to have the same ability to have the option of assessing condominiums and cooperatives the same as single family housing based on market values which would provide more equity in taxation and fairness in assessment,and therefore hereby requests Governor Kathy Hochul to support legislation that will allow Towns the option to assess all newly constructed condominiums in a manner that reflects the most current market value, and BE IT FURTHER, RESOLVED, that the Queensbury Town Board further authorizes and directs the Town Supervisor to send a certified copy of this Resolution to Governor Kathy Hochul, Senator Daniel Stec, Assemblywoman Carrie Woerner and Assemblyman Matthew Simpson and take such other and further actions as may be necessary to effectuate the terms of this Resolution. 4 Duly adopted this 15t'day of May, 2023,by the following vote: AYES Mr. Strough, Mr. Metivier, Mr. Freer, Mr. McNulty NOES None ABSENT: Mr. Ferone 5