After decades of work, advocacy, phone calls, letters, emails, and meetings with countless state representatives, the “Condo Bill” has passed both chambers of the New York State Legislature. The bill will be sent to Gov. Kathy Hochul for her signature.
Assembly bill A3491B, sponsored by Assemblymember Sandy Galef, was passed on March 29, 2022. Senate bill S5946B, sponsored by Sen. Elijah Reichlin-Melnick, passed on June 2, 2022.
Condominiums and cooperatives across New York State currently receive preferential tax treatment. They are being assessed as income-producing properties, which they are not, and bear no relationship to the properties’ market value. Assessors and appraisers also cite the difficulties they encounter when they are forced to ignore market information – usually the best indicator of value in developing estimates of taxable value.
This practice tends to reduce condominium and cooperative assessments and unfairly limits the revenue-raising abilities of local governments. All properties should be assessed using the same methodologies. This legislation would allow municipalities to value newly constructed and converted cooperative and condominium units as they would other real property to alleviate any negative tax impacts placed on the locality by the current statute.
“This bill goes a long way toward rectifying what we call the condo loophole,” NYSAA Executive Director Warren J. Wheeler, IAO, said. “It gives municipalities the option of assessing condos at full market value instead of as rental properties. I want to thank Assemblymember Galef, Senator Reichlin-Melnick, NYSAA Legislative Committee Chair Maggie Alix, and NYSAA Legislative Liaison Scott Shedler, IAO for their tireless efforts to get this bill passed in both chambers.”
This bill would apply to assessment rolls prepared on the basis of taxable status dates occurring on or after January 1, 2023. It is awaiting delivery to the governor.
Source: New York State Assessor’s Association