Editorials
Board approves resolution to support draft legislation to stop tax breaks for new condo construction
By Lee Chowaniec
Apr 22, 2008, 11:15

Declaring that the Town of Lancaster is committed to fair and equitable assessment practices, the Lancaster Town Board unanimously approved a resolution that unconditionally supports the draft legislation of NYS Senator William Stachowski that would change Section One, subdivision 1 of Section 339-y of the Real Property Law that would allow municipalities a local opt-out for newly constructed condominiums.

Citing that the current NYS Real Property Law language requires condominiums to be assessed at a value substantially less than comparable non-condominium properties, such action disrupts the desire and credibility of local officials to deliver a fair property assessment and tax system.

An individual condo is assessed as an apartment complex and as such carry much lower tax levies (40 percent).

Town Assessor Dave Marrano, as well as many residents living in like associations that do not receive tax breaks, look upon the 339-y perversion as a marketing tool for builders and developers.

They welcomed the resolution proposed by Councilman John Abraham that would memorialize Albany to recommend bill consideration and passage of the Stachowski draft. The resolution also encourages Senator Dale Volker and Assemblyman Dennis Gabryszak to sign on as co-sponsors of the draft legislation.

Senator Stachowski's draft

State Senator, 58th District, William Stachowski is working on a draft of a bill that would provide municipalities an opportunity to opt out of certain provisions relating to newly constructed condominiums.

As it now reads:

Summary of Provisions:

Section 1 amends subdivision 1 of section 339-y of the real property law by adding a new paragraph (g) to extend a local opt out for newly constructed condominiums in municipalities outside of New York City.

Existing Law:

Under current law, condominiums are assessed at lower rates than freestanding homes/structures and municipalities are unable to properly assess properties that apply for lower rates.

Justification:

Under New York State’s real property tax law, assessors must maintain an equitable assessment roll. Current laws undermine the concept of equitable assessments by dictating the use of the income approach when assessing condominiums, precluding the use of other appropriate appraisal methods.

The modern condominium was created to allow the sale and financing of dwelling units in multiple story structures. The condominium addressed issues of ownership rights, governance, operation, maintenance and common areas unique to this type of development.

Contrary to the past construction and development of condominiums, today’s developments of single-family homes are being called condominiums with the sole purpose of getting a tax break.

These developments are indistinguishable from a traditional single-family subdivision. Unlike the traditional subdivision, full ownership rights extend beyond the unit’s exterior to the entire single-family home and lot.

Common area is minimal and in some cases limited to the street. The necessity for condominium ownership due to building style is lost. In its current form, the law legislates inequity, and ignores the concept of home rule.

This fair and simple solution, to extend the local opt out provisions in real property law for condominium conversions in municipalities outside of New York City to any new build condominium will allow a municipality to choose what type of assessment should correctly apply to a newly built structure.

There would be no fiscal implications to New York State, but would be favorable to local municipal governments.




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