N.Y. Real Property Tax Law § 1805: Limitation on increases of assessed value of individual parcels

§ 1805. Limitation on increases of assessed value of individual

parcels. 1. The assessor of any special assessing unit shall not

increase the assessment of any individual parcel classified in class one

in any one year, as measured from the assessment on the previous year's

assessment roll, by more than six percent and shall not increase such

assessment by more than twenty percent in any five-year period. The

first such five-year period shall be measured from the individual

assessment appearing on the assessment roll completed in nineteen

hundred eighty; provided that if such parcel would not have been subject

to the provisions of this subdivision in nineteen hundred eighty had

this subdivision then been in effect, the first such five-year period

shall be measured from the first year after nineteen hundred eighty in

which this subdivision applied to such parcel or would have applied to

such parcel had this subdivision been in effect in such year.

If, in respect to any individual parcel classified in class one on the

assessment roll completed and applicable for the year nineteen hundred

eighty-two, the assessment for the year nineteen hundred eighty-one

exceeds by more than twenty percent the assessment for the year nineteen

hundred eighty, such assessor shall compute the actual assessments to be

entered on assessment rolls applicable to the years nineteen hundred

eighty-two through nineteen hundred ninety as follows:

(a) compute the maximum permissible assessments for the years nineteen

hundred eighty-one through nineteen hundred eighty-five pursuant to the

limitations contained hereinabove as if the provisions of this

subdivision were in effect and applicable for assessment rolls prepared

in the year nineteen hundred eighty-one;

(b) subtract the maximum permissible assessment for the year nineteen

hundred eighty-one as computed in paragraph (a) hereof from the actual

assessment entered on the assessment roll completed and applicable for

the year nineteen hundred eighty-one and divide such result by four;

(c) the assessment for the year nineteen hundred eighty-two shall be

the maximum permissible assessment for such year as computed pursuant to

such paragraph (a) minus the quotient determined pursuant to paragraph

(b) hereinabove;

(d) the assessment for the year nineteen hundred eighty-three shall be

the maximum permissible assessment for such year as computed pursuant to

such paragraph (a) minus the quotient determined pursuant to paragraph

(b) hereinabove;

(e) the assessment for the year nineteen hundred eighty-four shall be

the maximum permissible assessment for such year as computed pursuant to

such paragraph (a) minus the quotient determined pursuant to paragraph

(b) hereinabove;

(f) the assessment for the year nineteen hundred eighty-five shall be

the maximum permissible assessment for such year as computed pursuant to

such paragraph (a) minus the quotient determined pursuant to paragraph

(b) hereinabove;

(g) commencing and applicable in the years nineteen hundred eighty-six

through nineteen hundred ninety, the limitations contained hereinabove

shall be computed as measured against the maximum permissible

assessments for the years nineteen hundred eighty-one through nineteen

hundred eighty-five as computed in paragraph (a) hereinabove and as

measured against the actual assessments for the years occurring after

nineteen hundred eighty-five.

2. The assessment roll of a special assessing unit wholly contained

within a city shall identify those parcels classified in class two which

have fewer than eleven residential units. The assessor of any such

special assessing unit shall not increase the assessment of any parcel

so identified in any one year, as measured from the actual assessment on

the previous year's assessment roll, by more than eight percent and

shall not increase such assessment by more than thirty percent in any

five-year period. The first such five-year period shall be measured from

the individual assessment appearing on the assessment roll completed in

nineteen hundred eighty-one provided that, if such parcel would not have

been subject to the provisions of this subdivision in nineteen hundred

eighty-one had this subdivision then been in effect, the first such

five-year period shall be measured from the first year after nineteen

hundred eighty-one in which this subdivision applied to such parcel or

would have applied to such parcel had this subdivision been in effect in

such year.

If, in respect to any parcel so identified on the assessment roll

completed and applicable for the year nineteen hundred eighty-four, the

actual assessment for the year nineteen hundred eighty-three exceeds by

more than thirty percent the assessment for the year nineteen hundred

eighty-one, such assessor shall compute the actual assessments to be

entered on assessment rolls applicable to the years nineteen hundred

eighty-four through nineteen hundred ninety-two as follows:

(a) compute the maximum permissible assessments for the years nineteen

hundred eighty-two through nineteen hundred eighty-seven pursuant to the

limitations contained hereinabove as if the provisions of this

subdivision were in effect and applicable for assessment rolls prepared

in the year nineteen hundred eighty-two;

(b) subtract the maximum permissible assessment for the year nineteen

hundred eighty-two as computed in paragraph (a) hereof from the lesser

of the actual or transition assessment entered on the assessment roll

completed and applicable for the year nineteen hundred eighty-two;

(c) subtract the maximum permissible assessment for the year nineteen

hundred eighty-three as computed in such paragraph (a) from the lesser

of the actual or transition assessment entered on the assessment roll

completed and applicable for the year nineteen hundred eighty-three;

(d) add such results of the computations prescribed by paragraphs (b)

and (c) hereof as are greater than zero and divide such sum by four;

(e) the assessment for the year nineteen hundred eighty-four shall be

the maximum permissible assessment for such year as computed pursuant to

such paragraph (a) minus the quotient determined pursuant to paragraph

(d) hereinabove;

(f) the assessment for the year nineteen hundred eighty-five shall be

the maximum permissible assessment for such year as computed pursuant to

such paragraph (a) minus the quotient determined pursuant to paragraph

(d) hereinabove;

(g) the assessment for the year nineteen hundred eighty-six shall be

the maximum permissible assessment for such year as computed pursuant to

such paragraph (a) minus the quotient determined pursuant to paragraph

(d) hereinabove;

(h) the assessment for the year nineteen hundred eighty-seven shall be

the maximum permissible assessment for such year as computed pursuant to

such paragraph (a) minus the quotient determined pursuant to paragraph

(d) hereinabove;

(i) commencing and applicable in the years nineteen hundred

eighty-eight through nineteen hundred ninety-two, the limitations

contained hereinabove shall be computed as measured against the maximum

permissible assessments for the years nineteen hundred eighty-three

through nineteen hundred eighty-seven as computed in paragraph (a)

hereinabove and as measured against the actual assessments for the years

occurring after nineteen hundred eighty-seven.

3. If the assessment appearing on an assessment roll completed on or

after January first, nineteen hundred eighty-two for any parcel not

subject to the provisions of subdivision one or two of this section,

other than a parcel classified in class three, is greater than the

assessment appearing on the previous year's assessment roll the assessor

shall determine a transition assessment for such parcel for the first

assessment roll on which such greater assessment appears and for each of

the succeeding four assessment rolls by computing the difference between

such greater assessment and the assessment appearing on such previous

year's assessment roll and adding the following percentages of such

difference to the assessment appearing on such previous year's

assessment roll: in the first year, twenty percent; in the second year,

forty percent; in the third year, sixty percent; in the fourth year,

eighty percent; and in the fifth year, one hundred percent. If the

assessment of a parcel is increased during a period for which transition

assessments have been established because of any prior assessment

increases, such new increase shall be phased-in over a five-year period

as set forth in this subdivision, and such phased-in increases shall be

added to the transitional assessments previously established for the

prior increase; provided, however, that if in any year any such

transition assessment exceeds the actual assessment for such year, taxes

imposed on such parcel for such year shall be based on such lesser

actual assessment. Notwithstanding the foregoing, during the period of

any such transition, the assessment roll shall contain an entry of the

full amount of such greater assessment which shall be used by the

commissioner in its determination of class ratios pursuant to paragraph

(b) of subdivision one of section twelve hundred two of this chapter. In

establishing state equalization rates, class equalization rates, special

state equalization rates and special state equalization ratios under

article twelve, article twelve-A and article twelve-B of this chapter,

the commissioner shall use the transition assessments as provided for in

this subdivision in its determinations, or where the actual assessment

is the lesser, such actual assessment shall be so used.

4. Notwithstanding the provisions of subdivision three of this section

no transition assessment shall be computed for any individual parcel for

a year in which subdivision one or two of this section were applicable

to such parcel, nor for any real property owned by the state and which

is subject to taxation pursuant to title two of article five of this

chapter, nor for any real property for which a statute provides that a

state equalization rate or special equalization rate shall be employed

to determine the assessed value or the taxable assessed value.

5. Nothing in this section shall prevent placing on the assessment

roll new property, additions to or improvements of existing property or

formerly exempt property or the full or partial removal from the roll of

property by reason of fire, demolition, destruction or new exemption and

such increase or decrease in value shall not be included in the

computation of the limitations prescribed by this section. Any parcel

which would be assessed at a greater amount but for the provisions of

subdivision one or two of this section shall be excluded from any survey

or computation made by any body or officer for the purpose of

determining a level of assessment to be used in the administrative or

judicial review of assessments including, but not limited to, class

ratios computed pursuant to paragraph (b) of subdivision one of section

twelve hundred two of this chapter, ratios computed by selection of

parcels or from actual sales of real property under the provisions of

subdivision three of section seven hundred twenty of this chapter, and

residential assessment ratios computed pursuant to section seven hundred

thirty-eight of this chapter, but not including state equalization rates

or class equalization rates. In the event that a parcel appearing on the

assessment roll completed in nineteen hundred eighty or any subsequent

roll is subdivided or consolidated with another, such assessor shall

make an appropriate allocation of the assessed value of such parcel in

the determination of the limitations prescribed in this section.

6. Notwithstanding any provision of law to the contrary, in any

special assessing unit wholly contained within a city, beginning with

the assessment roll completed in two thousand five and for each

subsequent assessment roll, the assessor shall not increase the

assessment of any existing property classified in class two that has

fewer than eleven residential units, with respect to any increase in

value attributable to additions to or improvements of such property that

were not reflected on the assessment roll for a previous year, by more

than one-third of the amount that such assessment would increase, in the

absence of this subdivision, with respect to any increase in value

attributable to additions to or improvements of such property that were

not reflected on the assessment roll for a previous year.

Notwithstanding the provisions of subdivision five of this section, the

remainder of the increase in value attributable to such additions or

improvements that were not reflected on the assessment roll for a

previous year shall be subject to the limitations on increases provided

in subdivision two of this section. This subdivision shall not apply to

the construction of a new building or structure. This subdivision shall

not apply where, as a result of such additions to or improvements of the

existing property, there are more than ten residential units in such

property.