N.Y. Real Property Tax Law § 581: Assessment of residential cooperative, condominium and rental property

§ 581. Assessment of residential cooperative, condominium and rental

property. 1. (a) Notwithstanding any other provision of law, real

property owned or leased by a cooperative corporation or on a

condominium basis shall be assessed for purposes of this chapter at a

sum not exceeding the assessment which would be placed upon such parcel

were the parcel not owned or leased by a cooperative corporation or on a

condominium basis.

(b) The provisions of paragraph (a) of this subdivision shall not

apply to such real property classified within:

(i) on and after January first, nineteen hundred eighty-six, class one

of section one thousand eight hundred two of this chapter; or

(ii) on and after January first, nineteen hundred eighty-four, the

homestead class of an approved assessing unit which has adopted the

provisions of section one thousand nine hundred three of this chapter,

or the homestead class of the portion outside an approved assessing unit

of an eligible split school district which has adopted the provisions of

section nineteen hundred three-a of this chapter; provided, however,

that, in an approved assessing unit which adopted the provisions of

section one thousand nine hundred three of this chapter prior to the

effective date of this subdivision, paragraph (a) of this subdivision

shall apply to all such real property (i) which is classified within the

homestead class pursuant to paragraph one of subdivision (e) of section

one thousand nine hundred one of this chapter and (ii) which, regardless

of classification, was on the assessment roll prior to the effective

date of this subdivision unless the governing body of such approved

assessing unit provides by local law adopted after a public hearing,

prior to the taxable status date of such assessing unit next occurring

after December thirty-first, nineteen hundred eighty-three, that such

paragraph (a) shall not apply to such real property to which this clause

applies.

(c) The provisions of paragraph (a) of this subdivision shall not

apply to a converted condominium unit in a municipal corporation, other

than a special assessing unit, which has adopted, prior to the taxable

status date of the assessment roll upon which its taxes will be levied,

a local law or, for a school district, a resolution providing that the

provisions of paragraph (a) of this subdivision shall not apply to

converted condominium units within that municipal corporation. A

converted condominium unit for purposes of this paragraph shall mean a

dwelling unit held in condominium form of ownership that has previously

been on an assessment roll as a dwelling unit in other than condominium

form of ownership, and has not been previously subject to the provisions

of paragraph (a) of this subdivision.

(d) The provisions of paragraph (a) of this subdivision shall not

apply to real property owned or leased by a cooperative corporation or

on a condominium basis in the Town of Greenburgh, in Westchester County,

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 paragraph (a) of this subdivision shall not apply to such

real property within such town; provided, however, the provisions of

this paragraph shall not apply to real property owned or leased by a

cooperative corporation or on a condominium basis that had been

previously subject to the provisions of paragraph (a) of this

subdivision prior to January first, two thousand twenty-three; provided

further, however, the provisions of this paragraph shall not apply to

real property owned or leased by a cooperative corporation or on a

condominium basis that is participating in an affordable housing tax

credit program or has a regulatory agreement with a federal, state, or

local agency related to affordable housing requirements.

2. Real property owned or leased by a cooperative corporation or on a

condominium basis which is located in an approved assessing unit, or

which is not located in an approved assessing unit but which is located

in an eligible split school district which has adopted the provisions of

section nineteen hundred three-a of this chapter, and is not subject to

the provisions of paragraph (a) of subdivision one of this section,

shall be assessed pursuant to the provisions of this subdivision.

(a) The assessor of an assessing unit in which such real property is

located shall compute an assessment which would be placed on such parcel

were the parcel not owned or leased by a cooperative corporation or on a

condominium basis, which value shall be known as the restricted assessed

valuation.

(b) The assessor of such assessing unit in which such real property is

located shall compute an assessment which would be placed on such parcel

without regard to the restrictions found in paragraph (a) of this

subdivision or section three hundred thirty-nine-y of the real property

law, which value shall be known as the assessed valuation.

(c) The assessor of such assessing unit shall enter the assessed

valuation on the assessment roll of such assessing unit and the

restricted assessed valuation in a separate column of the assessment

roll of such assessing unit.

(d) A municipal corporation which levies taxes pursuant to article

nineteen of this chapter shall levy such taxes against the assessed

valuation of such parcels for taxes imposed by or on behalf of such

municipal corporation.

(e) A municipal corporation which does not levy taxes pursuant to

article nineteen of this chapter shall levy such taxes against the

restricted assessed valuation of such parcels for taxes levied by or on

behalf of such municipal corporation.

3. Notwithstanding any other provision of law, real property occupied

for residential purposes on a rental basis (as distinct from a

cooperative or condominium basis) shall be assessed without regard to

the value the property might have if converted to a cooperative or

condominium basis or if sold or owned for the purpose of such a

conversion.

4. For the purposes of this section, the term "cooperative

corporation" shall include any corporation organized under any special

or general law of this state, including, but not limited to, the

business corporation law, the cooperative corporations law, the

not-for-profit corporation law, and the private housing finance law, or

the predecessor statutes thereof, primarily for providing housing

accommodations to its stockholders or members and which is, or is to be,

operated for the benefit of the persons or families who are entitled to

occupancy by reason of ownership of stock or membership in the

corporation.