N.Y.C. Admin. Code § L.L. 1998/036: L.L. 1998/036

Enactment date: 8/31/1998

Int. No. 348

Introduced by the Speaker (Council Member Vallone) and Council Members Berman, Spigner, Robles, Eisland, Michels, O'Donovan, Duane, Ognibene, Koslowitz and Leffler; also Council Member Carrion.

A Local Law to set the current base proportions for fiscal year 1999 as required by paragraph (h) of subdivision 1 of section 1803-a of the real property tax law.

Be it enacted by the Council as follows:

Section 1. Legislative Intent. In accordance with state law and the City Charter, on June 8, 1998, the City Council adopted a resolution (Resolution No. 330) fixing the property tax rates for each of the four classes of real property (the "Tax Fixing Resolution"). The first step in the process of fixing the tax rates is the calculation of the current base proportions. The purpose of this calculation is to give effect to the latest class equalization rates required by Article 18 of the Real Property Tax law. By using these rates, new estimates of market values for each class are thereby calculated. This year's current base proportion was first determined by the City Council pursuant to a resolution (Resolution No. 214) adopted on April 28, 1998 (the "CBP Resolution"). The second step in the process of fixing the tax rates is the calculation of the adjusted base proportion. This calculation, which takes into account all the changes in real property that are included in the final assessment roll, was determined by the City Council pursuant to a resolution (Resolution No. 291) adopted on June 4, 1998 (the "ABP Resolution").

Since the adoption of the CBP Resolution, the ABP Resolution and the Tax Fixing Resolution, the State has amended the real property tax law pursuant to Chapter 229 of the Laws of 1998. The amendment requires adoption of a local law altering the current base proportions in the event that the current base proportion for any class of property exceeds the previous fiscal year's adjusted base proportion for that class by more than 2.5 percent (the "Cap Bill"). The current base proportions for Class One and Class Three contained in the CBP Resolution exceeded the City's Fiscal Year 1998 adjusted base proportions for Class One and Class Three by more than 2.5 percent. The Cap Bill therefore requires that the current base proportions for the Fiscal Year 1999 be altered by local law to ensure that they do not exceed the adjusted base proportion for Fiscal Year 1998 by more than 2.5 percent. In addition, the state law requires that any excess over the 2.5 percent be redistributed to the other classes of real property. In order to continue the City Council's commitment to reducing the inequitable tax burden on cooperative apartment and condominium owners and to reduce the high tax burden on rental property, this local law distributes the excess in Class One and Class Three to Class Four.

§ 2. The current base proportions for the city's fiscal year 1999 are hereby calculated as follows:

Certificate of Base Percentages, Current Percentages and Current Base Proportions for the City of New York Pursuant to Article 18, RPTL, for the Levy of Taxes on the 1998 Assessment Roll

SECTION I Determination of Estimated Market Values

Class

(A) 1989 Taxable Assessed Value

(B) 1989 Class Equalization Rate

(C) Estimated Market Value A/(B/100)

1

$7,995,107,684

9.10

$87,858,326,198

2

19,169,173,444

45.84

41,817,568,595

3

7,366,591,774

37.98

19,395,976,235

4

35,523,026,877

39.69

89,501,201,504

Total

$70,053,899,779

$238,573,072,532

Section II Determination of Base Percentages

Class

(D) Change in Taxable Assessed Value Between 1989 and 1990 Rolls for Parcels Transferred Out of Class

(E) Change in Taxable Assessed Value Between 1989 and 1990 Rolls for Parcels Transferred Into Class

(F) 1990 Change in Level of Assessment Factor for Special Assessing Unit Class

(G) Adjustment Factor for Class Change ((E/F) -D)/A)+1

(H) Adjusted Market Value (C*G)

(I) Base Percentage (H/sum of H)*100

1

$19,354,077

$228,360,245

1.0149

1.0257224246

90,118,255,366

37.5640

2

237,975,755

329,398,302

1.0932

1.0033042596

41,955,744,698

17.4884

3

1,368,298,335

0

0.9738

0.8142562562

15,793,294,995

6.5831

4

419,700,459

1,581,850,826

1.1086

1.0283531598

92,038,843,371

38.3645

Total

$239,906,138,430

SECTION III Determination of Current Percentages

Class

(J) 1997 Taxable Assessed Value

(K) 1997 Class Equalization Rate

(L) Estimated Market Value J/(K/100)

(M) Current Percentages (L/Sum of L)*100

1

$9,164,443,908

7.48

$122,519,303,583

43.5489

2

$24,228,838,780

40.83

$59,340,775,851

21.09248

3

$6,548,868,883

43.88

$14,924,496,087

5.3048

4

$36,078,590,308

42.67

$84,552,590,363

30.0538

Total

$76,020,741,879

$281,337,165,884

SECTION IV Determination of Current Base Proportions

Class

(N) Local Base Proportion

(O) Updated Local Base Proportion N*(M/I)

(P) Prospective Current Base Proportion Column (O) Prorated to 100.00

(Q) Adjusted Base Proportion Used for Prior Tax Levy

(R) Percent Difference Between Prior Year Adjusted Base Proportion and Prospective Current Base Proportion ((P/Q)-1)*100

(S) Maximum Current Base Proportion (Q*1.025)

(T) Current Base Proportions for 1998 Roll

1

10.9181

12.6575

13.52835

12.7296

6.27475

13.0478

13.0478

2

25.7608

31.0696

33.20697

33.9203

-2.10296

34.7683

33.2070

3

10.3385

8.3310

8.90411

6.8740

29.53317

7.0459

7.0459

4

52.9826

41.50353

44.36057

46.4761

-4.55197

47.6380

46.6993

Total

100.0000

93.5635

100.00000

100.0000

100.0000

§ 3. Pursuant to paragraph (h) of subdivision one of section 1803-a of the real property tax law, and as reflected in the calculation set forth in section two above, the current base proportions for the city's fiscal year 1999 are hereby determined to be as follows: for Class One: 0.130478; for Class Two: 0.332070; for Class Three: 0.070459; and for Class Four: 0.466993. As required by paragraph (h), the sum of these numbers equals one. For purposes of this local law, the current base proportion shall mean the current base proportion calculated pursuant to section 1803-a of the real property tax law, as amended by Chapter 229 of the Laws of 1998.

§ 4. This local law shall take effect immediately.