2023 New York Laws › RPP - Real Property › Article 9-B - Condominium Act › 339-Y - Separate Taxation.

§  339-y.  Separate  taxation.  1.  (a)  With  respect to all property
submitted to the provisions of this article other than property which is
the subject of a qualified leasehold  condominium,  each  unit  and  its
common interest, not including any personal property, shall be deemed to
be  a parcel and shall be subject to separate assessment and taxation by
each assessing unit, school district, special district, county or  other
taxing  unit, for all types of taxes authorized by law including but not
limited to special ad valorem levies  and  special  assessments,  except
that  the  foregoing  shall  not  apply  to  a  unit held under lease or
sublease unless the declaration requires the unit owner to pay all taxes
attributable to his unit. Neither the building, the property nor any  of
the common elements shall be deemed to be a parcel.
(b)  In  no  event  shall the aggregate of the assessment of the units
plus their common interests exceed the total valuation of  the  property
were the property assessed as a parcel.
(c) For the purposes of this and the next succeeding section the terms
"assessing  unit",  "assessment",  "parcel",  "special ad valorem levy",
"special assessment", "special district", "taxation" and  "taxes"  shall
have  the  meanings  specified  in  section  one hundred two of the real
property tax law.
(d) The provisions of paragraph (b)  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 the real property tax law;
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  the  real
property  tax  law,  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 the real
property tax law; provided, however, that, in an approved assessing unit
which adopted the provisions of section one thousand nine hundred  three
of  the  real  property  tax  law  prior  to  the effective date of this
subdivision, paragraph (b) 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 the real property tax law 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 (b) shall not apply to such real property to which this clause
applies.  Provided  further,  however,  real  property  subject  to  the
provisions   of   this   subparagraph  shall  be  assessed  pursuant  to
subdivision two of section five hundred eighty-one of the real  property
tax law.
(e)  On  the  first  assessment  roll with a taxable status date on or
after the effective date of  a  declaration  filed  with  the  recording
officer  and  on  every  assessment  roll thereafter, the assessor shall
enter each unit as a parcel,  as  provided  in  paragraph  (a)  of  this
subdivision, based upon the condition and ownership of each such unit on
the  appropriate  valuation  and  taxable status dates. Units owned by a
developer may be entered as a single parcel with  a  parcel  description
corresponding  to  the entire development, including the land under such
development, and excluding those units appearing  separately.  Upon  the

first  assessment  roll  where each unit is separately assessed, only an
individual unit and its common interest shall constitute a parcel.
(f)  The  provisions  of  paragraph  (b) 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 (b) of this subdivision shall  not  apply  to  a
converted   condominium   unit  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 (b) of this subdivision.
(g)  The  provisions  of  paragraph  (b) 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 (b) 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  (b)   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. With respect only to qualified leasehold condominiums:
(a) Each  unit,  its  common  interest,  not  including  any  personal
property,  and  the  proportionate  undivided  part of the real property
which is the  subject  of  a  qualified  leasehold  condominium  and  is
allocated  to  such  unit  (as  expressed  in the declaration), shall be
deemed to be a parcel, shall be subject to separate  assessment  to  the
unit  owner  and  shall  be  subject to taxation by each assessing unit,
school district, special district, county or other taxing unit  for  all
types  of taxes authorized by law including, but not limited to, special
ad valorem levies and special assessments.  Neither  the  real  property
which is the subject of a qualified leasehold condominium, the building,
the  property  nor  any  of  the common elements shall be deemed to be a
parcel. In no event shall the aggregate of the assessment of  the  units
plus their common interests plus their proportionate undivided parts (as
expressed  in  the  declaration)  of said real property exceed the total
valuation of the property and said real property assessed  as  a  single
parcel  owned  in fee. No provision of this paragraph shall be deemed to
subject to taxation any  parcel  or  part  thereof  which,  pursuant  to
applicable  law, is either exempt from taxation or with respect to which
no taxes are payable.
(b) For the purposes of section five hundred two of the real  property
tax law, both the unit owner and the owner of the real property which is
the  subject  of a qualified leasehold condominium shall be deemed to be
the owner of the parcel  in  which  such  unit  is  included;  provided,
however, that for the purposes of section nine hundred twenty-six of the
real  property tax law, only the unit owner shall be deemed the owner of
the parcel in which such unit is included and only the unit owner  shall
be  personally liable for the payment of any taxes assessed against such

parcel. Only the fee owner of  the  land  which  is  the  subject  of  a
qualified  leasehold  condominium,  however,  shall  be deemed to be the
owner of the parcel in which a unit is  included  for  the  purposes  of
determining whether such parcel is subject to or exempt from taxation or
whether no taxes are payable with respect thereto.
(c)  The taxes assessed against each unit, its common interest and the
proportionate undivided part of the real property which is  the  subject
of  a  qualified  leasehold  condominium  allocated  to  such  unit  (as
expressed in the declaration), shall constitute a lien  solely  on  that
unit,  its  common interest and the proportionate undivided part of said
real property allocated to such unit (as expressed in the  declaration),
and  such  taxes  shall  not  constitute a lien on any other unit or the
common interest of any other unit or the proportionate undivided part of
said real property allocated to any other  unit  (as  expressed  in  the
declaration).
(d)  At  such  time  as  the  real  property which is the subject of a
qualified leasehold condominium is submitted to the provisions  of  this
article,  the  assessing  unit  shall  make  provision  so that the real
property  which  (i)  is  not  the  subject  of  a  qualified  leasehold
condominium  and  (ii) immediately prior to such submission was included
in a parcel in which there also was included all or any part of the real
property which  is  (immediately  subsequent  to  such  submission)  the
subject of a qualified leasehold condominium, is established as a single
parcel  on  the  assessment  roll  and  tax  map of such assessing unit,
separate and apart from any real property which  is  the  subject  of  a
qualified leasehold condominium.
3.  All  provisions  of  a  declaration relating to a unit, its common
interest and the proportionate undivided part of the real property which
is the subject of a qualified leasehold condominium  allocated  to  such
unit  (as  expressed  in the declaration), which has been sold for taxes
shall survive and shall be enforceable after the issuance of a tax  deed
for  such  unit  to  the  same  extent  that  such  provisions  would be
enforceable against a voluntary grantee of such unit  immediately  prior
to the delivery of such tax deed.
4.  The  board  of managers may act as an agent of each unit owner who
has given his written authorization to seek administrative and  judicial
review  of an assessment made in accordance with subdivision one of this
section, pursuant to title one-A  of  article  five  and  title  one  of
article  seven  of  the real property tax law. The board of managers may
retain legal counsel on behalf of all unit owners for which it is acting
as agent and to charge  all  such  unit  owners  a  pro  rata  share  of
expenses,  disbursements  and  legal fees for which charges the board of
managers  shall  have  a  lien  pursuant  to   section   three   hundred
thirty-nine-z.
5. Notwithstanding the provisions of any general, special or local law
to  the  contrary, in a city having a population of one million or more,
the board of managers shall be authorized to act as the  sole  agent  on
behalf of all unit owners, without authorization of each unit owner, for
the limited purpose of determining whether or not to waive prospectively
the  benefit  of  real  property  tax  abatement  and  exemption for the
property in order to qualify for a partial abatement  of  real  property
taxes  pursuant  to  section  four  hundred  sixty-seven-a  of  the real
property tax law.