Condo Property Taxes

Under New York’s Real Property Law, specifically Article 9-B – Condominium Act, Section 339-Y, the assessment process for condominiums differs from that of other properties:

  1. Complex Valuation: According to this law, a condominium complex is assessed as a single entity, similar to commercial apartment buildings. Instead of valuing each unit individually based on its market value, the entire complex is valued as one property.
  2. Unit Allocation: Once the total value of the complex is determined, this value is distributed among the individual units based on their share of ownership in the common areas. This process results in an assessed value for each unit.
  3. Assessment Impact: This method can lead to a condominium unit’s assessed value being lower than its market selling price. The assessment reflects the value of the whole complex rather than the specific market conditions of individual units.
  4. Historical Context: Enacted in 1983, Real Property Law 339-Y has not been amended despite efforts to update it. Therefore, the valuation method for condominiums remains based on assessing the entire complex.

For property owners or buyers who believe their condominium’s assessment does not match its market value, it is important to review how the complex was valued and how the unit’s share was calculated. The appeal process through the local assessor’s office can be followed if adjustments are needed.

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