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 White Plains, NY - The Business Council of Westchester (BCW), the county’s largest and most influential business organization, has called for the defeat of the commercial assessment ratio bill by the New York State Senate on the grounds that this legislation will unjustifiably shift the tax burden from single family homeowners to commercial property tax owners and the owners of condominiums and cooperatives in Westchester County.
This proposed law (A.4588A-Bradley/S.1706-AOppenheimer) will drastically and detrimentally modify the assessment methodology for commercial property which includes residential cooperative and condominium properties within its definition. Instead of being taxed on the same proportionate share of market value as a single family homeowner, commercial property owners will pay a higher proportionate share of value, much to their prejudice, resulting in higher real estate taxes being paid by this sector.
The legislation passed the Assembly last week and has been delivered to the Senate. The bill applies only to commercial property in Westchester County.
“We oppose this legislation because it will put Westchester at a competitive disadvantage with neighboring counties because of the higher real estate taxes that commercial property owners will have to pay,” remarked Christopher O’Callaghan, senior director of Cushman & Wakefield and chairman of the Business Council’s Board of Directors. “Higher taxes mean higher rent for tenants and another incentive to move out of Westchester. This will have a ripple effect throughout the Westchester economy.”
The bill will also be a disincentive for companies to invest in Westchester real estate since they will not be able to attain the same return on investment as they will be able to obtain elsewhere.
Affordable housing is another sector of the economy that will be adversely impacted by this legislation. “Cooperatives and condominiums represent both introductory and affordable housing for many families,” noted Dr. Marsha Gordon, President and CEO of The Business Council of Westchester. “They provide a first ownership step for many. This bill will increase real estate taxes so substantially so that many families will be priced out of this market, making affordable housing even more difficult to find.”
The shift in tax burden from single family homeowners to commercial property owners does so in violation of existing law which provides that, except in certain circumstances, not present here, all properties are to be assessed at a uniform percentage of value. In fact, municipalities can deal with inequalities in valuations under existing law by conducting a revaluation of all property and adopting the homestead provisions of the law. Moreover, the rapid appreciation of real estate values in the residential market compared to the commercial market, which caused an artificial over-assessment of commercial property according to the supporters of this legislation, is no longer the case given current market conditions.
The consequences of this legislation, both intended and unintended, are detrimental to a broad segment of Westchester’s economy and housing markets and must be defeated.
The Business Council of Westchester is urging its 1,200-business membership and the business community at large to take action immediately by visiting its online Advocacy Center at voteforwestchesterny.org. There, businesspeople can click on “Take Action Now” to contact their State senator and Governor Paterson to tell them that they oppose the Commercial Assessment Property Ratio bill (S.1706-A).
About The Business Council of Westchester
The county’s largest and most influential business membership organization, The Business Council of Westchester is committed to helping businesses market, learn, advocate and grow. In addition, The Business Council of Westchester is actively involved in reviewing federal, state and county legislation and regulations in order to assess the potential impact on the business community and to influence the outcomes through advocacy when the business community’s interests may be affected. It also acts as an information resource for the business community and government leaders at all levels.
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Just so you know, when all of us hardworking people leave, we just might burn the entire place down. That's not a threat, that's a metaphor.