The New York Assessment Anomaly: Valuation Following Condominium Conversion

Thursday, January 1st, 1987 at 12:00 am by David B. Soleymani
David B. Soleymani, The New York Assessment Anomaly: Valuation Following Condominium Conversion, 1987 Colum. Bus. L. Rev. 733

This increasing trend toward conversion has provoked much interest as to the proper valuation standard to be applied in determining a unit owner’s real property tax burden. Whereas the valuation of a newly constructed condominium is readily calculable from construction cost and sales price data, conversion raises the issue of whether the building’s previous taxation rate while a rental apartment complex should be reassessed in order to reflect the market value of the condominiums. Continued assessment of the building as a rental complex effectively disregards the change in the form of ownership inherent in conversion projects, and results in markedly lower valuations.

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