Provides for the levy and extension of real property taxes on class 4 property in the county of Nassau; provides for the uniting of property owners for the review of the assessment of real property of the same class in special assessing units that are not cities.
TITLE OF BILL:
An act to amend the real property tax law, in relation to review of assessments in special assessing units which are not cities; and to amend the Nassau county administrative code, in relation to the levy and extension of real property taxes on class four real property
Provides for the establishment of a disputed assessment fund for commercial property assessment disputes in Nassau County and to authorizes commercial property owners in Nassau County asserting the same grounds for review to unite in the same petition
SUMMARY OF PROVISIONS:
Section one amends Real Property Tax Law (RPTL) § 706(2) to provide that in a special assessing unit as defined by RPTL § 1801, which is not a city, two or more persons having real property assessed upon the same roll, in the same class, who assert the same ground for review may unite in the same petition.
Section two creates a new section 6-41.0 in the Nassau County Administrative Code. This section provides for a two-step process for commercial property assessment disputes and requires that all payments towards the disputed assessment fund be administered in the same manner as Nassau County real property taxes. It also provides that any refund of real property taxes owed to a class four property owner as a result of a settlement or final decision from a court of competent jurisdiction on a Real Property Tax Law Article 7 Title 1 proceeding or reduction granted by Nassau County's Assessment Review Commission will be paid from the disputed assessment fund. Any funds that remain thereafter shall be distributed pro rata to the county and the applicable school district, town and special districts.
Section three provides that if any portion of this act is found invalid, the remainder shall remain.
Section four provides the effective date.
Prior to 2006, it was the practice of commercial property owners in Nassau County, in the same class of real property, to file a united petition under RPTL Article 7 when the same grounds for review were asserted This process is for practical purposes limited to commercial properties, as residential owners typically file petitions through the Small Claims Assessment Review (SCAR) as the filing costs a fraction of the price. The practice of uniting petitions for commercial properties was discontinued in 2007. This discontinuation has led to an increased number of separate claims being immediately noticed for trial, causing congestion in the court calendars.
In 2012, with the consent of Nassau County, the practice of filing united petitions was again resumed by property owners. As a result,
the amount of matters being notice for trial have decreased, allowing for courts to more effectively manage their calendars. This legislation would codify this practice. This bill is revenue neutral, as property owners first pay court filing fees for the filing of a united petition, and then a second separate filing fee is paid either when each individual property is placed on the court calendar, or when a settlement agreement is achieved with the municipality. The bill also obligates property owners who filed a united petitions to provide an electronic copy thereof to the municipality. This will allow the municipality to more effectively process data concerning tax appeal filings and has been negotiated with and is supported by the affected municipality.
This bill would also create a fund to pay class four tax certiorari refunds in Nassau County through a two-step process. First, for class four properties only, taxes would be levied and extended on the assessments contained on the final assessment roll unless a timely tax certiorari proceeding was initiated on a property. If a timely tax certiorari proceeding was initiated on a class four property, taxes would be levied and extended on the assessment claimed in such tax certiorari proceeding except as described below. Second, a charge will be levied and extended based on the difference between the property's assessment on the final assessment roll and the assessment the property owner claimed in the tax certiorari proceeding, provided that the claimed reduction in assessment does not exceed nine percent of the property's assessment on the final assessment roll unless the assessor in his or her discretion determined based on reasonable evidence to levy and extend taxes based on a claimed reduction greater than nine percent. If the petitioner claims a reduction greater than nine percent of the property's assessment on the final assessment roll, taxes will be levied and extended on ninety one percent of the property's assessment on the final assessment roll unless the assessor in his or her discretion determines based on reasonable evidence to levy and extend taxes based on a claimed reduction greater than nine percent. Such difference in the assessment on the tax roll and the assessment on the final assessment roll will be multiplied by the applicable tax rates to calculate the charge to fund the disputed assessment fund.
Each year, commercial property owners in Nassau County generate $60-80 million in tax certiorari refunds. The disputed assessment fund aims to maintain the costs of these refunds on commercial property owners, protect homeowners by ending their subsidy of commercial property owners' refunds and end borrowing by the County to pay property tax refunds. This legislation has been introduced for comment purposes.
This legislation will have no fiscal impact on the State.
This act will take effect immediately with section one applying to real property with a taxable status date on or after January 1, 2013, section two shall apply to real property taxes and other amounts levied and extended based on the 2016/2017 tax roll and each tax roll thereafter.
STATE OF NEW YORK ________________________________________________________________________ 7856 IN SENATE June 14, 2014 ___________Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the real property tax law, in relation to review of assessments in special assessing units which are not cities; and to amend the Nassau county administrative code, in relation to the levy and extension of real property taxes on class four real property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 706 of the real property tax law, as amended by chapter 714 of the laws of 1982, is amended to read as follows: 2. A proceeding to review an assessment shall be founded upon a peti- tion setting forth the respect in which the assessment is excessive, unequal or unlawful, or the respect in which real property is misclassi- fied and stating that the petitioner is or will be injured thereby. Such petition shall be duly verified by the petitioner, an officer thereof, or by an agent thereof who has been authorized in writing to verify and file such petition and whose authorization is made a part of such peti- tion. Such petition must show that a complaint was made in due time to the proper officers to correct such assessment. Two or more persons having real property assessed upon the same roll who assert the same grounds for review presenting a common question of law or fact, may unite in the same petition; PROVIDED, HOWEVER, THAT IN A SPECIAL ASSESS- ING UNIT, AS DEFINED IN SECTION EIGHTEEN HUNDRED ONE OF THIS CHAPTER, WHICH IS NOT A CITY, TWO OR MORE PERSONS HAVING REAL PROPERTY ASSESSED UPON THE SAME ROLL, IN THE SAME CLASS OF REAL PROPERTY AS DEFINED IN SECTION EIGHTEEN HUNDRED TWO OF THIS CHAPTER, WHO ASSERT THE SAME GROUNDS FOR REVIEW, MAY WITHOUT CONDITION OR LIMITATION UNITE IN THE SAME PETITION. S 2. Chapter 272 of the laws of 1939, constituting the Nassau county administrative code, is amended by adding a new section 6-41.0 to read as follows: S 6-41.0 LEVY AND EXTENSION OF TAXES; CLASS FOUR REAL PROPERTY. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, IN A SPECIALEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15217-07-4 S. 7856 2
ASSESSING UNIT WHICH IS NOT A CITY, ALL REAL PROPERTY TAXES ON REAL PROPERTY CLASSIFIED AS CLASS FOUR UNDER SECTION EIGHTEEN HUNDRED TWO OF THE REAL PROPERTY TAX LAW ON THE FINAL ASSESSMENT ROLL SHALL BE LEVIED AND EXTENDED IN THE FOLLOWING MANNER: A. SUCH TAXES SHALL BE LEVIED AND EXTENDED ON EACH PROPERTY'S ASSESS- MENT ON THE FINAL ASSESSMENT ROLL EXCEPT AS PROVIDED IN THIS SECTION. WHERE A TIMELY PROCEEDING UNDER TITLE ONE OF ARTICLE SEVEN OF THE REAL PROPERTY TAX LAW HAS BEEN INITIATED THE ASSESSED VALUE UPON WHICH TAXES ARE LEVIED AND EXTENDED SHALL BE THE ASSESSMENT CLAIMED ON THE PETITION INITIATING SUCH TIMELY PROCEEDING; PROVIDED HOWEVER, THAT WHERE SUCH TIMELY PETITION CLAIMS A REDUCTION GREATER THAN NINE PERCENT OF A PROP- ERTY'S ASSESSMENT ON THE FINAL ASSESSMENT ROLL TAXES SHALL BE LEVIED AND EXTENDED ON THE TAX ROLL EQUAL TO NINETY-ONE PERCENT OF SUCH PROPERTY'S ASSESSMENT ON THE FINAL ASSESSMENT ROLL UNLESS THE ASSESSOR IN HIS OR HER DISCRETION BASED ON REASONABLE EVIDENCE DETERMINES THAT IT IS IN THE BEST INTEREST OF THE COUNTY TO LEVY AND EXTEND TAXES BASED ON A CLAIMED REDUCTION GREATER THAN NINE PERCENT SUCH THAT TAXES SHALL BE LEVIED AND EXTENDED BASED ON SUCH REDUCED ASSESSMENT. B. EACH PROPERTY WHERE TAXES ARE LEVIED AND EXTENDED BASED ON THE ASSESSMENT CONTAINED IN A PETITION PURSUANT TO TITLE ONE OF ARTICLE SEVEN OF THE REAL PROPERTY TAX LAW AS PROVIDED FOR IN SUBDIVISION A OF THIS SECTION SHALL BE RESPONSIBLE FOR PAYING A DISPUTED ASSESSMENT CHARGE. THE AMOUNT OF SUCH DISPUTED ASSESSMENT CHARGE SHALL BE DETER- MINED NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY BY SUBTRACT- ING THE ASSESSMENT ON THE TAX ROLL UPON WHICH TAXES WERE LEVIED AND EXTENDED FROM THE PROPERTY'S ASSESSMENT ON THE FINAL ASSESSMENT ROLL WITH THE DIFFERENCE THEN MULTIPLIED BY THE TAX RATES APPLIED TO THE ASSESSMENT ON THE TAX ROLL UPON WHICH TAXES WERE LEVIED AND EXTENDED. SUCH DISPUTED ASSESSMENT CHARGE SHALL BE CALCULATED, COLLECTED AND ADMINISTERED IN THE SAME MANNER AS NASSAU COUNTY REAL PROPERTY TAXES. C. THE DISPUTED ASSESSMENT CHARGE SHALL APPEAR AS A SEPARATE ITEM ON THE BILL SUBMITTED TO PROPERTY OWNERS BY EACH RECEIVER OF TAXES. THE REVENUES FROM SUCH CHARGES SHALL BE PLACED IN A SPECIAL REVENUE FUND HEREBY ESTABLISHED AS THE DISPUTED ASSESSMENT FUND WHICH SHALL BE MAIN- TAINED AND ADMINISTERED BY THE NASSAU COUNTY TREASURER. THE MONIES IN SUCH FUND SHALL BE USED SOLELY FOR THE PURPOSES SPECIFIED IN THIS SECTION. D. REFUNDS OF REAL PROPERTY TAXES ON CLASS FOUR PROPERTIES RESULTING FROM A SETTLEMENT OR FINAL ORDER FROM A COUNT OF COMPETENT JURISDICTION ON A PETITION PURSUANT TO TITLE ONE OF ARTICLE SEVEN OF THE REAL PROPER- TY TAX LAW OR A DETERMINATION OR STIPULATION BY THE ASSESSMENT REVIEW COMMISSION SHALL BE PAID FROM THE DISPUTED ASSESSMENT FUND. E. ANY MONIES PAID INTO THE DISPUTED ASSESSMENT FUND WITH RESPECT TO A PROPERTY REMAINING AFTER PROCEEDINGS UNDER TITLE ONE OF ARTICLE SEVEN OF THE REAL PROPERTY TAX LAW HAVE BEEN SETTLED OR OTHERWISE FINALLY DETER- MINED BY A COURT OF COMPETENT JURISDICTION OR THE ASSESSMENT REVIEW COMMISSION SHALL BE DISTRIBUTED PRO RATA TO THE COUNTY AND THE APPLICA- BLE SCHOOL DISTRICT, TOWN AND SPECIAL DISTRICTS. F. THE LEVY AND EXTENSION OF TAXES BASED ON THE PETITION INITIATING A TIMELY PROCEEDING AS PROVIDED IN SUBDIVISION A OF THIS SECTION SHALL NOT AFFECT THE APPLICATION OF ANY OTHER PROVISION OF LAW EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION. S 3. Severability. If any provision of this act or if any application thereof to any person or circumstances is held invalid, the remainder of this act and the application of the provision to other persons and circumstances shall not be affected thereby.S. 7856 3
S 4. This act shall take effect immediately and: (a) section one of this act shall apply to real property with a taxa- ble status date on or after January 1, 2013; and (b) section two of this act shall apply to real property taxes and other amounts levied and extended based on the 2016--2017 tax roll and each tax roll thereafter.