senate Bill S1785

Provides for small claims assessment review in certain instances

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Provides for small claims assessment review in certain instances where the assessment was overvalued at least ten percent.

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Bill Details

Versions:
S1785
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยงยง730 & 733, RPT L
Versions Introduced in 2011-2012 Legislative Cycle:
S6748

Sponsor Memo

BILL NUMBER:S1785

TITLE OF BILL: An act to amend the real property tax law, in relation
to small claims

PURPOSE: To require a threshold for petitioners in small claims
assessment review procedures must meet.

SUMMARY OF PROVISIONS:

Section 1. Requires that the petitioner show that there was an
overvaluation of at least 10% in their petition for a small claims
assessment review.

Section 2. If the petitioner shows a 10 percent overvaluation in the
petition, but fails to prove the overvaluation the judge does not have
to reduce the assessment.

JUSTIFICATION: Local governments are expanding resources for small
claims assessment review cases in which the overvaluation of the
assessment is nominal. Local government are already under enormous
fiscal constraints, that expending resources for cases which have no
merit is wasteful. Adopting a model like New Jersey, where there is
threshold to have the case heard and for an reduction in assessment,
would prevent frivolous cases from being filed. This bill will provide
mandate relief to local governments by saving them time and resources.

LEGISLATIVE HISTORY: 2012- S.6748 - Referred to Local Government

FISCAL IMPLICATIONS: Needs to be determined.

EFFECTIVE DATE: Effective Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1785

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax law, in relation to small claims

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subdivision 1 of section 730 of the real property tax law,
as amended by chapter 552 of the laws of 1991, paragraph (b) as  amended
by  chapter 154 of the laws of 1993, paragraph (c) as amended by chapter
215 of the laws of 2005 and the closing paragraph as  added  by  chapter
114 of the laws of 2012, is amended to read as follows:
  1.  The  chief  administrator  of  the  courts shall establish a small
claims assessment review program in the supreme court. An owner of  real
property  claiming  to be aggrieved by an assessment on real property on
the ground that such assessment is unequal or excessive may file a peti-
tion for review pursuant to this article provided that:
  (a) the property owner shall have first filed a complaint pursuant  to
section  five  hundred  twenty-four or section fourteen hundred eight of
this chapter or the provisions of a local law or charter  providing  for
administrative review of assessments;
  (b)  the  property  is:  (i)  improved  by  a one, two or three family
owner-occupied structure used exclusively for residential purposes other
than property subject to the  assessment  limitations  of  section  five
hundred  eighty-one of this chapter and article nine-B of the real prop-
erty law or (ii) the property is unimproved and  is  not  of  sufficient
size  as  determined  by the assessing unit or special assessing unit to
contain a one, two or three family residential structure;
  (c) the equalized value of the property does not exceed  four  hundred
fifty  thousand  dollars  or,  in the event such equalized value exceeds
four hundred fifty thousand  dollars,  the  total  assessment  reduction

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05320-01-3

S. 1785                             2

requested  does  not exceed twenty-five percent of the assessed value of
the property; [and]
  (d)  the  petition  shall  not  request  an assessment lower than that
requested in the complaint filed pursuant to section five hundred  twen-
ty-four or fourteen hundred eight of this chapter or the provisions of a
local  law  or  charter  providing  for administrative review of assess-
ments[.]; AND
  (E) THE PETITION SHALL ESTABLISH THAT THE PROPERTY IS OVERVALUED BY AT
LEAST TEN PERCENT FROM THE EQUALIZED VALUE AS APPEARING ON  THE  ASSESS-
MENT ROLL. THE PETITIONER SHALL SUBMIT SUPPORTING DOCUMENTATION WITH THE
PETITION.
  For  the  purpose of this section, the equalized value of the property
shall equal the assessed value of  the  property  divided  by  the  most
recent  equalization  rate  or, in the case of a special assessing unit,
the most recent class one ratio, when established. In  the  event  there
has been a material change in the level of assessment the special equal-
ization rate shall be used to determine the equalized value of the prop-
erty.
  An  owner  of real property who qualifies under paragraphs (a) through
(d) of this subdivision shall also include:
  (i) a person or persons whose real property is held  in  trust  solely
for  the benefit of such person or persons if the property serves as the
primary residence of such person or persons and the  trust  which  holds
title  to  the  property  was  lawfully created to hold title solely for
estate planning and asset protection purposes; and
  (ii) a person or persons who reside in real property which is owned by
a limited partnership if the property serves as the primary residence of
such person or persons and said limited partnership does not  engage  in
any  commercial  activity, was lawfully created to hold title solely for
estate planning and asset protection purposes and the partner  or  part-
ners who primarily reside thereon personally pay all of the real proper-
ty taxes and other costs associated with the property's ownership.
  S  2.  Section 733 of the real property tax law is amended by adding a
new subdivision 4-a to read as follows:
  4-A. IF THE PETITIONER FAILS TO PROVE THAT THERE IS  AN  OVERVALUATION
THAT EXCEEDS TEN PERCENT, THE HEARING OFFICER MAY NOT ADJUST THE ASSESS-
MENT AND THE PETITION MUST BE DISMISSED.
  S 3. This act shall take effect immediately.

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