Assembly Bill A7095

                                BILL NUMBER:A7095                REVISED 3/10/10

TITLE  OF BILL:   An act to amend the real property tax law, in relation
to the eligibility of persons residing in property owned  by  a  limited
partnership to seek small claims assessment review

PURPOSE  OR  GENERAL  IDEA OF BILL: The purpose of this bill is to allow
municipal corporations limit the maximum allowable assessment  reduction
in Small Claims Assessment Review (SCAR) proceedings for properties that
are worth over one million dollars.

SUMMARY  OF  SPECIFIC  PROVISIONS:   Section one amends paragraph (c) of
subdivision 1 of section 730 of the  Real  Property  Tax  Law  to  allow
municipal  corporations  to pass a local law that would limit the amount
by which an assessment could be reduced in SCAR proceedings for  proper-
ties  worth  over  one million dollars. The limitations prescribed would
be:

a. 25% of the threshold assessed value, plus

b. Five percent of the amount by which  the  challenged  assessed  value
exceeds the threshold assessed value.

For  the  purposes  of this section "threshold assessed value" means the
assessed value that  equates  to  an  equalized  value  of  one  million
dollars.
              

JUSTIFICATION:    The  initial  intent of Small Claims Assessment Review
(SCAR) was to provide to homeowners seeking small  refunds  an  informal
and  inexpensive  venue for tax grievances. SCAR provides an alternative
to Supreme Court, mitigating  the  need  for  legal  representation  and
adherence  to  higher  standards  of disclosure and evidence. Due to the
informal nature of SCAR and its intent to  provide  modest  refunds,  it
originally  had  a  maximum  tax  refund  limit of $750. This tax dollar
refund limitation was later eliminated and replaced by the current limi-
tation of 25% of  the  assessed  valuation  for  properties  worth  over
$450,000.

High-end  properties, while still residential, often are more complex to
assess than a typical one, two or three-family residence. The complexity
of their valuation and the minimum supporting  evidence  required  in  a
SCAR  proceeding,  make it difficult to properly adjudicate such claims.
In some cases the maximum reduction allowed, 25% of the assessed  value,
is  sought  and  granted  without  sufficient  justification - some with
corresponding tax reductions as high as $50,000. Because SCAR  does  not
provide  the  opportunity for a municipality to appeal a ruling, munici-
palities are at a disadvantage when it comes to defending their assessed
values, even when high refunds are at stake.

This  bill  would  provide  an  additional  limitation  on  the  maximum
reductions  allowed  in  SCAR  proceedings  for  properties worth over a
million dollars. In doing so, Small Claims Assessment Review  would,  as

originally  intended,  provide homeowners seeking modest refunds an easy
and expeditious grievance venue. Large sum  reductions  would  be  arbi-
trated  in tax certiorari proceedings. Homeowners of high-end properties
could  still utilize SCAR; they simply would be limited in the amount of
a reduction they could receive.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None to State

EFFECTIVE DATE: Immediately