NY State Senate Bill 2013-S7855

Senate Bill S7855

2013-2014 Legislative Session

Provides for the levy and extension of real property taxes on class 4 property in the county of Nassau

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 14, 2014	referred to rules

2013-S7855 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Real Property Tax Law
Laws Affected:: Amd §706, RPT L; add §6-41.0, Chap 272 of 1939

2013-S7855 (ACTIVE) - Summary

Provides for the levy and extension of real property taxes on class 4 property in the county of Nassau; and 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.

2013-S7855 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7855

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

PURPOSE:

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.

JUSTIFICATION:

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.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

This legislation will have no fiscal impact on the State.

EFFECTIVE DATE:


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.

2013-S7855 (ACTIVE) - Bill Text download pdf

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

                                  7855

                            I N  S E N A T E

                              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 SPECIAL

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

                                                           LBD15608-01-4

S. 7855                             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 TEN PERCENT OF A PROPER-
TY'S  ASSESSMENT  ON THE FINAL ASSESSMENT ROLL TAXES SHALL BE LEVIED AND
EXTENDED ON THE TAX ROLL EQUAL TO  NINETY  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 TEN 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. 7855                             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.

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