HomeMy WebLinkAboutReal Property Tax Law JUDITH T. TERRY
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
SI)~ ~:K'COU~NTy
Southotd, L. I., N. Y. 119'/1
TELEPHONE
(516) 765-1801
May 28, 1981
Honorable Kenneth P. LaValle
New York State Senator
Senate Chambers
The Capitol
Albany, New York 12224
Dear Senator LaValle:
Transmitted herewith is a resolution adopted by
the Southold Town Board on May 26, 1981 concerning
Senate bill no. 6617/Assembly bill no. 8542, entitled
"AN ACT to amend the real property tax law, in relation
to establishing a standard of assessment for the tax-
ation of real property and providing for alternative
systems of assessment to be adopted by assessing units."
Please-note that the Town Board is very much in
favor of this legislation, but Urges that the effective
date under Section 308 be 180 days.
Very truly yours,
Judith T. Terry
Southold Town Clerk
Enclosure
cc: Assessor Chairman Moisa
T. J. Ryan, Suff. Co. Real Property
Tax Service Agency
JUDITH T. TERRY
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
Southold, L. I., N. Y. 11971
TELEPHONE
(516) 765-1801
May 28, 1981
Honorable John L. Behan
New York State Assemblyman
Assembly Chambers
The Capitol
Albany, New York 12224
Dear Assemblyman Behan:
Transmitted herewith is a resolution adopted by
the Southold Town Board on May 26, 1981 concerning
Senate bill no. 6617/Assembly bill no. 8542, entitled
"AN ACT to amend the real property tax law, in relation
to establishing a standard of assessment for the tax-
ation of real property and providing for alternative
systems of assessment to be adopted by assessing units."
Please note that the Town Board is very much in
favor of this legislation, but urges that the effective
date under Section 308 be 180 days.
Very truly yours,
Judith T. Terry
Southold Town Clerk
Enclosure
cc: Assessor Chairman Moisa
T. J. Ryan, Surf. Co. Real Property
Tax Service Agency
JUDITH T. TERRY
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
Southold, L. I., N. Y. 11971
TELEPHONE
(516) 765-1801
May 28, 1981
To:
Supervxsor Raymond C. Allmendinger
Supervisor Joel L. Lefkowitz
Supervisor Mary A. Fallon
Supervisor Kenneth C. Butterfield
Supervxsor Michael A. LoGrande
Supervisor Joseph F. Janoski
Supervisor M. Barbara Keyser
Supervxsor Patrick R. Vecchio
Supervisor Martin Lang
From: Judith T. Terry, Southold Town Clerk
Transmitted herewith is a resolution adopted by the
Southold Town Board on May 26, 1981 concerning Senate
bill no. 6617/Assembly bill no. 8542, entitled "AN
ACT to amend the real property tax law, in relation
to establishing a standard of assessment for the tax-
ation of real property and providing for alternative
systems of assessment to be adopted by assessing units."
Please note that the Town Board is very much in favor
of this legislation, but urges that the effective date
under Section 308 be 180 days.
K
JUDITH T. TERRY
TOWN CLERK
REGISTRAR OF VITAL STATISTICS
Southold, L. I., N. Y. 11971
TELEPHONE
(516) 765-I801
THE FOLLOWING RESOLUTION WAS ADOPTED BY THE SOUTHOLD TOWN BOARD
AT A REGULAR MEETING HELD ON MAY 26, 1981:
WHEREAS, there is before the New York State Legis-
lature Senate bill no. 6617/Assembly bill no. 8542,
entitled "AN ACT to amend the real property tax law,
in relation to establishing a standard of assessment
for the taxation of real property and providing for
alternative systems of assessment to be adopted by
assessing units", and
WHEREAS, the Town Board of the Town of Southold favors
said bill as it affords local governments a large
measure of home rule by providing that the local
legislative body of each assessing unit adopt one
of three specified alternative systems of assessment
in accordance with local needs and objectives, now,
therefore, be it
RESOLVED that the Town Board of the Town of Southold
supports Senate bill no. 6617/Assembly bill no. 8542,
BUT strongly urges that Section 308. Alternative
Assessment Systems, read: "Within 180 days after the
effective date of this section ..... ".
S. 6617
STATE OF NEW YORK
19a1-1,g2Re,ularSessi } ,AYI81981
TOWN OF SOUTHOLD
~ay 13, 1981
IN SENATE--Introduced by COMMITTEE ON RULES--read twice and ordered
printed, and when printed to be committed to the Committee on Rules
IN ASSEmBLY--Introduced by COMMITTEE O~ RULES--read once and referred to
the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to establishing a
standard of assessment for the taxation of real property and providing
for alternative systems of assessment to be adopted by assessing Units
The Pegp~ of the g~e~e o£ New York, repre~ee~ed in Senate end Assem-
bly, do enact ss follows)
1 Section 1, Section three hundred six of the reel property rex law is
2 RI~PEALED and a new section three hundred five is added to_ read as
3 follows:
5 ciasa shall be assessed a~ a uniform percentage of value. For the put-
7 m~n~ecordjace w~th the oyatem o~ assessment ~elected u~de~
10 by a local lestala~tve body by adoption o~ a [oral [aw implementinR the
14 provided {or in aubdivi~ion three o~ ae~[ion three hundred ei~h[
EXPLANATION--Had:er in italics (underscored) is new; matter in brackets
[ ]-'-{~d law to be omitted.
LBD1-62-22-881.3
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S. 661~ 2 A. 8542
§ 2. Such law is amended by adding a new section three hundred eight
to read as follows: ~
§ 308. Alternative assessmeni systems. 1] Within ninety days after the
effective date of this section~ the local legislative body of every as-
sessing unit shall adopt by local law a system of assessment in accord-
ance with subdivision two~ three, or four of this section.
2f' Classification assessment system. Such local legislative body may
adopt and amend local laws providing for the classification and subclas-
sification of real property including~ but not limited to~ residential
and commercial classes and for the assessment of property at a uniform
percentage of value for each such class or subclass. The total of such
classes and subclasses shall not exceed eight~ except that in a city
having a population of one million or more the total of such cla~ses and
subclasses shall not exceed fourteen.
3. Uniform assessment system with permissive homestead exemption. Such
local legislative body~ except within a city having a population of one
million or more~ may adopt and amend local laws providing for the as-
sessment of all real property within the assessing unit at a uniform
percentage of value; provided~ however, that owner-occupied one~ two and
three family residences may be exempted by such legislative body from
taxation to the extent of not more than twenty-five per centum of either
(a) the average assessed value of all such residences~ or (b) the as-
sessed value of each such residence. Such local legislative body may
provide within any such local law for the inclusion of cooperatives and
condominiums within the coverage of such homestead exemption.
4. Legalization and ratification of existing assessment practices.
Such local legislative body may adopt and amend local laws~ legalizingm
ratifyingI confirming, validating and continuing in full force and ef-
fect the classes of real property within the meaning of such term as
provided for in subdivision (c) of section three hundred five of this
chapter and the percentage of value at which each such class is
assessed. Such classes and ,percentages may be proven the same as any
o~her quedtion of fact in any appropriate 3udicial proceeding, including
tax certiorari proceedings pursuant to article seven of this chapter.
5. Subject to the exception with respect to a city having a populatio~
of one million or more contained within subdivision three of this sec-
tion~ a local legislative body may adopt at any time after the effec-
tive date of this section the system of assessment provided for in sub-
division two or three of this section in lieu of the assessment system
initially adopted in accordance with the provisions of subdivision one
hereof.
§ 3. Such law is amended by adding a new section three hundred nine to
read as follows:
§ 309. Transitional provisions for certain residential assessments. 1.
Notwithstanding any provision of this chapter or any other provision of
law to the contrary, the taxes and special ad valorem levies to be
levied upon each eligible parcel of leal property in an assessing unit
which has adopted a system of assessment provided in either subdivision
two or three of section three hundred eight of this chapter shall be the
lesser of: (a) the tax and special ad valorem levies determined by mul-
tiplying the tax rate established by each taxin~ ~urisdiction for such
eligible parcel by the assessed value of such parcel; or (b) the as-
sessed value of such parcel for the tax year immediately preceding the
year in which this section is implemented divided by the total assessed
value of the taxable real property in the taxing 3urisdiction for such
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S. ~617 3 A. 8542
year and multiplied by the total real property tax levied,in such juris-
diction for the year for which the tax should be imposed.
2. Notwithstanding any provision of this chapter or any other provi-
sions of law to the contrarym an eligible parcel in an assessin~ unit
which has adopted the system of assessment provided in subdivision four
of section three hundred eight of this chapter shall be exempt from rea]
property taxes and special ad valorem levies to the extent of any in-
crease in the assessed value thereof occurrin8 on or after the effective
date of this section,
3. For the purposes of this section an elisible parcel of rea]
property shall be a parcel which on the effective date of this section
was improved by an owner-occupied one} two or three family residence and
which has not under~one a transfer of title subsequent to such effectiv~
date. The local legislative body may by local law apply the provision~
of this section to cooperative and condominium forms of ownership.
4. The state board of equalization and assessment ~s hereby authorized
to promulgate rules and regulations to effectuate the provisions of this
section including a method for exclusion of improvements made to eligi-
ble parcels after the effective date of this section from the transi-
tional provisions of this section.
5. Nothing herein contaimed shall be deemed to repeal or otherwise im-
pair or diminish any existing exemption or abatement from real property
taxation or special ad valorem levies provided for in this chapter or in
any other law.
§ 4. Section seven hundred six of such law, as amended by chapter four
hundred thirty-eight of the laws of nineteen hundred seve~ty-s~ven, is
amended to read as follows:
§ 706. Contents of petition. A proceeding to review an assessment
shall be founded upon a petition setting forth that the assessment is
illegal, specifying the grounds of the alleged illegality, or if er-
roneous by reason of overvaluation ~ or misclassificatlon where
applicable, stating the extent of such overvaluation or the proper clas-
sification or subclassification~ as the case may be, or if unequal in
that the assessment has been made at a higher proportionate valuation
than the assessment of other real property of the same class or subclass
on the same roll by the same officers, 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 petition. 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 are affected in the same manner by the alleged ille-
gality, error or inequality, may unite in the same petition. For the
purposes of this section~ the term "class or subclass" shall have the
same meaning ascribed to such term in section three hundred five of this
chapter.
§ 5. If any clause, sentence, paragraph, subdivision, section or part
of this act shall be adjudged'by any court of competent jurisdiction to
be invalid, such judgment shall not affect, impair or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, subdivision, section or part thereof directly in-
volved in the controversy in which such judgment shall have been
rendered. It is hereby declared to be'the intent of the legislature that
S. 6617 , . 4 A. 8542
1 this act would have been enacted even if such invalid provisions had not
2 been included herein.
3 § 6. This act shall take effect immediately.
4 REPEAL NOTE.--Section three hundred six of the real property tax law
5 proposed to be repealed by section one of this act relates to the stan-
6 dard of assessment for the taxation of real property.
S.6617
TITLE OF BILL:
b!AY I 8 1981
....
AN ACT to amend the rem property t=x law, in relation to estabLL4~l;aad_a~_cJ:o~
assessment for the t~r<ation of real property and providi,hg for alternative systems
assessment to be adopted by assessing units.
PURPOSE OF BILL:
The primary purpose of this bill is t6 prevent massive shifts in the property tsx
burden from business to residential prop&rt5} owners. This shift is presently
mandated by the. Court of Appeals' HeLierstein decision which ~equires all p{~oparty
within the. state to be assessed at full value. The present bill prevents this shirt by
repealing such existing full value standard of assessment. Further, the bill 'affords
~ 2,.
local governments a large measure of home rule by providin~ that the local
legislative body of each assessing unit adopt one of three specified alternative ..'
systems of assessment in accordance with local needs and objectives.
SUMMARY _O.F PROVISIONS:
1. Section 306 of the Real Property Tax Law, which requires all real property to
be assessed at its full value, is repealed.
A new standard of assessment is provided, requiring that real property of the
same class or subclass be as/sessed at a uniform percentage of v~ue. "Class
or subclass" is defined accor?ing to which of the three alternative systems of
assessment is adopted. ,
The legislative body of each assessing unit is required within ninety days o[ the
effective date of the bill to adopt b>' local law one of the three systems of
assessmeats provided. The three systems are:
a. Classification. All real property is classified or s[:bc!as'}if[ed, and such
classes or subclasses must include, but are not limited to, residential and
Orig. -
Rio
Ji '
commercial. All real property in each clfss or subclass is assessed at a
uniform percentage of value. The total numbA_r of classes and subclasses
cannot exceed eight, except in a city with a. populatlon of one million or
more, where it cannot exceed fourteen.
Uniform assessment with permissive homestead exemption. This option
is not available in a city with a populatiori'of one million or more. All
real property is assessed at a uniform percentage of value'. In addition,
the legiklatlve body may-~rovide a homestead exemption for owner-
~'" ' occupied one, two and three family, residences to the extent of not more
than 25% of either-the average assessed v~lue of ali such ['esidences, or
· . the assessed value of each such residence. The legislative body may also
"'~-:a'opt to include cooperatives and condominiums in the homestead
. exemption. , - · -. _.--~ ..- ' ' -"
' e. Legalization and ratification of existing practices. Th~ existing classes
of real property and the percentage of v~lue at which each such class is
assessed is continued in full force and effect. Such classes and
pei'centages may be proven the same as any other question of fact in any
appropriate judicial proceeding.
Subjeet to the' exception for a city with a populatiod of one million or more, at
any time after the initial'adopt{on of one ~f the three a/ternatives, the
legislative body may adopt either the classified system or the uniform system
with permissive homestead exemption. '
Depending on which system of assessment is adopted, either the share of the
tax burden or the ~ssessraent of owner-occupied, 9pc, two, ap.d three family
residences is "frozen", until transfer of title, as follows:
a. In assessing units which adopt either the classified system or the uniform
system with permissive homestead exemption~' the tax on each such
residence is the lesser of ~he-tmx determined by multiplying the current
tax rate by the current assessment ~'or such residence; or the current tax
rate times the residence's former sha~e of the tax burden determined by
a formula set forth in the bill.
b. In assessing units which eleet to ratify existing practices, each such
residence is exempt from taxation to the extent of any increase in.
assessment occurring after the effective date of the bill.
e. The provisions of (a) or (b), whichever is applicable, may at local'option
be applied to cooperatives and condominiums.
7. Section 706 of the Real Property Tax Law, which relates to contents, of
petitions to review assessments, is amended .to add misclassifieation, where
applicable, ~as a grounds for review. In addition, whe~'e the g-rounds for:review
is alleged inequality, the bill provides that the alleged inequ, ality must be with
respect to other property of the same class or subclass as defined in the bill.
JUSTIFICATION:
This bill provides maximum flexibility to local governments, allowing the legislative
body of each assessing unit to adopt the system which is best suited to local needs,
and which best effectuates the local government's policies r_egarding equitable
taxation of real property. Furthermore, the "freeze" provisions prevent drastic
shifts of the tax burden onto residential taxpayers. Finally, this legislation greatly
reduces localities' exposure to t~x certiorari liability.
EFFECTIVE DATE:
Immediately.
May 14, 19~
TO:
FROM:
RE:
Assemblymen Kemp Harmon and William Larkin .
Anthony F. Taverni
"Hellerstein" Bill -- A.8542/~.6617
On May 13, a "Study bill" was introduced in both Houses of the
Legislature in an effort to resolve the longZstanding Hellerstein
issue. This legislation (A.8542/S.6617), which is reviewed below,
represents an amalgam of the various proposals considered by the
Legislature over the past several years.
To facilitate the study of this legislation, S.6616 was passed
by the Legislature on May 14. This measure extends the existing
moratorium on full value assessment an additional .thirty' days from
[May 15 to June' 15. During this interim period, the "study bill" will
be circulated for review and comment to civic, governmental and pri-
vate groups'. The legislation will '~hen be modified to aeee~,odate
.any c.om~ne~lts received from these interested parties, Me~bers of
the Legislature and others 'in order to determine whether agreement
can be reached on a final bill.
PROPOSED STA-~DARD OF ASSESSMENT
A.8542/S.66.17 repeals the existing Section 306 of the Real
Property Tax Law and provides that "real property of the same class
or such' class be assessed at a 'uniform percentage of Val~le." I'n
accordance with this standard, within ninety days after enactment of
this legislation each 10cality must adopt a local law establishin(.; an
assessment practice as embodied in one of th~ following three op~;~on.~:
1, Legalize the system which is presently' used by the assessing
unit. '
- 2 -
Assess real property pursuan~ to a classification system
Provide that all property be assessed at a uniform percentage
of value
Legalizing of Existing System
Any locality may legalize and continue the existing custom and usag
of assessing in a locality ~y local law. · If a locality exercises this
option, then any increase in assessment for a'. one, two or three family
home, is exempted until transfer of title. If th'ere is an addition or
improvement to the property, then the improvement or addition does not
come under the freeze.
2. Classification Assessment
Any locality may select a classified system of assessment. Under
this provison, each.locality would classify property by use.. For
'as·sessing units outside of the City of~New York, a maximum of eight
classes and subclasses may be established. Within New York City,
fourteen classes and subclasses may b~ established.
· If ~ locality exercises this option, it must provide that each
owner of a one, two or three family home will pay no more than that
.portion of the total real property taxes which he or she Paid prior
to the establishment of the classified assessment system (e.g., a
"freeze"). This provision, known as the transitional assessment pro-
vision~ expires upon the transfer of title of the individual property.
The trahsitional assessment will not apply to any subsequent improve-·
ments to the property.
3. Uniform Assessment of Property
Any assessing unit, except for the City of New York,
that all property within the locality will be assessed at
may provide
the same
percentage of value. If a locality adopts this option, it may pro-
vide a homestead exemption of up to either twenty-five percent of
the average value of the homes in the locality o~ twenty-five percent
of the average value of the individual one, two or three family owner-
occupied home.
In addition, any locality which exercises this option must · _-
provide a transitional assessment provision. This provision, identical
to that provided under the classification option, provides that each
homeowner will not pay a larger portion of the total taxes than he or she
p~id prior to establishment of this option. ~imilarly, this protection
expires upon transfer of title and does not apply t6 any new improve-
ments to the property.
Other Provisions
The legislation provides that any locality may, ah any time,
· elect to choose any of the other assessment options available to it.
Therefore, a com~uniJ~ which elects to continue the existing system
initially may select a different option at a later date. How~ever,
New York City is precluded from selecting the uniform assessment with
· h~mestead exemption alternative. ~
The legislation provides that all existing exemptions will be
continued and nothing contained therein will impair or diminish any
existing exemption. ~ .
The existing requirements fo~ the'contents of the petition used
to challenge assessment are modified to conform t~ the other provisio)~s
contained in this legislation.
2ND DISTRICT
May 14, 1981
~..:,~.~..~;~ .-~-,, :-.,. ~ : -~~ -
Assemblym nHochbrueckner
New York State Assembly, State Capitol, Albany, N.Y. 12248.--Telephone (518) 455-4591
District Office, Hub Office Building, Route 112, P.O. Box T, Pofl Jetferson Station, N.Y. 11~6
Telephone (516) 928-7788
ASSESS_.~fENT AGP~E~ENT IN THE OFFING FORRELEASE
Homeowner Protection Is Primary Goal
Passage of a thirty day moratorium extender by the State leg-
islature this week is viewed as the prelude to the enactment of a
measure which will solve the real property tax dilemma which has
confounded the legislature since the 1975 Hellerstein court decision.
In addition to passing the extender, the Assembly and Senate
jointly introduced a bill which represents an amalgam of the three
basic solutions that have emerged over the past several years.
Under that legislation, the local governments which are now respon-
sible for performing the assessing function would be given the option
to select one of the following three options concurrent with the
repeal of the present full value assessment statute, Section 306 of
the Real Property Tax Law:
1. A system of assessing the various types (classes) of
property at different levels, which would legalize the e~i~sting
classification system presently in place in most areas of the state.
2. A system of uniform assessments of all properties along
with a Homestead exemption which would allow owner-occupied homes
to be assessed up to 25% less than all other properties.
3. A system based on existing assessment practices which
have come into existence by custom and useage.
Under all three'systems, real property of the same classw0uld
be assessed at a uniform percentage of value and no homeowners ~axes
could be increased due to an assessment increase caused by selecting
one of the three options until the property is transferred.
According to Assemblym~n George Hochbrueckn~r,. Chairman of the
Assembly Real Property Taxation Co~mittee and one of the chief architects
of the compromise program, "This is an excellent compromise. Since
one of the majo~ collective goals of the Governor, Assembly and Senate
is to protect homeowners from the shift of taxes from businesses
and the disagreement is based on method, a compromise bill with all
three methods which allows the local assessing government to choose
the best one for its purposes makes good sense."
-more-
c~ssessment5/1.~/81 Agreement in~e Offing
- 2 -
~ Hochbrueckner feels that the seeds for achieving reasonable
fairness within each class of property would be present in the real
property tax law if this proposal is adopted. Those property owners
who are overassessed and therefore overtaxed would continue to use
the Grievance System to get reductions to their proper assessment
levels. The Grievance System is presently being improved by separate
legislation. Those who' ~re underassessed would be protected from
tax increases due to assessment changes resulting from selecting
one of these three options until their property is transferred.
Eventually, after every property changes hands, there would be an
acceptable level of equity within each class of property. Hochbrueckner
feels that while this is a slow process, one must recognize that
the real property tax system evolved into its present unfair condition
over the past two hundred years and it will take time to correct it.
Hochbrueckner said,."While correcting the inequities in the real
property tax system as soon as possible is a worthwhile goal, w~ must
not do so in a'manner which hurts our homeowners especially our
senior citizens and veterans."
Du~ing the Assembly debate on the Moratorium extende~ Assembly-
man ~ochbrueckner made the following statement to his colleagues,
"I'd like to report that a bipartisan effort in both houses has
produced a uni-bill, S.6617/A.8542, which is an amalgam of the three
basic approaches to solving the Hellerstein problem. That study
bill will be widely circulated over the next three weeks for comment
and constructive criticism. Every legislator and interested group
is ~inVited. to participate in the finalization process. I ]]ope
for passage of a final bill by June 15. I wish to thank both Democratic
and Republican me~bers for their inputs. I especially %~an~ to thank
Assemb].ymen Stanley Fink~ John Esposito~ Alan Hevesi~ Bill Larkin,
Paul Harenberg and Kemp Hannon."
"I'm personally delighted with the prggress that has oc(~rred
recently on this six year old problem and feel certain that the final
bill will receive wide acceptance since it would protect homeowners
while maintaining local control."
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