Provides state assistance for revaluation by all assessing units in a school district of assessments at full value during the same year

Title of bill

An act to amend the real property tax law, in relation to providing state assistance to assessing units within a single school district which revalue during the same year

Purpose

To provide an incentive aid of $2 per parcel to every town within a multiple town school district when they revalue to 100 percent in order to encourage 100 percent revaluation and a uniform tax rate.

Summary of provisions

Section 1-adds a new subdivision 3-b to section 1573 of the Real Property Tax Law to provide for state assistance in the amount of $2 per parcel.

Section 2-contains the effective date.

Justification

The State Office of Real Property services (ORPS) has a local aid program to assist municipalities in complying with the legal requirement to keep assessments uniform each year. This program allows for a payment of $5 per parcel annually for the assessing unit's first five years in the program and $3 per parcel thereafter. In order to be eligible to receive this aid, an assessing unit must annually maintain assessments at 100 percent of market value; annually conduct a systematic analysis of all locally assessed properties; annually revise assessments where necessary to maintain the assessment level at 100 percent of market value; implement a program to physically inspect and reappraise each property at least once every six years; and comply with applicable statutes and rules.

This legislation would provide a $2 per parcel state aid payment to towns located within a single school district when a district is comprised of more than one town, and the town revalues their assessment at 100 percent of market value. By having all the towns in one school district revalue to 100 percent in the same year, we can prevent tax shifts between towns within a single school district.

Legislative history

2007/08: S.1058 Local Government: A.1254 Real Property Taxation 2006: S.734-A Passed Senate; A.10392 - Ways & Means 2005: S.734 Finance 2004: S.6977 Passed Senate

Fiscal implications

Unknown. ORPS would not need to equalize rates within a multi town school district if they opted into the program which would save money. Currently ORPS spends $25 million per year on maintenance aid to ensure equitable assessment rolls statewide.

Local fiscal implications

This will ensure a universal tax rate within a single school district which will be beneficial to taxpayers.

Effective date

This act shall take effect immediately.