Establishes the Sandy assessment relief act

BILL NUMBER:S4727

Title of bill

An act to establish the Sandy assessment relief act

Purpose

This bill would authorize certain local governments to provide assessment and tax relief to the owners of real property that was severely damaged by the storm commonly known as Sandy.

Summary of provisions

Section 1 of the bill would title the act the "Sandy assessment relief act."

Bill section 2 would define terms used in the act.

Bill section 3 would authorize an "eligible municipality" to provide assessment and tax relief to owners of "catastrophically impacted property" by adoption of a resolution within 45 days following the date on which the act becomes a law.

Bill section 4 would establish the assessment and tax relief provided by the act and provide procedures for implementing that relief. The relief provided by the act would permit the assessed value of "catastrophically impacted property" on an "impacted assessment roll" to be reduced on the basis of the property's post-storm condition, and a corresponding reduction in 2012-13 or 2013 taxes imposed on that roll by or on behalf of a "participating municipality." The process of obtaining such relief would involve timely submission of a request to the assessor, a determination by the assessor subject to review by the board of assessment review, and the use of existing procedures for the correction of errors on assessment rolls and tax rolls to effectuate reductions in assessments and/or tax liabilities.

Bill section 5 would hold harmless school districts from any reduction in State aid payable pursuant to § 1306-a of the Real Property Tax Law ("STAR aid") due to the provisions of this act.

Bill section 6 would authorize the Director of the Office of Real Property Tax Services, or other chief administrative official of that office, to develop a guidance memorandum to assist with the implementation of the act.

Bill section 7 would provide that this act would take effect immediately.

Existing law

Current law generally requires real property to be assessed annually according to its condition and ownership as of taxable status date. The taxable status date of most, if not all, assessment rolls used for the levy of 2012-13 or 2013 property taxes predated Sandy (see, e.g., Real Property Tax Law §§ 302, 1400).

LEGISLATIVE HISTORY:.

This is a new proposal, but similar legislation was enacted last year in response to Hurricane Irene and Tropical Storm Lee (Part G of Chapter 56 of the laws of 2011):

Justification

The storm commonly known as Sandy caused major damage in parts of the State. This legislation authorizes "eligible municipalities," at their option to provide assessment and tax relief to the owners of "catastrophically impacted property."

Fiscal implications

The bill would have no State budget implications because it would authorize local property tax relief and prevent decreases in STAR aid.

Effective date

The bill would take effect immediately.

Recommendation

The Comptroller urges passage of this legislation.