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

BILL NUMBER:S7853

Title of bill

An act 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

Summary of provisions

Section one 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 two provides that if any portion of this act is found invalid, the remainder shall remain.

Section three provides the effective date.

Justification

This bill would 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 ten 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 ten percent. If the petitioner claims a reduction greater than ten percent of the property's assessment on the final assessment roll, taxes will be levied and extended on ninety 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 ten 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 on the 2016/2017 tax roll and each tax roll thereafter.