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

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.