What's happening
This bill directs the commissioner of taxation and finance to study and report on reducing assessing units and equalization rates in New York.
Why it matters
Potential for streamlined property tax administration. By studying the reduction of assessing units (entities that value property for tax purposes) and simplification of equalization rates, the bill could lead to a more uniform and efficient property tax system, reducing administrative complexity and costs.
Impacts on local government structures and school districts. The study would examine eliminating most village assessing units, realigning school district boundaries, and requiring smaller towns to consolidate, potentially affecting local governance, resource allocation, and community identity.
Changes to tax assessment timing and accuracy. The bill looks at using prior-year assessment rolls for school taxes and updating assessments less frequently if uniformity standards are met, which could improve administrative timelines and stability, but may also impact the responsiveness of assessments to market changes.
Evaluation of fairness and expertise in property valuation. By reviewing procedures and training for utility property assessments and mandating sole assessor positions, the study could highlight issues of valuation fairness, local expertise, and professional standards in property tax administration.
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Who cares
Department of Taxation and Finance
The bill would require the commissioner to study reducing assessing units and equalization rates and report on the proposed changes by December 31, 2020.
Town and village governments
The study would examine eliminating most village assessing units and requiring certain smaller towns to consolidate assessing operations, with potential withholding of state aid for noncompliance.
School districts and families in one- and two-family homes
The study would examine realigning district boundaries, allowing existing students to remain in their old districts until property transfers, and transferring associated tax revenue between districts.
Local assessors and utility property owners
The study would review utility valuation responsibilities, possible local training, periodic assessment updates and designation of assessor positions as sole assessor.
Headline styles
Study Property Assessment Reform
Plain English, a few words. Used as the page title.
Sponsors
4 Co-sponsors
1 Multi-sponsor
History
- Held for consideration in real property taxation
- Referred to real property taxation
- Referred to real property taxation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5601
2019-2020 Regular Sessions
IN ASSEMBLY
February 13, 2019
Introduced by M. of A. MANKTELOW, DeSTEFANO -- Multi-Sponsored by -- M. of A. HAWLEY -- read once and referred to the Committee on Real Property Taxation
AN ACT in relation to authorizing the commissioner of taxation and finance to study the feasibility of reducing the number of assessing units and equalization rates
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The commissioner of taxation and finance shall study the feasibility of reducing the number of assessing units and equalization rates. Such study shall include, but not be limited to, a review and the impact of the following steps:
1. The elimination of all villages (except coterminous) as assessing units, which now requires approximately two hundred seventy-five additional equalization rates from being calculated each year.
2. The realignment of school district boundaries to more closely agree with town, city and county boundaries; however, taking appropriate geographical hindrances into consideration. The study shall consider the grandfathering of existing primary and secondary school children living in one and two family residences until property is transferred. For the purposes of this study, taxes are paid to the new district, with "tuition money" (taxes collected by grandfathered properties), transferred from the new district to the old district in accordance with the appropriate change in the education law. This would eliminate approximately fifty special segment rates currently being performed if fully implemented.
3. The requirement of the commissioner of taxation and finance to use the current assessment roll as the base year roll for its sampling of appraisals to increase the accuracy of special equalization rates.
4. The requirement that the school tax roll be based on the previous year's assessment roll instead of the current year. This would give the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08937-01-9
A. 5601 2
state four months to complete all special rates instead of four weeks. This would allow for subdivision three of this section to be accomplished.
5. The requirement that all towns not of first class size as defined by the most current federal census and article 2 of the town law consolidate with one or more towns or cities within the same county to be of sufficient size (at least four thousand parcels combined). Any town not of first class size as defined by the federal census, but having at least four thousand parcels of properties as indicated by the latest final assessment roll would also be exempt from being required to consolidate. If a required town fails to consolidate by a designated date or if a town drops out of a consolidated assessing unit and does not rejoin another consolidation, the following year, the state may withhold the appropriate state aid monies until such time as the municipality complies. All cities would be exempt from this provision; however, other cities or towns could form a consolidated assessing unit with a city. Counties which are authorized to assess properties within their boundaries (Nassau and Tompkins) would be exempt from the consolidation requirement.
6. The requirement that periodic assessment updates be completed every six years unless the coefficient of dispersion (a statistical measure of uniformity) based on a current year of sales, is within acceptable ranges as currently defined for maintenance aid. (Less than twenty, seventeen, or fifteen depending on population per square mile as defined by federal census.) If the coefficient of dispersion is within acceptable ranges the maximum allowed time could be extended to ten years.
7. The review of current procedures in use by the commissioner of taxation and finance in regards to the valuation of utility properties. Evaluate the current split in responsibilities of special franchise and private property valuations and recommend a determination of same. Conduct additional training if necessary to allow for competency at the local level.
8. The requirement that assessor positions will be designated as sole assessor. The assessing unit would retain the option to make this position elected or appointed.
§ 2. A report of the study, outlining the impact of each of the above steps, shall be filed with the governor, the temporary president of the senate, the minority leader of the senate, the speaker of the assembly and the minority leader of the assembly on or before December 31, 2020.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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