Tax Committee Update
November 4, 2010

Staff Contact: Ken Pokalsky

While there is growing interest in Albany in property tax cap legislation, little attention is being paid to RPT administrative issues that are of equal or greater concern to business. 

RPT cap legislation could be the vehicle for moving key RPT administrative/procedural reforms as well, and we are looking for input on additional RPT reform measures we should be pushing with the new administration and legislature.

Specific concerns raised regarding current NY RPT procedures are:

  • Shifting of tax liability from residential to non-residential classes by homestead exemptions and other provisions.
  • No ability to escrow or partially pay disputed RPT liability.
  • Limited timetable for appeals.
  • Presumption of the correctness of assessments.
  • Lack of statewide forms, procedures and dates for payments and/or appeals.
  • No set reassessments cycles.
  • No exclusion for payments based on de minimis assessments.
  • Differing percentage of full value by taxing jurisdiction.
  • No statewide uniform assessment ratio.
  • No statewide cap on increases in assessments.
  • No uniform interest rates on under and overpayment.

Several years ago, The Business Council’s Tax Committee supported several RPT reform measures.  These included:

  • Designating the state’s Tax Appeals Division as the trial court for Article 7 certiorari proceedings on non-residential parcels exceeding one million dollars outside the City of New York.  (Note: This proposal was last introduced as S.492 (Bonacic) in the 2007-08 legislative cycle.  See attached bill text.)
  • Allowing for escrow payments of Article 7 disputed tax liability.
  • Authorizing the calling of assessors for testimony in an Article 7 certiorari proceedings.
  • Increasing the appeal period from 30 to at least 60 or up to 90 days. (Note: S.492, mentioned above, allows a proceeding before the tax appeals division within 45 days of filing of assessment rolls.)
  • Limiting the discrimination between “homestead” and "non-homestead” rates to 25% and a five-year “grandfather” phase-out for jurisdictions currently exceeding 25%.

I would appreciate your input on RPT administration issues in NY, including your view of the concerns discussed above, and any comments or recommendations on our legislative or regulatory fixes we should be pursuing.