NY State Senate Bill 2017-S5284

Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to local government
Mar 20, 2017	referred to local government

2017-S5284 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Nassau County Administrative Code
Laws Affected:: Add §6-42.0, Chap 272 of 1939
Versions Introduced in 2019-2020 Legislative Session:: S1639

2017-S5284 (ACTIVE) - Summary

Enacts the "Nassau County Assessment Correction Act"; relates to the procedure for refunds for overpayment of real property taxes due to a correction of assessment; defines terms; requires itemization of certain information in tax bills.

2017-S5284 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5284

 TITLE OF BILL :  An act to amend the Nassau county administrative
code, in relation to levy and refund of real property taxes

 PURPOSE :

Provides for the accurate calculation of real property tax assessment
refunds in Nassau County

 SUMMARY OF PROVISIONS :

Section one names the "Nassau County Assessment Correction Act."

Section two presents legislative findings and intent.

Section three amends the Nassau County administrative code to
establish the methodology to be employed by Nassau County in making
assessment refunds going forward by use of a revenue-neutral levy and
credit. It also authorizes the county to make multi-year settlements
of tax cases using this program.

Section four provides the effective date.

 JUSTIFICATION :

The Nassau County Assessment Correction Act (NCACA) reforms the
county's procedure for refunding incorrect assessments.

Nassau County is unique in New York State in its use of four different
tax class and its responsibility to establish assessed values for all
real property in the county through the county's Department of
Assessment. The "County Guarantee," passed in 1948, obligates the
county to ensure the accuracy of the assessed value of all property in
the county. This requires the county to refund overpayments when the
assessed value of real property has been adjusted after the tax levy
has been established for a given tax year.

Nassau County's current system for issuing these refunds is
problematic. The Department of Assessment determines the overpayment
amount by multiplying the reduction in assessed value for a given
property by the tax rate - the tax rate being derived from the tax
levy. All of these reductions - for each district and tax class - are
added together to determine the total amount of refunds owed per the
"county guarantee." By treating this as a new levy instead of as an
adjustment of the previous levy, the total tax levy is increased. The
reduction in total assessed value, meanwhile, results in an increase
in the tax rate in order to meet the tax levy.  Using this higher rate
as a multiplier results in overpayments, with the county borrowing to
cover the shortfall.

An additional problem results from Nassau County combining all of
these owed refunds into one large, additional levy: it shifts the tax
obligation from one tax district or class to another.

The NCACA seeks to address each of these problems. It provides a tax
credit in an amount equal to that produced by the way assessment
refunds are currently calculated. This credit against the following
year's tax rolls would be given to taxpayers who have overpaid
relative to their corrected assessed value. There is also a tax levy
made at the tax district and tax class level, in the total amount of
credits and refunds (given for properties where there has been a
change of ownership) for each tax district and class. This levy would
ensure that those taxpayers receiving refunds would be contributing
toward them. This is a revenue-neutral tax, levied by Nassau County in
fulfillment of the county's obligation under the "guarantee." The same
method would be use for every tax district and class in the county,
including town, fire district, park and police district taxes. This
has the effect of correcting the overpayment at the time when the
NCACA tax levy is made and ensures that only the properties benefiting
from the services provided by the tax district are funding the tax.

Further, the NCACA allows Nassau County to clear a substantial backlog
of pending tax cases by permitting the county to make multi-year
settlements rather than settling these cases one year at a time, using
the Assessment Correction Tax Credit on future taxes to fund the
corrections.

By utilizing a rational system that accurately determines refund
amounts and keeps them within the tax district and class that paid
them, Nassau County can improve its fiscal health while providing
greater fairness to property taxpayers.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

This legislation will have no fiscal impact on the State.

 EFFECTIVE DATE :
This act will take effect January 1, 2018.

2017-S5284 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5284
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2017
                                ___________
 
 Introduced  by  Sen.  BROOKS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the Nassau county administrative code,  in  relation  to
   levy and refund of real property taxes
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be  cited  as  the  "Nassau
 County Assessment Correction Act."
   § 2. Legislative intent. The legislature hereby finds that the proper-
 ty  tax  assessment  refund  program currently employed by the county of
 Nassau is deleterious to the county's fiscal health and unfair to county
 property  taxpayers.  By  aggregating  tax  refunds  from  every  taxing
 district  into  one  new levy, the county improperly transfers tax obli-
 gations out of the originating tax  district  and  onto  all  other  tax
 districts in the county. As a result, taxpayers are in effect paying for
 services they do not receive.  By failing to recognize that the tax rate
 should change as a result of the reduction in assessed value, the county
 overpays  its  refunds.  This  results  in borrowing by the county and a
 further tax burden to fund interest payments on that  borrowing.  It  is
 therefore  the  policy of the state that in cases where the tax levy was
 made using the incorrect assessed  value,  the  county  shall  fund  the
 assessment  refund in the tax district and class of the original levy so
 that the properties whose assessments were reduced contribute toward the
 total refunds. Further, the county  shall  fund  assessment  refunds  by
 means of a tax credit to eliminate the need for future borrowing. Final-
 ly,  the  county shall improve transparency of both taxation and assess-
 ment corrections by placing on each property taxpayer's bill the  amount
 of  tax  levies,  refunds  and  the  cost  of those refunds for each tax
 district and class.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10721-03-7

 S. 5284                             2
 
   § 3. Chapter 272 of the laws of 1939, constituting the  Nassau  county
 administrative  code,  is amended by adding a new section 6-42.0 to read
 as follows:
   § 6-42.0 ASSESSMENT CORRECTION TAX CREDIT AND LEVY.  A. DEFINITIONS:
   1.  FOR  ANY  TAX  DISTRICT  AND CLASS, THE "ASSESSMENT CORRECTION TAX
 CREDIT" IS THE AMOUNT CONSTITUTING THE DIFFERENCE  BETWEEN  AN  ORIGINAL
 ASSESSED  VALUE  OF  A PROPERTY AND THE CORRECTED ASSESSED VALUE, DETER-
 MINED PURSUANT TO § 6-40.3 AND § 6-40.4, MULTIPLIED BY THE ORIGINAL  TAX
 RATE.
   2.  WITHIN  ANY TAX DISTRICT AND CLASS, THE "ASSESSMENT CORRECTION TAX
 LEVY" IS THE CUMULATIVE TOTAL OF ASSESSMENT TAX CREDITS  FOR  A  TAXABLE
 YEAR, EXCLUDING ANY INTEREST OR PENALTY PAYMENTS THAT HAVE BEEN APPLIED.
   B. EVERY PROPERTY TAX DISTRICT IN NASSAU COUNTY SHALL ALSO BE A NASSAU
 COUNTY TAX ASSESSMENT CORRECTION DISTRICT. THE NASSAU COUNTY LEGISLATURE
 SHALL   BE  THE  TAXING  AUTHORITY  FOR  NASSAU  COUNTY  TAX  ASSESSMENT
 CORRECTION DISTRICTS.
   C. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE PROCEDURE
 FOR REFUNDS FOR OVERPAYMENT OF REAL PROPERTY TAXES DUE TO  A  CORRECTION
 OF ASSESSMENT, PURSUANT TO § 6-40.3 AND § 6-40.4, SHALL BE AS FOLLOWS:
   1.  BEGINNING  WITH  THE  TAX YEAR TWO THOUSAND EIGHTEEN AND EVERY TAX
 YEAR THEREAFTER, AN ASSESSMENT CORRECTION TAX CREDIT SHALL BE AWARDED TO
 THE AGGRIEVED PERSON OR CORPORATION, TO BE APPLIED AGAINST REAL PROPERTY
 TAXES OWED THE FOLLOWING YEAR.
   2. ON AUGUST 1, 2018, AND ON SUCH  DATE  EVERY  YEAR  THEREAFTER,  THE
 ASSESSOR'S OFFICE SHALL REPORT TO THE LEGISLATURE THE ASSESSED VALUE FOR
 ALL  TAXABLE  REAL  PROPERTY AND A LIST OF ALL ASSESSMENT CORRECTION TAX
 CREDITS BY PROPERTY CLASS TO BE AWARDED FOR THE UPCOMING TAX YEAR.
   3. ON AUGUST 15, 2018, AND ON SUCH DATE  EVERY  YEAR  THEREAFTER,  THE
 LEGISLATURE SHALL APPROVE THE LIST OF ASSESSMENT CORRECTION TAX CREDITS,
 THEREBY ESTABLISHING THE ASSESSMENT CORRECTION TAX LEVY, AND RETURN SUCH
 ASSESSMENT CORRECTION TAX LEVY TO THE ASSESSOR'S OFFICE.
   4.  THE  ASSESSOR'S  OFFICE  SHALL APPLY THE ASSESSMENT CORRECTION TAX
 LEVY FOR EACH TAX DISTRICT AND CLASS.
   D. FOR EVERY TAX BILL RENDERED FOR TAXES ON REAL PROPERTY  FOR  SCHOOL
 DISTRICTS  DUE  OCTOBER  1,  2018 AND EVERY DUE DATE THEREAFTER, AND FOR
 SUCH TAX BILLS OF ANY OTHER TAXING JURISDICTION  ISSUED  FOR  TAXES  DUE
 DECEMBER  1, 2018 AND EVERY DUE DATE THEREAFTER, THERE SHALL BE INCLUDED
 IN A PROMINENT AND ITEMIZED SECTION PROVIDING THE FOLLOWING INFORMATION:
   1. THE OVERALL TAX LEVY FOR THE TAX DISTRICT;
   2. THE TAX RATE FOR EACH PROPERTY CLASS IN THE TAX DISTRICT AND CLASS;
   3. THE ASSESSMENT TAX CREDIT FOR THE TAXABLE PROPERTY;
   4. THE ASSESSMENT CORRECTION TAX LEVY FOR EACH TAX DISTRICT AND CLASS;
 AND
   5. THE NET TAX PAYMENT ON THE TAXABLE PROPERTY.
   E. JURISDICTIONAL AND PROPERTY CLASS RESTRICTIONS:
   1. FOR EACH TAX DISTRICT AND PROPERTY CLASS, THE ASSESSMENT CORRECTION
 TAX LEVY SHALL BE PAID ONLY BY THE PROPERTY OWNERS WITHIN THAT  DISTRICT
 AND CLASS.
   2.  THE  LIABILITY FOR THE ASSESSMENT CORRECTION TAX LEVY OF ANY INDI-
 VIDUAL CLASS SHALL NOT EXTEND TO PROPERTY OWNERS OF ANY OTHER CLASS, NOR
 SHALL SUCH LIABILITY OF PROPERTY OWNERS WITHIN ANY  DISTRICT  EXTEND  TO
 PROPERTY  OWNERS  OF  ANY CLASS OUTSIDE THE JURISDICTIONAL BOUNDARIES OF
 SUCH DISTRICT.
   F. NASSAU COUNTY SHALL CONTINUE TO BE RESPONSIBLE FOR THE  PAYMENT  OF
 ANY  INTEREST  AND  PENALTIES  ASSOCIATED WITH ADJUSTMENTS IN ASSESSMENT
 VALUES OR PAST BORROWING UNDERTAKEN TO PAY ASSESSMENT REFUNDS.

 S. 5284                             3
 
   G. THE COUNTY IS  HEREBY  AUTHORIZED  TO  ENTER  INTO  MULTI-YEAR  TAX
 SETTLEMENT  CASES,  UTILIZING ASSESSMENT TAX CREDITS TO FUND CORRECTIONS
 ACROSS MULTIPLE TAX YEARS.
   § 4. This act shall take effect on January 1, 2018.

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Senate Bill S5284

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

2017-S5284 (ACTIVE) - Details

2017-S5284 (ACTIVE) - Summary

2017-S5284 (ACTIVE) - Sponsor Memo

2017-S5284 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5284

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Sponsored By

John E. Brooks

Archive: Last Bill Status - In Senate Committee Local Government Committee

2017-S5284 (ACTIVE) - Details

2017-S5284 (ACTIVE) - Summary

2017-S5284 (ACTIVE) - Sponsor Memo

2017-S5284 (ACTIVE) - Bill Text download pdf

Comments