A03539 Summary:

BILL NO    A03539 

SAME AS    No same as

SPONSOR    Bradley (MS)

COSPNSR    Koon, Fields

MLTSPNSR   DelMonte, John, Latimer, Reilly, Sweeney, Zebrowski

Amd S1218, RPT L

Relates to the review of final determinations regarding equalization rates.

A03539 Actions:

BILL NO    A03539 

01/27/2009 referred to real property taxation

A03539 Votes:

A03539 Memo:

 BILL NUMBER:  A3539

 TITLE OF BILL :  An act to amend the real property tax law, in
relation to review of final determinations regarding equalization
rates

 PURPOSE OR GENERAL IDEA OF THE BILL :  This legislation authorizes
any aggrieved person residing within a school district for which a
special equalization rate for a segment has been sought to commence an
article seventy-eight proceeding to review a final determination of
the New York. State Office of Real Property Services (ORPS) regarding
the segment rate. It also authorizes the chief executive officer or
the governing body of any municipal corporation containing a school
district for which a special equalization rate for a segment has been
sought to commence an article seventy-eight proceeding. Currently, a
final determination of ORPS relating to state equalization rates may
only be reviewed, under article seventy-eight, upon the application of
the locality for which the equalization rate was established.

 SUMMARY OF SPECIFIC PROVISIONS :  Section one amends section 1218 of
the real property tax law.  Currently, section 1218 provides that a
final determination of the state board relating to state equalization
rates may be reviewed by commencing an action in the appellate
division of the supreme court in the manner provided by article
seventy-eight of the civil practice law and rules upon application of
the county, city, town or village for which the rate was established.
Section 1218, as amended by this legislation, would provide that in
addition to a county, city, town or village for which an equalization
rate was established, any aggrieved person residing within a school
district for which a special equalization rate for a segment has been
sought, or the chief executive officer or the governing body of any
municipal corporation containing a school district for which a special
equalization rate for a segment has been sought, may commence an
action under article seventy-eight of the civil practice law and
rules.

 JUSTIFICATION :  This legislation is intended to provide a right of
appeal when ORPS makes a final determination relating to a request for
a special equalization rate for a segment (or a segment rate), which
is often sought due to the lack of co-terminus boundaries of taxing
entities in the State of New York. For example, when the boundaries of
a school district are not co-terminus with the boundaries of a single
town, various portions of the school district may be under taxed or
over taxed, This creates a basic unfairness - that taxpayers residing
within the same school district (but living in multiple towns) are
contributing disproportionate percentages of the school district's
budget because of the assessment practices of the dominant town.

This inequity is exacerbated over time because of political realities.
For example, when the boundaries of a school district encompass
multiple towns and one town is dominant, residents of the other towns
are effectively stripped of their ability to effectuate change through
the political process.

In light of the fundamental inequity reflected in disproportionate
percentage contributions to a school district's budget through the
dominant town's assessment practices and the inability to obtain
redress through the political process, a segment rate is often sought.
However, under current law, only a locality for which an equalization
rate was established by ORPS may appeal a final determination by
filing an article seventy-eight application.  Accordingly, this
legislation would expand this right to appeal by authorizing any
aggrieved person residing within a school district for which a segment
rate has been sought, or the chief executive officer or the governing
body of any municipal corporation containing a school district for

which a segment rate has been sought, to commence an article
seventy-eight proceeding.

 LEGISLATIVE HISTORY :  A11140A of 2007-2008

 FISCAL IMPLICATIONS :  None to the State.

 EFFECTIVE DATE :  This act will take effect immediately.