1. Understanding Assessment Revaluations and Other Hot Topics in Real Property Tax Assessment
Presented By:
Michael B. Risman, Esq.
HODGSON RUSS LLP

2. INTRODUCTION – TOPICS Explanation of Town-Wide Revaluation Process
Procedures for tax assessment challenges under the Real Property Tax Law
Current topics and issues regarding Real Property Tax Assessment in New York

3. TOWN-WIDE REVALUATION PROJECTS
Reasons for Revaluation
Declining equalization rates
Selective reassessment
Welcome Stranger Doctrine
Loss of property valuation and revenue
Updating Tax Assessment Roll
Fairness to all taxpayers within a town

4. TOWN-WIDE REVALUATION PROJECTS (cont’d)
Procedure for Revaluation Project
Assessor performing vs. appraisal consulting firm
Update inventory and property information – building permits, property inspections, Google Maps, etc.
Computer valuation models for different categories of properties
Public Relations and Education
Meetings and Information Sessions
Public Hearings
Preliminary Valuations – March 1st
Informal Hearings with Assessor and/or Appraiser and Property Owner
Preliminary Roll – May 1st

5. TOWN-WIDE REVALUATION PROJECTS (cont’d)
Goals
Avoiding public controversy
Avoiding large numbers of challenges
Resolving conflicts informally
Practical Considerations
Cost
Time Frame – when performed, year goes into effect
Keeping values at 100%
Updates every three (3) years

6. ANNUAL TAX ASSESSMENT PROCESS
Town Assessor sets tentative assessment roll
Taxable Status Date – March 1st
Preliminary Assessment – May 1st
Grievance Day – Third Tuesday in May (generally)
Board of Assessment Review (BAR)
Upholds or reduces assessment
Final Assessment Roll – July 1st

7. TAX ASSESSMENT LAWSUITS
Must be served within 30 days of July 1st on Town Assessor
Petition served on School Superintendent within 10 days after service on Assessor (Real Property Tax Law §708) – August 10th
If School District or County not served, no right to refund
Grounds for challenge of assessment
Excessive assessment
Unlawful assessment (e.g. – tax exempt)
Unequal

8. TAX ASSESSMENT LAWSUITS (cont’d)
Financial Exposure
Immediate – September fiscal bill
Each year separate tax challenge
Retroactive – Corrections of errors
Level 3 Fiber Optic Cable
3 years retroactive tax refunds
Small Claims Assessment Review Proceedings
Real Property Tax Law §730
Limited to 1, 2 or 3 family owner-occupied residential properties
Property must be valued under $450,000 or property owner cannot seek more than 25% reduction
Decision – August or September

9. REAL PROPERTY TAX ASSESSMENT CURRENT ISSUES
Equalization Rates
Set by New York State Office of Real Property Services annually
Trend-declining equalization rates
Valuation Methods
Comparable Sales
Income Approach
Based upon income minus expenses
Vacancies (e.g. retail plazas)
Cost Approach – only for specialty property

10. REAL PROPERTY TAX ASSESSMENT CURRENT ISSUES (cont’d)
Other Valuation Issues
Environmental contaminated properties
Property features (e.g. wetlands, parcel size, parking, age, etc.)
Drug stores – Walgreens, CVS, Rite Aid
Retail stores – Boulevard Mall, Macy’s, Sears
Large industrial properties

11. LITIGATION ISSUES Real Estate Appraisal Exchange Trial Settlement
Cost of Appraisals
Trial
Authority of Court to lower assessment for all years in issue and order tax refunds plus interest
Settlement
Prospective Relief
Tax Refunds
Statutory interest (Retroactive)
Town, County, Village and School District refunds

12. LITIGATION ISSUES (cont’d)
Three-Year Freeze – Real Property Tax Law §727
Exceptions
Town-wide revaluation
Physical improvements to property
Change in occupancy rate – 25% or more

13. FUTURE More Assessment Cases Annually Reasons
Town-wide revaluations – Amherst, Lockport, etc.
Declining equalization rates
Fluctuating real estate values
Property Valuation Trends Downward
Retail properties
Fiber optic cable
Industrial property
Commercial property – vacancies
Large Local Employers