Grants for Collaborative Property Tax Administration

Fifty-Two Counties Receiving Grants
to Improve Property Tax Administration

Assessment Grant Map                              Assessment Improvement Studies
Tax Collection Grant Map

In the autumn of 2007, ORPTS established the Centralized Property Tax Administration Program (CPTAP) to encourage county and municipal officials to study reform opportunities for their local property tax systems. The final deadline for grant applications has passed, and 52 counties will be receiving grants expecting to total $4.8 million.

Two CPTAP grants were made available to almost every county in the state. $50,000 (made available in two payments) was made available to study reforms to the system for assessing property. An additional $50,000 was available to study and implement a countywide database for property tax collection/enforcement (with $25,000 to conduct the study and an additional $25,000 to defray the cost of implementation).

Compared to almost all other states, New York's property tax system is notoriously complex and confusing, particularly for taxpayers. New York is one of only 3 states that doesn't have a statewide standard of assessing. It is one of 12 states that doesn't mandate a reassessment cycle. Meanwhile, it has nearly 700 school districts that criss-cross 1,128 assessing units (compared to a national median of 85 assessing units).

The intent of the grant program is for counties to chart their own paths to reform. The program does not presuppose a one-size fits all approach to such improvements. By analyzing the particulars of their county, local officials are determining what will work best for their taxpayers and the taxing jurisdictions, alike.

The goal of the program is to achieve common treatment (including a common level of assessment/equalization rate) for all parcels in a county, which will benefit taxpayers in the following ways:

• Transparency - "Is it simple enough for taxpayers to understand?"
• Equity - "Does it treat every parcel the same way?"
• Efficiency - "Is it the lowest cost for a given level of service?"

These are the core goals of a good property tax system.

In terms of structure (though structure, from ORPTS' perspective, is secondary compared to performance), various models are emerging as options to improve equity, transparency and efficiency: county-run systems; municipal-run systems where communities contract with the county for key support services; municipal-run systems where communities contract among themselves to treat all parcels identically; as well as various hybrids of these and possibly additional options.

Again, the focus has been on uniform treatment of all parcels across municipal boundaries, rather than on the structure that will serve as a vehicle to improve the system.

Fifty-one Assessing Studies

In all but a handful of counties, the level of assessment varies from one municipality to another (with the widest range in one county being from .71 to 100). Some municipalities haven't reassessed since the civil war, while others maintain 100% assessments each year. This creates enormous disparities (and subsequent taxpayer confusion), particularly in regard to apportionment of school and county tax levies.

Further complicating the system, all but two of New York's counties assess at the municipal level. (Assessing is conducted at the county level in Nassau and Tompkins Counties, while New York City administers the assessing function for all of its five boroughs). Of the nearly 500 municipalities in the state that share an assessor, 146 do so formally through Coordinated Assessment Programs (CAPs), while the rest do so informally.

The assessing study grants are empowering each county to find its own path to improved assessing. It is expected that counties will define that path by fully documenting the existing system, identifying problems, costs, service levels and ideas for improvement, and coming up with a set of changes and a plan to get there.

From the local official's perspective, achieving common treatment of all parcels across municipal boundaries in a county will undoubtedly improve equity, transparency and efficiency for taxpayers. In addition, such counties will have far greater control of their equalization rates. Those counties may also be able to qualify for enhanced aid from ORPTS for quality assessing that affects all parcels in a county.

From ORPTS' perspective, as the manager of the statewide property tax system, the agency faces a system with over 1,100 assessing units and no common statewide assessing standards - a system that performs poorly compared to almost all other states. If communities within each county can achieve uniform standards and a common level of assessment, then the statewide system will also substantially improve. That is a win-win for all.

Forty-five Tax Collection Grants

The tax collection study grant enables counties to explore options for harnessing technology to the benefit of taxing jurisdictions and taxpayers alike. The requirement for the initial $25,000 of the centralized tax collection grant was that counties prepare a study for the implementation of a common database through which the taxable status and tax and payment history of every real property parcel in the county may be ascertained. Beyond that, counties were given the option to explore county-run, municipal-coordinated and/or hybrid collection options for collaborative property tax collection.

The second $25,000 payment is available to defray the implementation expense for those counties that opt to create a common tax collection database.

Support from ORPTS

Beyond providing the grants, ORPTS' roles in the program include communicating overall objectives, helping counties organize their efforts, and providing grant participants with support, advice and comparative data. ORPTS staff members and managers from the regional offices are acting as liaisons to each participating county.

To further assist grant counties, the agency is providing additional information online via the grants resources page. Grant participants should check that webpage frequently for new publications and other materials that may be helpful in preparing their studies.