STATUTORY RESPONSIBILITIES of the
STATE BOARD of REAL PROPERTY SERVICES
)The State Office of Real Property Services (ORPS) carries out the policies and programs of the State Board of Real Property Services. The Real Property Tax Law (RPTL) authorizes the State Board to delegate any of its functions except the adoption of rules and the establishment of final State equalization rates and special franchise assessments where complaints have been filed. In fact, the State Board has delegated the duties listed here to ORPS staff.
The head of the agency is the Executive Director, who also is the Secretary of the State Board. The State Board appoints the Executive Director. State Board members are appointed by the Governor to fill eight-year terms and perform the duties imposed upon them by the RPTL.
State Equalization Rates
One of the fundamental duties of the State Board is to annually establish equalization rates for each assessing unit. A State equalization rate is the State Board’s determination of the percentage of full value at which taxable real property is assessed, often known as the Level of Assessment (LOA). In order to make this determination, the State Board must have in its possession two factors: the assessed value of taxable real property in each assessing unit, and an estimate of the full value of that property.
The assessed value used to calculate the equalization rate is the sum of locally assessed taxable real property as reported by the assessor plus the value of State approved assessments. The full value is not as easily obtained. With more than 5 million parcels of real property entered on assessment rolls statewide, the agency determines market value at a municipal level through the use of nationally recognized statistical and mass appraisal techniques, and appraisals of randomly selected parcels where necessary.
While the RPTL requires that the State Board undertake such a study, known as a “market value survey,” at least once every three years, technological, statistical and work process advancements now enable the agency to conduct such a survey annually.
Once established as final, equalization rates are used for several purposes, the most common of which is the distribution of tax levies among municipal segments of school districts and counties. In addition, equalization rates are also used for the allocation of State Aid to Education, establishment of tax and debt limits, apportionment of sales tax revenues and joint indebtedness, as evidence in court proceedings on the issue of assessment inequity and for various other purposes.
Class Ratios and Rates for Special Assessing Units
(Nassau County and New York City only)
Class ratios measure the LOA of particular classes or types of property. In Nassau County and New York City, State law authorizes the use of different levels of assessment for four different classes or types of property. Class Ratios are primarily used as evidence of the LOA in the assessment grievance process.
Class equalization rates are used to apportion class tax shares in Nassau County and New York City. Class rates represent the State Board’s estimate of the LOA for each class in each school district segment. Class equalization rates are also made for certain Approved Assessing Units (see below).
STAR Program
In regard to the School Tax Relief (STAR) Program, the State Board certifies a separate exempt amount for the Basic and Enhanced STAR exemptions in each assessing unit. As a result of STAR being the only state-funded property tax exemption, the Board also certifies STAR reimbursement payments to school districts. In addition, for the Middle Class STAR Rebate Program, the Board certifies the rebate amounts for each of the state's 3,000 school district segments.
Special Franchise Assessments
One of the few instances in which New York State establishes assessments for the purposes of local taxation is that of special franchise assessments, that is utility property in the public right-of-way. The State Board establishes special franchise assessments based on recommendations of ORPS staff.
State Assessments and Values
The State Board also determines railroad ceilings for use by municipalities. A railroad ceiling is the maximum taxable assessed value of railroad real property used for transportation purposes, and is determined annually for each municipality containing such property. The purpose of the ceiling is to grant partial relief from local taxation by establishing a maximum value for taxation purposes, such that railroads are then able to improve their services and facilities.
Title 5 of Article 5 of the RPTL provides a uniform, statewide method of valuing oil and gas producing properties for real property tax purposes. The State Board annually establishes unit of production values for use in assessing oil and gas producing properties. For oil, the unit of production value is a dollar amount per barrel of oil produced. For gas, the unit of production value is a dollar amount per 1000 cubic feet of gas produced.
The State’s Agricultural Districts Law provides for reduced property taxes on land in agricultural production by limiting the assessment of such land to its prescribed agricultural assessment value. While several agencies are involved with this program, the Board calculates and certifies an annual schedule of agricultural assessment values per acre based upon aggregate agricultural data. The Board annually publishes a report of the agricultural assessment values to be used by municipalities.
Lands owned by the State are generally exempt from taxation; however, certain lands are taxable as provided for in the RPTL and Environmental Conservation Law. The State Board reviews locally determined assessments of taxable State land each year.
State Aid Programs
The RPTL authorizes several programs of State financial assistance to counties, towns and cities to encourage efficient and effective assessment administration. In the case of the aid programs, the State Board certifies the amount of aid payable. These programs include Annual Reassessment Aid (to encourage municipalities to keep assessments up-to-date annually), Triennial Aid (for cyclical reassessments) and Consolidation Aid (to encourage efficient assessment administration practices through municipal collaboration).
Approved Assessing Unit
Article 19 of the RPTL provides localities undergoing a reassessment the option of becoming an “approved assessing unit” upon certification by the State Board. Certification as an approved assessing unit allows the locality the option of using dual (homestead and non-homestead) tax rates or transition assessments.
In addition to certifying approved assessing units, the State Board also assists them by reviewing locally submitted current base proportions and certifying final adjusted base proportions. These proportions identify the share of the tax base represented by the homestead and non-homestead categories.
Local Service Function
The State Board furnishes information and instructions to aid assessors in making assessments, and may enforce compliance with those instructions. They also prescribe and furnish to assessors forms relating to assessments, including applications for exemption from real property taxation.
Tax Mapping
Tax maps are one of the most fundamental and essential assessment tools. Before a county may commence a new tax-mapping program, the State Board must approve its mapping plan. Subsequently, each year, the person responsible for the maintenance of the tax maps must certify to the State Board that the maps are in current condition as of taxable status date.
Training and Certification
All assessors, whether elected or appointed, and all directors of county real property tax services agencies must obtain State certification by completing a course of training prescribed by the State Board. In addition, all appointed assessors and county directors must meet minimum qualification standards prescribed by the State Board for their offices before they can be appointed. Finally, all appointed assessors and county directors must comply with a continuing education program prescribed by the State Board.