State Owned Land
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Lands owned by the State of New York are generally exempt from taxation pursuant to Section 404 of the Real Property Tax Law. However, certain lands owned by the State are taxable for specific taxing purposes pursuant to Sections 532, 533, 534 and 536 of the Real Property Tax Law and Section 15-2115 of the Environmental Conservation Law. Locally determined assessments of taxable State land are reviewed by the State Board annually. This section details procedures for exempt and taxable State land including the acquisition and disposition of State lands, the annual approval process for taxable State land assessments and the supplemental assessment approval process for new acquisitions of taxable State land. These procedures are contained in Subpart 199 of the Rules of the State Board and the Procedures of the State Board for the Assessment of Taxable State Land. The Office has limited responsibilities with respect to State land which is exempt from taxation. Responsibilities include notifying local officials of the purchase or sale of certain exempt State lands and, when required, establishing a transition assessment pursuant to Section 545 of the Real Property Tax Law. The Office of General Services maintains any available inventory or other information on these State lands. B. New Acquisitions and Dispositions
Shortly after notification of the acquisition from the acquiring entity, Counsel makes a determination of the taxable status of the property acquired and the affected assessment rolls. Property is deemed taxable pursuant to Real Property Tax Law Sections 532, 533, 534 or 536 or Environmental Conservation Law Section 15-2115, or is deemed exempt from taxation pursuant to Real Property Tax Law Section 404. Parcels subject to taxation pursuant to Real Property Tax Law Section 532 are taxable for all purposes. The various subsections include:
Parcels subject to taxation pursuant to Real Property Tax Law Section 533 are any common law easement acquired by the State on or before January 1, 1990 within the Adirondack and Catskill Parks and any conservation easements acquired by the State pursuant to Title 3 Article 49 of the Environmental Conservation Law within the Adirondack and Catskill Parks or within the watershed of Hemlock or Canadice Lakes in the towns of Livonia, Conesus, West Sparta and Springwater in Livingston County, the towns of Canadice and Richmond in Ontario County and the town of Wayland in Steuben County and lands within the Tug Hill region, as defined by Article 37 of the Executive Law. Easements limit or restrict development, management or use of real property for the purpose of preserving or maintaining its scenic, open, historic, archaeological, architectural or natural condition, character significance, or amenities. These easements are taxable for all purposes. Parcels subject to taxation pursuant to Real Property Tax Law Section 534 are taxable for all purposes except county. These lands are generally acquired for reforestation purposes pursuant to Environmental Conservation Law Section 9-0501. Under Subdivision 3 of RPTL Section 534, certain lands not otherwise subject to taxation which were acquired for reforestation or multiple use purposes with funds from the 1960 Park and Recreation Land Acquisition Bond Act are taxable if the total acreage of these lands in any assessing unit exceeds three thousand acres and comprises at least 9½ percent of the total acreage in the assessing unit. Parcels taxable pursuant to Real Property Tax Law Section 536 are taxable for school purposes only. The various subsections include: (1)(a) Lands owned by the State, exclusive of the improvements erected thereon by the State, as found in the following school districts:
(1)(b) Lands owned by the State in the following towns, exclusive of the improvements erected thereon by the State:
(1)(c) Lands owned by the State in Union Free School District Number One of the towns of Dannemora and Saranac, Clinton County, Mount Morris Central School District Number One of the towns of Mount Morris, Leicester, Groveland and West Sparta, Livingston County, except State lands constituting a portion of Letchworth Park, Central School District Number Two of the towns of Fort Ann, Hartford and Kingsbury, Washington County and Central School District Number One of the towns of Shawangunk, Plattekill, Gardiner and Marlborough, Ulster County and Newburgh and Montgomery, Orange County. Generally, improvements erected thereon by the State or maintained by the State for use as institutions are not taxable. Certain improvements owned by the State and occupied exclusively for residential purposes by persons who pay rent for such occupancy, or, if the occupants are state officials or employees, who either pay such rent or have children who attend a school in one of the districts noted above are taxable. (1)(d) Lands owned by the State exclusive of the improvements erected thereon by the State, situated in common school district number two of the Town of Genesee Falls, Wyoming County, constituting a portion of Letchworth Park. The title to such lands was vested in the State on December 1, 1910. (1)(e) Lands owned by the state, within the core preservation area of the Central Pine Barrens area as described and bounded by subdivision 11 of Section 57-0107 of the environmental conservation law, situate in the following school districts in the county of suffolk:
(1)(f) Lands owned by the state, outside of the core preservation area of the Central Pine Barrens as described and bounded by paragraph eleven of Section 57-0107 of the environmental conservation law, situate in the Riverhead Central School District within the Town of Riverhead, County of Suffolk, where the title holder is listed as the "State of New York" on the Town of Riverhead's assessment roll as of 3/16/2006. (1)(g) Lands owned by the state, exclusive of the improvements erected by the state, in the Smithtown Central School District, in the County of Suffolk, constituting lands in the Town of Smithtown within the following tax identification number: district 0800, section 0040, block 0002, lots 0011, and lands in the Three Village Central School District, constituting lands in the Town of Brookhaven with the following tax identification number: district 0200, section 0273, block 0001, lot 0003. Property deemed taxable pursuant to Environmental Conservation Law Section 15-2115 is taxable for all purposes. These lands are acquired by the Hudson River-Black River Regulating District. Improvements erected thereon by the district are not taxable. If the property is not taxable pursuant to Real Property Tax Law Sections 532, 533, 534, 536 or Environmental Conservation Law Section 15-2115, the property is determined to be exempt pursuant to Real Property Tax Law, Section 404. Summary
After Office staff has determined the taxable status of the property, a copy of the deed and map and a "Notice of Determination of New York State's Liability for Taxation" are sent to the appropriate assessor and Director of Real Property Tax Services. The Notice indicates the assessment roll on which the State's tax liability is in effect for each taxing unit. A "Statement of Assessment Roll Information" is also sent requesting certain information. In all cases, the assessor is requested to provide the local roll identification, school district code and name and any ad valorem special district codes and names. For taxable acquisitions, the assessor is requested to provide the assessed value of the property for the assessment roll(s) indicated. This value is used to determine a supplemental assessment (see Part H of this section). For exempt acquisitions, the assessor is requested to provide the assessed value of the property for the assessment rolls indicated and the total taxable assessed value for ALL property in the taxing units listed for the assessment rolls indicated. This information is used to determine the eligibility of a taxing unit for a transition assessment for exempt State land (see Part F of this section). The assessor is instructed to return the completed statement within 30 days of receipt. Failure of the assessor to return the requested information may delay the approval of a supplemental assessment for taxable State land or the establishment of any transition assessment for exempt State land. Any State entity disposing of State land must notify the Office within 90 days of the disposition and must provide the following information: Upon receipt of the information listed above, Counsel reviews the material. For dispositions of taxable State land, a determination is made concerning the last assessment roll on which the State is liable for taxes. The appropriate assessor and Director of Real Property Tax Services are notified of the disposition of State land. The determination of the last assessment roll on which the State is liable for taxes is noted when taxable State land is sold. C. Annual Assessment Approval Process - Taxable State Land
The following events are included in the annual assessment approval process for taxable State lands: Pursuant to Real Property Tax Law Section 540, the Office sends a list of all the taxable State land parcels located in an assessing unit to the assessor for use in preparing the tentative assessment roll. A copy is sent to the appropriate Director of Real Property Tax Services. The list is sent shortly after taxable status date. The list of taxable State lands contains the following information for each parcel:
For each parcel on the remaining pages, the assessor should enter the full and assessed value as it will appear on the tentative assessment roll. The assessed value of each parcel must be determined by multiplying the full value of the parcel by the uniform percentage of value. (1. b, c, and d below are not applicable to assessing units in the annual reassessment program.) For each parcel on the remaining pages, the assessor should enter the full and the assessed value as it will appear on the tentative assessment roll. The assessed value of each parcel must be determined by multiplying the full value of the parcel by the uniform percentage of value. Unless a physical change occurs or an error is discovered, these assessments should be entered on any subsequent assessment roll until another revaluation is completed or systematic analysis occurs as part of an Office approved plan for annual reassessment. For each parcel on the remaining pages, the assessor should verify the full and assessed values as previously reported as of the valuation date of the revaluation or update. If a value is changed, the assessor must report the reason for the difference on the form provided. The corrected value must be as of the valuation date of the revaluation or update. Office staff will review the documentation submitted. Assessed and full values should be provided for any new parcels appearing on the list. For each parcel on the remaining pages, the assessor should enter the full value and the assessed value as it will appear on the tentative assessment roll. The assessed value of each parcel must be determined by multiplying the full value of the parcel by the State equalization rate for the prior assessment roll. Where the tentative State equalization rate is used to determine the assessed value and the final State equalization rate differs from the tentative rate, the assessed value will be adjusted by multiplying the full value of each parcel by the final State equalization rate. The assessed value may not exceed the full value of the parcel.
Where it appears that the tentative assessment submitted for a parcel is not the product of the submitted full value of the parcel and the reported State equalization rate or uniform percentage, or where the assessed value submitted for a parcel exceeds the full value of the parcel, the list of tentative assessments will be returned to the assessor for corrections or staff will contact the assessor to resolve the error(s), requesting the submission of a written statement correcting the error(s). The corrections should be returned to the Office within seven days. Filing an incorrect list carries the same consequences as failure to file a list (see Item b, (3), above). Pursuant to Real Property Tax Law Section 534(3), certain State lands which were formerly exempt from taxation are subject to taxation for all except county purposes. These lands were acquired for reforestation or multiple use purposes with funds from the Park and Recreation Land Acquisition Bond Act of 1960. The total acreage of these lands must exceed 3,000 acres and comprise at least 9½ percent of the total acreage of the assessing unit. Where the State equalization rate for the prior assessment roll is used to determine taxable State land assessments, the following instructions detail the procedures for the completion of the list. Where the uniform percentage of value is used to determine taxable State land assessments, refer to Part C.1 of this section concerning list preparation and completion. Shortly after taxable status date, the Office transmits a list of these taxable State land parcels to the assessor. A copy is sent to the Director of Real Property Tax Services for the county. This list contains the information noted in Part C.1.a. (1) through (8) of this section and the valuation date as of which these parcels are to be valued. This date is the valuation date for the State equalization rate for the prior assessment roll. The assessor should enter the full and assessed value of each parcel on the list. The assessed value of each parcel must be determined by multiplying the full value as of the valuation date referred to above by the State equalization rate for the prior assessment roll. The assessor should note any corrections to the inventory or description of the parcels and return the list to the Office within 10 days of the filing of the tentative assessment roll. Upon receipt of the completed list, the Office reviews the reported values. The Office may accept, reject or modify the initial assessments. Where the Office modifies or rejects the initial assessment and substitutes a preliminary assessment, the assessor is notified 10 days prior to the filing of the final assessment roll. The appropriate tax levying bodies are also notified. Upon receipt of the list of preliminary assessments, the assessor may submit to the Office proposed corrections to the list along with relevant supporting documentation. The Office then reviews any documentation submitted and promulgates final assessments. The assessor's initial assessments will be approved by the State Board unless the Office has modified or rejected the assessments and determined preliminary and final assessments as described above. Shortly after State Board approval, the Office transmits a "List of the Approved Assessments" to the assessor and Director of Real Property Tax Services for the county. Where the Office's preliminary assessment was substituted for the assessor's initial assessment, the final assessment is subject to review in a proceeding commenced by the appropriate assessing authority pursuant to Article 78 of the Civil Practice Law and Rules. If the assessor does not provide the Office with initial assessments within 10 days of the filing of the tentative assessment roll, or if the assessor does not respond when notified that the Office has modified or rejected the initial assessment and substituted a preliminary assessment, the State Board will promulgate a final assessment for each parcel and transmit a "List of Approved Assessments" to the assessor and Director of Real Property Tax Services for the county. Pursuant to Real Property Law Section 542, the Office submits assessments to the State Board for approval. Upon approval of the assessments, the State Board establishes any transition assessments pursuant to Real Property Tax Law Section 545 or aggregate additional assessments for certain Adirondack Park parcels pursuant to Real Property Tax Law Section 542 and for River Regulating District parcels pursuant to Environmental Conservation Law Section 15-2115. Following approval by the State Board, a certificate and "List of the Approved Assessments" are sent to the appropriate assessor and Director of Real Property Tax Services. After approval of assessments by the State Board and the establishment of any aggregate additional assessments or transition assessments, a summary by taxing unit and law section for each assessing unit and the certification of any transition assessments are sent to the Office of the State Comptroller. Where the State equalization rate for the prior assessment roll was used to determine the assessments, the State Board will adjust assessments affected by the determination of a special State equalization rate for the purpose of equalizing State land assessments. This special State equalization rate is established where there has been a change in level of assessment of 2 percent or more since the establishment of the State equalization rate for the prior assessment roll. Office staff compares the assessor's reported full value against an ORPS estimated full value. Town aggregate totals, percentage differences, overall increases from prior year values and pending litigation information are also reviewed. A reasonable value tolerance is allowed between the Office's estimated full value and the assessor's submitted full value for appraisal differences. When the assessor's value exceeds the staff estimate by more than this tolerance, the parcel is noted as a potential overvaluation. If the assessor has submitted the list on time, staff will, in many instances, attempt to contact the assessor and discuss value discrepancies. As a result of these discussions, many discrepancies are resolved prior to administrative review of assessments. Information is exchanged which may lead to value changes by either party. All value discrepancies flagged during this process are reviewed individually by staff. The magnitude of the difference, the number of parcels involved, the acreage, tax impact and the type of property are all considerations which are weighed before a final decision to file a grievance is made. Any adjustments made before tentative roll date are reflected on a revised list and agreed to by the assessor before the values and assessments are submitted to the State Board for approval. After tentative roll date, any remaining significant discrepancies identified as a result of the screening process require that complaints be filed with local Boards of Assessment Review. Complaints may be filed where the assessors failed to submit assessments for State Board approval within 20 days prior to filing a tentative assessment roll. Such complaints are necessary to protect the State's right to administrative or legal remedy in the event that it is determined that the parcel assessments should be challenged when the lists are finally received. Complaints can be filed based upon the conclusion by Office staff that the assessments were either unequal, excessive, unlawful, non-uniform or a combination of the four. Following the action by the Board of Assessment Review, judicial review proceedings may be commenced. An unequal assessment complaint means that, in opinion of Office staff, State owned land is not being valued commensurate with privately owned lands as required by Section 542(1) of the Real Property Tax Law. D. Acquisition of Conservation Easements
Shortly after Office staff has determined the taxable status of the easement, a copy of the deed and map and a "Notice of Determination of New York's Liability for Taxation" are sent to the appropriate assessor and Director of Real Property Tax Services. The notice indicates the assessment roll on which the State's tax liability is in effect for each taxing unit. A list is also sent requesting the following information for the parcel encumbered by the easement: The certification of the allocation factor for the easement is also sent to local officials. The Commissioner of the Department of Environmental Conservation (ENCON) determines an allocation factor which is certified to the State Board and the fee owner. The State Board certifies the allocation factor to the assessor, chief fiscal officer of the county and the Office of the State Comptroller. The allocation factor is the portion of the value of a parcel which a conservation or common law easement represents expressed as a percentage. The allocation factor pertains to the land burdened by the easement and does not apply to any existing improvements or any improvements subsequently erected unless the acquiring agency notifies the Office that the allocation factor does apply to the improvements. For conservation easements, the allocation factor remains in effect for a period of ten years from the date of acquisition. For common law easements, the allocation factor remains in effect for a period of ten years from the date the factor was first determined. At the end of the ten year period, the Office may revise the allocation factor. In the first year in which the allocation factor is recomputed, if it differs from the allocation factor previously determined by the Commissioner of ENCON, it will be averaged with the previous allocation factor. In subsequent years, the allocation factor recomputed by the Office is used. Where a taxable conservation or common law easement encumbers part of a parcel on the assessment roll, that part should appear as a separate parcel on the assessment roll and tax map as of the next taxable status date after the receipt of the determination of the taxable status by the Office. The aggregate of the assessment of both parcels should not exceed the total valuation of the property were the property assessed as one parcel. For taxable conservation easements acquired after taxable status date, where real property taxes become liens after title is vested in the State or where the taxable status of the easement is determined by the Office subsequent to taxable status date, the State is responsible for direct payment to the municipality of a proportionate share of those taxes. The allocation factor used to determine this share is certified to the assessor, the chief fiscal officer of the county and the Office of the State Comptroller. The State's proportionate share is determined by multiplying the tax dollar amount on the tax bill by the certified allocation factor. Upon request by the owner of the property burdened by the easement and upon receipt of a copy of the appropriate tax bills, a statement of the proportionate share of taxes due by the State and the owner will be computed and forwarded to the owner, assessor, chief fiscal officer of the county, Director of Real Property Tax Services, the Office of the State Comptroller and the appropriate tax collector. To obtain payment for the State's share of the taxes due, the chief fiscal officer of the county should submit a statement of the taxes due and a copy of the certificate of the allocation factor to the Office of the State Comptroller. A collecting officer is authorized to accept from the fee owner of the parcel burdened by the easement, the taxes due after deducting these taxes for which the State is liable. The owner must present the certificate of the allocation factor. Where the owner of a parcel burdened by a conservation easement has paid taxes based upon the assessment of the parcel without consideration of the easement, the owner is entitled to a refund equal to any taxes paid by the State for the easement. E. Annual Assessment Approval Process - Conservation and Common Law Easements
The following events are included in the annual assessment approval process for taxable conservation and common law easements: Refer to Part C. 1. of this section. Determination of the Taxable Assessed Value of the Easement
If the tentative assessment submitted for an easement is not the product of the assessed value as detailed in Item b (1), above, times the allocation factor, the list of tentative easement assessments will be returned to the assessor for corrections or staff may attempt to contact the assessor to resolve the error(s), requesting the submission of a written statement correcting the error(s). Filing an incorrect list carries the same consequences as failure to file a list (see Item b, (3), above). Pursuant to Real Property Tax Law Section 542, the Office submits assessments for taxable conservation and common law easements to the State Board for approval. Following approval by the State Board, a certificate and "List of Approved Assessments for Conservation and Common Law Easements" are sent to the appropriate assessor and Director of Real Property Tax Services. A summary by taxing unit for each assessing unit is sent to the Office of the State Comptroller.
The State Board is a person aggrieved by the assessment of a parcel burdened by a taxable conservation or common law easement for purposes of seeking administrative and/or judicial review of those assessments. The State Board may seek judicial review within two years of the acquisition of a conservation easement and for a common law easement, within two years of the date when the easement became subject to taxation. The State need not seek administrative review prior to seeking judicial review. Where the State commences administrative or judicial review proceedings, a copy of the complaint or petition shall be sent to the owner of the burdened parcel within 10 days of the filing of a complaint or the service of the petition. Where the assessed value of a parcel burdened by a taxable conservation or common law easement is changed pursuant to Article 5, title 3 of the Real Property Tax Law, the assessor shall notify the Office within five business days of the change. F. Annual Assessment Approval Process - Transition Assessments
Pursuant to Real Property Tax Law Section 545, a transition assessment is established when there is a reduction in assessments on taxable State lands from the prior assessment roll to the current assessment roll for a taxing unit. Changes in an assessing unit's level of assessment are considered in the determination of a reduction in assessments. The transition assessment is equal to the amount of the reduction, rounded to the nearest $10. A transition assessment will not be established if the reduction is under $50. In succeeding years, a transition assessment established for a taxing unit is reduced by two percent of the total taxable assessed value of all property of the taxing unit on the prior assessment roll. Adjustments are made for any change in level of assessment which has occurred since the establishment of the transition assessment. Shortly after the State Board establishes a transition assessment for taxable State land, the Office sends a certificate and a "List of Approved Assessments" which includes any transition assessment to the appropriate assessor and Director of Real Property Tax Services. The transition assessment should be entered on the assessment roll and treated as a taxable assessed value. The Office also certifies the transition assessment to the Office of the State Comptroller. Upon receipt by local officials of the "List of Approved Assessments" referred to above, the chief fiscal officer of the county should submit any tax bills for transition assessments to the Office of the State Comptroller. Pursuant to Real Property Tax Law Section 545, a transition assessment is established when the State acquires land which becomes exempt as a result of the acquisition and constitutes two percent or more of the total taxable assessed value for any taxing unit on the latest preceding assessment roll filed prior to the acquisition. For the first assessment roll affected, a tax district should submit a written request to the Office applying for a transition assessment. To determine if a taxing unit qualifies for a transition assessment, the assessed value of the acquisitions from the second assessment roll preceding the assessment roll affected by the acquisition must constitute 2 percent or more of the total taxable assessed value for any taxing unit on the assessment roll filed prior to the assessment roll on which the property was determined to be exempt from taxation by Counsel. If this criteria is met, the transition assessment established is equal to the prior assessment roll taxable assessed value of the property acquired adjusted for the change in level of assessment on the current roll where it is 2 percent or more. The transition assessment is rounded to the nearest $10 and is not established if the amount is under $50. In succeeding years, the transition assessment established for a taxing unit is reduced by 2 percent of the total taxable assessed value of all property of the taxing unit on the prior assessment roll. Adjustments are made for any change in level of assessment which has occurred since the establishment of the transition assessment. Upon receipt by local officials of the "List of Approved Assessments" referred to above, the chief fiscal officer of the county should submit any tax bills for transition assessments to the Office of the State Comptroller. G. Annual Assessment Approval Process - Aggregate Additional Assessments
Upon receipt by the local officials of the "List of Approved Assessments" referred to above, the chief fiscal officer of the county should submit the tax bills for any aggregate additional assessments for AP parcels to the Office of the State Comptroller.
Pursuant to Section 15-2115 of the Environmental Conservation Law, the aggregate assessed valuation of any river regulating district lands in a town shall not be reduced below the aggregate assessed valuation at the time of their acquisition. The assessed value at acquisition of these lands is adjusted by a change in level of assessment since the acquisition. If the total taxable assessed value of those lands on the current assessment roll is less than the total taxable assessed value of those lands at acquisition adjusted for any subsequent change in level of assessment, the State Board will establish a River Regulating District Aggregate Additional Assessment equal to the difference, rounded to the nearest $10. Upon receipt of the "List of Approved Assessments" by local officials, the chief fiscal officer of the county should submit the tax bills for any aggregate additional assessment for RRD parcels to the River Regulating District responsible for the payment of taxes. H. Supplemental Assessment Approval Process
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