N.Y. Comp. Codes R. & Regs. tit. 9 § 1640-6.3

Current through Register Vol. 46, No. 25, June 18, 2024

Section 1640-6.3 - Local taxes

(a) Local taxes, other than taxes on real property. Subdivision 1 of section 52 of the Public Housing Law exempts a local agency from the payment of the taxes or fees to any subdivision of the State or to any officer or employee thereof, except where such officer or employee is personally entitled by law to such fees as compensation for services rendered or performed by him in his official capacity. Subdivisions of the State include counties, cities, villages, towns, and special districts, as well as departments and agencies of the State itself. Property of a local agency is, however, only partly tax exempt, as explained in subdivision (b) of this section. As with State taxes, the exemption from local taxes appears to be automatic and the law does not prescribe any particular procedure to be followed by a local agency in connection with such exemption. Members, officers, and employees of a local agency traveling on official business in connection with the affairs of the local agency are exempt from payment of the New York City tax on occupancy of hotel rooms. To obtain the exemption, a separate exemption certificate for each occupancy and for each person registered is furnished to the hotel, upon registering. A specimen exemption certificate is shown as Exhibit 5 of Appendix S-6. Copies may be obtained from the Comptroller of the City of New York, 50 Pine Street, New York, New York or they may be prepared by the local agency on its own stationery.

(b) Local taxes on real property.

(1) The property of a local agency included in a project, while subject to State, county, city or village, town, school, and special district taxes, enjoys a partial exemption from such taxes. Taxes on real property are based on assessed valuations. Subdivision 4 of section 52 of the Public Housing Law states that the property included in a project may not, in any event, be assessed at an amount in excess of the actual cost of the project (meaning development cost, to date) and further exempts from taxation that portion of the assessed valuation as represents an increase over the assessed valuation of the real property, both land and improvements, and still retained as of the date of the contract for State aid. The value of the tax exemption, determined by applying the current rate of tax to the portion of the assessed valuation exempt from tax, may be applied by a municipality as a credit against the periodic local subsidy which the municipality is required to make to match the State subsidy, in accordance with section 73 of the Public Housing Law. For the purpose of computing the value of the tax exemption subsidy for the first year of project operations, however, project development cost may, under certain circumstances, be substituted for current assessed valuation. It should be noted that only the assessed valuation as of the date of the contract for State aid is frozen by the statute. The tax rate, and hence the actual amount of taxes the local agency will pay and, likewise, the value of the tax exemption, may vary from year to year. In some localities, situations may arise where the property of the local agency is subject to taxation by several local bodies, such as a county and a town, each setting its own assessed valuation, independently of the others. In such event, subdivision 4 of section 52 applies to each such assessed valuation. Where a contract for State aid has been amended, the date of the original contract governs with respect to the assessed valuations of those properties authorized to be acquired under the original contract, whether or not all such properties were acquired before the contract was amended. For properties acquired under an amendment to an original contract and not authorized to be acquired under the original contract, the assessed valuation as of the date of the amended contract shall govern. Street beds do not have assessed valuation and such closed streets as are included in a project and ceded to the local agency will not enter the base upon which taxes are paid and the value of the tax exemption credit is computed. However, the assessed valuation of land ceded by a local agency for new streets, street widening, parks, playgrounds and similar purposes should be deducted so that the local agency pays taxes and computes the value of the tax exemption only on the assessed valuation as of the date of the contract for State aid of the retained land and improvements. Reference should be had to the application for financial assistance and to the contract for State aid for possible limitations on the period of time within which the ceding of land for new streets, etc., must take place. Local agencies must pay taxes on such land while it holds it, even though the land will eventually be ceded. Local agencies must also pay taxes on land acquired for it in the course of condemnation proceedings by a municipality acting as its agent in the interim period between acquisition by the municipality and its transfer to the local agency. Where a local agency has cleared all or part of the land included in a project and finds new construction is impracticable, a municipality was authorized, until July 1, 1953, to reduce the assessment to the assessed valuation of the land as of the date of the contract for State aid plus the value of any improvements remaining thereon until such time as new construction is practicable. In this connection, local agencies should take whatever steps are necessary and pursue whatever remedies are available to them, as taxpayers, to secured reductions in assessed valuations on account of demolition.

(2) The application for financial assistance identifies the parcels of real property to be acquired for project both in the text and in an exhibit. The Public Housing Law, section 52(4), establishes the taxable assessed value of the project site for the life of the project. The loan and subsidy contract provides that within 10 days after its execution, the assessor shall compile and certify to the authority and the division a list of each parcel included in the project site and the assessed value thereof as of the date of the loan and subsidy contract. This list should be requested by the authority at the time of delivery of an executed copy of the loan and subsidy contract to the municipality. A copy of the request made by the authority shall be sent to the division. Where a partial taking of a tax parcel is planned, the assessors estimated assessed value of the land to be acquired shall be obtained in the same manner as hereinabove provided.

(3) Each tax year after the execution of the loan and subsidy contract, during the life of the project, a qualified representative of the authority shall immediately upon publication of the annual tentative assessment roll as provided in the applicable provisions of the Real Property Tax Law review said roll to determine whether there has been compliance by the assessor with the mandate in the Public Housing Law, section 52(4), regarding the taxable assessed values of the real property included in the project site. The procedures to correct the taxable assessed value of real property included in the project site as outlined in the applicable provisions of the Real Property Tax Law shall be immediately taken within the statutory period when a mistake, error, discrepancy or miscalculation is revealed by a review of the tax roll. The statutory period for inspection of the tax rolls is usually three weeks after the tentative tax assessment rolls are open for inspection. Authority counsel will be advised of the mistake, error, discrepancy or miscalculation within two days after its discovery and a copy of such notice sent to the division. The protest to be made in such event is provided for in the Real Property Tax law, section 512. A uthority counsel will draw and file such protest with the assessor of the protest, a proceeding shall be instituted as provided in the Real Property Tax Law, article 7, by authority counsel and a copy of the denial and the proceeding shall be forwarded to the division.

(4) The tentative tax assessment rolls are usually open for inspection.

(i) In New York City, February 1st.

(ii) Outside New York City, cities and towns, June 1st.

(iii) Villages, February 1st or such other date as the village may adopt pursuant to Village Law, section 5510.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1640-6.3