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COVID-19: New York Temporarily Modifies Real Property Tax Law
Practical Law Legal Update w-025-1649 (Approx. 3 pages)
COVID-19: New York Temporarily Modifies Real Property Tax Law
by Practical Law Real Estate
| Published on 24 Apr 2020 • New York |
New York Governor Andrew Cuomo recently issued an executive order temporarily modifying New York's Real Property Tax Law and related tax laws in Westchester and Nassau counties to provide increased flexibility to local taxing authorities during the COVID-19 pandemic.
On April 20, 2020, New York Governor Andrew Cuomo issued Executive Order 202.22 (Order), which temporarily modifies New York's Real Property Tax Law during the 2019 novel coronavirus (COVID-19) pandemic. The Order:
- Provides municipalities throughout the state with some amount of flexibility in adopting property tax assessment rolls.
- Provides modified procedures for taxpayer challenges to property tax assessments.
- Relaxes specific penalties and interest which can accrue on taxes owed to Westchester and Nassau Counties.
The Order
The Order temporarily modifies Article 5 of New York's Real Property Tax Law (N.Y. Real Prop. Tax §§ 500 – 597) and the related tax laws of certain other counties in the state.
The Order:
- Provides municipalities an extension of up to 30 days to file tentative assessment rolls, which were originally due on or before June 1, 2020.
- Allows an assessing unit to set a date for hearing assessment complaints at least 21 days after the filing of the tentative assessment roll.
- Allows notice of the filing of the tentative roll to be published solely online, provided the date for hearing complaints is prominently displayed.
- Suspends in-person inspection of the tentative roll.
- Allows Boards of Assessment Review to hear complaints remotely by conference call or similar service, provided:
- complainants can present their complaints through such service; and
- the public has the ability to view or listen to such proceeding.
The Order modifies Section 1212 of the Real Property Tax Law to allow the commissioner of taxation and finance to certify final state equalization rates, class ratios, and class equalization rates, if required, no later than ten days (reduced from 30 days) before the last date set by law for the levy of taxes of any municipal corporation to which such equalization rates, class ratios, and class equalization rates are applicable.
Westchester County
The Order suspends Section 1512(1) of the Real Property Tax Law and Sections 283.291 and 283.221 of the Laws of Westchester County, to:
- Allow the County Executive to negotiate with any town supervisor or mayor of any city to accept a lesser percentage of taxes, special ad valorem levies or special assessments which are otherwise due on May 25, provided no town or city shall be required to pay more than 60%.
- Allow the County Executive to determine whether or not penalties for late payment or interest can be waived depending on whether or not such town or city applies the County Executive’s criteria for determining hardship due to COVID-19.
In addition, Section 1512(1) of the Real Property Tax Law and any penalty provision of the tax code of a city within Westchester County is further suspended to the extent necessary to allow the mayor of that city to:
- Waive the payment of penalties for late payment of county and county district taxes.
- Waive payment of penalties for late payment of city and city district taxes and assessments in the same manner.
The Order also modifies Laws of Westchester County Section 283.221 to require the supervisor of a town to:
- Waive payment of penalties for late payment of county and county district taxes under Section 283.221 up to July 15, 2020.
- Waive payment of penalties for late payment of town and town district taxes and assessments in the same manner.
Nassau County
The Order modifies Nassau County Administrative Code Section 5-18.0(2) to the extent necessary to allow the Nassau County Executive to extend the deadline to pay the final one-half of school taxes on real estate in such county without interest or penalty until June 1, 2020.
Practical Implications
The real property tax modifications and suspensions provided in the Order should provide some relief to state and local taxing authorities that are faced with reduced personnel capacity, delays in obtaining information, and social distancing and safety concerns. The Order also provides local officials the ability to offer relief to their residents who may need additional time to pay their real property taxes as a result of COVID-19 hardships. Taxpayers should check with their local taxing authorities to confirm what portions of the Order have been instituted in their county, city, or town.