Proposed Bill Could Transform Certiorari Process in Rye Town

Two bills being proposed in the New York State Assembly and in the New York State Senate would change the certiorari process in Rye Town.

The bills, known as the Home Rule assembly bill A10423, sponsored by Assembly Member George Latimer, and S7635 in the senate, sponsored by Senator Suzi Oppenhemer, would amend the real property tax lax in the Town of Rye regarding certiorari issues.

Certiorari tax claims allow property owners a legal way to challenge the real estate tax assessment of their property. After filing a claim, if the assessment shows a reduction in property value, the property owners are issued a refund.

The Town of Rye is one of only two municipalities in Westchester County that has done a "Reval" or Revaluation of the value of its properties. Basically this means that the Town of Rye assesses the value of its commercial and residential properties at 100 percent of value whereas most of the municipalities in Westchester County apply an adjustment factor subject to discretion. The Town of Rye reassesses annually, but is one of the few places in Westchester County to do so.

Town Supervisor Joseph Carvin said one of the reasons Rye did the revaluation was that the town expected the number of certiorari challenges would be reduced as properties would now be assessed at 100 percent of value, but that in fact the number of certiorari challenges went up. 

Currently once a certiorari challenge is filed, a property owner has four years to bring the complaint to court. According to Carvin, one of the problems is that if the case goes to court and the town loses, they have to pay a penalty interest rate on each of the four years for which the case was outstanding.

"The problem for the town is we need to hire lawyers to challenge the case, appraisers to substantiate our values, and then go to a court proceeding to go before a judge who will attempt to determine the fair value. Therefore the process is costly," Carvin said.

If the bill passes, the biggest change imposed by law would be that commercial property owners would effectively have to bring their challenges in the same year as they filed their complaint. The proposed law would allow the Town of Rye to serve notice to any commercial property owner who filed a certiorari claim within six and forty-two months, and demand the petitioner file a notice of issue no later than six months from the complaint.

The Town of Rye is currently dealing with about 250 certiorari filings. Town of Rye residents also filed 800 grievances in 2009 compared to 500 in 2008. The town has pushed for changes in real property tax law.

"We are not against legitimate complaints [against] us [when we have] gotten the values wrong. This new law accelerates that process so we can resolve them more quickly," Carvin said.

Carvin went on to say the biggest losers in certiorari claims isn't the Town, but the villages and schools to whom the bulk of the taxes are paid. The Blind Brook-Rye Union Free School district expects to issue about $132,000 in tax refunds during the upcoming school year as a result of certiorari claims. Since the schools' budget is financed by property taxes the school is responsible for issuing refunds.

According to Rye City Assessor Noreen Whitty, the new bill does not include Rye City and therefore will not affect its certiorari process.

While the new bill, if passed, would change the certiorari process in Rye Town and Rye Brook, votes on the bills have not yet been scheduled. Town Assessor Mitchell Markowitz is skeptical, saying that while the state government is discussing the bill, that doesn't mean they are close to making a decision or taking action.