Rye Town Considers Change to Tax Cert Laws

 A small portion of Rye Town commercial property owners in Rye Town have been filing tax certioris (certs) claiming that the tax assessments of their properties should be from 75 to 90 percent less than the assessed value of their properties. The problem with these situations is that the Town has to challenge the certs in court and if it loses, taxpayers would have to pay large penalties, a situation that has often forced the Town to settle even when it knows it is right.

 Town Supervisor Joe Carvin has criticized this “gaming of the system” and sought legislative help in Albany, which he has now received. State Assemblyman Steve Otis sent the Town a letter informing officials that their legal researchers had found a court case, a 1987 Appeals Court ruling, which essentially upheld a New York City law requiring commercial property owners to submit income and expense statements (I&Es) on their properties to justify their assessments; and providing for fines if they failed to do so.

The Town now needs to consider if it wants to make a law that will be similar to New York City’s law, which would penalize those who do not comply with the tax cert law, or if they want a more refined law that only penalizes commercial property owners who file grievances and don’t file and I and E, according to Rye Town Attorney Paul Noto.   

 Rye Town Attorney Paul Noto explained: “We still need state legislation to lock in agreements for three years like non reval communities have and to accelerate the completion of cert cases. We have had an Income and Expense law for four years. It had no meaningful penalties.”    

On Tuesday, June 18 at 7 p.m., the Town will hold a hearing on a proposed Town law which would essentially mimic the already legally approved New York City law, with penalties, and then ask Otis for the additional legislation that would be needed to lock in agreements for three years and accelerate completion of cert cases.