Blind Brook School District Debates Options for Property Assessment Challenges

Tax certiorari claims could pose an increasing problem for the Blind Brook-Rye Union Free School District as more property owners challenge their assessments and are issued refunds.

The district's Board of Education began discussing options for dealing with tax certiorari claims Monday night.

Tax certiorari claims offer property owners a legal way to challenge the real estate tax assessment of their property. If the assessment shows a reduction in property value, then the school district issues a refund since the schools' budget is financed by property taxes.

Several claims filed in October and November appear to have been successful.

"Mitchell Markowitz [Rye Town assessor] informed me which of the certiorari that were filed last season were those that the board should worry about," said Jonathan Ross, Assistant Superintendent of Finance and Facilities. "We also know that there will be court settlement on parcels owned by Doral [Arrowwood] and the refund will go to Doral. It will be the two golf parcels that were reassessed and as result there will be two years of refunds due to them."

The school district has to maintain enough money in its tax reserve to issue refunds to property owners who successfully challenge their property assessments. The Blind Brook-Rye Union Free School district has about $165,000 in its tax reserve, and expects to issue about $132,000 in tax refunds during the 2010-2011 school year.

Ross presented the board with three options for dealing with tax certiorari issues:

First, the district can anticipate paying property owners $132,000, and cut this amount from the budget. Second, the district could the pay property owners from the current $165,000, leaving only about $33,000 in reserve. Third, the district could increase the financial tax reserve by levying a tax and raising $132,000.

Ross expressed concern about depleting the financial reserve, saying it would be better to have enough money in reserves to meet the unexpected needs the school district will have in the coming years.

The board debated the tax certiorari options, commenting that in the present economic crisis the potential rise in property challenge assessments would not be surprising.

"Taxpayers need the most relief," Board of Education President Steven Kaplan said.

The district will continue discussing the options for dealing with certiorari claims and maintaining the tax reserve fund over the next few meetings, voting on a decision by the April 19 budget adoption meeting for the 2010 – 2011 school year.