Tax Assessment and the Grievance Process

In New York State, property owners may review the tax assessment on their property(ies) and file a grievance if they feel they are over assessed. Dutchess County, Putnam County and Westchester County all follow the same roll period.  The current valuation date is 07/01/2009.

There are (2) ways to request a formal review, or apply for grievance.  An administrative review, which is done through your local municipality or a judicial review, otherwise known as a small claims assessment review.  In order to have a judicial review, you must first go through the administrative review process.  The first step is to evaluate your tentative assessment and decide if your assessed value is fair. 

First, let's talk about how your assessment is established. In New York State, each "assessing unit" (an assessing unit may be a city, town, village or county, but not by school district) is required to assess all properties at the same percentage of market value, whether it be partial or 100%. Simply stated, market value is defined as the most probable price a buyer is willing to pay on the open market without undue pressure (bankruptcy, divorce, estate, relocation, etc.).

Each municipality has a Board of Assessment Review (BAR) which meets and reviews the data supplied by homeowners in support of their application for lowering either their assessed value or tax rate.  In most towns, the BAR meets on the 4th Tuesday of May (Westchester County meets on the 3rd Tuesday in June). The assessor is obligated to post that the tentative roll has been filed, when and where it will be made available for viewing and where the BAR will meet in the municipality's official newspaper. It is also required that homeowners be notified if their assessment will be raised or if any exemptions are removed. It is important to note that you are responsible to check on your assessment. If you are not notified, it does not disqualify your increased assessment. The burden of proof is on the homeowner. There are 3 grounds for complaint: 1) unequal assessment; 2) excessive assessment and 3) unlawful assessment. Each of these is explained in detail at http://www.orps.state.ny.us/pamphlet/complain/howtofile/whattodo.pdf

If you decide after viewing your tentative assessment you would like to proceed in filing a complaint, you may go to your local assessor (on or before the first day the BAR meets) or to the Board of Assessment Review. You must file a RP-524 form (available through the assessor's office or online at www.orps.state.ny.us/ref/forms/pdf/rp524.pdf) along with the proof necessary to substantiate the value of your property. After speaking with many assessors' offices in our area, the best proof is by use of an appraisal from a licensed or certified appraiser to support the opinion of market value. The appraisal must utilize sales within the roll period. An appraisal with an effective date after the roll period may not accurately indicate the proper market value, especially in a declining or appreciating market, and therefore be unacceptable. Other documentation would be purchase price or list price (if recent), cost of building (if new construction) and purchase price of comparable properties sold within the roll period, to name a few. There are many websites available for homeowners to view recent or comparable sales. Some of the data supplied regarding the inventory of these properties is not always accurate and should be verified with the town to ensure correct information. 

The New York State Office of Real Property Services http://www.orps.state.ny.us/ has a multitude of information for homeowners throughout New York regarding your assessment, how it is established and how to file a complaint.