SCAR

GRIEVANCE PROCESS

Property taxes in New York are not only among the highest in the United States, but are also administered by one of the most unfair assessment systems. Most assessing units in the State rarely update their assessments, so property tax assessments are instead brought to market value by a mathematical formula - the jurisdiction-wide equalization rate. This one-size-fits-all method of tax assessment does not fit all property owners equally, and can be unfair in its effect.

In 2007 and 2008, the real estate market suffered substantial declines in value but assessments in many towns on Long Island have continued to increase. Without coming forward to challenge the current tax assessment, a property owner will be paying taxes based on a value that no longer exists.

Property taxes can only be reduced through the grievance process.

While it takes some effort, it’s well worth investing the time and energy to make sure you aren’t paying more in property taxes than is fair. Long Island Towns all have procedures for “grieving” property taxes, where – if you make a strong case – you can get your taxes lowered, not just for a year, but for years to come.

An increasing number of people are going through the grievance process to get their property taxes lowered. That is, following the detailed local rules, they are trying to show that their property’s assessment is too high.

Of the components that go into calculating your tax bill, the only one you have a chance of getting changed is the assessment, the amount that the assessor decided your home is worth. Everything else requires the involvement of legislators and other policy-makers.

The initial grievance must be filed with your local board of assessment review (BAR). If the BAR doesn’t grant a reduction, an appeal can be filed with the small claim assessment review (SCAR) section of the NYS Supreme Court. Appeals must be postmarked no later than 30 days after the final assessment roll is filed. A successful appeal is based upon proving that the market value of your property is less than the valuation assigned by your assessing district. The assessment is assumed to be correct and the burden of proof falls on the homeowner to prove otherwise. A recent bona fide arms’ length sale of the subject property is the best evidence of value. If the property was not recently purchased, or the purchase was not at arms’ length (as in an intra-family sale, foreclosure or other sale made under conditions of distress), an appraisal is the next best type of evidence.

The administrative procedures and other formalities of the grievance process must be strictly adhered to, and proper valuation evidence must be presented at a grievance hearing.

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