NY Real Prop Tax L § 726 (2021)
2021 New York Laws RPT - Real Property Tax Article 7 - Judicial Review Title 1 - General Provisions 726 - Refund of Taxes.

§ 726. Refund of taxes. 1. If in a final order in any proceeding under this   article  it  is  determined  that  the  assessment  reviewed  was excessive, unequal or unlawful, or that real property was misclassified, and ordered or directed that the same be corrected or stricken from  the roll,  and  such  order  is  not made in time to enable the assessors or other appropriate officer, board or body to  make  a  new  or  corrected assessment  or  to  strike  such  assessment  from the roll prior to the imposing of any tax or special ad valorem levy upon  the  real  property the  assessment of which has been determined to be excessive, unequal or unlawful, or which has been determined to  be  misclassified,  then  any amount  at  any  time collected upon such excessive, unequal or unlawful assessment, or as a result of such misclassification shall  be  refunded as follows:  (a)  When  such tax or other levy shall have been imposed by the board of supervisors, there shall be audited and paid  to  the  petitioner  or other  person paying such tax or other levy in the same manner as county charges, the amount paid by him in excess of the amount which would have been paid had such assessment been made as  determined  by  such  order, together  with  interest  thereon as provided in subdivision two of this section. So much of any tax or other levy, including  interest  thereon, as  shall  be  refunded  which  was  imposed  for city, town, village or special district purposes, shall be charged to such city, town,  village or  special  district.  So  much of the amount of any tax or other levy, including interest thereon, as shall be refunded which was  imposed  for other  than city, town, village or special district purposes, shall be a general county charge; provided, however,  that  if  the  assessment  is reduced  by  such  order  by  an  amount  not  in excess of ten thousand dollars, such portion of the amount refunded shall  be  charged  to  the city  or  town  in  which  the  real property is situated. However, with regard to condominiums, the amount  paid  by  the  petitioner  or  other person  paying  such  tax, in excess of the amount which would have been paid had such assessment been made, as determined  by  such  order,  for assessments other than city, town, village or special district purposes, shall  not  be  a  city  or  town charge regardless of the amount of the reduction in the assessment.  (b) When such tax or  other  levy  shall  have  been  imposed  by  the appropriate  board  or body of any city, town or village, there shall be audited and paid to the petitioner or other person paying  such  tax  or other  levy  in the same manner as city, town or village charges, as the case may be, the amount paid by him in excess of the amount which  would have been paid had the assessment been made as determined by such order, together  with  interest  thereon as provided in subdivision two of this section. So much of any tax or other levy, including  interest  thereon, as  shall  be  refunded  which  was  imposed  for city, town, village or special district purposes, shall be charged to such city, town,  village or  special  district.  So  much of the amount of any tax or other levy, including interest thereon, as shall be refunded which was  imposed  for other  than city, town, village or special district purposes, shall be a general county charge; provided, however,  that  if  the  assessment  is reduced  by  such  order  by  an  amount  not  in excess of ten thousand dollars, such portion of the amount refunded shall  be  charged  to  the city  or  town  in  which  the  real property is situated. However, with regard to condominium owners, the amount paid by the petitioner or other person paying such tax, in excess of the amount which  would  have  been paid  had  such  assessment  been made, as determined by such order, for assessments other than city, town, village or special district purposes, shall not be a city or town charge  regardless  of  the  amount  of  the reduction in the assessment.    * (c)  Any  final  order  in  a proceeding under article seven of this chapter, which orders or  directs  the  correction  or  striking  of  an assessment  appearing  on  that  portion  of  a  city,  town  or  county assessment roll applicable to a school district,  shall  be  binding  on such school district. Any amount of taxes of such school district at any time  collected upon such assessment in excess of the amount which would have been paid had such assessment  been  made  as  determined  by  such order,  shall  be  refunded  by  the  school  authorities of such school district,  together  with  interest  thereon  computed  as  provided  in subdivision two of this section. A school district which levies taxes on behalf  of  a  school  district  public  library may charge back to such public library the  portion  of  such  refund  attributable  to  library purposes. Such refund shall be made in accordance with the procedure set forth  in  this  section,  provided,  however, that application for such refund shall be made, by the petitioner or other person paying such tax, within three years after the  entry  of  the  final  order  ordering  or adjudging or determining such assessment to have been excessive, unequal or  unlawful,  or  that real property was misclassified. The time of the pendency of any appeal in any such proceeding or  from  any  such  order shall not be deemed part of such three years.   * NB Effective until January 1, 2022   * (c)  Any  final  order  in  a proceeding under article seven of this chapter, which orders or  directs  the  correction  or  striking  of  an assessment  appearing  on  that  portion  of  a  city,  town  or  county assessment roll applicable to a school district,  shall  be  binding  on such school district. Any amount of taxes of such school district at any time  collected upon such assessment in excess of the amount which would have been paid had such assessment  been  made  as  determined  by  such order,  shall  be  refunded  by  the  school  authorities of such school district,  together  with  interest  thereon  computed  as  provided  in subdivision two of this section. A school district which levies taxes on behalf  of  a  school  district  public  library,  association  library, municipal public library, or special district public library may  charge back  to such library the portion of such refund attributable to library purposes. Such refund shall be made in accordance with the procedure set forth in this section, provided,  however,  that  application  for  such refund shall be made, by the petitioner or other person paying such tax, within  three  years  after  the  entry  of  the final order ordering or adjudging or determining such assessment to have been excessive, unequal or unlawful, or that real property was misclassified. The  time  of  the pendency  of  any  appeal  in any such proceeding or from any such order shall not be deemed part of such three years.   * NB Effective January 1, 2022   * 2. Interest shall be paid on the amount of any refund made  pursuant to  this  section, computed from the date of payment of the tax or other levy or portion thereof refunded; provided, however,  that  interest  on the  amount  of  any  such  refund  for the period after any final order determining  the  assessment  reviewed  to  be  excessive,  unequal   or unlawful,   or   determining   that  real  property  was  misclassified, notwithstanding that an appeal in the proceeding or from such order  may be  pending, shall be paid only from the date that application for audit and payment of such refund shall have been duly made to the  appropriate fiscal  officer  or body. Such rate of interest shall be the overpayment rate set by  the  commissioner  of  taxation  and  finance  pursuant  to subsection  (j)  of  section six hundred ninety-seven of the tax law and such interest rate shall not be greater than  nine  percent  per  annum. Provided,  the  interest rate of the first calendar quarter set forth in the first month of the calendar year shall be the annual interest  rate,  and shall be the rate of interest prescribed by this subdivision. If, as a  result  of  an appeal, there shall be an increase in the amount to be refunded, for  the  purposes  of  computing  the  interest  thereon  the determination upon such appeal shall be deemed a determination only with respect to such increase.   * NB Applies to interest chargeable on or after April 1, 2003   3.  Application  for the audit and payment of a tax or other levy paid upon an assessment determined upon final order to be excessive,  unequal or unlawful, or paid upon an assessment of real property determined upon final  order  to  be  misclassified,  must  be made to the proper fiscal officer or body by the petitioner or  other  person  paying  such  taxes within  three  years  after  the entry of such order; provided, however, that the time of the pendency of any appeal in any  such  proceeding  or from any such order shall not be deemed any part of such three years.   4.  Provision  for the payment of all amounts charged to a city, town, village, school district or special district pursuant to paragraphs (a), (b) and (c) of subdivision one of this section, shall be included in the next annual budget or estimate  of  such  city,  town,  village,  school district  or  special district; provided, however, that in the event the aggregate amount charged to any city, town, village, school district  or special  district pursuant to paragraphs (a), (b) and (c) of subdivision one of this section for any fiscal  year  exceeds  twenty-five  thousand dollars  or  if such amount exceeds one per centum of the full valuation thereof, such amount may be financed, in whole or in part, in  the  same manner  as  a  final  judgment  against such city, town, village, school district or special district. Full valuation shall  mean  the  valuation obtained  by  dividing  the  assessed  valuation,  as  shown on the last completed assessment roll for which a state equalization rate  has  been established,  by  such  state  equalization  rate. If a town shall issue obligations to finance  the  payment,  in  whole  or  in  part,  of  the aggregate amount so charged back to such town for any fiscal year, taxes or  other levies required for payment of the principal of an interest on such obligations shall be imposed in the first instance upon the  entire town  or  such  parts thereof, in the same proportion and manner, as the taxes or other levies refunded and included  in  such  aggregate  amount were imposed upon the entire town or such parts thereof.   5. (a) If the parties have so agreed, a final order may provide that a refund  which  is  payable  pursuant  to  this  section shall be paid in installments over a specified period, not  to  exceed  five  years.  The order  may further provide, if the parties have so agreed, that interest shall be paid on  such  installments,  at  the  rate  provided  by  this section.  Each  such installment shall be audited, paid and charged back in the manner provided by this section.  (b) Notwithstanding any agreement of the parties to the  contrary,  in no  event  shall an excessive, unlawful or unequal assessment be reduced by more than is necessary to correct an excessive, unlawful  or  unequal assessment,  or  reapportioned  by  more  than is necessary to correct a misclassification, so as to avoid  paying  a  refund  pursuant  to  this section.