2023 New York Laws › RPT - Real Property Tax › Article 5 - Assessment Procedure › Title 3 - Correction of Assessment Rolls and Tax Rolls › 556 - Refunds and Credits of Taxes.

§ 556. Refunds and credits of taxes. 1. (a) Pursuant to the provisions
of  this  section,  an  appropriate  tax  levying body may refund to any
person the amount of any tax paid by him or her, or portion thereof,  as
the  case may be, or may provide a credit against an outstanding tax (i)
where such tax was attributable to a clerical error or an unlawful entry
and application for refund or credit is made within three years from the
annexation of the warrant for such tax,  or  (ii)  where  such  tax  was
attributable  to  an  error  in  essential  fact, other than an error in
essential fact as defined in  paragraph  (d)  of  subdivision  three  of
section  five  hundred  fifty  of  this  title, and such application for
refund or credit is made within three years from the annexation  of  the
warrant for such tax.
(b)  For each year for which a refund or credit is granted pursuant to
the provisions of this section by reason of the existence of an unlawful
entry as defined by paragraph (b) of subdivision seven of  section  five
hundred fifty of this title, the assessor of the assessing unit in which
the subject real property is actually located, but has been omitted from
the  assessment  and  tax  rolls  of  such  assessing  unit, or a school
district or special districts located therein, shall have the  authority
to enter such real property on the current assessment roll in accordance
with  the  provisions  of  section five hundred fifty-one of this title,
notwithstanding any time limitation contained in such section.
2. (a) Whenever it appears to a person who has paid a  tax  that  such
tax,  or  a  portion  thereof,  was attributable to an unlawful entry, a
clerical  error,  or  an  error  in  essential  fact,  as  described  in
subdivision  one of this section, such person may file an application in
duplicate,  including  any  available  proof  of  the  error,  with  the
appropriate  county  director of real property tax services for a refund
of such tax, or portion thereof, as the case may be.
(b) Whenever it appears to a person who is an owner of a parcel  which
is  subject  to an outstanding tax, that such tax, or a portion thereof,
was attributable to an unlawful entry, a clerical error, or an error  in
essential  fact,  as  described in subdivision one of this section, such
person may file an application in  duplicate,  including  any  available
proof  of  the  error,  with  the  appropriate  county  director of real
property tax services for a credit of such tax, or portion thereof.
(c) For an error in essential fact,  the  application  for  correction
shall  include  a copy of the property record card, field book, or other
final work product upon which the incorrect assessment was based  and  a
copy of any existing municipal record which substantiates the occurrence
of  the  error.  For  an  unlawful  entry as defined in paragraph (a) of
subdivision seven of section five  hundred  fifty  of  this  title,  the
application  for correction shall include a statement by the assessor or
by a majority of a board of assessors substantiating that  the  assessor
or assessors have obtained proof that the parcel which is the subject of
the  application should have been granted tax exempt status; the failure
to include such statement shall render the application null and void and
shall bar the tax levying body from directing  a  refund  or  credit  of
taxes pursuant to this section.
3.  The  application  for  a refund or credit pursuant to this section
shall be on a form and shall contain such information as  prescribed  by
the commissioner and shall be available in the offices of all collecting
officers and in the office of the county director.
4.  (a)  The  county  director,  within  ten days of the receipt of an
application filed  pursuant  to  this  section,  shall  investigate  the
circumstances  of the claimed unlawful entry, clerical error or error in
essential fact to determine  whether  the  error  exists,  and  on  such
investigation  he  may  require  and  shall  receive  from  any officer,

employee, department, board, bureau, office or other instrumentality  of
the  appropriate  municipal  corporation such facilities, assistance and
data  as  will  enable  him  to  properly  consummate  his  studies  and
investigations hereunder.
(b)  Upon  completion  of such investigation the county director shall
immediately transmit a written report of such investigation and  his  or
her  recommendation for action thereon, together with both copies of the
application, to the tax levying body. If the  same  alleged  error  also
appears  on  a  current  assessment roll, the county director shall also
file a copy of such report and recommendation with appropriate  assessor
and  board  of  assessment  review who shall consider the same to be the
equivalent of a petition for correction filed with such  board  pursuant
to section five hundred fifty-three of this title.
5.  The  tax  levying  body, at a regular or special meeting, upon the
presentation of an application filed pursuant to this  section  and  the
written report described in subdivision four of this section, shall:
(a)  examine  the  application  and  report  to  determine whether the
claimed unlawful entry,  clerical  error  or  error  in  essential  fact
exists;
(b)  reject  an  application  where  it is determined that the claimed
unlawful entry, clerical error or error in essential fact does not exist
by making a notation on the application and the duplicate  copy  thereof
that the application is rejected and the reasons for the rejection;
(c)  approve  an  application  where it is determined that the claimed
unlawful entry, clerical error or error in essential fact does exist  by
making a notation on the application and the duplicate copy thereof that
the  application  is  approved and by entering thereon the amount of the
refund to be paid or outstanding tax to be credited;
(d) mail an application that has been rejected to the applicant;
(e) mail an application that has been approved to the applicant.
6. (a) The amount of any tax refunded or  credited  pursuant  to  this
section  shall  be  a  charge upon each municipal corporation or special
district to the extent of any  such  municipal  corporation  or  special
district  taxes  that  were  so  refunded. Amounts so charged to cities,
towns and special districts shall be included in the  next  ensuing  tax
levy.
(b)  In  raising  the  amount  of  a refund or credit pursuant to this
section of a relevied school tax the appropriate tax levying body  shall
charge back against the school district which levied such tax the amount
of  the  refund  or credit which shall not exceed the amount paid by the
county treasurer to such school district upon the return  of  such  tax.
The  amount so charged against such school district shall be deducted by
the county treasurer and withheld from any  moneys  which  shall  become
payable  by  him  to such school district by reason of taxes which shall
thereafter be returned to him by such school district.  No  such  charge
shall  be  made by the county legislative body against a school district
unless ten days' notice thereof by mail has been  given  to  the  school
authorities  thereof.  Notice  that  such  deduction  will be made shall
thereafter be given by the county treasurer in writing  to  such  school
authorities  on  or  before  the first day of May prior to the making of
such deduction.
7. The powers and duties imposed  by  this  section  upon  the  county
director  of  real  property  tax  services  shall  be performed by such
officer for taxes levied for county, city, town,  special  district  and
school  district purposes except that (a) in the case of counties having
the power to assess real property  for  tax  purposes  such  powers  and
duties shall be performed by the chief assessing officer or the chairman
of  the  county board of assessors and, (b) in the case of villages, for

village tax purposes, such powers and duties shall be performed  by  the
village  assessor  or  the  chairman  of the village board of assessors;
provided, however, that if the  village  has  enacted  a  local  law  as
provided  in  subdivision  three of section fourteen hundred two of this
chapter, the county director shall perform the powers and duties imposed
upon such officer by this section on behalf of such village.
8. (a) A tax levying body may, by resolution, delegate to an  official
who  is  empowered  to authorize payment of bills without prior audit by
such body or, in the event there is no  official  so  empowered,  to  an
official  responsible  for  the  payment  of  bills  upon  audit  of the
appropriate municipal corporation so designated by it, the authority  to
perform  the  duties  of  such  tax  levying  body,  as provided in this
section. Such resolution shall only be in  effect  during  the  calendar
year  in which it is adopted and shall designate that such delegation of
authority is applicable only where the recommended refund or  credit  is
twenty-five  hundred  dollars  or  less, or such other sum not to exceed
twenty-five hundred dollars.
(b) Where such resolution is adopted and  the  recommended  refund  or
credit   does  not  exceed  the  amount  specified  in  the  designating
resolution, the county director shall transmit the written report of the
investigation and recommendation,  together  with  both  copies  of  the
application,  to  the  official designated by the tax levying body. Upon
receipt of the written report, the designated official shall follow  the
procedure  which  the  tax  levying body would follow in making refunds,
provided, however, where the designated official denies  the  refund  or
credit,  in  whole  or  in part, such official shall transmit to the tax
levying body for its review and disposition pursuant to subdivision five
of  this  section  the  written  report   of   the   investigation   and
recommendation  of the county director, together with both copies of the
application and the reasons that  the  designated  official  denied  the
refund  or credit. Where the recommendation of the county director is to
deny the application or the refund or credit requested is in  an  amount
in  excess  of  the  amount  authorized  in the enabling resolution, the
county director shall transmit the written report of  the  investigation
and recommendation, together with both copies of the application, to the
tax levying body.
(c)  On  or  before  the  fifteenth  day of each month, the designated
official shall submit a report to the tax levying body of the refunds or
credits processed by such official  during  the  preceding  month.  Such
report  shall  indicate  the name of each recipient, the location of the
property and the amount of the refund or credit.
(d) In no case shall the total sum of such refunds or credits approved
by the designated official exceed the amount  appropriated  therefor  by
the tax levying body.
9. In the event that an appropriation for a refund authorized pursuant
to  this  section  is  included  in the annual budget next adopted after
approval of such refund, interest shall be added to such refund computed
from the date that the application is approved pursuant  to  subdivision
five or eight of this section.
10. When a portion of an outstanding tax has been credited pursuant to
this  section, any interest and penalties that have been imposed thereon
shall be reduced to the extent that such  interest  and  penalties  were
attributable  to  the  credited  portion  of  the tax, and no additional
interest and penalties shall be imposed if the corrected amount  of  the
tax  is  paid  within  eight  days  of  the  date on which the notice of
approval is mailed pursuant to paragraph (e) of subdivision five of this
section.