2023 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,  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.
* 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.