New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1640 - General Information › Subpart 1640-6 - Tax Exemptions › Section 1640-6.3 - Local taxes

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Local taxes,
						other than taxes on real property. Subdivision 1 of section
						52 of the
						Public Housing Law exempts a local agency from the payment of the taxes or fees
						to any subdivision of the State or to any officer or employee thereof, except
						where such officer or employee is personally entitled by law to such fees as
						compensation for services rendered or performed by him in his official
						capacity. Subdivisions of the State include counties, cities, villages, towns,
						and special districts, as well as departments and agencies of the State itself.
						Property of a local agency is, however, only partly tax exempt, as explained in
						subdivision (b) of this section. As with State taxes, the exemption from local
						taxes appears to be automatic and the law does not prescribe any particular
						procedure to be followed by a local agency in connection with such exemption.
						Members, officers, and employees of a local agency traveling on official
						business in connection with the affairs of the local agency are exempt from
						payment of the New York City tax on occupancy of hotel rooms. To obtain the
						exemption, a separate exemption certificate for each occupancy and for each
						person registered is furnished to the hotel, upon registering. A specimen
						exemption certificate is shown as Exhibit 5 of Appendix S-6. Copies may be
						obtained from the Comptroller of the City of New York, 50 Pine Street, New
						York, New York or they may be prepared by the local agency on its own
						stationery.
(b) Local taxes on real
						property.
(1) The property of a local agency
						included in a project, while subject to State, county, city or village, town,
						school, and special district taxes, enjoys a partial exemption from such taxes.
						Taxes on real property are based on assessed valuations. Subdivision 4 of
						section
						52 of the
						Public Housing Law states that the property included in a project may not, in
						any event, be assessed at an amount in excess of the actual cost of the project
						(meaning development cost, to date) and further exempts from taxation that
						portion of the assessed valuation as represents an increase over the assessed
						valuation of the real property, both land and improvements, and still retained
						as of the date of the contract for State aid. The value of the tax exemption,
						determined by applying the current rate of tax to the portion of the assessed
						valuation exempt from tax, may be applied by a municipality as a credit against
						the periodic local subsidy which the municipality is required to make to match
						the State subsidy, in accordance with section
						73 of the
						Public Housing Law. For the purpose of computing the value of the tax exemption
						subsidy for the first year of project operations, however, project development
						cost may, under certain circumstances, be substituted for current assessed
						valuation. It should be noted that only the assessed valuation as of the date
						of the contract for State aid is frozen by the statute. The tax rate, and hence
						the actual amount of taxes the local agency will pay and, likewise, the value
						of the tax exemption, may vary from year to year. In some localities,
						situations may arise where the property of the local agency is subject to
						taxation by several local bodies, such as a county and a town, each setting its
						own assessed valuation, independently of the others. In such event, subdivision
						4 of section 52 applies to each such assessed valuation. Where a contract for
						State aid has been amended, the date of the original contract governs with
						respect to the assessed valuations of those properties authorized to be
						acquired under the original contract, whether or not all such properties were
						acquired before the contract was amended. For properties acquired under an
						amendment to an original contract and not authorized to be acquired under the
						original contract, the assessed valuation as of the date of the amended
						contract shall govern. Street beds do not have assessed valuation and such
						closed streets as are included in a project and ceded to the local agency will
						not enter the base upon which taxes are paid and the value of the tax exemption
						credit is computed. However, the assessed valuation of land ceded by a local
						agency for new streets, street widening, parks, playgrounds and similar
						purposes should be deducted so that the local agency pays taxes and computes
						the value of the tax exemption only on the assessed valuation as of the date of
						the contract for State aid of the retained land and improvements. Reference
						should be had to the application for financial assistance and to the contract
						for State aid for possible limitations on the period of time within which the
						ceding of land for new streets, etc., must take place. Local agencies must pay
						taxes on such land while it holds it, even though the land will eventually be
						ceded. Local agencies must also pay taxes on land acquired for it in the course
						of condemnation proceedings by a municipality acting as its agent in the
						interim period between acquisition by the municipality and its transfer to the
						local agency. Where a local agency has cleared all or part of the land included
						in a project and finds new construction is impracticable, a municipality was
						authorized, until July 1, 1953, to reduce the assessment to the assessed
						valuation of the land as of the date of the contract for State aid plus the
						value of any improvements remaining thereon until such time as new construction
						is practicable. In this connection, local agencies should take whatever steps
						are necessary and pursue whatever remedies are available to them, as taxpayers,
						to secured reductions in assessed valuations on account of
						demolition.
(2) The application for
						financial assistance identifies the parcels of real property to be acquired for
						project both in the text and in an exhibit. The Public Housing Law, section
						52(4), establishes the taxable assessed value of the project site for the life
						of the project. The loan and subsidy contract provides that within 10 days
						after its execution, the assessor shall compile and certify to the authority
						and the division a list of each parcel included in the project site and the
						assessed value thereof as of the date of the loan and subsidy contract. This
						list should be requested by the authority at the time of delivery of an
						executed copy of the loan and subsidy contract to the municipality. A copy of
						the request made by the authority shall be sent to the division. Where a
						partial taking of a tax parcel is planned, the assessors estimated assessed
						value of the land to be acquired shall be obtained in the same manner as
						hereinabove provided.
(3) Each tax
						year after the execution of the loan and subsidy contract, during the life of
						the project, a qualified representative of the authority shall immediately upon
						publication of the annual tentative assessment roll as provided in the
						applicable provisions of the Real Property Tax Law review said roll to
						determine whether there has been compliance by the assessor with the mandate in
						the Public Housing Law, section 52(4), regarding the taxable assessed values of
						the real property included in the project site. The procedures to correct the
						taxable assessed value of real property included in the project site as
						outlined in the applicable provisions of the Real Property Tax Law shall be
						immediately taken within the statutory period when a mistake, error,
						discrepancy or miscalculation is revealed by a review of the tax roll. The
						statutory period for inspection of the tax rolls is usually three weeks after
						the tentative tax assessment rolls are open for inspection. Authority counsel
						will be advised of the mistake, error, discrepancy or miscalculation within two
						days after its discovery and a copy of such notice sent to the division. The
						protest to be made in such event is provided for in the Real Property Tax law,
						section 512. A uthority counsel will draw and file such protest with the
						assessor of the protest, a proceeding shall be instituted as provided in the
						Real Property Tax Law, article 7, by authority counsel and a copy of the denial
						and the proceeding shall be forwarded to the division.
(4) The tentative tax assessment rolls are
						usually open for inspection.
(i) In New York
						City, February 1st.
(ii) Outside
						New York City, cities and towns, June 1st.
(iii) Villages, February 1st or such other
						date as the village may adopt pursuant to Village Law, section 5510.