§ 726 — Refund of taxes

§ 726. Refund of taxes. 1. If in a final order in any proceeding under\nthis article it is determined that the assessment reviewed was\nexcessive, unequal or unlawful, or that real property was misclassified,\nand ordered or directed that the same be corrected or stricken from the\nroll, and such order is not made in time to enable the assessors or\nother appropriate officer, board or body to make a new or corrected\nassessment or to strike such assessment from the roll prior to the\nimposing of any tax or special ad valorem levy upon the real property\nthe assessment of which has been determined to be excessive, unequal or\nunlawful, or which has been determined to be misclassified, then any\namount at any time collected upon such excessive, unequal or unlawful\nassessment, or as a result of such misclassification shall be refunded\nas follows:\n (a) When such tax or other levy shall have been imposed by the board\nof supervisors, there shall be audited and paid to the petitioner or\nother person paying such tax or other levy in the same manner as county\ncharges, the amount paid by him in excess of the amount which would have\nbeen paid had such assessment been made as determined by such order,\ntogether with interest thereon as provided in subdivision two of this\nsection. So much of any tax or other levy, including interest thereon,\nas shall be refunded which was imposed for city, town, village or\nspecial district purposes, shall be charged to such city, town, village\nor special district. So much of the amount of any tax or other levy,\nincluding interest thereon, as shall be refunded which was imposed for\nother than city, town, village or special district purposes, shall be a\ngeneral county charge; provided, however, that if the assessment is\nreduced by such order by an amount not in excess of ten thousand\ndollars, such portion of the amount refunded shall be charged to the\ncity or town in which the real property is situated. However, with\nregard to condominiums, the amount paid by the petitioner or other\nperson paying such tax, in excess of the amount which would have been\npaid had such assessment been made, as determined by such order, for\nassessments other than city, town, village or special district purposes,\nshall not be a city or town charge regardless of the amount of the\nreduction in the assessment.\n (b) When such tax or other levy shall have been imposed by the\nappropriate board or body of any city, town or village, there shall be\naudited and paid to the petitioner or other person paying such tax or\nother levy in the same manner as city, town or village charges, as the\ncase may be, the amount paid by him in excess of the amount which would\nhave been paid had the assessment been made as determined by such order,\ntogether with interest thereon as provided in subdivision two of this\nsection. So much of any tax or other levy, including interest thereon,\nas shall be refunded which was imposed for city, town, village or\nspecial district purposes, shall be charged to such city, town, village\nor special district. So much of the amount of any tax or other levy,\nincluding interest thereon, as shall be refunded which was imposed for\nother than city, town, village or special district purposes, shall be a\ngeneral county charge; provided, however, that if the assessment is\nreduced by such order by an amount not in excess of ten thousand\ndollars, such portion of the amount refunded shall be charged to the\ncity or town in which the real property is situated. However, with\nregard to condominium owners, the amount paid by the petitioner or other\nperson paying such tax, in excess of the amount which would have been\npaid had such assessment been made, as determined by such order, for\nassessments other than city, town, village or special district purposes,\nshall not be a city or town charge regardless of the amount of the\nreduction in the assessment.\n (c) Any final order in a proceeding under article seven of this\nchapter, which orders or directs the correction or striking of an\nassessment appearing on that portion of a city, town or county\nassessment roll applicable to a school district, shall be binding on\nsuch school district. Any amount of taxes of such school district at any\ntime collected upon such assessment in excess of the amount which would\nhave been paid had such assessment been made as determined by such\norder, shall be refunded by the school authorities of such school\ndistrict, together with interest thereon computed as provided in\nsubdivision two of this section. A school district which levies taxes on\nbehalf of a school district public library, association library,\nmunicipal public library, or special district public library may charge\nback to such library the portion of such refund attributable to library\npurposes. Such refund shall be made in accordance with the procedure set\nforth in this section, provided, however, that application for such\nrefund shall be made, by the petitioner or other person paying such tax,\nwithin three years after the entry of the final order ordering or\nadjudging or determining such assessment to have been excessive, unequal\nor unlawful, or that real property was misclassified. The time of the\npendency of any appeal in any such proceeding or from any such order\nshall not be deemed part of such three years.\n * 2. Interest shall be paid on the amount of any refund made pursuant\nto this section, computed from the date of payment of the tax or other\nlevy or portion thereof refunded; provided, however, that interest on\nthe amount of any such refund for the period after any final order\ndetermining the assessment reviewed to be excessive, unequal or\nunlawful, or determining that real property was misclassified,\nnotwithstanding that an appeal in the proceeding or from such order may\nbe pending, shall be paid only from the date that application for audit\nand payment of such refund shall have been duly made to the appropriate\nfiscal officer or body. Such rate of interest shall be the overpayment\nrate set by the commissioner of taxation and finance pursuant to\nsubsection (j) of section six hundred ninety-seven of the tax law and\nsuch interest rate shall not be greater than nine percent per annum.\nProvided, the interest rate of the first calendar quarter set forth in\nthe first month of the calendar year shall be the annual interest rate,\nand shall be the rate of interest prescribed by this subdivision. If, as\na result of an appeal, there shall be an increase in the amount to be\nrefunded, for the purposes of computing the interest thereon the\ndetermination upon such appeal shall be deemed a determination only with\nrespect to such increase.\n * NB Applies to interest chargeable on or after April 1, 2003\n 3. Application for the audit and payment of a tax or other levy paid\nupon an assessment determined upon final order to be excessive, unequal\nor unlawful, or paid upon an assessment of real property determined upon\nfinal order to be misclassified, must be made to the proper fiscal\nofficer or body by the petitioner or other person paying such taxes\nwithin three years after the entry of such order; provided, however,\nthat the time of the pendency of any appeal in any such proceeding or\nfrom any such order shall not be deemed any part of such three years.\n 4. Provision for the payment of all amounts charged to a city, town,\nvillage, school district or special district pursuant to paragraphs (a),\n(b) and (c) of subdivision one of this section, shall be included in the\nnext annual budget or estimate of such city, town, village, school\ndistrict or special district; provided, however, that in the event the\naggregate amount charged to any city, town, village, school district or\nspecial district pursuant to paragraphs (a), (b) and (c) of subdivision\none of this section for any fiscal year exceeds twenty-five thousand\ndollars or if such amount exceeds one per centum of the full valuation\nthereof, such amount may be financed, in whole or in part, in the same\nmanner as a final judgment against such city, town, village, school\ndistrict or special district. Full valuation shall mean the valuation\nobtained by dividing the assessed valuation, as shown on the last\ncompleted assessment roll for which a state equalization rate has been\nestablished, by such state equalization rate. If a town shall issue\nobligations to finance the payment, in whole or in part, of the\naggregate amount so charged back to such town for any fiscal year, taxes\nor other levies required for payment of the principal of an interest on\nsuch obligations shall be imposed in the first instance upon the entire\ntown or such parts thereof, in the same proportion and manner, as the\ntaxes or other levies refunded and included in such aggregate amount\nwere imposed upon the entire town or such parts thereof.\n 5. (a) If the parties have so agreed, a final order may provide that a\nrefund which is payable pursuant to this section shall be paid in\ninstallments over a specified period, not to exceed five years. The\norder may further provide, if the parties have so agreed, that interest\nshall be paid on such installments, at the rate provided by this\nsection. Each such installment shall be audited, paid and charged back\nin the manner provided by this section.\n (b) Notwithstanding any agreement of the parties to the contrary, in\nno event shall an excessive, unlawful or unequal assessment be reduced\nby more than is necessary to correct an excessive, unlawful or unequal\nassessment, or reapportioned by more than is necessary to correct a\nmisclassification, so as to avoid paying a refund pursuant to this\nsection.\n