NEW YORK STATE REAL PROPERTY TAX
ADMINISTRATION IMPROVEMENT STUDY
TOMPKINS COUNTY
Prepared by:
Tompkins County
Department of Assessment
May 15, 2009
2
Table of Contents
I Executive Summary 3
II The Job of the Property Assessor 11
III Current Assessment Administration Structure 13
IV Alternative Assessment Administration Structures 23
V Recommendations to Improve the Assessment Function in NYS 31
Appendices
A. Current/Estimated Budget Worksheets
B. Terminology
3
I. Executive Summary
Background
In the autumn of 2007, the Office of Real Property Services (NYSORPS) established the
Centralized Property Tax Administration Program (CPTAP) to encourage county and
municipal officials to study reform opportunities for their local property tax systems.
Additional applications have already been received for the 2008-2009 grant cycle. The
final deadline for grant applications has passed and 52 counties will be receiving grants
expecting to total $4.8 million.
The intent of the grant program is for counties to chart their own paths to reform. The
program does not presuppose a one-size fits all approach to such improvements. By
analyzing the particulars of their county, local officials can determine what form of
assessment administration will work best for both their taxpayers and the taxing
jurisdictions.
The study must examine at least one model of assessing that ensures that all parcels
within the county are treated as if they are within one common assessing jurisdiction.
This means that all parcels throughout the county would be assessed using the same level
of assessment and consistent valuation processes.
The goal of the program is to achieve common treatment (including a common level of
assessment/equalization rate) for all parcels in a county, which will benefit taxpayers in
the following ways:
Transparency - "Is it simple enough for taxpayers to understand?"
Equity - "Does it treat every parcel the same way?"
Efficiency - "Is it the lowest cost for a given level of service?"
Current Assessment Structure in New York State
It is without question that New York State has one of the most confusing and complex
real property tax structures within our nation. According to the New York State Office of
4
Real Property Services (“NYSORPS”), there are 1,128 distinct assessing units in New
York State. Each assessing unit has the ability to specify their own level of assessment
and their reassessment cycle. Many municipalities reassess on an annual basis while
some municipalities have not assessed since the Civil War
1
. As one can see from the
following chart, almost 60% of these assessing units are comprised of less than 2,500
parcels.
New York State's Assessing Jurisdictions
(Does not include 145 village assessing units)
Number of
Parcels
Number of
Assessing Units
Cumulative
Cumulative
Percent
< 1,000 139 139 14%
1,001 - 2,500 444 583 59%
2,500 - 5,000 222 805 82%
5,000 - 10,000 101 906 92%
10,001 - 20,000 47 953 97%
20,000 - 50,000 21 974 99%
> 50,000 9 983 100%
Source: NYSORPS
Out of all the states in the United States, only three states (Michigan, North Dakota and
Wisconsin) have more independent assessing units than New York State. The following
map lists the total number of assessing units for each state.
1
Office of Real Property Services – Reforming New York’s Real Property Tax System
5
It is also noteworthy that New York is one of only three states where a specific level of
assessment is not mandated. The following map shows the State Assessment Standards
within the United States.
6
This inconsistent level of assessment further complicates the matter of apportioning
school taxes by 683 school districts over 2,900 municipal segments. Most states require
that assessed value be reflective of the market value of the property. Twelve states
require all assessments to be at a uniform percentage of market value while another ten
states require a uniform percentage of market value between property classes. Tompkins
County by virtue of being a Countywide Assessment Unit has a single equalization for all
parcels in the County.
Currently in New York State there are only two Countywide Assessing Units – Nassau
and Tompkins County. Within these two assessing units, only Tompkins County is a true
Countywide Assessing Unit as Nassau County still retains some local municipal
assessing jurisdictions.
Current Assessment Structure in Tompkins County
There is currently one assessing jurisdiction within Tompkins County. Tompkins County
completed the third year of a Triennial Reassessment Program for the 2008 Assessment
Roll thereby assuring that all properties are assessed at 100% of their full market value.
The county has returned to the Annual Assessment Aid Program for the 2009 Assessment
Roll.
There are six villages within Tompkins County, however all have abolished their
assessing unit status and have adopted the town assessment roll as their own eliminating
this duplication of effort that exists in some other counties.
Based upon an analysis of the last three budget years, the total amount of local spending
for the assessment function in Tompkins County is estimated to be $867,138 or
$25.12/parcel.
7
Summary of Alternative Assessment Administration Options
The analysis that is included in this study reflects the data that was ascertained regarding
the Real Property Assessment Administration practices within Tompkins County. This
report is intended for informational purposes only. This report is not an endorsement of
any alternative assessment structure, nor is it an endorsement of the current assessment
structure within Tompkins County. This report is also not intended to identify every
operational detail of the options described within. Any move to implement or further
explore options will require additional specifics.
Coordinated Assessment Programs (CAP)
The Coordinated Assessment Program (CAP) allows for two or more
municipalities to share an assessor under a formal agreement, but retain their
status as an assessing unit. This agreement allows the municipalities to apply and
receive an initial grant for up to $7/parcel.
If a Countywide CAP that encompasses all towns within the county was to be
formed in Tompkins County, the estimated cost would be $926,235 or
$26.84/parcel. This estimate amounts to approximately $59,097 more than what
is currently spent on the assessment function in Tompkins County.
Optional County Service Agreements
Section 1537 of the Real Property Tax Laws allows an assessing unit and a county
to enter into an agreement for appraisal services, exemptions service, or
assessment services. This is considered an agreement for the provision of a ‘joint
service’ for the purposes of article five-g of the general municipal law. This
interpretation takes into the fact that with this agreement the county would not
have the power to perform any of the above duties in the absence of the
agreement.
8
Full Assessment Function
If all towns were to assign the assessment function to Tompkins County
under Section 1537 of the Real Property Tax Law, the estimated cost of
the combined assessment/County Real Property Tax Service Agency
would be approximately $892,862 or $25.99/parcel. This estimates
amounts to approximately $29,724 more than what is currently spent on
the assessment function in Tompkins County.
In order to transition to this assessment structure, each Town Board and
the County Legislature would have to adopt a resolution to form the
consolidated assessment unit
Local Town Assessment Offices
Based upon the analysis performed and included within this study, it is estimated
that a reversion to a local Assessment Offices would cost Tompkins County
approximately $319,086 per year given anticipated annual expenditures at the
Town, Village and County level. The total cost for a adequately staffed local
assessment office structure in Tompkins County is $1,186,224.
The following chart shows the summary of the cost of the current and alternative
assessment structures that would provide for all properties within Tompkins
County to be treated in the same equitable manner.
Current
Structure that
is in place
Countywide
CAP –
Managed
by County
All munis
contract with
County for
assessment
services under
RPTL 1537
Local Town
Assessment
Offices
Total Annual
Operational
Costs
$867,138
$926,235 $896,862 $1,186,224
Cost Per
Parcel
$25.12 $26.84 $25.99 $34.37
9
The following chart lists the key points for each structure available for assessment
administration in Tompkins County. For comparison purposes, only the “Key
Points” of each structure are listed as depending on the point of view, each could
either be considered an advantage or a disadvantage.
Each available option out of the four reviewed in this study has the capability of
producing an assessment structure for Tompkins County that has a single
equalization rate and single reassessment cycle structure. This may result from a
change to an alternative form of assessment administration or by utilizing inter-
municipal agreements that mandate a reassessment cycle and a single level of
assessment within the county under the current structure.
Options for Assessment Administration Key Points
Countywide Department of Assessment
• Single Equalization Rate
o Minimize tax shifts
• Single Reassessment Cycle
• Removed from Town Level
• Full time staff/hours
• County Civil Service Employees
• Assessor not a political appointee
• Multiple Appraisal Staff
• County defends Certiorari Actions
Countywide CAP
• Single Equalization Rate
o Minimize tax shifts
• Single Reassessment Cycle
• Removed from Town Level
• Full time staff/hours
• Multiple Appraisal Staff
• 6 Year Political Appointments
Countywide 1537
• Full time staff/hours
• Possibility for single equalization rate and
reassessment cycle
• Multiple Equalization Rates
• Multiple Reassessment Cycles
• Removed from Town Level
• County Civil Service Employees
• County defends Certiorari Actions
Local Town Assessment Offices
• 6 Year Political Appointments
• Accountability
• Local Home Rule
• Part time staff/hours
• Multiple Equalization Rates
• Multiple Reassessment Cycles
• Towns defend Certiorari Actions
10
11
II. The Job of the Property Assessor
The task of being a property assessor is a vast and complex one to say the least.
The most basic definition of an assessor is “a local government official who
estimates the value of real property within {a county}, city, town, or village’s
boundaries. This value is converted into an assessment, which is one component
in the computation of real property tax bills.”
2
The International Association of Assessing Officers lists the following eight main
tasks performed by assessors while completing an assessment roll.
1. Locating and identifying all taxable property in the jurisdiction
2. Making an inventory of the quantity, quality and important characteristics
of all taxable property.
3. Estimating the value of each taxable property
4. Determining the extent of taxability of each property
5. Calculating the assessed value of each property.
6. Preparing and certifying the assessment roll of the entire jurisdiction.
7. Notifying owners of the assessed value of their properties.
8. Defending value estimates and valuation methods.
There are many different forms that an effective assessment system may take.
Many states delegate the assessing function at the county level, while some
delegate that authority at the town level. Some states even retain the authority to
assess property at the state level.
Regardless of which level of government performs the assessing function, the
following list
3
provides policy and administrative features of an effective
assessment system.
• Legal Support
• Annual Reappraisal
• Periodic ratio studies that measure the relationship between appraised
values and independent estimates of market values (usually sales prices)
• Adequate budget
2
Source – Office of Real Property Services – “Job of the Assessor”
3
Source – IAAO Property Appraisal and Assessment Administration
12
• Competent Staff
• Effective training programs
• Effective internal controls
• Complete maps and property data
• Accurate sales data
• Modern Data Processing
• Effective Valuation techniques
• Active Public relations
The main three things that should be considered on a macro level when deciding
what form of assessment administration is best for each individual municipality
is:
1. Transparency – from the public’s standpoint, they want to believe
and to be able to understand what the purpose of the assessment
function is. They need to feel confident that it is being carried out
in a fair and equitable manner.
2. Efficiency – from the legislature’s standpoint, they want the best
service to be provided at the lowest cost to the taxpayer of the local
municipality.
3. Equity – from the assessor’s standpoint, they want the assessment
roll to be the most fair and to provide the most equity as possible.
13
III. Current Assessment Practices in Tompkins County
Assessment Structure
Currently there is one assessing jurisdiction within Tompkins County. Tompkins
County just completed the third year of a Triennial Reassessment Program
ensuring that all properties are assessed at 100% fair market value.
Tompkins County consolidated their assessment at the county level by public
referendum in 1970. The consolidation effort at that point was not a cost savings
measure. The driving force behind the consolidation of the assessment function
was to provide a more professional approach to the assessment function. Prior to
the consolidation, there were 14 part time assessors. After the consolidation,
there were five full time appraisers at the county level providing the assessment
function for all 16 municipalities within Tompkins County.
There are six villages within Tompkins County, however all have abolished their
assessing unit status and have adopted the town assessment roll as their own
eliminating this duplication of effort that exists in some other counties.
The Tompkins County Department of Assessment employs an office of fourteen
full time employees. The Department of Assessment provides for all the
assessment functions for all municipalities within its borders. The only charge
that is charged back to the local municipalities is for the printing of tax bills.
There are currently 34,513 parcels of real property located within the county. The
Town of Enfield has the lowest number of parcels of real property with 1,666
while the Town of Dryden has the most number of parcels of real property with
5,813. The average number of parcels in a town in Tompkins County is 3,451.
14
Tompkins County currently uses the state provided RPSv4
4
(Build 2008) CAMA
database for the process of recording all physical inventory on the real property
parcels within its boundaries. This easy-to-use windows based program uses a
relational database structure that integrates easily into external data management
systems. Tompkins County uses RPSv4 to print tax rolls as well as an in-house
program to print tax bills. The county uses replication to allow the real property
appraisers to make changes in the field on laptop computers and synch those
changes to the live database upon their return to the office.
The predominate property class within Tompkins County is residential –
comprising 68% of all parcels. If this property class is combined with the
agricultural and vacant land property classes – this combination comprises 87% of
all parcels.
Tompkins County Parcel Breakdown
734
23599
5544
2384
162
651
95
536
802
0
5000
10000
15000
20000
25000
Agricutural
Properties
Residential
Properties
Vacant Land Commercial
Properties
Recreation
and
Entertainment
Properties
Community
Services
Properties
Industrial
Properties
Public Service
Properties
Public Parks,
Wild, Forest
and
Conservation
Properties
4
CAMA – Computer Assisted Mass Appraisal
15
Indicators of Assessment Equity
Beginning with the 2009 Assessment Roll, Tompkins County will return to the
Annual Assessment Aid Program after a three year hiatus during which the county
was on a Triennial Reassessment Program. For the 2008 Assessment Roll, The
County received the Excellence in Assessing Award for the tenth straight year.
By qualifying for this aid, the state has certified that all properties in the county
have adjusted assessed values to reflect the fair market value of each individual
parcel. In doing so, the county have been able to take advantage of up to
$5/parcel state aid.
The following chart shows all ten assessing jurisdictions along with their 2008
Final Equalization Rate and the assessor’s 2008 Stated Level of Assessment.
Municipality
2008
Eq. Rate
2008 LOA
of various
property
types
Latest
Reassessment
City of Ithaca 100.00 100.00 2008
Caroline 100.00 100.00 2008
Danby 100.00 100.00 2008
Dryden 100.00 100.00 2008
Enfield 100.00 100.00 2008
Groton 100.00 100.00 2008
Ithaca 100.00 100.00 2008
Lansing 100.00 100.00 2008
Newfield 100.00 100.00 2008
Ulysses 100.00 100.00 2008
It is important to note the county has had their 2008 local stated Level of
Assessment accepted as the Equalization Rate. By having the Level of
Assessment confirmed as the Equalization Rate, it allows for accurately adjusted
exemptions (ie Veterans, Agricultural Land, STAR).
16
Reviewing the last reassessment activity within the county, a reappraisal has taken
place for ten consecutive years. Even during the Triennial Assessment Program
when most other assessing units would not make an assessment change during the
interim years, the Tompkins County Department of Assessment made a
significant number of changes in order to ensure that equity existed within its
borders.
By having a single equalization rate for all municipalities in the county, the tax
shifts that are caused by changes in this rate are minimized. The changing
equalization rates will only affect school districts that cross the county’s boundary
line.
Current Assessment Roll Cycles
Currently the Department of Assessment uses the standard Assessment Roll
Calendar as specified by the Real Property Tax Law which is as follows:
Fiscal Year = January 1 – December 31
Valuation Date = July 1, Previous Year
Taxable Status Date = March 1
Tentative Roll Date = May 1
Grievance Day = Second Tuesday of May
Final Roll = July 1
Budget Approval = November 20
Tax Levy = December 31
Tax Lien = January 1
Current Assessment Grievance Procedures
There is currently one County Board of Assessment Review that meets on a
yearly basis to act upon filed assessment based grievances. In addition there is a
17
Local Advisory Board of Assessment Review for each town/city that meets prior
to the County Board of Assessment Review. These Local Advisory Boards of
Assessment Review can only make a recommendation to the County Board of
Assessment Review who has the final authority to make decisions regarding
grievance applications.
Current Sales Processing Procedure
The Tompkins County Department of Assessment receives a copy of the deed and
RP-5217 Transfer Report daily from the County Clerk’s office. The RP-5217
transfer report is verified and any changes made are then sent to the NYSORPS
via an in-house database that integrates with the state’s SalesNet application. The
deed is then read and processed by the tax map unit. Any changes to the tax map
based upon the new deed or surveys are processed and a tax map revision sheet is
created for the real property. A copy of the deed, RP-5217 and other necessary
information (survey, tax map revision sheet etc) is given to the appraisal staff for
sales verification and then passed onto the clerical staff for entry into RPSv4. The
deed and all electronic filings at the County Clerk’s office is available to the
Department of Assessment via the county’s intranet.
Availability of Assessment Data
Currently, real property assessment related data for Tompkins County is posted on
the internet by Tompkins County. This information is open to the public free of
charge. An advanced version is open to the professional real estate community on
a pay per view basis with rates available for monthly and yearly access.
Tompkins County uses an application called Image Mate Online developed by
Systems Development Group (SDG) out of Utica, New York to publish the
information on the internet. Included in this system is the ability to link
additional digital documents to the parcel related data that is extracted out of
18
RPSv4. Examples of additional documents are digital photographs, sketches and
tax maps.
Perhaps of most importance to the property owner is a link to search for
comparable properties. By utilizing this link, the property owner is able to verify
the accuracy of their own assessment by comparing their property to both
properties that have recently sold and to similarly assessed properties. Open
access to the real property inventory is essential to help assist in creating a fair
and equitable assessment roll and is helpful in fostering a sense of fair treatment
among the property owners.
Within the Tompkins County Department of Assessment, there are six computers
available for public use. Visitors have access to ImageMate, a database which
displays the real property assessment information utilizing a live version of the
official assessment data. In addition, there is a link to the County Clerk’s
electronic document management system which allows access to all of the records
that are stored in that office.
Current Assessment Challenges
This study has not researched the number nor the validity of assessment based
challenges – either through the formal grievance procedure, Small Claims
Assessment Review or Certiorari filings. The number of formal complaints in no
way reflects the current state of an assessment roll.
One could make an argument that if the assessment roll was significantly
undervaluing property as opposed to the stated level of assessment, then no
formal appeals would be made. Conversely, if the assessment roll was accurately
depicting the level of assessment, an argument could be made that formal appeals
could increase as it would be in the property owner’s best interest to appeal to the
court’s Solomon-like approach to deciding formal appeals.
19
In addition, the existing tax rate for the municipality needs to be taken into
account when researching formal assessment challenges. If the tax rate reaches a
significant level, it is in the complainant’s best interest to file for a formal appeal.
If the tax rate is at a insignificant level, then the cost of litigation does not offset
the lower expectant tax bills.
The following chart
5
shows the number of Small Claim Assessment Review
Hearings and the number of Certiorari’s that were filed in Tompkins County in
2006-2007.
Type of Review
2006 2007 2008
Small Claims Assessment Review 11 5 19
Tax Certiorari Activity 23 19 28
Benefits of Countywide Department of Assessment
The New York State Office of Real Property Services lists the top ten benefits of
a countywide assessing unit as:
1. County assessing eliminates tax shifts resulting from changing
equalization rates within the county.
2. Assessment equity may improve as a result of more regionalized data,
analyses, and market monitoring.
3. With county assessing, individual municipalities and school districts
would no longer be the focus of scrutiny regarding reassessments.
4. Taxpayers would likely have more confidence in the tax system if they
could see that its administration was highly professional, efficient, and
equitable.
5
Office of Court Administration
20
5. In rural areas, where municipalities are thinly populated, county assessing
would result in sufficient pooling of resources to attract or maintain highly
qualified and competent assessment officials at a potentially lower per-
parcel cost.
6. In urban/suburban areas with large cities and large prosperous towns,
interactions between assessing offices and the departments responsible for
planning, zoning, highway maintenance, E- 911 and other functions could
be improved and expanded.
7. Counties, which have larger stakes in tax certiorari cases, typically would
have greater resources with which to defend assessments.
8. County assessing would permit increased specialization of assessing staff
in regard to specific types of properties, including utilities, industrial
properties and complex commercial properties.
9. Assessing staff and resources could be reallocated to respond to
emergencies or other events that require coordination across municipal
boundaries.
10. The number of entities with which utilities and other owners of widely
distributed property must deal would be greatly reduced.
To elaborate, the single greatest advantage to a Countywide Department of
Assessment is that all properties within the county’s boundaries are treated in a
uniform manner. This treatment removes the confusion that exists when
neighboring similar properties have dramatically different assessed valuations.
This common level of assessment and common reappraisal cycle stops the
equalization rate from causing dramatic shifts in the tax burden within the
counties taxing jurisdictions. Additionally, a common database is in place for all
parcels in Tompkins County.
Another added benefit is that there will be more than one appraiser who is
familiar with a certain town. This is beneficial when the primary appraiser is out
of the office, the secondary appraiser could provide information to inquiry. It is
21
also beneficial if the unfortunate incident of a long term leave is encountered by
the Department of Assessment. The cross training that is utilized in a Countywide
Department of Assessment is essential to a successful operation.
Currently in NYS, the countywide assessing unit penalized by the lack of
continuing education reimbursement to its valuation staff. Only the Sole
Assessor/County Director receives reimbursement, while the education of the
remaining staff is an expense to the county.
Cost of Current Assessment Administration
A calculation of the current cost of assessment administration function within
Tompkins County was obtained by reconciling the most recent three budget years
(2006, 2007, 2008). It is important to reconcile the last three years in order to
remove any outlying expenditure that is not typical of the true cost of the
assessment function.
For the basis of this study, the reconciled cost of the current assessment
administration in Tompkins County is $867,138 or $25.12 per parcel.
22
23
IV. Alternative Assessment Administration Structures
Before any of the Alternative Assessment Administration Structures could be
implemented, a double public referendum would have to be passed in the City of
Ithaca and the Towns outside of the City as a whole, rescinding the current
Countywide Assessing Unit structure.
Coordinated Assessing Program
The Coordinated Assessing Program (CAP) allows for two or more municipalities
to share an assessor under a formal agreement but yet retain their status as an
assessing unit. This agreement allows the municipalities to apply and receive an
initial grant for up to $7/parcel.
For each city and town in a CAP:
• the assessor prepares a separate assessment roll,
• the local law must specify the same percentage of value for assessments,
• the same assessment calendar is used,
• there are separate assessment appeal proceedings,
• identical equalization rates are established,
• separate equalization rate challenges can be filed,
• separate and different tax rates will be used for each local government in a
school district or within a county.
There are approximately 62 CAPs comprised of 141 municipalities that are
currently in place statewide.
6
A major benefit of a CAP is that municipalities are able to pool resources and
provide a better assessment function than what they could do on their own. Also,
in a CAP all properties are treated in a uniform manner reducing the confusion
that occurs when similar properties might have drastically different assessed
valuation due to variations in the level of assessment.
6
Source – Office of Real Property Services
24
Estimated Cost
Countywide CAP
In a Countywide CAP, there would be one assessor for all municipalities within
the County. This individual would be in charge of a six individuals who would
provide the assessment function and two clerical staff to help process real
property tax exemptions. In addition, a County Real Property Tax Service
Agency (RPTSA) would need to be created to perform those duties outlined in the
Real Property Tax Law for this department which range from printing tax bills,
processing corrections, training new assessor staff and maintaining tax maps.
The estimated cost of a Countywide CAP would be approximately $926,235 or
$26.84/parcel based upon an office staffing of fifteen employees (six individuals
for the County RPTSA and nine individuals for the CAP). To review a full
estimated Countywide CAP budget analysis, please refer to Appendix A-2.
If all towns were to form a CAP, then all properties would be treated in a
consistent manner. A single equalization rate, level of assessment and
consolidated assessment database would be maintained as well.
Optional County Services Agreements (RPTL 1537)
Section 1537 of the Real Property Tax Laws allows an assessing unit and a county
to enter into an agreement for appraisal services, exemptions service, or
assessment services. This is considered an agreement for the provision of a ‘joint
service’ for the purposes of article five-g of the general municipal law. This
interpretation takes into the fact that with this agreement the county would not
have the power to perform any of the above duties in the absence of the
agreement.
25
Section 1537 states:
1. (a) An assessing unit and a county shall have the power to enter into,
amend, cancel and terminate an agreement for appraisal services, exemption
services, or assessment services, in the manner provided by this section. Such
an agreement shall be considered an agreement for the provision of a "joint
service" for purposes of article five-G of the general municipal law,
notwithstanding the fact that the county would not have the power to perform
such services in the absence of such an agreement.
(b) Any such agreement shall be approved by both the assessing unit and the
county, by a majority vote of the voting strength of each governing body.
(c) In the case of an assessing unit, no such agreement shall be submitted to
the governing body for approval, unless at least forty-five days prior to such
submission, the governing body shall have adopted a resolution, subject to a
permissive referendum, authorizing the assessing unit to negotiate such an
agreement with the county; provided, however, that such prior authorization
shall not be required for an agreement to amend, cancel or terminate an existing
agreement pursuant to this section.
2. (a) An agreement between an assessing unit and a county for appraisal
services shall provide for the county to appraise all real property within such
assessing unit for assessment purposes.
(b) The county shall employ appraisers and other technical personnel to
make the appraisals of such properties. No person shall be employed by the
county and assigned professional appraisal duties, which relate to the
assessment of real property for purposes of taxation unless such person meets
the minimum qualification standards established by the state board. Such
appraisal personnel shall attend courses of training and education prescribed by
the state board.
(c) Such appraisals shall be completed no later than the taxable status date
of the assessing unit, and shall be submitted by the county director to the
assessor in the form and containing such information as shall be prescribed by
the state board.
26
(d) Appraisals furnished pursuant to this section shall serve as the basis of
the assessment of the property so appraised.
(e) Such an agreement may further provide that in any administrative or
judicial proceeding to review an assessment which is based upon a county
appraisal, the county shall provide such testimony and other evidence as may be
necessary to defend such appraisal.
3. An agreement between an assessing unit and a county for exemption
services shall provide for the county to review applications for exemption and
determine the eligibility of the applicants for such exemptions. Such agreement
may further provide that in any administrative or judicial proceeding to review
an assessment in which the denial of an exemption is at issue, the county shall
provide such testimony and other evidence as may be necessary to defend its
denial of exempt status.
4. An agreement between an assessing unit and a county for assessment
services shall provide for a person, other than the county director of real
property tax services, to be selected by the assessing unit to perform assessment
services in accordance with such agreement. Such person shall be deemed the
assessor of the assessing unit and shall be subject to all provisions of law
pertaining to assessors. Provided, however, that no such agreement for
assessment services may be entered into by an assessing unit which has
exercised the option to retain elective assessors pursuant to law.
While the assessors would be appointed by the individual towns, they would be
county employees. However they would be subject to all provisions that are
required by the NYSORPS for an assessor. This fact will make the continuing
education requirements for the assessor to be reimbursable by NYSORPS. For
the basis of this analysis, it is assumed that the individual towns would appoint
the least amount of individuals in order to minimize the cost.
27
Cost Estimate
According to IAAO standards, for an assessing unit the size of Tompkins County,
an appraisal staff of nine individuals would be necessary.
Based upon a nine person staffing level for the appraisal division and the six
person County Real Property Tax Service Agency, it is estimated that the cost to
provide the assessment function under 1537 agreements would be approximately
$896,862 or $25.99/parcel.
To review a full estimated “Countywide 1537 Agreements budget” analysis,
please refer to Appendix A-3.
Local Town Assessment Structure
Tompkins County has the option of returning the assessment function to the local
municipalities within its borders. By doing so, the County would only have to
staff a County Real Property Tax Service Agency who would be responsible for:
maintaining tax maps, producing Tentative and Final Assessment Rolls,
producing Tax Rolls and Bills, processing and printing assessor reports,
transmitting sales to NYSORPS, RPSv4 support, Board of Assessment Review
Training, New Assessor Orientation Training and processing applications for
corrected tax bills and/or refunds.
Advantages of Local Town Assessment Function
The New York State Assessor’s Association (NYSAA) has published a pamphlet
that lists the benefits of a Local Town Assessing Unit. The NYSAA breaks down
the advantages into the following categories: Local Convenience, Professional
Expertise, Accountability, and Cost.
28
The NYSAA stresses that the property owner should have the convenience of
coming directly to their town hall in order to either discuss their assessment or to
file a complex application for a real property tax exemption.
Disadvantages of Local Town Assessment Function
The same advantages that the NYSAA lists can also be a disadvantage at the
Local Town Assessment Level. In the smaller municipalities, it is fiscally
irresponsible to hire a full time assessor. The resulting part time assessor can then
only be reached in their office at certain times of the week/month or via the phone
to set up an appointment as they do not have any set office hours. The lack of
availability of the assessor or related staff in each town does not seem to be
convenient to the public.
Also, in some municipalities in New York State the assessor is still an elected
position where the winning candidate may or may not have the training required
to perform their job to the best of their abilities. For those assessors that are
appointed on a six-year cycle, once they have the training and skills necessary to
perform their assessing functions to the best of their ability, they may not be
reappointed. This non-reappointment may not be reflective of their work but only
a reflection on the political atmosphere within the local municipality. Local
politics are not conducive to a professional assessor’s ability to perform their job
duties effectively.
Finally, without a statewide standard assessment cycle or level of assessment, two
houses with the exact same characteristics in Tompkins County but in different
towns could have dramatically different assessed valuations. Even though the
equalization rate process is supposed to account for these differences in level of
assessment, the process is inherently flawed as it is strictly a statistical estimation
without any local knowledge of the real estate market taken into consideration.
These differences in assessment cycle and level of assessment from one town to
29
another can cause an inequitable distribution of the tax burden and dramatic tax
shifts from one year to the next.
Estimated Cost
It is estimated to cost approximately $1,186,224 or $34.37/parcel to staff a
municipal level assessment office structure. To review a full estimated budget
analysis for this type of assessment administration structure, please refer to
Appendix A-4.
30
V. Recommendations to Improve the Assessment Function in New York State
There are many avenues that the State of New York can take to improve the
assessment function that occurs within its boundaries. The following three
recommendations would provide the most immediate improvements. Changes to
the assessment function are often not politically popular, however these
improvements are considered likely to gain approval.
1. Provide Maintenance Aid Payments to Municipalities that are
in compliance with Section 305 of the Real Property Tax Law.
Currently within the New York State Real Property Tax Law,
Section 305 specifies that all properties must be assessed at a
uniform percentage of value, not necessarily full market value.
However, both the Annual and Triennial Aid programs require a
100% level of assessment.
If the assessment roll is in compliance with Section 305, then the
tax burden will be equitably distributed among the taxpayers
within the municipality. All too often, a revaluation is confused
with a “revenue generator” for a municipality. First and foremost,
the assessment community is concerned with equity. If this equity
is achieved, then maintenance aid should be provided to a
municipality to assist in keeping this equity on the assessment roll.
2. Mandate an Annual Reassessment Cycle
According to the current real property tax law Section 305, an
annual reappraisal cycle is currently mandated however there is no
agency that has the authority to enforce this section of the law.
32
With the mass appraisal techniques available, either through
trending or multiple regression analysis, a town assessor can keep
values up to date by performing the work in-house.
Mandating an annual assessment cycle assures that the assessment
will not become inequitable due to differing appreciation and
depreciation rates within a municipality.
3. Abolish Elected Assessors
Perhaps the most outdated aspect of the assessment function in
New York State is the elected assessor position. Politics should
never enter the assessment office. All decisions regarding the
assessment function are specifically outlined in either the Real
Property Tax Law or in the general appraisal techniques outlined
by the Appraisal Institute.
4. Training Reimbursement for Additional Valuation Staff
As the current Real Property Tax Law stands, only the title of
Assessor is reimbursed for required continuing educational
requirements. All other job titles involved in the valuation process,
such as Real Property Appraiser are not given this same
consideration.
As it stands currently, the training reimbursement package offered
by the New York State Office of Real Property Services is a
disincentive to consolidate the assessment function at the county
level.
33
5. Re-examination of Real Property Tax Exemptions
Currently the assessors spend too much time with the
administrative tasks of processing real property tax exemptions.
This clerical work takes away from the time that could be devoted
to the valuation of real property.
There are far too many provisions for local option real property tax
exemptions in the Real Property Tax Law. The multitude of
exemptions creates confusion for the property owner when trying
to determine which exemption (and at what level) they might be
eligible to apply to receive.
Additionally, in recent history the New York State Legislature has
taken the unfortunate path of granting single parcel tax exemption
legislation. The main goal of assessment administration (and of
this grant study program) is to treat every parcel fairly and
equitably. These single parcel exemption bills do prevent the
assessor from achieving this goal.
It is recommended that no additional real property tax exemptions
be enacted until a commission can be charged with looking into
this aspect of the assessment administration function.
Appendix A
Appendix A-1 County Department of Assessment
2008
Personnel Services 710,605
Operating Expenses 84,304
Contractual Expenditures 41,550
Fringe Benefits 260,679
Revenue 230,000
Total Cost Real Property Tax Service 867,138
Appendix A-2 Countywide Coordinated Assessment Program
Countywide Coordinated Assessment Program (CAP)
RPTS Division Budget
Personnel Services $287,946
Equipment $55,000
Fringe Benefits $100,781
Revenue $15,000
Total Expense RPTS Division Budget $428,727
Appraisal Division
Personnel Services $464,164
Equipment $40,000
Fringe Benefits $162,457
Revenue $169,114
Total Expense Appraisal Division Budget $497,508
Total Countywide CAP Budge
t
$926,235
or 26.84 /parcel
Appendix A-3 Countywide 1537 Agreements for Full Assessment Function
Countywide 1537 Agreements
RPTS Division Budget
Personnel Services $287,946
Equipment $55,000
Fringe Benefits $100,781
Revenue $15,000
Total Expense RPTS Division Budget $428,727
Appraisal Division
Personnel Services $442,406
Equipment $40,000
Fringe Benefits $154,842
Revenue $169,114
Total Expense Appraisal Division Budget $468,134
Total Countywide CAP Budge
t
$896,862
or 25.99 /parcel
Appendix A-4 Cost of Fully Staffed Local Assessment Structure
2008
# of
Parcels A
pp
raisal Office Personnel E
q
ui
p
ment Contractual Frin
g
es Revenue
Total
Cost
Cost Per
Parcel
City of Ithaca 5,649 1.0 1.0 91,392 2,000 8,474 31,987 27,680 106,173 18.79
Caroline 1,905 0.4 0.6 44,397 0 2,858 4,440 9,335 42,360 22.24
Danby 1,949 0.4 0.6 44,397 100 2,924 4,440 9,550 42,311 21.71
Dryden 5,813 1.2 1.2 109,670 8,720 38,385 28,484 128,291 22.07
Enfield 1,666 0.3 0.5 35,258 1,000 2,499 3,526 8,163 34,120 20.48
Groton 2,703 0.5 0.8 57,457 4,055 5,746 13,245 54,012 19.98
Ithaca 5,281 1.0 1.0 91,392 7,922 31,987 25,877 105,424 19.96
Lansing 4,577 1.0 1.0 91,392 1,500 6,866 57,470 22,427 134,800 29.45
Newfield 2,338 0.5 0.8 57,457 500 3,507 5,746 11,456 55,753 23.85
Ulysses 2,632 0.5 0.8 57,457 3,948 5,746 12,897 54,254 20.61
Total Local Cost 34,513 6.8 8.3 680,270 5,100 51,770 189,471 169,114 757,497 21.95
County RPTS 0.0 5.0 287,946 35,000 20,000 100,781 15,000 428,727 12.42
Total True Cos
t
6.8 13.3 968,216 40,100 71,770 290,252 184,114 1,186,224 34.37
County Real Property Tax Service Agency
Director 75,000
Systems Analyst 50,000
Assmt Account Spec 39,693 (2)
Tax Map Technician 41,780 (2)
Total Personnel 287,946
Equipment 35,000
Contractual 20,000
Fringes 100,781
Revenue 15,000
Total County Budget 428,727
Special Thanks
The Tompkins County Department of Assessment would like to express their
thanks to the individuals who have worked in this office, both past and present, who have
made this office one of the leaders in the Assessment Field in New York State.
In 1968, Thomas Payne, County Director of Real Property Services, and John
Murphy, County Administrator, had the foresight to develop a departmental structure that
provides for the best possible service to the property owners of Tompkins County. While
cost savings was not the motivating factor at that time, however over the years this
structure has proven to be a cost saver for the taxpayers of Tompkins County.
Brief History of the Department of Assessment
1955
Real Property Tax Director was appointed by the County Board of Supervisors.
Tom Payne appointed to the position. County was revalued by the firm of Thorne
Appraisal Co.; the City of Ithaca was revalued by the Winslake Appraisal Co.
1965
Tompkins County revalued by the JM Cleminshaw Co. under direction of George
Herren. Tax maps were produced county wide by American Air Surveys and
certified by the State Division of Equalization and Assessment.
1968
County Charter was passed by a majority of Villages, Towns, and City
collectively with bi-partisan support. The Division of Assessment and County
Charter became effective January 1, 1970.
1970
County staffed the Division of Assessment with 9 full-time and 5 part-time
employees. The part-time employees were former town assessors. Tom Payne
and Don Franklin were appointed Director and Assistant Director respectively.
The department budget was about the same as the total cost in 1969 for all local
assessor positions and Office of Real Property tax Services. Total parcels in the
county were 17,500.
1971
County-wide data collection project began using in house personnel from
Division of Assessment. The 1970 County charter provided for periodic
revaluation of all county property by the Division of Assessment. County
contracted with Touchette Corp. for data processing.
1972
Pilot project initiated with SDEA on computer assisted revaluation.
1978
Department completed county wide revaluation of 29,000 parcels. There were
3,150 informal appeals, 850 formal appeals, 12 Certiorari (5 commercial 7
residential) received as a result of this project. Data processing by Touchette
Corp.
1980
Department completed update project for 28,000 parcels. There were 2,500
informal appeals, 500 formal appeals, 6 Certiorari (5 commercial 1 residential)
received as a result of this project.
1983
Department commenced county-wide data collection project.
1984
Director Tom Payne retired, Don Franklin named Director.
1990
Department completed county-wide revaluation. There were 3000 informal
appeals, 2180 formal appeals, 71 small claims, and 56 Certiorari received as a
result of this project.
1993
Department installed data terminals for direct input into RPS by staff appraisers.
1996
Completion of mainframe to micro computer RPS processing, including
production of laser printed tax bills. Director Don Franklin retired, Stephen
Whicher named Director.
1999
Start of Annual Reassessment Program
2000
Department completed county-wide revaluation. There were 4,087 informal
appeals, 701 formal appeals, 9 small claims, and 11 Certiorari received as a result
of this project.
2001
Director Stephen Whicher is named County Administrator. Valeria Coggin
named Director.
2005
County Legislature votes to switch to a Triennial Revaluation Cycle.
2008
Department completed county-wide revaluation. There were 2,429 informal
appeals, 417 formal appeals, 19 small claims, and 28 Certiorari received as a
result of this project.
