Alternative tax apportionment: Designated large property
The Real Property Tax Law allows for an alternative way to apportion school or county taxes when there is a substantially large value property in a city or town that significantly influences the State equalization rate of that municipality. The alternative makes use of a two-step apportionment process using both the State equalization rate and a 'designated large property apportionment' equalization rate which is the State equalization rate for the city or town recalculated without the large value property. This alternative apportionment process does not change the taxes to be paid by the large property, but does change the apportionment to the other properties within the school or county.
This option becomes available when the Office of Real Property Tax Services has identified a large property as a "designated large property". For a large parcel, or a collection of parcels under common ownership, to be identified by ORPTS as a designated large property it must meet all of the following criteria.
- The property must be 5 percent or more of the total assessed value of locally assessed taxable property in the city or town, and 5 percent or more of the taxable assessed value of the school district's part of the city or town.
- The property must have an ORPTS appraised or estimated full market value of 5 million or more.
- The equalization rate calculated without the large property must be 5 percent or more different from the State equalization rate for the city or town.
When a designated large property is identified the Office of Real Property Tax Services calculates a separate "apportionment equalization rate" which excludes the large property's assessed value and full value from the State equalization rate of the city or town.
The optional alternative method of apportionment involves two steps where first an apportionment is done using the State equalization rates for all of the municipalities in the school, and this first apportionment determines the taxes to be paid by the large property. Then a second apportionment is done excluding the large property and substituting the 'apportionment equalization rate' for the city or town having the large property. The end result is that the large property pays the same tax as when this option is not used, and the disparity in apportionment among the other properties in the school or county is reduced.
To make use of this optional alternative method of apportionment the school district or the county must adopt a resolution each year. Counties that wish to participate are required to adopt a resolution no later than November first of each year, while a school district must adopt an annual resolution no less than 10 days prior to the levy of taxes.
For more information click on the following links.
- Real Property Tax Law Section 1316
- Summary of RPTL 1316 (school tax apportionment alternative summarized)
- Example of School Tax Apportionment using RPTL 1316
Title 1: Counties
Note: This option applies only to counties doing equalization pursuant to Title 1 of Article 8.
Title 2: Counties
Note: This option applies only to counties doing equalization pursuant to Title 2 of Article 8.
- Real Property Tax Law Section 847
- Summary of RPTL 847 (county tax apportionment alternative summarized)
- Example of County Tax apportionment using RPTL 847