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Special Franchise

For municipalities to provide data for your special franchise assessment, complete Form RP-7114, Municipal Report of Special Franchise Activity.

Utility property located in the public right of way is subject to a special franchise assessment.  The annual assessment of special franchise is the responsibility of the Office of Real Property Tax Services (ORPTS), Special Valuation and Fiscal Support Unit (SVFS).  The assessment process requires: (1) the acquisition of valuation data principally from the owners of the special franchise property, assessors and regulatory agencies; (2) the organization and analysis of those data; and (3) the valuation of the special franchise property from the information so processed.

A special franchise full value/assessment is prepared each year for each company in each city, town, and village where the properties are located. Upon approval of the tentative assessment/full value, a notice is transmitted to the appropriate municipality and special franchise owner, both of which then have an opportunity to object to the tentative assessment or full value by serving a complaint on the Commissioner.  Complaints are filed using form RP-7141 or RP-7142. Forms can be found at Property tax forms: Utilities.

Steps Following the Receipt of a Complaint in ORPTS

  • ORPTS provides written acknowledgement that includes confirmation of receipt and outlines the next steps, including the hearing instruction and State Board process.
  • ORPTS conducts a thorough review of the complaint, verifies data, valuation methods, and supporting documentation. Special Valuation & Fiscal Support (SVFS) and technical staff may be consulted during this process.
  • A hearing is held, either in person or remotely, at which the complainant and the adverse party may appear to present their position and evidence.
  • Following the hearing, the Hearing Officer prepares a report, which together with SVFS memo, is submitted to the State Board of Real Property Tax Services for consideration.
  • Where questions of law arise, the Office of Counsel provides input to ensure consistency with statutory and regulatory requirements.
  • Based on the findings, SVFS, in consultation with Counsel if needed, recommends to the State Board whether:
    • The assessment/full value(s) should remain unchanged, or
    • An appropriate adjustment should be made. 
  • The State Board reviews the submitted materials, including the complaint, supporting evidence, the Hearing Officer’s report, and SVFS’ recommendation(s).
  • The Board then issues a final determination of the assessment/full value(s).
  • After the Board’s determination:
    • Certificates setting forth the final assessment/full value(s) are transmitted to the appropriate municipalities for use on their assessment rolls.
    • Certificates are also sent to the respective owners of the special franchise property. 
  • All documentation related to the complaint, hearing, and determination is retained for recordkeeping and future reference. 
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