Publisher's summary
We reviewed 60 out of 369 (16 percent) agricultural, veterans, disability and senior citizen exemptions totaling $2.5 million, on properties with a total assessed value of $16.4 million. We found that 27 exemptions (45 percent), totaling approximately $1.5 million, were not properly supported by adequate documentation to establish and/or maintain exemption eligibility. We reviewed 23 agricultural exemptions totaling $1.2 million on properties with a total assessed value of $11.1 million. Seventeen exemptions totaling $1 million lacked one or more pieces of supporting documentation necessary to verify exemption eligibility, and eight exemptions totaling $181,800 lacked required soil survey forms. We also reviewed 21 veteran exemptions totaling $750,000 on properties with assessed values totaling approximately $3.2 million. Ten exemptions totaling approximately $516,000 did not have completed applications on file or sufficient documentation to establish eligibility. We reviewed all six disability exemptions totaling $100,600 on properties with assessed values totaling approximately $528,000 and found that these exemptions were generally properly documented and supported. Finally, we reviewed 10 senior citizen exemptions totaling $491,000 on properties with assessed values totaling $1.5 million and found that all were properly documented and supported.
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Real Property Tax Exemptions
Why Should Exemptions Be Properly Supported?
Assessors annually determine real property assessed values for the tax roll,
which is the basis for real property tax bills issued in the following year and
provides for equitable tax apportionment among property owners. Assessors are
also responsible for granting and monitoring various exemptions authorized by
State and local laws, such as veteran, agricultural and senior citizen exemptions.
While exemptions reduce eligible property owners’ tax bills, they shift a greater
tax burden to remaining non-exempt property owners. Therefore, it is imperative
that assessors properly grant and monitor exemptions, which includes maintaining
adequate supporting documentation and verifying eligibility.
Assessors are required to grant exemptions only after valid applications with
proper supporting documentation are submitted to them. Assessors should retain
these documents to demonstrate that a property was, and remains, eligible for an
exemption, and periodically review and monitor the exemptions to ensure property
owners and properties continue to meet exemption eligibility requirements.
Certain exemptions (agricultural, veteran, disability and senior citizen) require
annual, or periodic, updated documentation to maintain eligibility, while within
certain circumstances other exemptions (i.e., agricultural) may be granted for
longer periods of time, spanning several years.
Exemptions Were Not Properly Supported
We reviewed 60 out of 369 (16 percent) agricultural, veterans, disability and
senior citizen exemptions totaling $2.5 million, on properties with a total
assessed value of $16.4 million.1 We found that 27 exemptions (45 percent),
totaling approximately $1.5 million, were not properly supported by adequate
documentation to establish and/or maintain exemption eligibility.
Agricultural – We reviewed 23 agricultural exemptions totaling $1.2 million on
properties with a total assessed value of $11.1 million. Seventeen exemptions
totaling $1 million lacked one or more pieces of supporting documentation
necessary to verify exemption eligibility, and eight exemptions totaling $181,800
lacked required soil survey forms. The Assessor also allowed what appears to be
ineligible agricultural woodland exemptions totaling $91,000 on 269 acres.
ll Sixteen agricultural exemptions totaling $478,000 were farmland district
exemptions which require soil survey forms to be properly supported.
However, these forms were not on file for eight exemptions totaling
$181,800. The Assessor told us that the forms should have been filed with
the original applications and retained for the life of the exemptions, but
she was not the assessor when the original applications were filed. Land
1 Refer to Appendix C for sampling methodology.
2 Of f ic e of t he New York State Comptroller