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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Appendix A: Specific Exemption Criteria
Our audit focused on agricultural, disability, senior citizen and veteran exemptions
from real property taxes in the Town. All real property in New York is subject to
taxation unless specific legal provisions grant it exempt status. While certain
exemptions are mandated by State law, others are subject to local option and/or
local determination of eligibility criteria.
Following are the specific criteria for the exemptions included in our audit.
Agricultural – The agricultural exemption generally requires an average annual
gross sales over the previous two years of $10,000 for farms with seven or more
acres of land, or $50,000 for farms of less than seven acres. The exemption
amount is calculated based on a New York State certified soil productivity
value3 for each parcel. Property owners may also lease acreage to eligible
farmers and also receive an exemption. Additionally, certain newly constructed
or reconstructed buildings and structures used for farming operations may also
qualify for a 10-year property tax exemption or may qualify for a permanent
exemption for temporary green houses, silos and bulk milk tanks. The exemption
will terminate if the building or structure ceases to be used for farming operations
and/or the land is converted to nonagricultural use. Property owners receiving
these exemptions are required to file an annual renewal form certifying the
property’s continued eligibility. Although this form does not require proof of
income, assessors should periodically verify farm income to ensure the property
remains eligible.
Senior Citizen – The senior citizen exemption requires the property be used
exclusively for residential purposes and owned by a person 65 years or older,
with varying income limits established by the Town. New York State Real Property
Tax Law also allows income deductions, such as certain medical expenses, to
be considered in calculating the exemption amount when adopted by the Town.
Residents receiving this exemption are required to file a renewal form each year,
along with supporting documentation to show their income is below the threshold.
Veteran – Requirements related to veteran exemptions vary, but typically include
that the property is the primary residence of a United States Armed Services
veteran (or a qualifying family member). The veteran must have actively served
during certain eligible timeframes or received an expeditionary medal and was
discharged under honorable conditions. Also veterans who used eligible funds
such as pension, bonus or insurance money, compensation paid to prisoners
of war and mustering out [discharge] pay qualify for partial exemption. Towns
may pass local laws that establish these exemptions, as well as raise or lower
the maximum amount that a single property may be exempt from. Furthermore,
disabled veterans may receive an additional exemption based on supporting
documentation.
3 The New York State Department of Agriculture and Markets Commissioner annually calculates a base
agricultural assessment value using the data published by the United States Department of Agriculture for all
farming in New York State that identifies the certified soil productivity value for each parcel.
Of f ic e of t he New York State Comptroller 5