N.Y. Real Property Tax Law § 556: Refunds and credits of taxes

§ 556. Refunds and credits of taxes. 1. (a) Pursuant to the provisions

of this section, an appropriate tax levying body may refund to any

person the amount of any tax paid by him or her, or portion thereof, as

the case may be, or may provide a credit against an outstanding tax (i)

where such tax was attributable to a clerical error or an unlawful entry

and application for refund or credit is made within three years from the

annexation of the warrant for such tax, or (ii) where such tax was

attributable to an error in essential fact, other than an error in

essential fact as defined in paragraph (d) of subdivision three of

section five hundred fifty of this title, and such application for

refund or credit is made within three years from the annexation of the

warrant for such tax.

(b) For each year for which a refund or credit is granted pursuant to

the provisions of this section by reason of the existence of an unlawful

entry as defined by paragraph (b) of subdivision seven of section five

hundred fifty of this title, the assessor of the assessing unit in which

the subject real property is actually located, but has been omitted from

the assessment and tax rolls of such assessing unit, or a school

district or special districts located therein, shall have the authority

to enter such real property on the current assessment roll in accordance

with the provisions of section five hundred fifty-one of this title,

notwithstanding any time limitation contained in such section.

2. (a) Whenever it appears to a person who has paid a tax that such

tax, or a portion thereof, was attributable to an unlawful entry, a

clerical error, or an error in essential fact, as described in

subdivision one of this section, such person may file an application in

duplicate, including any available proof of the error, with the

appropriate county director of real property tax services for a refund

of such tax, or portion thereof, as the case may be.

(b) Whenever it appears to a person who is an owner of a parcel which

is subject to an outstanding tax, that such tax, or a portion thereof,

was attributable to an unlawful entry, a clerical error, or an error in

essential fact, as described in subdivision one of this section, such

person may file an application in duplicate, including any available

proof of the error, with the appropriate county director of real

property tax services for a credit of such tax, or portion thereof.

(c) For an error in essential fact, the application for correction

shall include a copy of the property record card, field book, or other

final work product upon which the incorrect assessment was based and a

copy of any existing municipal record which substantiates the occurrence

of the error. For an unlawful entry as defined in paragraph (a) of

subdivision seven of section five hundred fifty of this title, the

application for correction shall include a statement by the assessor or

by a majority of a board of assessors substantiating that the assessor

or assessors have obtained proof that the parcel which is the subject of

the application should have been granted tax exempt status; the failure

to include such statement shall render the application null and void and

shall bar the tax levying body from directing a refund or credit of

taxes pursuant to this section.

3. The application for a refund or credit pursuant to this section

shall be on a form and shall contain such information as prescribed by

the commissioner and shall be available in the offices of all collecting

officers and in the office of the county director.

4. (a) The county director, within ten days of the receipt of an

application filed pursuant to this section, shall investigate the

circumstances of the claimed unlawful entry, clerical error or error in

essential fact to determine whether the error exists, and on such

investigation he may require and shall receive from any officer,

employee, department, board, bureau, office or other instrumentality of

the appropriate municipal corporation such facilities, assistance and

data as will enable him to properly consummate his studies and

investigations hereunder.

(b) Upon completion of such investigation the county director shall

immediately transmit a written report of such investigation and his or

her recommendation for action thereon, together with both copies of the

application, to the tax levying body. If the same alleged error also

appears on a current assessment roll, the county director shall also

file a copy of such report and recommendation with appropriate assessor

and board of assessment review who shall consider the same to be the

equivalent of a petition for correction filed with such board pursuant

to section five hundred fifty-three of this title.

5. The tax levying body, at a regular or special meeting, upon the

presentation of an application filed pursuant to this section and the

written report described in subdivision four of this section, shall:

(a) examine the application and report to determine whether the

claimed unlawful entry, clerical error or error in essential fact

exists;

(b) reject an application where it is determined that the claimed

unlawful entry, clerical error or error in essential fact does not exist

by making a notation on the application and the duplicate copy thereof

that the application is rejected and the reasons for the rejection;

(c) approve an application where it is determined that the claimed

unlawful entry, clerical error or error in essential fact does exist by

making a notation on the application and the duplicate copy thereof that

the application is approved and by entering thereon the amount of the

refund to be paid or outstanding tax to be credited;

(d) mail an application that has been rejected to the applicant;

(e) mail an application that has been approved to the applicant.

6. (a) The amount of any tax refunded or credited pursuant to this

section shall be a charge upon each municipal corporation or special

district to the extent of any such municipal corporation or special

district taxes that were so refunded. Amounts so charged to cities,

towns and special districts shall be included in the next ensuing tax

levy.

(b) In raising the amount of a refund or credit pursuant to this

section of a relevied school tax the appropriate tax levying body shall

charge back against the school district which levied such tax the amount

of the refund or credit which shall not exceed the amount paid by the

county treasurer to such school district upon the return of such tax.

The amount so charged against such school district shall be deducted by

the county treasurer and withheld from any moneys which shall become

payable by him to such school district by reason of taxes which shall

thereafter be returned to him by such school district. No such charge

shall be made by the county legislative body against a school district

unless ten days' notice thereof by mail has been given to the school

authorities thereof. Notice that such deduction will be made shall

thereafter be given by the county treasurer in writing to such school

authorities on or before the first day of May prior to the making of

such deduction.

7. The powers and duties imposed by this section upon the county

director of real property tax services shall be performed by such

officer for taxes levied for county, city, town, special district and

school district purposes except that (a) in the case of counties having

the power to assess real property for tax purposes such powers and

duties shall be performed by the chief assessing officer or the chairman

of the county board of assessors and, (b) in the case of villages, for

village tax purposes, such powers and duties shall be performed by the

village assessor or the chairman of the village board of assessors;

provided, however, that if the village has enacted a local law as

provided in subdivision three of section fourteen hundred two of this

chapter, the county director shall perform the powers and duties imposed

upon such officer by this section on behalf of such village.

8. (a) A tax levying body may, by resolution, delegate to an official

who is empowered to authorize payment of bills without prior audit by

such body or, in the event there is no official so empowered, to an

official responsible for the payment of bills upon audit of the

appropriate municipal corporation so designated by it, the authority to

perform the duties of such tax levying body, as provided in this

section. Such resolution shall only be in effect during the calendar

year in which it is adopted and shall designate that such delegation of

authority is applicable only where the recommended refund or credit is

twenty-five hundred dollars or less, or such other sum not to exceed

twenty-five hundred dollars.

(b) Where such resolution is adopted and the recommended refund or

credit does not exceed the amount specified in the designating

resolution, the county director shall transmit the written report of the

investigation and recommendation, together with both copies of the

application, to the official designated by the tax levying body. Upon

receipt of the written report, the designated official shall follow the

procedure which the tax levying body would follow in making refunds,

provided, however, where the designated official denies the refund or

credit, in whole or in part, such official shall transmit to the tax

levying body for its review and disposition pursuant to subdivision five

of this section the written report of the investigation and

recommendation of the county director, together with both copies of the

application and the reasons that the designated official denied the

refund or credit. Where the recommendation of the county director is to

deny the application or the refund or credit requested is in an amount

in excess of the amount authorized in the enabling resolution, the

county director shall transmit the written report of the investigation

and recommendation, together with both copies of the application, to the

tax levying body.

(c) On or before the fifteenth day of each month, the designated

official shall submit a report to the tax levying body of the refunds or

credits processed by such official during the preceding month. Such

report shall indicate the name of each recipient, the location of the

property and the amount of the refund or credit.

(d) In no case shall the total sum of such refunds or credits approved

by the designated official exceed the amount appropriated therefor by

the tax levying body.

9. In the event that an appropriation for a refund authorized pursuant

to this section is included in the annual budget next adopted after

approval of such refund, interest shall be added to such refund computed

from the date that the application is approved pursuant to subdivision

five or eight of this section.

10. When a portion of an outstanding tax has been credited pursuant to

this section, any interest and penalties that have been imposed thereon

shall be reduced to the extent that such interest and penalties were

attributable to the credited portion of the tax, and no additional

interest and penalties shall be imposed if the corrected amount of the

tax is paid within eight days of the date on which the notice of

approval is mailed pursuant to paragraph (e) of subdivision five of this

section.