Requires any contract or retainer agreement between a property owner and an attorney for legal services related to the filing and appearance before a board of assessment review regarding complaints in relation to assessments shall include a written disclosure that such complaints in relation to assessments can be completed without the assistance of an attorney.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8919A
SPONSOR: Solages TITLE OF BILL:
An act to amend the real property tax law, in relation to requiring
certain disclosures and charges by attorneys performing services in
connection with a real property tax grievance procedure
PURPOSE:
To enhance transparency and accessibility in the real property tax
grievance procedure by mandating clear disclosures in contracts between
property owners and-attorneys, ensuring property owners are informed
about their rights and options regarding small claims assessment
reviews.
SUMMARY:
Section 1. Requires that any contract or retainer agreement between a
property owner and an attorney for legal services related to small
claims assessment reviews must include a clear and conspicuous written
disclosure stating that such complaints can be completed without the
assistance of an attorney. Additionally, it mandates providing informa-
tion about where to find forms and assistance for the assessment review
process, with specific website requirements for properties located in
Nassau County and New York City.
Section 2. Sets the effective date.
JUSTIFICATION:
The current grievance process for property tax assessments, meant to
rectify assessment inequities, has inadvertently exacerbated dispari-
ties. Wealthier neighborhoods, appealing assessments more frequently,
often receive significant reductions, while poorer areas face overvalu-
ation with lower appeal rates. Consequently, assessment reductions,
primarily benefiting affluent homeowners, shift tax burdens onto other
property owners, exacerbating socioeconomic divides.
A 2017 investigation by Newsday in Nassau County revealed a significant
tax shift of $1.7 billion from affluent challengers to less wealthy
residents. Moreover, a cottage industry of specialists and attorneys has
emerged, capitalizing on homeowners' misconceptions about the process's
complexity, charging exorbitant fees without ensuring equitable relief.
This bill seeks to empower homeowners by mandating specialists and
attorneys to disclose that homeowners can independently file grievances
with municipal assistance, fostering transparency, curbing predatory
practices, and enabling informed decision-making in tax assessments.
LEGISLATIVE HISTORY:
2022-22: A4650 (Griffin); real property taxation.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8919--A
IN ASSEMBLY
January 26, 2024
___________
Introduced by M. of A. SOLAGES -- read once and referred to the Commit-
tee on Real Property Taxation -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to requiring
certain disclosures and charges by attorneys performing services in
connection with a real property tax grievance procedure
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property tax law is amended by adding a new
2 section 524-a to read as follows:
3 § 524-a. Contracts for complaints with respect to assessment. Any
4 contract or retainer agreement between a property owner and an attorney
5 for legal services, including filing and appearances, related to a small
6 claims assessment review shall include a clear and conspicuous written
7 disclosure in a large print format that such complaints in relation to
8 assessments can be completed without the assistance of an attorney.
9 Such disclosure shall state that information regarding the small claim
10 assessment review process, forms, and assistance can be found on the New
11 York courts website and shall contain that website and the website for
12 the appropriate municipality where the property is located; provided
13 that if such property is located in Nassau county the disclosure shall
14 provide the website for the Assessment Review Commission and in New York
15 city the disclosure shall provide the website for the New York City Tax
16 Commission. For the purposes of this section, large print format shall
17 mean a printed font size of sixteen or larger.
18 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01875-02-4
