WPCNR QUILL & EYESHADE. By John F. Bailey. June 1, 2007: A06069, The Bill that would establish a separate Commercial Assessment Ratio for commercial property in Westchester County awaits a greenlight from the New York State Senate, Assemblyman Bradley told WPCNR today.
“I’ll prioritize it, if Suzi (Openheimer, State Senator), tells me there’s a chance of moving it in the Senate,” Bradley told WPCNR.
Asked when this would happen, Bradley said the Assembly had a very long calendar and it would probably be put on the debate list. He said unless Ms. Oppenheimer tells him the Senate will pass it, he will not move to take it off the debate list and bring it to a vote in the Assembly in June. Though, he thinks it will “probably” happen.
“I have the power to bring it off the debate list in June, and bring it to a vote, if I think it has a chance of passing,” Bradley said.
The bill has been endorsed by the Westchester Municipal Officers Association, and the Westchester Assessors Association. As written, the bill establishes a separate commercial assessment ratio for commercial property in Westchester County, and only Westchester County. The effect of the separate commercial assessment ratio would take the value of residential property out of the equalization rate that has lead to the rash of certiorari refunds that have cut the White Plains assessment roll from $450 Million in 1989 to $289 Million in 2007, according to the White Plains City School District.
Including the residential property in the computation of the Equalization Rate lowers the rate at which commercial property is taxed resulting in certiorari suits that White Plains (and other county cities) has elected to settle over the years rather than fight the suits and pay costlier settlements if the city loses.
Assessors interviewed by WPCNR said the effect of a separate commercial assessment ratio would assesss commercial properties fairly and not artificially lower their value. If enacted one assessor, speaking on condition of anonymity said that it would slow the rate of ceritoraris in coming years, but result in request for reassessments, since cities do not automatically reassess as a result of a lowered valuation. This happens, the assessor said, in the present certiorari suits.
The assessor told WPCNR that eventually the loss in tax revenue from adjusted assessments would have to be made up by other revenue sources, as they are absorbed now by residential property owners, but at a slower rate, stabilizing the sharp rise in residential property owner taxes that have escalated due to the certiorari refunds in recent years.
This analysis would have the effect, it would seem, of making Westchester County very attractive for developers to build in Westchester County or companies to move to Westchester and buy Westchester properties because of the “fairer” assessment their new buildings would receive in Westchester, rather than elsewhere. Given this explanation, while slowing certiorari suits, the bill would appear to create a property tax cut for commercial property owners as well as potentially more manageable tax increases for residential property owners, maybe.
