Adventist Home, Inc. v. Board of Assessors, 83 N.Y.2d 878 (1994)
The statute of limitations for challenging a property tax assessment begins to run when the taxpayer receives actual notice of the assessment, typically upon receipt of the tax bill, not merely upon publication of the assessment roll.
Summary
Adventist Home, Inc. challenged the Board of Assessors’ decision to remove its property’s tax-exempt status. The lawsuit, filed five months after receiving a tax bill reflecting the new assessment, was deemed untimely by the lower courts. The Court of Appeals reversed, holding that the statute of limitations began when the taxpayer received the tax bill (actual notice), not when the assessment roll was published. The court emphasized the importance of the written notice requirement under RPTL 525(4), which informs the taxpayer of their right to challenge the assessment.
Facts
In early 1990, the Board of Assessors of the Town of Livingston determined that a portion of Adventist Home, Inc.’s property no longer qualified for a charitable tax exemption. The Board included the property on the 1990 tentative assessment rolls, assigning it an assessed value of $62,700. Adventist Home filed a grievance, but the Board did not change the assessment, and the assessment roll became final on July 1, 1990. In December 1990, Adventist Home received a tax bill reflecting the new assessment.
Procedural History
In May 1991, Adventist Home initiated a combined CPLR article 78 proceeding and declaratory judgment action to challenge the Board’s decision. Supreme Court dismissed the claim as time-barred under CPLR 217. The Appellate Division affirmed this decision. The Court of Appeals granted leave to appeal.
Issue(s)
Whether the four-month statute of limitations for challenging a property tax assessment under CPLR 217 begins to run upon publication of the assessment roll or upon the taxpayer’s receipt of a tax bill reflecting the adverse assessment.
Holding
No, because the statute of limitations begins to run when the taxpayer receives actual notice of the assessment, which in this case was when Adventist Home received the tax bill in December 1990.
Court’s Reasoning
The Court of Appeals reasoned that the statute of limitations did not begin to run until Adventist Home received actual notice of the assessment via the tax bill. The court rejected the argument that the limitations period commenced with the publication of the assessment roll in July 1990. The court relied on RPTL 525(4), which requires the Board to provide written notice of its determination and the taxpayer’s right to challenge it. The Court stated: “To hold, as respondent urges, that the limitations period commences with publication of the assessment roll — whether or not the taxpayer has been given the required notice — would eviscerate the statute.” The court also cited RPTL 702(2), noting that the limitations period in a tax certiorari proceeding commences on the last day for filing the assessment roll or when notice is given as required by law, whichever is later. The court emphasized that the purpose of RPTL 525(4) was to relieve the taxpayer of the burden of checking the final assessment roll. Quoting the State Board of Equalization and Assessment, the court noted, “it seems burdensome to require the taxpayer to check the final assessment roll to learn of the board of assessment review’s decision on his complaint.” The court also addressed the argument that failure to mail notice does not affect the validity of the assessment, clarifying that the validity of the assessment was not at issue; only the timeliness of the proceeding was being considered. The statutory language ensures that an otherwise valid assessment is not rendered invalid simply because of a failure to send proper notice.