Matter of Malta Town Ctr. I, Ltd. v. Town of Malta Bd. of Assessment Review, 3 N.Y.3d 550 (2004)

Proof of an annual reassessment pursuant to the state reassessment aid program under RPTL 1573 is evidence that there has been “a revaluation or update of all real property on the assessment roll” for the purposes of RPTL 727 (2) (a).

Summary

This case concerns whether a town’s annual reassessment of properties, conducted under the state’s RPTL 1573 program, qualifies as a “revaluation or update” under RPTL 727, which would allow the town to adjust property assessments within a three-year period despite a prior court order. The Court of Appeals held that it does. Town Centre, challenged its 2002 assessment, arguing it violated RPTL 727. The Town argued its reassessment program met the exception. The Court of Appeals reversed the lower courts, holding that participation in the RPTL 1573 program is evidence of a qualifying revaluation or update under RPTL 727, thus allowing the town to adjust the assessment. The matter was remitted to the Supreme Court to determine the accuracy of the assessment.

Facts

Town Centre previously challenged its property tax assessments for 1998-2001, which was resolved by a stipulation in December 2001, reducing the assessment to $7,800,000. The stipulation was subject to RPTL 727, limiting changes for three years. In April 2002, the Town of Malta, participating in an annual reassessment program under RPTL 1573, notified Town Centre that its assessed valuation had been increased to $9,750,000. Town Centre challenged this increase, citing RPTL 727.

Procedural History

Town Centre initiated a tax certiorari proceeding challenging the 2002 assessment. Town Centre moved for summary judgment, arguing the assessor failed to conduct a proper revaluation or update in compliance with RPTL 727 and sought to reduce the assessed value to $7,800,000. The Board cross-moved to strike Town Centre’s section 727 causes of action, submitting an affidavit from the Town Assessor. Supreme Court granted Town Centre’s motion and denied the Board’s cross-motion. The Appellate Division affirmed. The Court of Appeals granted leave to appeal.

Issue(s)

Whether proof of an annual reassessment pursuant to the state reassessment aid program under RPTL 1573 is evidence that there has been “a revaluation or update of all real property on the assessment roll” for the purposes of RPTL 727 (2) (a)?

Holding

Yes, because the language of RPTL 1573 and related regulations make clear that reassessment, revaluation, and update have the same meaning for the purposes of both RPTL 727 and RPTL 1573. Additionally, the legislative history supports this conclusion.

Court’s Reasoning

The Court focused on statutory interpretation, emphasizing the plain language of RPTL 727 and RPTL 1573. RPTL 727 provides a three-year respite from changes in assessed valuation after a court order, with exceptions, including a “revaluation or update of all real property on the assessment roll” (RPTL 727 [2] [a]). The Court referenced RPTL 102 (12-a), which defines “revaluation,” “reassessment,” or “update” as a systematic review to comply with RPTL 305 (2) (uniform percentage of value). The Court stated that the purpose of the three-year respite was to reduce successive suits challenging assessments, but the town-wide revaluation is a specific exception to that rule. RPTL 1573 authorizes state aid for municipalities that maintain current assessment rolls at a uniform percentage of market value. The Court found the language of RPTL 1573 and its regulations equivalent to the language in RPTL 727. The Court cited the legislative history behind RPTL 102 (12-a) indicating that a consistent definition of these terms was intended. Moreover, the requirements for annual reassessment under RPTL 1573 are as, or more, stringent than those for a “revaluation or update” under RPTL 727 (2) (a). The Court concluded that the Assessor’s affidavit and ORPS documents provided sufficient evidence of compliance with RPTL 1573, defeating Town Centre’s summary judgment motion.