Morris v. Board of Assessors, 35 N.Y.2d 624 (1974)

A veteran’s real property tax exemption under Real Property Tax Law § 458 does not extend to special assessments and special ad valorem levies for improvement districts.

Summary

This case addresses whether a veteran’s tax exemption applies to special district levies. The petitioner, a veteran, challenged the denial of his tax exemption for certain special districts. The Court of Appeals held that the veteran’s exemption from “state, county and general municipal taxation” does not extend to special assessments and special ad valorem levies for improvement districts. This decision was based on the statutory interpretation of Real Property Tax Law § 458, read in conjunction with the former Tax Law § 4, which specifically excluded special district charges and assessments from the definition of “taxation” for exemption purposes.

Facts

Edwin R. Morris, an honorably discharged veteran, owned a residence in Nassau County with his wife. He was granted a veteran’s real property tax exemption of $2,800. The Board of Assessors of Nassau County determined that the exemption did not apply to special district levies, including those for lighting, parks, refuse disposal, fire, and police districts.

Procedural History

Morris challenged the Board of Assessors’ decision in an Article 7 proceeding of the Real Property Tax Law. Special Term ruled in favor of the veteran, exempting him from all special district levies except for the library district. The Appellate Division affirmed this decision without opinion. The New York Court of Appeals granted leave to appeal.

Issue(s)

Whether the veteran’s real property tax exemption, as provided by section 458 of the Real Property Tax Law, extends to special assessments and special ad valorem levies for improvement districts.

Holding

No, because the definition of “taxation” in the relevant statutes, specifically former section 4 of the Tax Law, excludes special district charges and assessments. Therefore, the veteran’s exemption is limited and does not apply to these special levies.

Court’s Reasoning

The Court based its decision on the interpretation of Real Property Tax Law § 458 in conjunction with the definitions provided in former section 4 of the Tax Law. Section 458(4) dictates that the definitions in section 102 of the Real Property Tax Law do not apply, and the terms used in section 458 retain their meaning as before the enactment of the chapter. Looking to the “closing paragraphs” of former section 4, the court found that “taxation” specifically excludes charges and assessments levied for special or district improvements against real property outside cities and villages. The court emphasized that “[t]he provisions of subparagraphs two and three of this paragraph shall not apply to real property which is exempt, or may be exempted in whole or in part, from general taxation pursuant to subdivisions five, five-a, five-b,” which encompass the veteran’s exemption. The court noted that this interpretation was consistent with the prevailing law and practice before the enactment of the closing paragraphs, as well as with the consistent interpretation of the State Comptroller. The court disapproved of the contrary holding in O’Hara v. Board of Supervisors of Suffolk County. While acknowledging potential inequities, the court stated that it is up to the legislature, not the courts, to expand the scope of the exemption if desired.