Summary of RPTL 1316

Summary of RPTL 1316 (Alternative tax apportionment for school districts with a designated large property)

1) A designated large property must meet all of the following criteria:

1. Constitute five percent or more of the total assessed value of the city or town and of the school district within the city or town; and
2. the full value of the property is at least five million dollars; and
3. the percentage difference between the State equalization rate and the apportionment equalization rate is at least five percent

The apportionment equalization rate is the latest final State equalization rate, computed exclusive of the total assessed value and total full value of the Designated Large Property. 

2) ORPTS will establish a State equalization rate and an apportionment equalization rate for municipalities with a designated large property.

3) A school district with a designated large property may provide by annual resolution, adopted no later than ten days prior to the last day provided by law for the levy of taxes, that school taxes shall be apportioned using the apportionment equalization rate. The deadline for passing a resolution for most school districts is August 22.

4) The school district that has a designated large property and adopts a resolution to use the apportionment rate shall apportion the school levy as follows:

1. Apportion the tax levy using the State equalization rates (as usual in accordance with RPTL 1314).
2. Determine a tax rate for the municipality with the designated large property.
3. Determine a tax bill for the designated large property by multiplying the taxable assessed value of the designated large property by the tax rate computed in step 2.
4. Subtract the tax for the designated large property determined in step 3 from the total levy.
5. Subtract the taxable assessed value for the designated large property from the appropriate municipality and apportion the levy determined in step 4 using the State equalization rates for all of the municipalities except the municipality with the designated large property. Use the apportionment equalization rate for the municipality with the designated large property.