RPS V4 Glossary of Terms

A

ABATEMENT

An official reduction of taxable assessed value, almost always as the result of an exemption.

ABSTRACT OF TITLE

A summary of all conveyances, such as deeds or wills, and legal proceedings, giving the names of parties, the description of the land and the agreements, arranged to show a continuity of ownership.

ACCRUED DEPRECIATION

The actual depreciation from all causes evident in a property as of a given date. The difference between replacement cost new (RCN) and replacement cost new less depreciation (RCNLD).

ACRE

A common measure of land area equal to 43,560 square feet. There are 640 acres in a square mile.

AD VALOREM TAX

A tax based on the value of real or personal property as distinct from income, sales or excise taxes. Personal property is not taxable in New York State.

ADJUSTED BASIS

The original cost of a property minus depreciation and sales of portions thereof plus allowable additions such as capital improvements and certain carrying costs and assessments. A bookkeeping rather than appraisal term.

ADJUSTED SALE PRICE

The selling price of a comparable property adjusted to reflect differences in inventory, location and time as compared to the subject.

ADJUSTMENTS

Changes to the selling price of a comparable property required to estimate the market value of the subject. May be in dollars, percentages or cumulative (compounded) percentages.

ADMINISTRATOR'S DEED

A deed given by an individual who has been legally appointed to represent the estate of a deceased person who did not appoint an executor.

ADVERSE POSSESSION

A method of acquiring title to real property owned by another by the actual, exclusive, open notorious hostile and continuous possession of said property. Colloquially, "squatter's rights."

ADVISORY EQUALIZATION RATE

The previous year's final equalization rate multiplied by the changes-of-level factor of the current roll year. This rate is used by most counties to apportion the county tax levy.

AESTHETIC VALUE

The enhancement of the worth of a property due to the pleasure derived from the beauty of improvements and/or their surroundings, such as an exceptional value.

AFTER-TAX YIELD RATE

The annual profit remaining after income taxes have been paid, divided by the original equity investment.

AGE, ACTUAL

The number of years since a structure was built. Also known as chronological age. AGE, EFFECTIVE The age of an improvement as indicated by its condition. A building that has been well maintained may have an effective age less than its actual (chronological) age. The reverse may be true if a building has been neglected.

AGE-LIFE METHOD

A process for estimating incurable physical deterioration as a percentage of the current RCN of the improvements.

AGGREGATE ASSESSMENT-SALES RATIO

The total of the assessed values divided by the total of the selling prices. Also known as the weighted mean. Used in the determination of the price related differential.

AGGREGATE SCHOOL

A school district permitted to adopt the dual rate tax system under Section 1903-A of the Real Property Tax Law. The district must encompass more than one town, one of which is designated. 20% of the district must have been in a locality which adopted the dual tax rate system.

AGRICULTURAL DISTRICT

An area established under New York State law to preserve and promote agriculture. The availability of preferential property treatment is characteristic of an agricultural district.

AGRICULTURAL USE VALUE

An estimate of the worth of agricultural property based on an income approach using the productivity of the land as a measure of income.

AIR RIGHTS

The right to use the airspace above a property with or without ownership of the surface property.

ALLOCATION

The use of a ratio based on experience with comparable properties to distribute the appraised value of a property between the land and the improvements. A procedure that has limitations.

ALLOCATION FACTOR

A percentage supplied by the Department of Environmental Conservation (DEC) to determine the assessment for the portion of the parcel attributable to the conservation easement. This is used in RPSV4 roll and bills to programmatically create a roll section 3 parcel.

ALLOWANCE FOR VACANCY & CREDIT LOSS

A reduction of potential gross income to reflect the fact that some apartments or stores in an income-producing property will be vacant from time to time and some tenants may not pay their rent.

ALPHANUMERIC

Used in data processing to describe a field (data area) which may contain either numeric, alphabetic or special characters. A field which may not be used mathematically.

AMORTIZATION The process of retiring debt or recovering capital investment through a schedule of systematic repayments of principle.

AMORTIZATION RATE

The ratio of periodic amortization payments to the total principle to be amortized; corresponds to a sinking fund rate.

APPORTION

To divide or distribute according to some plan. In assessment, to distribute the value of a parcel which has been split among the various parcels resulting from the split.

APPRAISAL An estimate or opinion of value, usually in writing. The act or process of estimating value as of a certain date.

APPRAISAL METHODS The three accepted methods of valuing real estate are:

1. The sales comparison or market approach which uses adjusted sales of comparable properties
2. The income approach which capitalizes net operating income to produce an estimate of value
3. The summation or cost approach which uses the cost of construction new, less accrued deprecation, plus land value.

APPRAISAL PROCESS

A systematic examination of the factors which influence the value or utility of real estate. A process by which the problem may be defined, the relevant facts assembled and a supportable conclusion of value produced.

APPRAISED VALUE

The final opinion of an appraiser as to the worth of a property as of the effective date of appraisal.

APPRECIATION

Monetary gain resulting from the increase in the market value of an investment, excluding additions of capital. For example, a house which is sold five years after it was purchased for 50% more than the purchase price.

APPROVED ASSESSING UNIT

A city or town which has been certified by the State Board of Real Property Tax Services to have completed a revaluation or an update in conformance with its rules and regulations.

ARM'S LENGTH

Refers to a real estate transaction in the open market freely arrived at by normal negotiations without undue pressure on either the buyer or the seller.

ASSESSED VALUE

A figure in dollars determined by an assessor which reflects a property's worth in relation to other properties on an assessment roll and which, unless exempt, is used to compute a tax dollar obligation by multiplying it by a tax rate.

ASSESSING UNIT

A city, county, town or village with the authority to value real property for purposes of taxation.

ASSESSMENT ROLL

A document listing, usually in alphabetic or tax map number sequence within roll section, all of the parcels within an assessment jurisdiction together with their land and total values, the names and addresses of owners, exemption data, property types and other pertinent information.

ASSESSOR

An elected or appointed official of a county, city, town or village whose function is to value real property (and personal property in some states) for purposes of taxation. For more information, see The Job of the Assessor. To identify your assessor, see Local Property Tax Officials.

ASSESSOR'S REPORT (AR)

A report of the total assessed value on the current assessment roll and the assessment activity since the prior roll resulting from reassessment, change in physical characteristics, or change in exempt status. The report is filed with the Office of Real Property Tax Services (ORPTS) each year after final assessment rolls are completed and is used to determine any change in level of assessment for computation of change in level factors which are used to update equalization rates.

B

BAND OF INVESTMENT

A method of determining the discount rate in the income approach. Uses a weighted average of the return to cover mortgage interest plus a competitive return required for equity.

BASE (BASIC) RATE

That portion of the overall capitalization rate which covers all of the income requirements except those for depreciation or appreciation.

BASE RENT

The minimum rental stipulated under a percentage lease.

BASE YEAR ROLL

The assessment roll of a municipality from which the samples for a market value survey have been selected.

BOARD OF ASSESSMENT REVIEW

A quasi-judicial panel consisting of three to five members appointed by a municipality to hear and make determinations on assessment grievances brought before it by property owners.

BUNDLE OF RIGHTS THEORY

The premise that the ownership of real estate consists of the ownership of various rights associated with it. These rights included the right to use and/or occupy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing.

C

CAPITALIZATION RATE

The percentage which is the sum of the discount rate, the effective tax rate and the recapture rate (for improved property only) representing the relationship between net operating income and present value.

CAPITALIZED VALUE

The value indicated by the annual net operating income generated by the property. The present value of the right to collect future income derived by dividing net operating income by an appropriate capitalization rate.

CEILING RAILROAD

A railroad company whose taxable assessed value is subject to an upper limit established by the Office of Real Property Tax Services (ORPTS). Any assessed value in excess of this limit is exempt.

CHANGE-OF-LEVEL FACTOR

A multiplier computed by the Office of Real Property Tax Services (ORPTS) from equalization changes listed on the assessor's report. It is used to adjust the prior year final equalization rate so that it can be used as the advisory rate for county tax apportionment.

COEFFICIENT OF DISPERSION

The average deviation of a group of observations (assessment ratios, for example) from the mean or, preferably, the median ratio expressed as a percentage of that mean or median. The standard measure of assessment equity.

COEFFICIENT OF VARIATION

The standard error of the estimate divided by the mean value of the dependent variable. A measure of the likelihood of error in predictions of the value of the dependent variable.

COMPARABLE SALE

A property which has sold recently and is sufficiently similar to the subject of an appraisal so that its adjusted selling price may be taken as an indication of the market value of the subject.

COMPUTER PROGRAM

A series of stored instructions which enable a computer to perform some complex task without the continuous and direct intervention of the operator. Programs are written in various specialized languages such as Power Builder.

CONDOMINIUM

A form of fee simple ownership of part of a structure having multiple units. Owners have title to their own units plus a share of the common elements.

COOPERATIVE APARTMENT

A dwelling unit owned by a corporation in which an owner owns stock commensurate with the value of his or her apartment compared to the value of the building as a whole. The stockholder has a proprietary lease to the apartment.

CORRECTION OF ERRORS LAW

Sections 550 to 559 of the Real Property Tax Law (RPTL) set forth the circumstances and conditions under which assessment and tax rolls may be corrected and taxes refunded or additional taxes levied.

COST APPROACH

A method of estimating the value of real property by calculating a current construction cost, subtracting accrued depreciation and adding a land value obtained from the market. This method works best when the improvements are relatively new and estimates of depreciation are thus more likely to be accurate.

COTERMINIOUS

Having the same boundaries. Cities and their school districts are usually coterminous while a suburban or rural school district may be in parts of several towns and there may be several school districts in one town.

D

DEPRECIATION

A loss of utility and thus value caused by physical deterioration, functional obsolescence or economic obsolescence or any combination thereof.

DEPTH FACTOR

A percentage which expresses the value of a lot of given dept relative to that of a lot having adopted standard (100%) depth.

E

EASEMENT CODE

A code used in conjunction with allocation factor to indicate whether the parcel has a taxable conservation easement (code = A) or a taxable common law easement (code = C).

ECONOMIC LIFE

The length of time during which improvements can reasonably be expected to be profitably utilized and contribute to the value of a property. Not exactly the same as "useful life."

ECONOMIC OBSOLESCENCE

A loss in value caused by influences external to the property such as increasing industrial activity near a residential neighborhood.

EFFECTIVE GROSS INCOME (EGI)

The estimated potential income of a property from all sources less allowances for vacancy and credit loss.

EFFECTIVE TAX RATE (ETR), aka EQUALIZED TAX RATE

The nominal (actual) tax rate multiplied by the level of assessment. If the level of assessment is 30% (.30) and the nominal tax rate is $80 per $1,000, the effective tax rate is $24 per $1,000 or 2.4%.

EQUALIZATION

The process of bringing the assessed value of jurisdictions assessing at different levels to a common level, usually fair market value as of a given date.

EQUALIZATION RATE

A weighted average ratio of the total assessed value in a municipality divided by the total market value. An equalization rate of 20% indicates that assessments were at an average of one-fifth of market value when the equalization rate survey was made. To view equalization rates in your county, go to Equalization Rates.

ESCROW

The money or property of one party which has been consigned to an intermediary to be delivered to another party at some appropriate time. A bank will received mortgage payments from a property owner, which include a provision for property taxes and will pay the taxes to the taxing jurisdictions when the bills are received. The escrow is the money or other property itself.

EXEMPTION

A form of relief from taxation where all or part of the assessed value is free from payment of some or all tax levies. Typically granted to individuals as a matter of public policy (elderly and veterans exemptions), property owned by the federal, state or municipal governments or their agencies, and organizations such as private schools organized for a specific exempt purpose with the added requirement that the parcel must be used to achieve that purpose.

EXEMPTION CODE

A five digit number assigned by the Office of Real Property Tax Services (ORPTS) to every exemption granted by statute in New York State. The significance of the first digit of each code is as follows:

1. Publicly owned, wholly exempt.
2. Privately owned, wholly exempt.
3. Publicly owned, partially exempt.
4. Privately owned, partially exempt.

The second, third, and fourth digits identify and group exemptions and the last digit specifies the taxing purposes to which the exemption applies (county, town or city, school, village or some combination thereof or all).

F

FAIR MARKET VALUE

The most probable price, expressed in terms of money, that a property would bring if exposed for sale in the open market in an arm's length transaction between a willing seller and a willing buyer, both of whom are knowledgeable concerning all the uses to which it is adapted and for which it is capable of being used. (From "Property Assessment Valuation" published by the International Association of Assessing Officers) Synonymous with "market value."

FIELD

In a computer or printed record, a group of characters which comprise a specific data element found in a specific location such as the property class or land value fields on rows in a Real Property System (RPS) data file.

FIRE DISTRICT FLAG

The Fire District Flag on the Special District Reference Table is meant to be used in association with the Business Investment Exemption (4761x) granted after or after 8/5/97 (Sect 485-B). The Business Investment Exemption (4760x) granted prior to 8/5/97 allowed the exemption to be applied to all ad valorem levy districts, including fire districts. The legislation surrounding the 4761x exemption indicates the exemption granted on or after 8/5/97 is liable for special ad valorem levies established for fire district, fire protection district, and fire alarm district purposes, meaning the exemption does not apply to a fire special district. Since the user can compose their own special district codes, the RPS application had no way of determining which were the fire special districts and, therefore, the Fire District Flag was introduced. When the Fire District Flag is checked and there is a Business Investment Exemption (4761x) on the parcel, the exemption will not be applied to the special district taxable value.

FINAL ASSESSMENT ROLL

A document containing assessment and exemption information on all parcels in a municipality. It differs from the tentative assessment roll with respect to changes ordered by a board of assessment review, assessment and ceiling assessments made by the Office of Real Property Tax Services and ownership and address changes since the tentative roll. It is filed on July 1 in most towns.

FRACTIONAL ASSESSMENT

A procedure whereby assessments are made at some uniform percentage of full or fair market value rather than at 100% thereof.

FUNCTIONAL (CURABLE " INCURABLE) OBSOLESCENCE

Impairment of useful capacity or efficiency; loss of value caused by superadequacy, inadequacy or changes in the art inherent in the property itself. Not to be confused with the external effects of economic obsolescence. Curable if the cost to cure is justified by the resulting increase in value of the property; otherwise incurable.

FUNCTIONAL UTILITY

The sum of the usefulness and attractiveness of a property. The ability of a property to perform the function(s) for which it is intended.

G

GRADE

A letter and number (i.e. B+20, C-10) measure of quality of construction. Also, the vertical rise and fall of the earth's surface, often expressed as a percentage of horizontal distance. Also, the process of smoothing the ground surface to make it suitable for constructions.

GRID COORDINATES

Information from the tax map process that represents an easting reading and a northing reading from the point of origin of the appropriate zone of the New York coordinate system to the visual center of each land parcel.

GRIEVANCE DAY

A period of time designated for administrative review of assessments by a board of assessment review; Beginning on the fourth Tuesday of May, or such other date as is established by city charter, county charter, county tax act or other special law, and so many days thereafter as the board of assessment review deems necessary, such board shall meet to hear complaints in relation to assessments.

H

HOMESTEAD BASE PROPORTION

The ratio of the taxable assessed value of the homestead class in a special assessing unit to the total assessed value in that jurisdiction.

HOMESTEAD CLASS

All one, two or three-family residential real property used wholly or primarily for residential purposes, farm dwellings, condominiums with certain restrictions and owner-occupied separately assessed mobile homes and trailers. (RPTL 1901). The codes used are H for Homestead, N for Non-homestead and S for a parcel that is designated both homestead and non-homestead.

I

INCOME APPROACH

An appraisal technique whereby the value of an income-producing property is estimating by capitalizing its net operating income using an appropriate capitalization rate. Value = Income / Rate.

INCOMPLETE SALE

A sale which has been recorded on RPS, but which is missing one or more pieces of information required for sales processing by the RPS system.

J

JURISDICTION

The physical territory over which authority, power or control is exercised. Assessment jurisdictions in New York State may be counties, cities, towns and villages. These may also be taxing jurisdictions such as school districts and special districts.

K

KEY

In data processing a unique combination of numeric and/or alphanumeric characters which identifies a record on a computer file. Also called the "file key."

KEYCHANGE

The process of changing a parcel key on RPS.

L

LEVEL OF ASSESSMENT

The percentage of full market value at which assessments are, on average, made in a given assessing unit.

M

MAINTENANCE

The process of keeping an improvement in satisfactory condition to perform the functions for which it is intended. Repairs in contrast to betterments.

MARKET DATA APPROACH

An appraisal process whereby the value of a subject property is predicated on the adjusted (for time and inventory differences) selling prices of comparable properties. Also known as the "direct sales comparison approach."

MARKET VALUE

That price in an open market at which a willing buyer would buy and a willing seller would sell neither being under abnormal pressure and both being fully informed.

MASS APPRAISAL

A systematic valuation of a large number of properties during a relatively short period of time. Typically the function of an assessor rather than an appraiser. Various techniques using computers and statistical testing of the results re often employed for this purpose.

MORTGAGE REQUIREMENT

The periodic level payment of debt service (interest and principal) required on a direct reduction loan.

N

NEIGHBORHOOD

An urban, suburban or rural area exhibiting a fairly high degree of homogeneity as to housing, tenancy, income and population characteristics. Neighborhoods are often delineated by physical barriers such as railroad tracks, commercial or industrial developments, and topographical features such as hills and rivers. Lines created by subdivision boundaries, differences in zoning ordinances or deed restrictions, and the type and/or age of buildings may also define neighborhoods.

NEIGHBORHOOD ANALYSIS

The study of the effects of physical, economic, governmental and social influences resulting from the specific location of the property being appraised.

NEIGHBORHOOD CODE

A locally specified code identifying a geographic area which exhibits similar land uses and economic and social characteristics.

NETWORK

A system of two or more connected computers which have the ability to share information. The computers may be directly wired together or they may be connected via telephone lines.

NON-ASSESSING UNIT VILLAGE

A village which accepts the assessments set by the town, but which is still responsible for the taxing functions.

O

OBSOLESCENCE

One of the causes of depreciation. It is the loss of desirability and usefulness caused by new inventions, changes in design, and improved processes for production, or from the influence of external factors. Obsolescence may be either economic or functional. See also, "depreciation," "economic obsolescence," and "functional obsolescence."

OFFICE OF REAL PROPERTY TAX SERVICES (ORPTS)

The agency responsible for carrying out the policies and programs of the State Board of Real Property Tax Services.

OWNERSHIP CODE

A code used to further define the property class code. The ownership codes are:

P

PARCEL

A separately assessed lot, piece or portion of real property.

PARTIAL EXEMPTION

A statutory reduction in the taxable assessed value of a parcel; usually some taxable value remains for some taxing purpose. By far, the most common in New York State are the elderly and veterans exemptions. Partial exemptions are usually limited by time, amount or taxing purpose.

PAYMENT IN LIEU OF TAXES (PILOT)

An agreed upon payment that is made in place of taxes by a property owner who would not otherwise by liable for taxes because of exempt status. Such payments are collected in the same manor as other payments due to the municipality under contract.

PENALTY TAX

In New York State, a tax assessed against property which has been granted an agricultural exemption and then converted to non-agricultural use prior to the expiration of the exemption.

PERSONAL PROPERTY

Items that are movable; that are not permanently affixed to and a part of real estate. In deciding whether or not an item is personal property or real property one must consider:

1. the manner it which it is attached to the real estate.
2. the intent of the person who attached it (permanent or temporary).
3. the purpose for which the premises are used.

In general, if the item can be removed without serious damage to it or to the real property to which it is attached it should be considered personal property. Also known as "personalty."

PHYSICAL OR QUANTITY CHANGE

An increase in assessed value resulting from new construction, property annexed from another assessing unit, property omitted from the prior roll, property discovered during tax mapping and property which has become locally assessed (usually a transfer to assessment roll section 1 from assessment roll section 8). Also a decrease in assessed value resulting form fire, demolition, loss of parcels due to tax mapping, removal of mobile homes, removal of duplicate parcels and transfer out of the locally assessed category.

PRIMARY UNITS

An assessment data field indicating a number which will be used as a basis for non-ad valorem special district tax extension, i.e. water usage or number of sewer hookups, etc.

PRINT KEY

A condensed version of the parcel key used on printed reports which shows only the significant characters in the parcel key.

PROEPRTY CLASSIFICATION CODE

A three digit code, established by ORPS for categorizing property by use.

PROPERTY DESCRIPTION

That which unequivocally identifies a parcel of real property.

PROPERTY INVENTORY

A collection of data for each parcel in a municipality which should include at least the following:

1. name of the property owner(s)
2. tax map land parcel number
3. property description
4. the physical characteristics necessary to value the parcel by at least one of the three standard approaches
5. exemption status In practice, the inventory will contain information such as land size, square feet of living area, number of bedrooms, finished basement area, etc.

Q

QUALIFIED SALE

A sale which meets the following criteria and may thus be considered an acceptable indicator of value and a qualified sale:

1. The sale took place on the open market.
2. Neither buyer nor seller was under any undue pressure for any reason.
3. The property was exposed on the market for a reasonable period of time.
4. Both the buyer and seller had adequate knowledge of the uses to which the property might be put.
5. Consideration consisted of cash or cash equivalents.
6. There was no "love and affection" consideration (as in a sale between relatives).

R

REAL PROPERTY

The sum of the tangible and intangible rights in land and improvements affixed thereto. The bundle of rights that accrues to the owner of real estate. (RPTL Sec.102) For another definition, see How the Property Tax Works.

REAL PROPERTY CLASS In special assessing units there are four legally defined classes of property:

1. primarily one-, two-, and three-family houses.
2. all other residential property, including cooperatives, most condominiums and apartment buildings.
3. utility property.
4. all property not included in the first three classes.

For more information, see Property Classification Codes.

REAL PROPERTY TAX LAW (RPTL)

Chapter 50-A of the consolidated laws of the State of New York in which are found most of the statutes pertaining to assessment and property tax administration. It's further subdivided into articles and sections.

REAL PROPERTY TRANSFER REPORT (RP-5217)

A form on which is reported to the Office of Real Property Tax Services and local municipalities pertinent information concerning transfers of title to real property. This information is used by ORPTS to determine residential assessment ratios and for full value measurement purposes. This form also ensures that the local assessors know the true consideration and other circumstances surrounding every sale. A copy of this form must be attached to every deed presented for recording. For further details, see Real Property Sales Information.

RELEVY

Unpaid school or village taxes on a parcel which are carried over o the next tax roll due to failure to make payment on a timely basis.

REMAINING ECONOMIC LIFE

An estimate of how long property can remain useful and continue to perform the functions for which it was designed.

REPLACEMENT COST NEW (RCN)

The cost to construct 0at current prices an improvement having utility and desirability equal to that of the improvement being appraised, but built with modern materials according to current design standards. The RCN concept effectively eliminates function obsolescence.

REPLACEMENT COST NEW LESS DEPRECIATION (RCNLD)

Equal to replacement cost new less a deduction for loss in value (depreciation) arising from physical, functional, and economic causes.

REPRODUCTION COST NEW

The same as replacement cost new except that the cost sought is that of constructing an exact replica or duplicate of the improvement being appraised rather than applying the appropriate depreciation.

REPRODUCTION COST NEW LESS DEPRECIATION

The same as replacement cost new less depreciation except that the cost sought is that of constructing an exact replica or duplicate of the improvement being appraised and then applying the appropriate depreciation.

RESIDENTIAL ASSESSMENT RATIO (R.A.R.)

The residential assessment ratio is an indicator of the level of assessment of 1, 2 and 3 family homes within a municipality. The ratio can be used by property owners as evidence that they are not fairly assessed in comparison to other homeowners in the same community. The ratio is equal to the level of assessment of residential property used to calculate the state equalization rate for that assessment roll.

RESIDENTIAL PERCENT

The percent of a parcel's assessed value that represents the residential part of a parcel.

REVALUATION

A mass appraisal of all properties within an assessment jurisdiction for the purpose of ensuring that assessments are at a uniform percentage of value. Today, revaluations are usually computer-assisted.

ROLL SECTION

Divisions of an assessment roll in New York State used to group properties with similar taxing purposes. The following sections have been established under the real property tax law and the rules and regulations of the Office of Real Property Tax Services (ORPTS):

Roll Section 1 - Ordinary taxable property including that which is partially exempt.

Roll Section 3 - Taxable state owned land; all property owned by the State of New York that is subject to general tax levies.

Roll Section 5 - Special franchise; real property owned by public utilities, such as cables, transmission or distribution wires, mains, etc., which is located under, above, or upon any public right of way.

Roll Section 6 - Utilities and non-ceiling railroads; all property owned by public utility companies and privately held railroad companies except special franchise and ceiling railroad property.

Roll Section 7 - Ceiling railroads; all railroad transportation property whose assessments are subject to a ceiling imposed by the Office of Real Property Tax Services.

Roll Section 8 - Wholly exempt; includes all parcels which are entirely exempt from property taxes for the general levies. Many properties in this section are required to pay some special district taxes, however.

S

S305/306

Agricultural exemptions 41720(Agricultural District formed by County or NY State), 41730 (Committed agricultural land outside of Agricultural District) and 41750 (Agricultural land eligible for an ag assessment) are not applicable to ad valorem or special assessment districts but are covered by Section 305/306 which allows the exemption to be applied to fire and/or ambulance special districts. In order for the exemption(s) to apply to the fire and/or ambulance special district, the Sec305/306 flag must be set on both the exemption (RPSV4 Exemption Reference Table) and the special district (RPSV4 Special District Reference Table).

SALE CONDITION CODE

A one-digit code used to indicate the validity of a real property transfer by describing the circumstances surrounding the transfer.

SCHOOL FLAG

A check in the School Flag bucket on the Special District Reference Table indicates that this special district is valid for school tax purposes. If a tax rate is entered for the special district when a school tax roll is run and the School Flag has not bee checked, an error will be generated indicating it is an 'invalid special district'.

SECURITY CODE

Security codes are used to allow access or deny access to the RPS application and data files. They are defined in the Administration Module.

SEQUENTIAL FILE

Records that are stored and accessed in sequential order.

SMALL CLAIMS ASSESSMENT REVIEW (SCAR)

A procedure for contesting an assessed value that is available to most homeowners in New York State. A hearing before a small claims hearing officer must have been preceded by filing the formal grievance before a municipal board of assessment review. The homeowner who chooses small claims assessment review is saved the considerable expense of commencing a writ of certiorari, but not subsequently bring such an action if displeased with the small claims decision. For more information, see Contest your assessment.

SPECIAL ASSESSING UNIT

In New York State, an assessment jurisdiction with a population of one million or more.

SPECIAL ASSESSMENT

A charge made by a municipal government against real property to defray the cost of making a public improvement adjacent to that property. While the improvement, such as a sidewalk or street lighting, may be of general benefit to the community, it is especially beneficial to the adjacent properties.

SPECIAL DISTRICT

A taxing unit formed in response to a need for a particular service by the owners of the real property within the district boundaries. A special district may be established to provide fire protection, to install and maintain a sewer or water system, to dispose of solid waste, etc. Special district taxes may be levied on the real property in the district on an ad valorem basis or by a unit charge in proportion to the benefit received by the property.

SPECIAL FRANCHISE

A monopolistic or exclusive right conferred by government upon a corporation to provide a specified public service, to make use of certain public property for this purpose, and to charge for the services performed. Most public utility companies operate as special franchises.

SPLIT/MERGE NUMBER

A unique number assigned by the assessor to report those parcels associated in a particular split or merge. Used in the assessor's report (AR-2).

SPLIT VILLAGE

An incorporated village contained within two or more towns.

STATE BOARD OF REAL PROPERTY TAX SERVICES

A five member body appointed by the Governor of the State of New York with the advice and consent of the Senate. The primary responsibilities of the Board are the promulgation of municipal equalization rates and the improvement of assessment and property tax administration.

SWIS

(STATEWIDE INFORMATION SYSTEM) CODE A six-digit number assigned by the Office of Real Property Tax Services (ORPTS) as a unique identifier for every municipality in the state. The first two digits define the county, the second two the city or town, and the last pair the village, if any.

SYSTEM CODE

When a parcel (usually a roll section 3 parcel) is not taxable for one or more of the general tax purposes and no Real Property Tax Law exemption applies, a 5000x system code can be used to work like an exemption code for that parcel.

T

TAX BASE

The unit of value to which a tax rate is applied to determine the tax due. For property taxes, the tax base is usually the assessed valuation subject to tax although special district taxes may be based on linear feet of sidewalk, number of dwelling units, etc.TAX LIEN A charge which automatically applies to a property in the amount of unpaid property taxes. A tax usually becomes a lien when it is levied which, for practical purposes, is when tax bills are mailed.

TAX RATE

The tax levy divided by the total taxable assessed value of a taxing jurisdiction, usually expressed in dollars per thousand, dollars per hundred, or mills.

TAX ROLL

An official book listing all real property in a tax district. It shows the location and description of each parcel, the owner, the amount of the assessment, any exemptions and the amount of taxes levied against the parcel.

TAX SALE

The sale by a municipal corporation of a property which has been confiscated from the prior owner for non-payment of taxes.

TAXABLE ASSESSED VALUE

The assessed value of a parcel (or an entire assessment roll) against which the tax rate is applied to compute the tax due. In case of a partial exemption, the exempt amount is subtracted from the assessed value in order to determine the taxable assessed value.

TAXABLE STATUS DATE

The particular date on which the taxable status of real property must be determined according to its condition and ownership. An improvement added after taxable status date is not assessable until the following year; an improvement added before taxable status date is subject to current year assessment and taxation. The taxable status date of most towns in New York State is March 1. For more information, see The Real Property Tax Cycle.

TAXATION

The process whereby governments raise money for their operations. The most common forms of taxation are income taxes, property taxes and sales taxes.

TRANSITION ASSESSMENT

An assessment used in approved assessing units to phase in changes after revaluation so as to lessen shifts in the tax burden from one class of property to another. In the valuation of taxable state-owned lands in New York State, an assessment pursuant to section 545 of the Real Property Tax Law (RPTL). If property constitutes 2% or more of the total taxable assessed value of the preceding assessment roll or there is a reduction of assessments on taxable state lands, a transition assessment is established, which will prevent any loss of taxable assessed valuation on the assessment roll for the first year.

U

UNIFORM PERCENTAGE OF VALUE

The standard of assessment in New York State. All properties in an assessing unit must be assessed at the same percentage of their market values except where classified assessments are allowed in which case all properties in the same class must be assessed at the same percentage of their market values.

V

VALID SALE

An arm's-length transaction between a willing buyer and a willing seller, both having full knowledge of the facts and neither being under any compulsion to act.

VALUATION

The process of estimating market value, investment value, insurable value, or other properly defined value of an identified interest or interests in a specific parcel or parcels of real property as of a given date.

VALUATION DATE

The date on which a value estimate applies. For assessment purposes, the valuation date in New York State is set by statute in all but a few jurisdictions as July 1 of the prior year. Appraisals for other purposes may have various valuation dates. For more information, see The Real Property Tax Cycle.

W

WARRANT DATE

The date upon which the collection of taxes was authorized.

WARRANTY DEED

A legal document conveying title to a property to a grantee free of any encumbrances except those specifically mentioned in the document.

WEIGHTED AVERAGE

A mean (average) quantity composed of components that have been properly weighted in accordance with their proportionate influence on the final result. If houses in a subdivision have 1.5, 2.0 and 2.5 baths, the weighted average number of baths would be [(1.5 x A) + (2.0 x B) + (2.5 x C)] /X where A, B, and C are the number of houses with each quantity of baths and X is the total number of houses in the subdivision. See also, "band of investment."

WEIGHTED RATE

A weighted average of several different percentages (rates). See "band of investment" and "weighted average."

WHOLLY EXEMPT PROPERTY

A property which is completely exempt from the general levies (county, city or town, school) but may be subject to some special district taxes.

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Y

Z