LOCAL LAW FILING NEW YORK STATE DEPARTMENT OF STATE
162 WASHINGTON AVE., ALBANY NY 12231
Town of Rye
Local Law No. 2 of the Year 2020
A local law entitled
“INCOME AND EXPENSE STATEMENTS”
To be enacted by the Town Board of the Town of Rye as follows
“Income-producing property” defined. As used in this section, the term“income-producing property” means real property owned for the purpose of securing an income from the property itself but shall not include residential owner occupied one, two or three family dwellings or property classified in Class One as defined in Article 18 of the Real Property Tax Law.
B. Filing requirements for Income and Expenses Statements.
Where real property is income-producing property, the owner shall be required to submit annually to the Town Assessor,not later than the first day in April in any year, a statement of all income derived from and all expenses attributed to the operation of such property as follows:
1. Where the owner’s books and records reflecting operation of the property are maintained on a calendar year basis, the statement shall be the calendar year preceding the date of the statement shall be filed.
2. Where the owner’s books and records reflecting the operation of the property are maintained on a fiscal year basis for the federal income tax purposes,the statement shall be for the last fiscal year concluded as of the first day of January preceding the date the statement shall be filed.
3. Notwithstanding the provisions of paragraphs one and two of this section, where the owner of the real property has not operated the property and is without knowledge of the income and expenses of the property for a consecutive twelve-month period concluded as of the fist day of January preceding the date the statement shall be filed, then the statement shall before the period of the ownership.
4. The Town Assessor may, for good cause shown, extend the time for filing an income and expense statement for a period not to exceed thirty days.
Such statement shall contain the following declaration: “I certify that all information contained in this statement is true and correct to the best of my knowledge and belief. I understand that the willful making of any false statement of material fact herein will subject me to the provisions of law relevant to the making and filing a false statement and will render this statement null and void.”
The form in which such statement shall be submitted shall be prepared by the Town Assessor and copies of such form shall be made available at the Assessor’s Office in the Town of Rye.
E. Failure to file statement: Penalties: Enforcement procedures.
1. In the event that an owner of income-producing property fails to file an income and expense statement within the time prescribed in Subsection B of this section, such owner shall be subject to penalty in an amount not to exceed 3% of the assessed value of such income-producing property determined for the current fiscal year; provided,however, that if such statement is not filed by the last day of June, the penalty shall be in an amount not to exceed 4% of such assessed value. If, in the year immediately following the year in which an owner fails to file by the last day of June, the owner again fails to file an income and expense statement within the time prescribed in Subsection B of this section (determined with regard to any extension of time for filing), such owner shall be subject to a penalty in an amount not to exceed 5% of the assessed value of such property determined for the current fiscal year. Such owner shall also be subject to a penalty of up to 5% of such assessed value in any year immediately succeeding a year in which a penalty of up to 5% could have been imposed, if in such succeeding year the owner fails to file an income and expense statement within the time prescribed in Subsection B of this section (determined with regard to any extension of time for filing). The penalties prescribed in this subsection shall be determined by the Assessor after notice and an opportunity to be heard.
2. In the event that an owner of income-producing property fails to file an income and expense statement within the time prescribed in Sub-Section B of this section (including any extension of time for filing), the Board of Assessment Review shall deny a hearing and deny any complaint on any objection to the assessment of property for which an income and expense statement is required and not been timely filed.
3. In the event an income and expense statement required under the provisions of this article has not been timely filed, the Town Assessor may compel by subpoena the production of the books and records of the owner relevant to the income and expenses of the property, and may also make application to any court of competent jurisdiction for an order compelling the owner to furnish the required income and expense statement and the books and records to the income and expenses of the property. In the event such an order is issued, the Town Assessor shall be entitled to recover from the owner the costs and expenses,including attorneys' fees, incurred by the Town in connection with the proceeding to obtain and enforce the order.
F. Disclosure of information: Penalties.
Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the Town Assessor or any official or employee of the Town, any member of the Board of Assessment Review, any person engaged or retained by the Town, the Assessor or the Board of Assessment Review on an independent contract basis or any person who, pursuant to this section, is permitted to inspect any income and expense statement or to whom a copy, an abstract or a portion of any such statement is furnished to divulge or make known any manner the amount of income and/or expense or any particulars set forth or disclosed in any such statement required under this section. The officers charged with custody of such statements shall not be required to produce any income and expense statements or evidence of anything contained in said statement if any action or proceeding in any court, except on behalf of the Town or the Town Assessor.
Nothing herein shall be construed to prohibit the delivery to an owner or his or her duly authorized representative of a certified copy of any statement filed by such owner pursuant to this section or to prohibit the publication of the statistics so classified as to prevent the identification of particular statements and the items thereof, delivery of a copy to a legal representative or other professional retained by the Town or the Board of Assessment Review retained with respect to a proceeding to review the assessment of the property as issue for use solely with respect to the review of said assessment and for no other purpose. Any violation of the provisions of this section shall be punished by a fine not exceeding one thousand dollars or by imprisonment not exceeding one year, or both, at the discretion of the Court and if the offender be an officer or employee of the Town or a member of the Board of Assessment Review, the offender shall be dismissed from office.
G. Rules and Regulations.
The Town Assessor shall be authorized to promulgate rules and regulations necessary to effectuate the purposes of this section subject to approval and modification by the Town Council.
The provisions of this section shall be severable, and if any phase, clause, sentence, paragraph or subsection of this section or the applicability there to any person or circumstance shall be held invalid, the remainder of this section and the application thereof shall not be affected thereby.