{"id":2528,"date":"2016-10-14T15:42:56","date_gmt":"2016-10-14T19:42:56","guid":{"rendered":"https:\/\/wordpress-451702-2146276.cloudwaysapps.com\/?p=2528"},"modified":"2016-10-14T15:42:56","modified_gmt":"2016-10-14T19:42:56","slug":"can-municipality-set-off-tax-refund-unpaid-real-property-taxes","status":"publish","type":"post","link":"https:\/\/trklaw.com\/can-municipality-set-off-tax-refund-unpaid-real-property-taxes\/","title":{"rendered":"Can a Municipality Set Off a Tax Refund by Unpaid Real Property Taxes?"},"content":{"rendered":"<p>The state appellate court recently decided valuations for 21 real properties located in the Town of Ulster.\u00a0 The appeal involved a massive record and a multi-million dollar tax assessment.<\/p>\n<p>After the dust settled, the appellate court reduced several of the assessments, holding that the properties had been overvalued (<span style=\"text-decoration: underline;\">see<\/span> <span style=\"text-decoration: underline;\">Matter of AG Props. of Kingston, LLC v. Town of Ulster Assessor<\/span>, 138 AD3d 1273 [3d Dept 2016]).\u00a0 &#8220;Cha-ching!&#8221;\u00a0 A tax refund was coming.\u00a0 Or so thought the property owners.<\/p>\n<p>As it turns out, that was round one.\u00a0 When the owners sought to settle the judgment, the Town opposed the application.\u00a0 It turns out the owners still owe millions of dollars in unpaid real property taxes.\u00a0 Should the owners be entitled to receive a tax refund when they still owe money for unpaid taxes?\u00a0 The Town thinks not.\u00a0 It asked the trial court to set off the tax refund by the unpaid taxes.\u00a0 The trial court, however, refused.<\/p>\n<p>A typhoon is now scheduled to hit the appellate court a second time.\u00a0 This time, the parties arguing over the right to set off the tax refund by the amount of the unpaid taxes.<\/p>\n<p>On the appeal, the owners are arguing that NY RPTL 726 prohibits setoffs because the statute does not expressly permit them.\u00a0 However, the Town is taking the opposite position, pointing out that the statute does not expressly prohibit setoffs either.<\/p>\n<p>The New York case law on this issue appears to be sparse.\u00a0 As its authority, the owners are relying on <span style=\"text-decoration: underline;\">Hedges v. Craig<\/span>, (194 AD 786 [1st Dept 1920], <span style=\"text-decoration: underline;\">affd<\/span> 231 NY 513 [1921]).\u00a0 That case, however, involved a post-judgment proceeding.\u00a0 In contrast, this case involved a challenge to the initial settlement of the judgment.\u00a0 <span style=\"text-decoration: underline;\">Hedges<\/span> was also decided nearly 100 years ago and has not been officially relied upon by New York State courts for 75 years.<\/p>\n<p>Tax practitioners and blog followers look out!\u00a0 Submissions and oral argument are scheduled to begin shortly.\u00a0 The lines are likely to be long, so get your tickets early!\u00a0 This will be a decision to remember.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The state appellate court recently decided valuations for 21 real properties located in the Town of Ulster.\u00a0 The appeal involved a massive record and a multi-million dollar tax assessment. After the dust settled, the appellate court reduced several of the assessments, holding that the properties had been overvalued (see Matter of AG Props. of Kingston, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can a Municipality Set Off a Tax Refund by Unpaid Real Property Taxes? - TRK Law - Premier Law Firm in Albany, NY<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trklaw.com\/can-municipality-set-off-tax-refund-unpaid-real-property-taxes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can a Municipality Set Off a Tax Refund by Unpaid Real Property Taxes? - TRK Law - Premier Law Firm in Albany, NY\" \/>\n<meta property=\"og:description\" content=\"The state appellate court recently decided valuations for 21 real properties located in the Town of Ulster.\u00a0 The appeal involved a massive record and a multi-million dollar tax assessment. 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