Erie County Comptroller Mark C. Poloncarz today released a report (the "Report") examining local real property assessment in Erie County (the "County"), including the scope and costs of local government assessment and New York State ("State") financial incentives for local and county governments transitioning to countywide assessment.

The Report notes that the New York State Office of Real Property Services ("NYSORPS") has stated that "New York's property tax system is, arguably, the most complex and confusing in the country," with 1,133 distinct assessing units in New York State, as contrasted with 59 in California. Erie County has 30 assessing units. The New York State Commission on Local Government Efficiency and Effectiveness is currently examining assessment reform measures to reduce expense.

Poloncarz stated: "Our Report demonstrates that the costs to taxpayers of local assessment is significant and growing. Given inequities in the existing system and the potential to potentially save millions of dollars annually, the County and local governments should examine the rationale for local assessment and consider a new approach."

The Report finds that in Erie County's 30 local assessing units, there are 39 chief assessing officials and 130 budgeted positions working in assessing roles at a cost to local taxpayers of $6.5 million annually (not including fringe benefits). Using various data, the Comptroller's report determined that a potential County expense for countywide assessment utilizing an outside vendor could be as little as $3.1 million, with significant annual, recurring and one-time savings and state aid inducements available to local governments and to Erie County. Depending on the number of employees retained in a countywide assessment unit, potential annual savings to local taxpayers could be as high as $3.9 million, not including State aid and incentives.

"The State is offering county and local governments millions of dollars in annual and one-time financial incentives to improve the property assessment process," said Poloncarz. "I urge Erie County and local governments to use this Report to examine the present costs of assessment and look at alternatives to that system in order to create a smarter, less expensive and more efficient way of conducting assessment."

The Report notes that transitioning from a local assessing model could help lead to equity in real property assessment and taxation, including a movement to regular reassessment to end unfair and large swings in property tax assessments (and taxes) and the potential end of equalization rates across municipalities and school districts.

A copy of the Report can be found at: http://www.erie.gov/comptroller/county_audits.asp.