The Office of Real Property Services (ORPS) is responsible for the supervision of local tax administration in New York State.

This agency is included in the Education, Labor and Family Assistance appropriation bill.

Appropriations for this agency total $58,264,000, an increase of $5,870,600 from State Fiscal Year (SFY) 2002-03 levels. The Executive anticipates a net loss of seven Full Time Equivalent (FTE) positions through the Early Retirement Incentive Program.

State Operations

The Executive recommends a net decrease of $669,400 from State Fiscal Year (SFY) 2002-03.

The Executive recommendation includes the following notable changes:

• a $62,500 Special Revenue Fund net increase for the Industries and Utility Service Account which reflects cost increases that will be recovered from utility companies; and

• a $27,100 Special Revenue Fund net increase for the Local Services Account to cover fringe benefits and indirect costs.

Aid To Localities

The Governor proposes an appropriation of $21,840,000 for SFY 2003-04, representing an increase of $6,540,000 over SFY 2002-03.

The Executive recommendation includes the following notable changes:

• a $2,900,000 increase in State financial assistance for assessment improvement;

• a $1,110,000 decrease for local STAR administration;

• a $4,700,000 increase for reimbursements to local governments for their revenue losses under the Rail Infrastructure Act of 2002; and

• a $50,000 increase in State financial reimbursements to local assessors.

Article VII

The Executive proposes legislation that would increase the fee on real property transfers from $25 to $50. This proposal would authorize county clerks to retain $9 from the fee, an increase of $6 above the current amount. This proposal is expected to generate additional revenue of $9,600,000 for the Real Property Tax Administration account. The increase will be used to shift $9,500,00 in spending ($6,000,000 in personal service for 88 positions, $1,200,000 in non-personal service, and $2,300,000 in fringe benefits and indirect costs) from the General Fund to the Special Revenue-Other Account.

The Executive also recommends legislation that would recover the State's cost of appraising oil and natural gas wells for local property taxation by continuing chargebacks on their owners.