Wednesday, February 15, 2023

Why is this house not on the tax rolls?

This attractive house at the intersection of N. 5th and Rope alley,  along with its property, is technically known as 61-65 N. 5th Street.  The number on the front door says 63.  According to public tax records, the house has been owned by the Galvan Initiatives Foundation since 2012.  Last year it was assessed for $440,000, and it is completely tax exempt.

Perhaps Galvan's most attractive
tax-exempt property

Curious as to why Galvan was paying no property taxes on 63 N. 5th, last year I used the Freedom of Information law (FOIL) to obtain records from the City of Hudson Assessor's office to see what documents they had on file showing exactly what non-profit activity was taking place in the house.  What I received back from the Assessor's office was nothing, "NO RESPONSIVE DOCUMENTS TO YOUR REQUEST."

The NY State Department of Tax and Finance requires any non-profit business to file form RP-420-b-Org, also known as an ORIGINAL APPLICATIONwith their local assessor's office should they desire their property to be exempt from property taxes.  Additionally, it appears that form RP-420 a-b/Use is REQUIRED to be filled out by the property owner and submitted so that the assessor knows exactly what type of non-profit activity the property is used for that would allow the property to be exempt from taxes.  This allows an assessor to determine if the property should indeed by exempt from taxes.  Having the forms on file allows future assessors (as well as the public) to know what non-profit activity the property is used for.  It's really quite simple.

I have done identical FOIL searches on 5 other Galvan-owned properties and received the same response from the Assessor's office:  NO RESPONSIVE DOCUMENTS TO YOUR REQUEST.  In other words, the city has no idea why Galvan's properties at 63 N. Fifth and elsewhere are tax exempt.

A few months ago on the phone I talked to the Director of the Columbia County Real Property Tax Service Agency, Suzette Booy, asking her if a lack of Original Applications in at least some of Galvan's property files at the Hudson Assessor's office was a problem.  She agreed that it was a problem and that she would be reaching out to the City Assessor to inform her that these forms should physically be in all files for tax-exempt properties, even if they are filled out after the fact.  The County Tax Agency has no authority to compel the Hudson Assessor to do this, only to suggest that they do it. 

I could be mistaken, but I believe one person lives in the house at 63 N. Fifth.

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