On March 3, 2025, in the Matter of Airey, et al. v. State of New York, a group of Town Supervisors from Schoharie County brought a lawsuit seeking to deem Real Property Tax Law ("RPTL") 575-b unconstitutional on various grounds. After a hearing on the matter was held, the Albany County Supreme Court deemed Real Property Tax Law ("RPTL") 575-b unconstitutional. The Court determined that RPTL 575-b was an illegal delegation of legislative authority to an administrative agency in violation of the New York State Constitution Article III, §1 and Article XVI, §1. This decision came on the back of earlier court decisions finding that RPTL 575-b failed to properly comply with the State Administrative Procedures Act ("SAPA") in 2021, which resulted in a temporary restraining order against the State of New York in the application of the solar and wind model ("Model") created under RPTL 575-b.
The State of New York appealed the decision made by the trial court and currently is before the Appellate Division Third Department on appeal, which has not yet been perfected. However, on or about April 16, 2025, the State of New York filed a motion with the Appellate Division, Third Department, seeking to confirm an automatic stay of the decision finding RPTL 575-b unconstitutional under CPLR §5519(a)'s automatic stay provision for decisions granted against the State or subdivision thereof. In a brief decision dated May 30, 2025, the Appellate Division determined that the automatic stay should be granted.
Practically speaking, this decision results in the decision finding RPTL 575-b unconstitutional to be held in abeyance during the pendency of the appeal before the Third Department. Therefore, the Model created under RPTL 575-b must be used for solar and wind valuations until there is a decision made by the Third Department. The consequence of this decision is that for the year 2025, the Model must be used by assessors across the State, despite the clear and concise decision finding the law unconstitutional.
The State has until approximately early October to perfect its appeal, and the Petitioners will then have 30 days to file an opposition. While the decision by the Appellate Division to stay the decision by the trial court is a gut punch for municipalities across the State, a decision on the merits is expected sometime in the next year and will ultimately determine this important issue. In the interim, the State Assembly has been moving Assembly Bill A8332 forward, which seeks to amend RPTL 575-b in an effort to subvert the Court ruling and looks to further diminish the value of wind and solar installation in municipalities across the State of New York. This is a separate but parallel track that is warranted discussing with your local assembly member and municipal boards.
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