Town of Owasco – Real Property Tax Exemptions Administration (2020M-102)

Issued Date

January 29, 2021

Audit Objective

Determine whether the Town of Owasco (Town) Town Assessor (Assessor) properly administered select real property tax exemptions.

Key Finding

The Assessor did not properly administer select real property tax exemptions.

Granted property exemptions were not always properly applied for or supported.
- 99 property tax exemptions were reviewed; 75 of the exemptions totaling over $4.1 million were not properly applied for or supported.
  - Property owners received $4,014 in 2019 Town tax reductions for these unsupported exemptions.

Key Recommendation

The Assessor should ensure applicants provide supporting documentation before granting exemptions, retain documentation to support eligibility and periodically verify that those granted exemptions qualify.

Town officials generally agreed with our recommendations and indicated they planned to initiate corrective action.

Background

The Town is located in Cayuga County. The Town is governed by an elected five member Town Board (Board), which consists of the Town Supervisor and four Board members.

The Board-appointed Assessor is responsible for granting and monitoring real property tax exemptions within the Town’s boundaries. The Assessor determines the assessed values of properties for the assessment roll, which is then used to create the tax bills for the following year’s tax roll. The Assessor must retain documentation for properties that are eligible for exemptions. The Deputy Assessor assists with these responsibilities.

The Town’s long-time Assessor retired on September 30, 2019. Following the Assessor’s retirement, the Board entered into an agreement with Cayuga County to provide these services for the Town.

Quick Facts
Exemptions	455
Exemptions Value	$24.6 million
Parcels	2,064
Taxable Assessed Value	$314 million

Audit Period

January 1, 2018 – November 22, 2019