Court Says No to City of Rye’s $3.6 Million Tax Bill for Playland

In a letter on May 26, 2022 to the Westchester County Tax Commission, the City of Rye notified the County of a change in the tax exempt status of Playland Park and announced it would send Standard Amusements a tax bill of $3.6 million in the Spring of 2023. Last Tuesday, September 26th the State Supreme Court ruled that the City was not going to get its tax money.

“We are pleased with the court’s decision,” said Standard Amusements in a statement. “It would be fiscally prudent for the City of Rye to cease spending taxpayer money on frivolous lawsuits as they have been for the past decade. We look forward to continuing to host our Rye neighbors and their community groups, schools, and non-profits at the Park.”

The City had argued – unsuccessfully – that the County had transferred “complete control” of Playland to Standard Amusements for the 30 year management agreement, effectively making the property private and therefore taxable.

“The City is disappointed in the decision and will review its options,” Rye Mayor Josh Cohn told MyRye.com. 

“The City Assessor independently determined to tax and that decision was upheld by the City’s Board of Assessment Review. The City previously asserted the taxability of Tiki Bar. The City’s legal counsel advised a similar course. In addition to the issue of appeal, the City is now looking at questions beyond prior briefing and will take the time needed for that. There is a separate matter of equity. As wonderful as Playland may be, it costs the City of Rye quite a bit to be Playland’s home in terms of the value of City services provided.  Unfortunately, talks on that matter have not been productive, leaving an unfair burden on the Rye taxpayer while Standard seeks profits.”

In her decision, State Supreme Court Justice Anne E. Minihan explained “The fact that a private business derives a benefit or that the county has leased the property to a private party does not by itself defeat the exemption, if the overall use is deemed to be in the public interest … Playland, including its amusement rides, entertainment and other activities at Playland is for public use despite the fact that the primary beneficiary may be Standard Amusements. The management of Playland by Standard Amusements provides a means of meeting the recreational needs of the residents of Westchester County.”

Time will tell if this roller coaster ride is over or not.

Rye now has the option of appealing the case to the New York State Supreme Court, Appellate Division, Second Department in Brooklyn. In the meantime, Playland Park’s operating season ended this past Sunday and the beach just opened for dogs (and their owners!) on Monday.

Woof!

Read the court’s decision.