Section 720. Action by court upon the pleadings

1. (a) If the court
  determines from the pleadings for any of  the  reasons  alleged  in  the
  petition  that  the assessment being reviewed is unlawful it shall order
  the assessment stricken from the roll or where  appropriate  entered  on
  the exempt portion of the roll.
    (b)  If  the  court  determines  that the assessment being reviewed is
  excessive or unequal, it shall order a revised assessment  of  the  real
  property  of the petitioner or the correction of the assessment upon the
  roll, in whole or in part, in such manner as shall be in accordance with
  law or as shall make it conform to other assessments upon the same  roll
  and  secure  equality  of  assessment, provided, however, that except in
  cities with a population of one million or more an assessment may not be
  ordered reduced to an amount less than that requested by the  petitioner
  in a petition or any amended petition verified pursuant to section seven
  hundred six of this title. If the real property is partially exempt from
  taxation,  and the order does not specify how much of the total assessed
  value, as  determined  by  the  court,  is  exempt  from  taxation,  the
  exemption  shall  be  reduced  so  as  to  preserve the ratio of taxable
  assessed value to the total assessed value that  existed  on  the  final
  assessment roll.
    (c)  If  the court determines that the real property is misclassified,
  it shall order the correction of the class designation upon the roll.
    2. If it appears to the court that  testimony  is  necessary  for  the
  proper  disposition  of  the matter, it shall take evidence or appoint a
  referee to take such evidence as it may direct. The referee shall report
  to the court his findings  of  fact  and  conclusions  of  law  and  the
  evidence  upon  which  it is based, which shall constitute a part of the
  proceedings upon which the determination of the court shall be made. The
  report of the referee and the decision  or  final  order  of  the  court
  finding  the  value  of  the  property and the proper assessment thereof
  shall contain the essential facts found upon which the ultimate  finding
  of facts is made.
    3. (a) For the purposes of this subdivision:
    (1)   "Major   type  of  property"  in  special  assessing  units  for
  assessments on rolls completed before January  first,  nineteen  hundred
  eighty-two  and  in other than special assessing units means each of the
  following:
    (i) residential: all  one,  two  and  three  family  residential  real
  property  including  such  dwellings  used  in  part for non-residential
  purposes but which are used primarily for residential  purposes,  except
  such  property  held  in  cooperative  or condominium forms of ownership
  provided, however, that in any approved assessing unit which has adopted
  the provisions of section nineteen hundred three  of  this  chapter  the
  residential  type  shall  be  the  homestead  class  as  defined in this
  chapter;
    (ii) farm, forest and vacant: all real  property  used  primarily  for
  agricultural  or  forestry purposes and all real property which contains
  no significant improvement;
    (iii) public  utility:  all  real  property  primarily  used  for  the
  provision  to  the  public of communications or transportation services,
  electric power, water or gas;
    (iv) all other: all real property not  included  in  any  other  major
  type.
    (2)   "Major  type  of  property"  in  special  assessing  units,  for
  assessments on rolls completed  after  December  thirty-first,  nineteen
  hundred  eighty-one,  shall  mean  classes  one,  two, three and four as
  defined in subdivision one of  section  eighteen  hundred  two  of  this
  chapter.

    (3)  "Stratified  random  sample"  means  the  sorting  of all taxable
  parcels except public utility property, on the  assessment  roll  to  be
  used  for  the selection of parcels, into a number of mutually exclusive
  categories each of which is sampled independently in such a manner  that
  each  parcel in each such category shall have an equal opportunity to be
  selected.
    (b) Evidence on the issue of whether an assessment is unequal shall be
  limited to the following as hereinafter provided.
    (1) By the selected parcels method as determined by stratified  random
  sample.
    The  parties  shall  mutually  agree on the methods of stratification,
  computation of ratio and selection of the parcels to be  appraised,  the
  number  of  such  parcels  and  the number of witnesses to be heard with
  respect to  such  issue.  Such  parcels  shall  be  selected  so  as  to
  constitute  a  stratified  random sample of all locally assessed taxable
  parcels on the assessment roll containing the assessment under review or
  the latest assessment roll sampled by  the  board  in  establishing  the
  state   equalization   rate   for  such  roll;  provided,  however,  for
  assessments on rolls completed  after  December  thirty-first,  nineteen
  hundred  eighty-one,  in  special  assessing  units  such  parcels shall
  constitute a stratified random sample of all  locally  assessed  taxable
  property  in  the  major  type  of  property in which the property under
  review is classified; provided further, however,  for  assessment  rolls
  completed  after  December thirty-first, nineteen hundred eighty-one, in
  special assessing units public utility property shall be sampled as  the
  parties agree, or if the parties fail to agree, as the court directs. In
  special  assessing units for assessment rolls completed prior to January
  first, nineteen hundred eighty-two and in other than  special  assessing
  units public utility property shall be added to the parcels selected for
  the stratified random sample when such property is a significant portion
  of  the  total  locally assessed taxable assessed value of the assessing
  unit; in such case, representative parcels shall be agreed upon  by  the
  parties or selected by the court if no such agreement is reached. In the
  event  that  proceedings  for  more  than  one year are consolidated for
  trial, evidence may be introduced to adjust the ratio derived  from  the
  selected  parcels  provided  for  in this subdivision so as to make such
  ratio  applicable  to  the  other  assessment  rolls  included  in  such
  consolidation. For the purpose of this subdivision, stratification shall
  be  based  on major type of property and assessed value within each such
  major type; provided however, that for assessments  on  rolls  completed
  after  December  thirty-first,  nineteen  hundred eighty-one, in special
  assessing units stratification shall be based on the assessed  value  of
  parcels  within the major type of property in which the assessment under
  review is classified. Nothing in  this  subdivision  shall  prevent  the
  parties  from  agreeing, with approval of the court, to any other method
  of stratification in place of or in addition to major type  of  property
  or   assessed  value  of  property.  Stratification  shall  be  made  in
  accordance with the information contained on the  assessment  roll  from
  which  the  parcels  to  be appraised are to be selected. The assessment
  under review shall be excluded from the stratification and the sample.
    In addition to the  selected  parcels,  additional  parcels  shall  be
  selected  in the same manner for use as substitutes for selected parcels
  for which the parties agree that an appraisal cannot  be  made.  If  the
  parties fail to agree on the feasibility of appraising a selected parcel
  or an appropriate substitute the court shall make such determinations.
    In  the  event  the  parties fail to agree on such methods or selected
  parcels or on the number of witnesses, upon application of either  party
  the  court  or referee shall select a qualified expert, who shall devise

  such methods and select the parcels to be appraised, or shall  determine
  the  number  or  witnesses,  or  both,  as  the  case may be. Before any
  testimony is given by either party as to the value of such parcels, each
  party  shall  simultaneously  file  with the court or referee, on a date
  fixed by the court or referee, a written statement or tabulation of  the
  appraised  values  placed  upon  such  parcels  by  the witnesses of the
  respective parties, and each party shall serve on the other at the  same
  time  a  copy  of  such  statement or tabulation of values stated by his
  witnesses.
    (2) By actual sales of real property within the assessing  units  that
  occurred during the year in which the assessment under review was made:
    (3) By other methods.
    The parties shall be limited in their proof on the trial of such issue
  to  such parcels and witnesses, except that in any event, whether or not
  parcels are selected as hereinabove provided, evidence may be  given  by
  either party as to the following:
    (a)  in  all  assessing  units  other  than special assessing units as
  defined in section eighteen hundred  one  of  this  chapter,  the  state
  equalization  rate  established  for  the roll containing the assessment
  under review;
    (b) in all special assessing units  as  defined  in  section  eighteen
  hundred one of this chapter, only for proceedings commenced with respect
  to  assessment  rolls completed prior to January first, nineteen hundred
  eighty-two, the latest applicable equalization rate established for  the
  roll containing the assessment under review; or
    (c)  in  all  special  assessing  units as defined in section eighteen
  hundred one of this chapter, only for proceedings commenced with respect
  to assessment rolls  completed  after  December  thirty-first,  nineteen
  hundred  eighty-one,  the  latest applicable class ratio established for
  the roll containing the assessment under review; or
    (d) in all assessing units, the uniform percentage of value stated  on
  the tax bill for the roll containing the assessment under review.
    4.  Notwithstanding  the  enactment  of  a  local  law  as provided in
  subdivision three of section fourteen hundred two  of  this  chapter,  a
  village shall be deemed an assessing unit for purposes of this section.