Authorizes municipalities to re-direct real property tax payments made by project occupants which agree to invest in or construct infrastructure improvements for certain economic development projects; such re-directed payments shall be used to retire any debt incurred for the construction and development of such infrastructure improvements.

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A852-2011 Actions

• May 11, 2011: enacting clause stricken
• Jan 5, 2011: referred to local governments

A852-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     852

                         2011-2012 Regular Sessions

                            I N  ASSEMBLY

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  Introduced  by  M. of A. DESTITO, SCHROEDER -- read once and referred to
    the Committee on Local Governments

  AN ACT to amend the general municipal law, in  relation  to  authorizing
    municipalities  to re-direct a portion of the real property taxes made
    by certain project occupants

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  The  general  municipal  law  is  amended by adding a new
  section 74-a to read as follows:

    S 74-A. RE-DIRECTION OF REAL PROPERTY TAXES MADE  BY  CERTAIN  PROJECT
  OCCUPANTS. 1.  ANY MUNICIPALITY MAY, UPON APPROVAL OF THE GOVERNING BODY
  OF SUCH MUNICIPALITY, ESTABLISH A PROGRAM WHICH PROVIDES FOR A MECHANISM
  BY WHICH THE MUNICIPALITY MAY RE-DIRECT REAL ESTATE TAX PAYMENTS, TO THE
  EXTENT THAT SUCH PAYMENTS EXCEED THE THEN EXISTING TAXES ATTRIBUTABLE TO
  THE  INCREMENTAL  INCREASE IN ASSESSED VALUE AND/OR REAL ESTATE TAX PAID
  FOR THE SUBJECT PROPERTY. SUCH RE-DIRECTION SHALL PROVIDE,  PURSUANT  TO
  AN  AGREEMENT  BETWEEN  THE MUNICIPALITY AND THE PROJECT OWNER, THAT THE
  OWNER WILL CAUSE THE INFRASTRUCTURE IMPROVEMENTS TO BE BUILT IN CONJUNC-
  TION WITH AN AFFORDABLE  HOUSING  AND/OR  ECONOMIC  DEVELOPMENT  PROJECT
  APPROVED  BY  THE  MUNICIPALITY.  SUCH INFRASTRUCTURE IMPROVEMENTS SHALL
  INCLUDE, BUT NOT BE LIMITED TO, UNDERGROUND AND OVERHEAD UTILITIES  SUCH
  AS  STORM  DRAINAGE OR STORM WATER MANAGEMENT MEASURES, SANITARY SEWERS,
  WATER LINES, GAS LINES, ELECTRICAL LINES, ROAD  AND  TRANSPORTATION  AND
  OTHER  PUBLIC INFRASTRUCTURE FACILITIES AS DEEMED BY THE MUNICIPALITY TO
  BENEFIT THE PUBLIC GOOD. THE  MUNICIPALITY SHALL CAUSE SUCH RE-DIRECTION
  OF TAX PAYMENTS TO BE UTILIZED FOR THE EXCLUSIVE PURPOSE OF RETIRING ANY
  DEBT INCURRED FOR THE CONSTRUCTION AND  DEVELOPMENT  OF  THESE  IMPROVE-
  MENTS.
    2.  THE  AMOUNT  OF SUCH RE-DIRECTED TAX PAYMENTS SHALL BE ONE HUNDRED
  PERCENT OF THE TOTAL COST OF THE APPROVED  INFRASTRUCTURE  IMPROVEMENTS,

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD01632-01-1

 A. 852                              2

  INCLUDING  ANY  INTEREST OR FINANCING COSTS DIRECTLY ATTRIBUTABLE TO THE
  INFRASTRUCTURE FACILITIES. EACH PORTION OF SUCH PAYMENT SHALL  BE  TAKEN
  DURING EACH YEAR THE PROJECT IS OBLIGATED TO PAY REAL ESTATE TAXES UNTIL
  SUCH  TIME  AS THE DEBT INCURRED FOR THE DEVELOPMENT AND CONSTRUCTION OF
  THE IMPROVEMENTS IS RETIRED.
    3. THE RESIDUAL OF THE RE-DIRECTED PAYMENTS, AFTER THE PAYMENT OF  THE
  DEBT  SERVICE,  SHALL BE PAID TO THE AFFECTED TAXING JURISDICTION, AS IN
  THE NORMAL COURSE OF PAYMENT OF REAL PROPERTY TAXES.
    S 2. This act shall take effect immediately.