Bill S4680-2013

Exempts certain real property owned by a municipal corporation from taxation

Exempts certain real property owned by a municipal corporation from taxation.

Details

Actions

  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Apr 18, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S4680

TITLE OF BILL: An act to amend the real property tax law, in relation to exempting certain real property owned by a municipal corporation from taxation

PURPOSE: This bill exempts certain real property owned by a municipal corporation from taxation.

SUMMARY OF PROVISIONS: Section 1. Subdivisions 2 and 3 of section 406 of real property tax law, subdivision 2 as amended by chapter 579 of the laws of 1987 and subdivision 3 as amended by chapter 683 of the laws of 1979, are amended to remove the clause "provided the governing board thereof shall so agree in writing"

EXISTING LAW: § 406. Municipal corporations. 1. Real property owned by a municipal corporation within its corporate limits held for a public use shall be exempt from taxation and exempt from special ad valorem levies and special assessments to the extent provided in section four hundred ninety of this chapter.

JUSTIFICATION: Municipalities can own real property within another municipality's boundaries. The fact that real property is owned by a municipality however does not necessarily mean the property is tax exempt. Under Real property law, section 406, in paragraph 2 and paragraph 3, it states in the last sentence of each paragraph, "provided the governing board thereof shall so agree in writing". This clause is being deleted from both paragraphs.

The reasons for removing this clause is 3 fold. The first is the 2% tax cap could create a problem for the municipality actually owning the property if the municipality where the property is located chooses not to cooperate. The second reason is it can turn into a political nightmare if the two municipalities are governed by different parties and the final reason is it just makes sense by removing any ambiguity in real property law.

LEGISLATIVE HISTORY: None

FISCAL IMPLICATIONS: None to New York State

LOCAL FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This legislation shall take effect immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 4680 2013-2014 Regular Sessions IN SENATE April 18, 2013 ___________
Introduced by Sen. LATIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the real property tax law, in relation to exempting certain real property owned by a municipal corporation from taxation THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivisions 2 and 3 of section 406 of the real property tax law, subdivision 2 as amended by chapter 579 of the laws of 1987 and subdivision 3 as amended by chapter 683 of the laws of 1979, are amended to read as follows: 2. Real property owned by a municipal corporation not within its corporate limits while used for the provision of fire protection services provided that some fire protection services are available to the municipal corporation in which the real property is located, for a public park, public aviation field, highway or for flood control and soil conservation purposes as provided in section two hundred twenty- three of the county law shall be exempt from taxation by any municipal corporation in which it is located[, provided the governing board there- of shall so agree in writing]. 3. Real property owned by a municipal corporation not within its corporate limits while used as a sewage disposal plant or system, including necessary connections and appurtenances, or real property owned by a municipal corporation having a population of less than one hundred thousand or a population of two hundred twenty-five thousand or more but less than three hundred thousand used as a water plant, pumping station, water treatment plant, water shed or reservoir, including necessary connections and appurtenances shall be wholly or partially exempt from taxation and wholly or partially exempt from special ad valorem levies and special assessments, by any municipal corporation in which located[, provided the governing board thereof shall so agree in writing]. S 2. This act shall take effect immediately.

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