Establishes assessments for the value of lands that may be used for prospective natural gas or oil development activities.
Ayes (62): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Johnson, Kennedy, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
TITLE OF BILL: An act to amend the real property tax law, in relation to establishing assessments for the value of lands that may be used for prospective natural gas or oil development activities
PURPOSE: The purpose of this legislation is to ensure that property owners are not assessed for undeveloped mineral rights.
SUMMARY OF PROVISIONS: This bill amends the real property tax law by adding a new section 582-b that establishes where oil and gas rights in land have been leased or conveyed, such land shall not be subject to an increase in assessment solely because of such lease or conveyance.
JUSTIFICATION: A person owning property that mayor may not contain undeveloped minerals may choose never to extract those minerals. Without excavating these minerals there would be no way to determine the exact value of such property, therefore, the property should be assessed solely on the current use of the land.
Nothing in this section shall prohibit an assessment increase due to oil and gas extraction pursuant to title 5 of article 5 of the real property tax law.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 4857--A Cal. No. 874 2011-2012 Regular Sessions IN SENATE April 27, 2011 ___________Introduced by Sens. O'MARA, LIBOUS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the real property tax law, in relation to establishing assessments for the value of lands that may be used for prospective natural gas or oil development activities THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property tax law is amended by adding a new section 582-b to read as follows: S 582-B. VALUATION OF PROSPECTIVE NATURAL GAS OR OIL DEVELOPMENT ACTIVITIES. WHERE OIL AND GAS RIGHTS IN LAND HAVE BEEN LEASED OR CONVEYED, SUCH LAND SHALL NOT BE SUBJECT TO AN INCREASE IN ASSESSMENT SOLELY BECAUSE OF SUCH LEASE OR CONVEYANCE. NOTHING IN THIS SECTION SHALL PROHIBIT AN ASSESSMENT INCREASE DUE TO OIL AND GAS EXTRACTION PURSUANT TO TITLE FIVE OF THIS ARTICLE. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11005-03-1