BILL NUMBER: S1655
TITLE OF BILL :
An act to amend chapter 148 of the laws of 2001, relating to
authorizing the city of Gloversville and the town of Johnstown to
enter into certain cooperative agreements, in relation to joint
municipal economic development areas
To enable the City of Gloversville and the Town of Johnstown to create
joint municipal economic development areas in which the City provides
certain services to properties in the Town and the two municipalities
share the resulting property tax, sales tax and other revenues.
SUMMARY OF PROVISIONS :
The bill amends Chapter 148 of the Laws of 2001, which authorizes
tax-sharing agreements between the City of Gloversville and the Town
of Johnstown, both of which are located in Fulton County.
Specifically, the amendments:
- provide that, where a property owner has agreed to participate in a
joint municipal economic development area, such property shall be
taxed at the rate established by the agreement between the two
- provide that the agreement shall specify the amount of the property
tax rate, or the formula for determining the rate, that will apply to
properties within the joint municipal economic development area;
- allow the property tax rate to be set at a percentage of the city or
town rate, or to be set by such other method as agreed to by the
- provide that the agreement shall establish a process for entering
into binding agreements between the City, Town and the participating
EXISTING LAW :
Chapter 148 of 2001 authorized the City of Gloversville and the Town
of Johnstown to enter into an agreement in which the City would
provide water and other services to certain properties in the Town,
and the two municipalities would agree to share the resulting property
tax, sales tax and other revenues. The law specified certain items
that must be included in the agreement, such as establishing a process
for identifying affected properties, identifying the types of taxes to
be shared, specifying the percentage of revenues each municipality
shall receive, and specifying the process for collecting and sharing
In 2001, legislation was enacted to enable the City of Gloversville
and the Town of Johnstown to develop a tax sharing agreement in
exchange for the provision of certain City services to properties in
In accordance with the law, local officials developed a proposal in
which City water would be provided to certain commercial properties in
the Town in exchange for a 50-50 split of any resulting sales tax and
property tax. However, the agreement did not receive approval from the
City Council. Concerns had been raised that the deal would make
locations in the Town more attractive than locations within the City,
while generating only minimal revenues to the City. Because the Town
tax rate was significantly lower than the City tax rate, splitting the
property tax revenue would result in minimal revenues to the City.
Beginning in 2007, local officials decided to revisit the issue,
especially in light of the potential for future economic development
opportunities along the City-Town border. In order to address previous
concerns, local officials recognized that it was appropriate to
establish a higher property tax rate in the Town for properties that
would be receiving certain City services, such as public water. This
would provide a more equitable arrangement for the two municipalities.
This bill would specifically authorize and empower the City and the
Town to set a tax rate for affected properties that is in between the
current City rate and the Town rate. The bill also clarifies and
specifies that the municipal agreement shall establish the process for
entering into binding agreements between the two municipalities and
property owners who choose to participate in a Joint Municipal
Economic Development Area.
This legislation seeks to foster municipal cooperation and economic
growth in these two communities. By working together, both
municipalities will be in a position to benefit from future growth.
LEGISLATIVE HISTORY :
S.7643/A.11469-A of 2008 (passed Senate/Assembly Cities Committee)
S.8123 of 2008 (passed Senate)
FISCAL IMPLICATIONS :
None to the State. It is expected that, by working together, both the
City of Gloversville and the Town of Johnstown will benefit from
future growth and development.
EFFECTIVE DATE :
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