BILL NUMBER: S9025

SPONSOR: REICHLIN-MELNICK
 
TITLE OF BILL:

An act to amend the public lands law, in relation to the maximum value
of unappropriated state land that the commissioner of general services
may sell and convey

1. 
PURPOSE:

The bill would raise the value limit of certain small parcels of state
land that may be sold by private sale to an adjacent landowner.

2. 
SUMMARY OF PROVISIONS:

The bill would amend paragraph (b) of subdivision 2 of Section 33 of the
Public Lands Law by increasing the value limit of certain small parcels
of State-owned land that may be sold by private sale to an adjacent
landowner from $20,000 to $50,000. The dollar limit has not been
increased to account for inflation in the real estate market since 2007.

              

3. 
EXISTING LAW:

Currently, the law allows the Office of General Services ("OGS") to
transfer certain small parcels of State land by private sale to an adja-
cent landowner. The value limit for this type of transaction is current-
ly $20,000, and the limit has not been increased since 2007.

4. 
LEGISLATIVE HISTORY:

This is a new bill. The value limit was increased from $10,000 to
$20,000 by § 1 of Chapter 187 of the Laws of 2007.

5. 
STATEMENT IN SUPPORT:

The increase to $50,000 is intended to reflect the dramatic increase in
real estate prices since the limit was last increased in 2007.  Public
Lands Law § 33(2)(b) has proven useful in disposing of small parcels of
State-owned land that are not legal building lots and do not warrant the
expense of public sale because of their lack of marketability. The
amendment will enhance the use of this paragraph and put small, other-
wise unmarketable, parcels back on the tax rolls.

6. 
BUDGET IMPLICATIONS:

The sale of these properties provides modest income to the State and
relieves the State of the financial burdens and potential risks associ-
ated with the ownership of unused State property.

7. 
LOCAL IMPACT

Local governments may see some increased tax revenue as small, currently
tax-exempt parcels are put back on the tax rolls.