S T A T E O F N E W Y O R K
________________________________________________________________________
2907
2009-2010 Regular Sessions
I N A S S E M B L Y
January 21, 2009
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Introduced by M. of A. KOON, GALEF, HOYT, SCHIMMINGER -- Multi-Sponsored
by -- M. of A. McENENY, WEISENBERG -- read once and referred to the
Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to making state
operated community residences and voluntary operated community resi-
dences subject to payments in lieu of taxes and providing state
reimbursement therefor
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings and declarations. The legislature
hereby finds and declares that deinstitutionalization of the mentally
disabled as a state policy has enabled thousands of New Yorkers to enjoy
the benefits of community living. Community residences have enabled
these citizens of New York to enjoy all of the attendant therapeutic
benefits as well as the simple travails of family living that the larger
family of New York experience daily.
The legislature also finds that in order to be successful in their
host communities, residences need to be accepted and blend seamlessly
into the neighborhood fabric.
The legislature also finds that there exists a disparity in the
acceptance of community residences based on the local taxable status of
these facilities.
The legislature therefore declares it necessary to require that lands
and facilities of the state of New York operated as community residences
by the office of mental health and the office of mental retardation and
developmental disabilities and that properties owned by not-for-profit
corporations licensed by the office of mental health and the office of
mental retardation and developmental disabilities and operated as commu-
nity residences be subject to payments in lieu of taxes, to be paid by
the state upon application by a municipal corporation. Such payments
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02281-01-9
A. 2907 2
shall not diminish state resources normally reserved for the develop-
ment, operation and maintenance of such facilities.
S 2. The real property tax law is amended by adding a new section 561
to read as follows:
S 561. PAYMENTS IN LIEU OF TAXES FOR EXEMPT COMMUNITY RESIDENCES. 1. A
MUNICIPAL CORPORATION SHALL BE ENTITLED TO ANNUALLY SEEK PAYMENT IN LIEU
OF TAXES FROM THE STATE FOR REAL PROPERTY THAT (A) IS LOCATED WITHIN THE
BOUNDARIES OF SUCH MUNICIPAL CORPORATION, (B) IS EXEMPT FROM TAXATION
PURSUANT TO STATE LAW, AND (C) IS OPERATED BY THE STATE OFFICE OF MENTAL
HEALTH OR OFFICE OF MENTAL RETARDATION AND DEVELOPMENTAL DISABILITIES OR
IS OPERATED BY A VOLUNTARY AGENCY, CORPORATION OR ASSOCIATION TO PROVIDE
SERVICES AS A COMMUNITY RESIDENCE AS DEFINED IN SECTION 1.03, 41.34 OR
41.36 OF THE MENTAL HYGIENE LAW UNDER CONTRACT WITH OR PURSUANT TO, THE
CERTIFICATION OF THE DEPARTMENT OF MENTAL HYGIENE, OR AN OFFICE OR DIVI-
SION THEREOF.
2. A MUNICIPAL CORPORATION SEEKING PAYMENT IN LIEU OF TAXES SHALL MAKE
ANNUAL APPLICATION TO THE STATE BOARD ON A FORM PRESCRIBED BY THE STATE
BOARD. APPLICATION SHALL BE MADE NO LATER THAN SIXTY DAYS PRIOR TO THE
COMMENCEMENT OF THE MUNICIPAL CORPORATION'S FISCAL YEAR. THE APPLICATION
FORM SHALL ALLOW FOR ONE OR MORE PARCELS TO BE INCLUDED ON A SINGLE
APPLICATION.
3. THE VALUE OF THE PROPERTY SHALL BE DETERMINED BY ASSESSING THE
COMMUNITY RESIDENCE IN THE SAME MANNER AS ALL OTHER REAL PROPERTY WITHIN
THE MUNICIPAL CORPORATION'S TAXING JURISDICTION.
4. THE AMOUNT OF PAYMENT IN LIEU OF TAXES SHALL BE EQUAL TO THE AMOUNT
OF TAXATION THAT WOULD HAVE OTHERWISE BEEN REALIZED IF THE PROPERTY WERE
TAXABLE.
5. THE STATE BOARD SHALL CERTIFY TO THE COMPTROLLER THE AMOUNTS PAYA-
BLE, AND SUCH AMOUNTS SHALL BE PAYABLE TO THE APPLICANT MUNICIPAL CORPO-
RATION ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER ON VOUCHERS
CERTIFIED OR APPROVED AS PRESCRIBED BY LAW OUT OF MONEYS APPROPRIATED BY
THE LEGISLATURE FOR PAYMENT OF GENERAL STATE CHARGES TO THE OFFICE OF
THE STATE COMPTROLLER. IN NO CASE SHALL PAYMENT IN LIEU OF TAXES BE A
CHARGE UPON ANY PROVIDER CERTIFIED OR OPERATED BY THE DEPARTMENT OF
MENTAL HYGIENE OR AN OFFICE OR DIVISION THEREOF OR UPON SUCH DEPARTMENT,
OFFICE OR DIVISION THEREOF.
S 3. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law; provided, however,
that effective immediately, the additions, amendment and/or repeal of
any rules or regulations necessary for the implementation of the forego-
ing sections of this act on their effective date are authorized and
directed to be made and completed on or before such effective date.