S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8571

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 28, 2009
                               ___________

Introduced by M. of A. HOYT -- (at request of the Governor) -- read once
  and referred to the Committee on Local Governments

AN  ACT to amend the general municipal law and the environmental conser-
  vation law, in relation to authorizing towns and cities  to  establish
  community preservation funds; and to amend the tax law, in relation to
  authorizing  towns  and cities which establish such a fund to impose a
  tax on real estate transfers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  general  municipal  law  is  amended by adding a new
section 6-t to read as follows:
  S 6-T. COMMUNITY PRESERVATION FUNDS IN TOWNS AND CITIES. 1. AS USED IN
THIS SECTION, THE FOLLOWING WORDS AND TERMS  SHALL  HAVE  THE  FOLLOWING
MEANINGS:
  (A)  "COMMUNITY  PRESERVATION"  MEANS AND INCLUDES ANY OF THE PURPOSES
OUTLINED IN SUBDIVISION FOUR OF THIS SECTION.
  (B) "COMMUNITY PRESERVATION FUND" OR "FUND" MEANS A COMMUNITY  PRESER-
VATION FUND ESTABLISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
  (C)  "COMMUNITY PRESERVATION PROJECT PLAN" OR "PLAN" MEANS A COMMUNITY
PRESERVATION PROJECT PLAN ESTABLISHED PURSUANT  TO  SUBDIVISION  SIX  OF
THIS SECTION.
  (D)  "DESIGNATED  COMMUNITY" MEANS ANY TOWN OR CITY IN THE STATE WHICH
SEEKS TO ESTABLISH OR HAS  ESTABLISHED  A  COMMUNITY  PRESERVATION  FUND
PURSUANT TO THIS SECTION.
  (E)  "TAX" MEANS A REAL ESTATE TRANSFER TAX PAYABLE ON A REAL PROPERTY
CONVEYANCE PURSUANT TO ARTICLE THIRTY-C  OF  THE  TAX  LAW,  UNLESS  THE
CONTEXT CLEARLY INDICATES A DIFFERENT MEANING.
  2.  THE  GOVERNING  BODY  OF ANY DESIGNATED COMMUNITY IS AUTHORIZED TO
ESTABLISH BY LOCAL LAW A COMMUNITY PRESERVATION FUND FOR THE  DESIGNATED
COMMUNITY  PURSUANT TO THE PROVISIONS OF THIS SECTION. DEPOSITS INTO THE
FUND MAY INCLUDE REVENUES OF THE LOCAL GOVERNMENT FROM  LAWFULLY  AVAIL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12025-06-9
              

A. 8571                             2

ABLE  SOURCES  APPROVED  BY  THE  GOVERNING BODY AND SHALL INCLUDE, AT A
MINIMUM, ALL REVENUES FROM THE TAX IMPOSED UPON  THE  TRANSFER  OF  REAL
PROPERTY  INTERESTS  IN  SUCH  DESIGNATED  COMMUNITY PURSUANT TO ARTICLE
THIRTY-C  OF  THE  TAX  LAW. THE FUND SHALL ALSO BE AUTHORIZED TO ACCEPT
GIFTS OF MONEY OR INTERESTS IN LAND. INTEREST ACCRUED BY MONEYS DEPOSIT-
ED INTO THE FUND SHALL BE CREDITED TO THE FUND. IN NO EVENT SHALL MONEYS
DEPOSITED IN THE FUND BE TRANSFERRED TO ANY OTHER ACCOUNT  OR  USED  FOR
ANY  PURPOSE OTHER THAN AUTHORIZED BY THIS SECTION. NOTHING CONTAINED IN
THIS SECTION SHALL BE CONSTRUED TO PREVENT THE FINANCING IN WHOLE OR  IN
PART,  PURSUANT  TO THE LOCAL FINANCE LAW, OF ANY ACQUISITION AUTHORIZED
PURSUANT TO THIS SECTION.  MONEYS FROM THE FUND MAY BE UTILIZED TO REPAY
ANY INDEBTEDNESS OR OBLIGATIONS INCURRED PURSUANT TO THE  LOCAL  FINANCE
LAW CONSISTENT WITH EFFECTUATING THE PURPOSES OF THIS SECTION.
  3.  MONEYS  IN  THE FUND SHALL BE USED EXCLUSIVELY TO: (A) IMPLEMENT A
COMMUNITY PRESERVATION PROJECT PLAN IN ACCORDANCE WITH  SUBDIVISION  SIX
OF  THIS  SECTION;  (B) ACQUIRE INTERESTS OR RIGHTS IN REAL PROPERTY FOR
THE PRESERVATION OF COMMUNITY CHARACTER WITHIN THE DESIGNATED  COMMUNITY
IN  ACCORDANCE WITH THE COMMUNITY PRESERVATION PROJECT PLAN AND IN COOP-
ERATION WITH WILLING SELLERS; (C) ESTABLISH A BANK PURSUANT TO A  TRANS-
FER  OF  DEVELOPMENT  RIGHTS PROGRAM CONSISTENT WITH SECTION TWO HUNDRED
SIXTY-ONE-A OF THE TOWN LAW, OR SECTION TWENTY-F  OF  THE  GENERAL  CITY
LAW;  (D)  IMPLEMENT  A  MANAGEMENT AND STEWARDSHIP PROGRAM FOR THE REAL
PROPERTY INTERESTS AND RIGHTS ACQUIRED CONSISTENT WITH SUBDIVISION  NINE
OF  THIS  SECTION  AND  IN  ACCORDANCE  WITH  THE COMMUNITY PRESERVATION
PROJECT PLAN, PROVIDED THAT NOT MORE THAN TEN PERCENT OF THE FUND  SHALL
BE  UTILIZED  FOR  A  MANAGEMENT  AND  STEWARDSHIP PROGRAM; AND (E) MAKE
PAYMENTS TO SCHOOL, FIRE, FIRE PROTECTION  AND  AMBULANCE  DISTRICTS  IN
CONNECTION  WITH LANDS WITHIN THE DESIGNATED COMMUNITY THAT ARE OWNED BY
ANY MUNICIPAL CORPORATION.   PAYMENTS MAY ONLY BE  MADE  TO  A  DISTRICT
WHERE  MORE  THAN  TWENTY-FIVE  PERCENT  OF  THE  ASSESSED VALUE OF THAT
DISTRICT IS WHOLLY EXEMPT FROM REAL PROPERTY TAXATION  PURSUANT  TO  THE
REAL  PROPERTY  TAX  LAW BECAUSE IT IS OWNED BY A MUNICIPAL CORPORATION.
NOT MORE THAN TEN PERCENT OF THE FUND MAY BE USED FOR  THIS  PURPOSE  IN
ANY  FISCAL  YEAR.  PAYMENTS  FROM  THE  FUND FOR THIS PURPOSE SHALL NOT
EXCEED THE ACTUAL TAX LIABILITY THAT WOULD HAVE BEEN DUE IF THE LANDS OF
A MUNICIPAL CORPORATION HAD BEEN  SUBJECT  TO  REAL  PROPERTY  TAXATION.
WHERE MORE THAN ONE DISTRICT IS ELIGIBLE FOR A PAYMENT UNDER THIS SUBDI-
VISION,  AND THE PAYMENT AVAILABLE FROM THE FUND IS LESS THAN THE ACTUAL
TAX LIABILITY THAT WOULD HAVE BEEN DUE  IF  THE  LANDS  OF  A  MUNICIPAL
CORPORATION  HAD  BEEN SUBJECT TO REAL PROPERTY TAXATION, THE DESIGNATED
COMMUNITY SHALL APPORTION THE ANNUAL PAYMENT ON THE BASIS OF  THE  TOTAL
TAX LEVIED BY EACH DISTRICT WITHIN THE DESIGNATED COMMUNITY FOR THE YEAR
THE  PAYMENT  IS  MADE.  PAYMENT  FROM  THE FUND SHALL BE USED SOLELY TO
REDUCE THE PROPERTY TAX LIABILITY OF  THE  REMAINING  TAXPAYERS  OF  THE
DISTRICT  WITHIN  THE DESIGNATED COMMUNITY. IF THE IMPLEMENTATION OF THE
COMMUNITY PRESERVATION PROJECT PLAN  ADOPTED  BY  A  GOVERNING  BODY  AS
PROVIDED  IN  SUBDIVISION  SIX  OF  THIS SECTION HAS BEEN COMPLETED, AND
MONEYS ARE NO LONGER NEEDED FOR THE PURPOSES OUTLINED IN  THIS  SUBDIVI-
SION,  THEN ANY REMAINING MONIES IN THE FUND MAY BE HELD IN THE FUND FOR
PURPOSES OF IMPLEMENTING A FUTURE COMMUNITY PRESERVATION PROJECT PLAN OR
MAY BE APPLIED TO REDUCE ANY BONDED INDEBTEDNESS OR OBLIGATIONS INCURRED
TO EFFECTUATE THE PURPOSES OF THIS SECTION.
  4. PRESERVATION OF COMMUNITY CHARACTER SHALL INVOLVE ONE  OR  MORE  OF
THE  FOLLOWING:  (A)  ESTABLISHMENT  OF  PARKS, NATURE PRESERVES, NATURE
TRAILS, RECREATION AREAS, COMMUNITY GARDENS AS  DEFINED  IN  SUBDIVISION
ONE  OF  SECTION  THIRTY-ONE-G  OF  THE  AGRICULTURE AND MARKETS LAW, OR

A. 8571                             3

COMMUNITY FORESTS AS DEFINED IN SUBDIVISION TEN OF SECTION 9-0101 OF THE
ENVIRONMENTAL CONSERVATION LAW; (B)  PRESERVATION  OF  OPEN  SPACE;  (C)
PRESERVATION  OF  LANDS OF EXCEPTIONAL SCENIC VALUE; (D) PRESERVATION OF
FRESH AND SALTWATER MARSHES OR OTHER WETLANDS; (E) PRESERVATION OF AQUI-
FER RECHARGE AREAS; (F) PRESERVATION OF UNDEVELOPED BEACHLANDS OR SHORE-
LINE; (G) ESTABLISHMENT OF WILDLIFE REFUGES FOR THE PURPOSE OF MAINTAIN-
ING NATIVE ANIMAL SPECIES DIVERSITY, INCLUDING THE PROTECTION OF HABITAT
ESSENTIAL  TO THE RECOVERY AND MAINTENANCE OF RARE, THREATENED OR ENDAN-
GERED SPECIES; (H)  PRESERVATION  OF  UNIQUE  OR  THREATENED  ECOLOGICAL
AREAS;  (I)  PRESERVATION  OF  RIVERS  AND  RIVER  AREAS  IN  A NATURAL,
FREE-FLOWING CONDITION; (J) PRESERVATION OF FORESTED LAND; (K) PRESERVA-
TION OF PUBLIC ACCESS TO LANDS FOR PUBLIC USE  INCLUDING  STREAM  RIGHTS
AND WATERWAYS; (L) PRESERVATION OF HISTORIC PLACES AND PROPERTIES LISTED
ON  THE  NEW YORK STATE REGISTER OF HISTORIC PLACES OR PROTECTED UNDER A
MUNICIPAL HISTORIC PRESERVATION ORDINANCE OR LAW; (M) UNDERTAKING ANY OF
THE ACTIVITIES LISTED IN THIS SUBDIVISION IN FURTHERANCE OF  THE  ESTAB-
LISHMENT OF A GREENBELT; (N) PRESERVATION OF LAND WHICH IS PREDOMINANTLY
VIABLE  AGRICULTURAL  LAND,  AS  DEFINED IN SUBDIVISION SEVEN OF SECTION
THREE HUNDRED ONE OF THE AGRICULTURE AND  MARKETS  LAW,  OR  UNIQUE  AND
IRREPLACEABLE  AGRICULTURAL  LAND,  AS  DEFINED  IN  SUBDIVISION  SIX OF
SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS  LAW;  AND  (O)
PRESERVATION OF LITTORAL AND RIPARIAN AREAS.
  5.  THE  GOVERNING  BODY  OF ANY DESIGNATED COMMUNITY WHICH HAS ESTAB-
LISHED A COMMUNITY PRESERVATION FUND SHALL ALSO  ESTABLISH  AN  ADVISORY
BOARD  TO  REVIEW  AND  MAKE  RECOMMENDATIONS  TO  THE GOVERNING BODY ON
PROPOSED ACQUISITIONS OF INTERESTS IN REAL PROPERTY  USING  MONEYS  FROM
THE  FUND  AND  ASSIST  IN THE DEVELOPMENT OF THE COMMUNITY PRESERVATION
PLAN. THE GOVERNING BODY MAY:  (A)  DESIGNATE  AN  APPROPRIATE  EXISTING
BOARD OR BODY, OTHER THAN THE GOVERNING BODY ITSELF, SUCH AS A CONSERVA-
TION ADVISORY COUNCIL OR THE LOCAL PLANNING BOARD, TO SERVE AS THE ADVI-
SORY  BOARD;  OR  (B)  CREATE  A  SEPARATE BOARD TO SERVE AS AN ADVISORY
BOARD.  IF A SEPARATE ADVISORY BOARD IS CREATED, THE FOLLOWING  REQUIRE-
MENTS  SHALL BE OBSERVED: (A) THE ADVISORY BOARD SHALL CONSIST OF EITHER
FIVE OR SEVEN LEGAL RESIDENTS OF  THE  DESIGNATED  COMMUNITY  WHO  SHALL
SERVE  WITHOUT  COMPENSATION; (B) A MAJORITY OF THE MEMBERS OF THE ADVI-
SORY BOARD SHALL HAVE DEMONSTRATED EXPERIENCE WITH CONSERVATION OR  LAND
PRESERVATION  ACTIVITIES; (C) NO MEMBER OF THE ADVISORY BOARD SHALL ALSO
BE A MEMBER OF THE GOVERNING BODY; (D) WHERE A PLAN IS LIKELY TO INCLUDE
THE PRESERVATION OF AGRICULTURAL LAND, THE GOVERNING BODY SHALL GIVE DUE
CONSIDERATION TO APPOINTING AT LEAST ONE RESIDENT TO THE ADVISORY  BOARD
WHO  IS EITHER (I) AN ACTIVE FARMER, OR (II) WHERE THE DESIGNATED COMMU-
NITY IS IN A COUNTY THAT HAS AN  AGRICULTURAL  AND  FARMLAND  PROTECTION
BOARD  ESTABLISHED PURSUANT TO SECTION THREE HUNDRED TWO OF THE AGRICUL-
TURE AND MARKETS LAW, A MEMBER OF SUCH BOARD; (E) THE TERMS  OF  MEMBERS
OF THE ADVISORY BOARD FIRST APPOINTED SHALL BE SO FIXED THAT THE TERM OF
ONE  MEMBER  SHALL  EXPIRE AT THE END OF THE OFFICIAL YEAR IN WHICH SUCH
MEMBERS WERE INITIALLY APPOINTED, THE TERMS  OF  THE  REMAINING  MEMBERS
FIRST  APPOINTED  SHALL BE SO FIXED THAT THE TERM OF AT LEAST ONE MEMBER
SHALL EXPIRE AT THE END OF EACH OFFICIAL YEAR  THEREAFTER,  AND  AT  THE
EXPIRATION  OF  THE  TERM  OF  EACH  MEMBER  FIRST APPOINTED, HIS OR HER
SUCCESSOR SHALL BE APPOINTED FOR A TERM  OF  FOUR  YEARS;  AND  (F)  ANY
MEMBER  OF  THE  ADVISORY  BOARD  MAY  BE REMOVED AT THE PLEASURE OF THE
GOVERNING BODY, AND ANY VACANCY SHALL BE FILLED IN THE  SAME  MANNER  AS
THE APPOINTMENT WAS MADE.
  6.  THE  GOVERNING  BODY  OF ANY DESIGNATED COMMUNITY WHICH HAS ESTAB-
LISHED A COMMUNITY PRESERVATION FUND SHALL, BY LOCAL LAW, ADOPT A COMMU-

A. 8571                             4

NITY PRESERVATION PROJECT PLAN. THE PLAN MAY  BE  MADE  A  PART  OF  THE
DESIGNATED  COMMUNITY'S  COMPREHENSIVE  PLAN.  THE PLAN SHALL LIST EVERY
PROJECT WHICH THE DESIGNATED COMMUNITY PLANS TO  UNDERTAKE  WITH  MONEYS
FROM  THE  FUND.  IT SHALL INCLUDE EVERY PARCEL WHICH IS NECESSARY TO BE
ACQUIRED IN THE DESIGNATED COMMUNITY TO PROTECT COMMUNITY CHARACTER. THE
PLAN SHALL PROVIDE FOR A DETAILED EVALUATION OF ALL AVAILABLE  LAND  USE
ALTERNATIVES  TO  PROTECT COMMUNITY CHARACTER, INCLUDING BUT NOT LIMITED
TO: (A) FEE SIMPLE ACQUISITION; (B) ZONING REGULATIONS, INCLUDING DENSI-
TY REDUCTIONS, CLUSTER DEVELOPMENT, AND SITE PLAN  AND  DESIGN  REQUIRE-
MENTS;  (C)  TRANSFER OF DEVELOPMENT RIGHTS; (D) PURCHASE OF DEVELOPMENT
RIGHTS; AND (E) SCENIC AND CONSERVATION EASEMENTS. THE EVALUATION  SHALL
BE  AS  SPECIFIC AS PRACTICABLE AS TO EACH PARCEL SELECTED FOR INCLUSION
IN THE PLAN. THE  PLAN  SHALL  ESTABLISH  PRIORITIES  FOR  PRESERVATION.
MONEYS  FROM  THE  FUND  MAY ONLY BE EXPENDED FOR PROJECTS LISTED IN THE
PLAN. THE PLAN SHALL BE UPDATED NOT LESS THAN ONCE EVERY FIVE  YEARS.  A
COPY OF THE ADOPTED PLAN SHALL BE FILED WITH THE CLERK OF THE DESIGNATED
COMMUNITY  AT  LEAST  SIXTY  DAYS BEFORE THE SUBMISSION OF THE MANDATORY
REFERENDUM REQUIRED BY SECTION THIRTEEN HUNDRED EIGHTY-SIX  OF  THE  TAX
LAW  AND  SHALL  BE  MADE  AVAILABLE FOR PUBLIC REVIEW AT THE DESIGNATED
COMMUNITY CLERK'S OFFICE, AT ANY PUBLIC LIBRARIES WITHIN THE  DESIGNATED
COMMUNITY,  AND, WHERE PRACTICABLE, POSTED ON THE DESIGNATED COMMUNITY'S
WEBSITE.
  7. THE GOVERNING BODY OF ANY DESIGNATED  COMMUNITY  WHICH  HAS  ESTAB-
LISHED  A  FUND  PURSUANT  TO  THIS  SECTION MAY ESTABLISH A TRANSFER OF
DEVELOPMENT RIGHTS PROGRAM TO PROTECT COMMUNITY CHARACTER IN  COMPLIANCE
WITH SECTION TWO HUNDRED SIXTY-ONE-A OF THE TOWN LAW OR SECTION TWENTY-F
OF  THE  GENERAL CITY LAW AS APPLICABLE.  IF AT ANY TIME DURING THE LIFE
OF THE FUND A TRANSFER OF DEVELOPMENT RIGHTS PROGRAM IS ESTABLISHED, THE
DESIGNATED COMMUNITY MAY UTILIZE MONEYS FROM THE FUND  FOR  PURPOSES  OF
THE  TRANSFER  OF  DEVELOPMENT RIGHTS PROGRAM. IF AT ANY TIME DURING THE
LIFE OF THE FUND, A TRANSFER OF DEVELOPMENT RIGHTS PROGRAM  IS  REPEALED
BY  THE  DESIGNATED COMMUNITY, ALL MONEYS FROM THE CENTRAL BANK SHALL BE
RETURNED TO THE FUND.
  8. NO INTERESTS OR RIGHTS IN REAL PROPERTY SHALL BE ACQUIRED  PURSUANT
TO  THIS  SECTION  UNTIL A PUBLIC HEARING IS HELD AS REQUIRED BY SECTION
TWO HUNDRED FORTY-SEVEN OF THIS CHAPTER; PROVIDED, HOWEVER, THAT NOTHING
IN THIS SECTION SHALL PREVENT THE GOVERNING BODY FROM  ENTERING  INTO  A
CONDITIONAL  PURCHASE  AGREEMENT  BEFORE  A  PUBLIC HEARING IS HELD. ANY
RESOLUTION OF A GOVERNING BODY APPROVING AN ACQUISITION OF INTERESTS  OR
RIGHTS  IN REAL PROPERTY PURSUANT TO THIS SECTION SHALL FIND THAT ACQUI-
SITION WAS THE BEST ALTERNATIVE FOR THE PROTECTION OF COMMUNITY  CHARAC-
TER  OF  ALL  THE  REASONABLE  ALTERNATIVES  AVAILABLE TO THE DESIGNATED
COMMUNITY.
  9. RIGHTS OR INTERESTS IN REAL  PROPERTY  ACQUIRED  PURSUANT  TO  THIS
SECTION  SHALL BE ADMINISTERED AND MANAGED IN A MANNER WHICH: (A) ALLOWS
PUBLIC USE AND ENJOYMENT  IN  A  MANNER  COMPATIBLE  WITH  THE  NATURAL,
SCENIC,  HISTORIC  AND  OPEN SPACE CHARACTER OF THE LANDS; (B) PRESERVES
THE NATIVE BIOLOGICAL DIVERSITY OF THE LANDS TO THE EXTENT  PRACTICABLE;
(C)  WITH REGARD TO OPEN SPACES, LIMITS IMPROVEMENTS TO ENHANCING ACCESS
FOR PASSIVE USE OF THE LANDS, SUCH AS NATURE TRAILS, BOARDWALKS, BICYCLE
PATHS, HIKING TRAILS, SNOWSHOE TRAILS, CROSS  COUNTRY  SKI  TRAILS,  AND
PERIPHERAL PARKING AREAS PROVIDED THAT THESE IMPROVEMENTS DO NOT DEGRADE
THE ECOLOGICAL VALUE OF THE LAND OR THREATEN ESSENTIAL WILDLIFE HABITAT;
AND  (D)  PRESERVES CULTURAL PROPERTY CONSISTENT WITH ACCEPTED STANDARDS
FOR HISTORIC PRESERVATION. IN FURTHERING THE PURPOSES OF  THIS  SECTION,
THE  DESIGNATED  COMMUNITY MAY ENTER INTO AGREEMENTS WITH NOT-FOR-PROFIT

A. 8571                             5

CORPORATIONS AND ENGAGE IN LAND TRUST ACTIVITIES TO MANAGE LANDS INCLUD-
ING LESS THAN FEE INTERESTS ACQUIRED PURSUANT TO THE PROVISIONS OF  THIS
SECTION,  PROVIDED THAT ANY AGREEMENT SHALL CONTAIN A PROVISION THAT THE
CORPORATION  KEEP  THE  LANDS ACCESSIBLE TO THE PUBLIC UNLESS THE CORPO-
RATION DEMONSTRATES TO THE  SATISFACTION  OF  THE  GOVERNING  BODY  THAT
PUBLIC  ACCESSIBILITY  WOULD  BE  DETRIMENTAL TO THE LANDS OR ANY OF THE
NATURAL RESOURCES ASSOCIATED WITH THE LANDS.  NOTWITHSTANDING ANY  OTHER
PROVISION OF THIS SUBDIVISION, THERE SHALL BE NO RIGHT TO PUBLIC USE AND
ENJOYMENT  OF  LAND USED IN CONJUNCTION WITH A FARM OPERATION AS DEFINED
BY SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE  OF  THE  AGRICULTURE
AND  MARKETS  LAW  UNLESS  THE  OWNER  OR OPERATOR OF THE FARM OPERATION
PERMITS PUBLIC USE, IN WRITING.
  10. RIGHTS OR INTERESTS IN REAL PROPERTY ACQUIRED WITH MONEYS FROM THE
FUND SHALL NOT BE USED FOR PURPOSES OTHER THAN THOSE PERMITTED  BY  THIS
SECTION, OR BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF
TO  ANYONE  OTHER  THAN  THE  STATE,  A MUNICIPALITY OR A NOT-FOR-PROFIT
CORPORATION WHERE THE PROPERTY WILL CONTINUE TO BE USED FOR A QUALIFYING
PURPOSE CONSISTENT WITH PRESERVING COMMUNITY CHARACTER OF THE DESIGNATED
COMMUNITY AND  PURSUANT  TO  THE  COMMUNITY  PRESERVATION  PROJECT  PLAN
ADOPTED BY THE DESIGNATED COMMUNITY, WITHOUT THE EXPRESS AUTHORITY OF AN
ACT  OF THE STATE LEGISLATURE.  ANY CONSERVATION EASEMENTS CREATED UNDER
TITLE THREE OF ARTICLE FORTY-NINE OF THE ENVIRONMENTAL CONSERVATION  LAW
WHICH  ARE  ACQUIRED  WITH MONEYS FROM THE FUND, MAY ONLY BE MODIFIED OR
EXTINGUISHED AS PROVIDED BY SECTION 49-0307 OF THE ENVIRONMENTAL CONSER-
VATION LAW.  NOTHING IN THIS SECTION SHALL PRECLUDE A DESIGNATED  COMMU-
NITY,  BY  LOCAL  LAW,  FROM ESTABLISHING ADDITIONAL RESTRICTIONS TO THE
ALIENATION OF LANDS ACQUIRED PURSUANT TO THIS SECTION. THIS  SUBDIVISION
SHALL NOT APPLY TO THE SALE OF DEVELOPMENT RIGHTS BY A DESIGNATED COMMU-
NITY  ACQUIRED  PURSUANT  TO  THIS  SECTION, WHERE THE SALE IS MADE BY A
DEVELOPMENT RIGHTS BANK CREATED BY A DESIGNATED COMMUNITY, PURSUANT TO A
TRANSFER OF DEVELOPMENT  RIGHTS  PROGRAM  ESTABLISHED  BY  A  DESIGNATED
COMMUNITY PURSUANT TO SECTION TWO HUNDRED SIXTY-ONE-A OF THE TOWN LAW OR
SECTION  TWENTY-F  OF  THE GENERAL CITY LAW, PROVIDED, HOWEVER THAT: (A)
THE LANDS FROM WHICH THE DEVELOPMENT RIGHTS WERE ACQUIRED  SHALL  REMAIN
PRESERVED  IN  PERPETUITY  BY A PERMANENT CONSERVATION EASEMENT OR OTHER
INSTRUMENT THAT SIMILARLY PRESERVES THE COMMUNITY  CHARACTER  CONSISTENT
WITH  SUBDIVISION  FOUR  OF  THIS SECTION; AND (B) THE PROCEEDS FROM THE
SALE SHALL BE DEPOSITED IN THE FUND.
  11. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO  SUPERSEDE,  AFFECT,
IMPAIR   OR   INVALIDATE   THE   PROVISIONS   OF  SECTION  SIXTY-FOUR-E,
SIXTY-FOUR-F, SIXTY-FOUR-G, SIXTY-FOUR-H, SIXTY-FOUR-I (RELATING TO  THE
TOWN  OF  CHATHAM  PRESERVATION  FUNDS) OR SIXTY-FOUR-I (RELATING TO THE
TOWN OF FISHKILL PRESERVATION FUNDS) OF THE TOWN LAW, OR  SECTION  SIX-S
OF  THIS  ARTICLE; PROVIDED HOWEVER THAT A DESIGNATED COMMUNITY MAY ONLY
ESTABLISH ONE REAL ESTATE TRANSFER TAX  FOR  THE  PURPOSE  OF  COMMUNITY
PRESERVATION;  NOR SHALL ANY TOWN OR CITY IMPOSE A TAX PURSUANT TO ARTI-
CLE THIRTY-C OF THE TAX LAW IF A TOWN OR CITY HAS IMPOSED A REAL  ESTATE
TRANSFER  TAX  FOR  THE PURPOSE OF ESTABLISHING A COMMUNITY PRESERVATION
FUND PURSUANT TO ANY OF THESE LAWS AND IT WOULD RESULT IN THE IMPOSITION
OF MORE THAN ONE REAL ESTATE TRANSFER TAX FOR THIS PURPOSE ON  THE  SAME
REAL PROPERTY CONVEYANCE.
  S  2.  Section 9-0101 of the environmental conservation law is amended
by adding a new subdivision 10 to read as follows:
  10. "COMMUNITY FOREST" MEANS FOREST LAND, OR  AN  INTEREST  IN  FOREST
LAND,  OWNED  AND MANAGED BY A MUNICIPALITY FOR THE BENEFIT OF ITS RESI-
DENTS.

A. 8571                             6

  S 3. The tax law is amended by adding a new article 30-C  to  read  as
follows:
                              ARTICLE 30-C
            TAX ON REAL ESTATE TRANSFERS IN TOWNS AND CITIES
SECTION 1385. DEFINITIONS.
        1386. IMPOSITION OF TAX.
        1387. LIABILITY FOR TAX.
        1388. PAYMENT OF TAX.
        1389. EXEMPTIONS.
        1390. CREDIT.
        1391. COOPERATIVE HOUSING CORPORATION TRANSFERS.
        1392. DESIGNATION OF AGENTS.
        1393. LIABILITY OF RECORDING OFFICER.
        1394. REFUNDS.
        1395. DEPOSIT AND DISPOSITION OF REVENUE.
        1396. JUDICIAL REVIEW.
        1397. APPORTIONMENT.
        1398. MISCELLANEOUS.
        1399. RETURNS TO BE CONFIDENTIAL.
  S  1385.  DEFINITIONS.  WHEN  USED  IN  THIS ARTICLE, UNLESS OTHERWISE
EXPRESSLY STATED, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
  (A) "PERSON"  MEANS  AN  INDIVIDUAL,  PARTNERSHIP,  LIMITED  LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER,  TRUSTEE,  ASSIGNEE,  REFEREE  OR ANY OTHER PERSON ACTING IN A
FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY  A  COURT  OR
OTHERWISE,  ANY  COMBINATION OF INDIVIDUALS, AND ANY OTHER FORM OF UNIN-
CORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR MORE PERSONS.
  (B) "CONTROLLING INTEREST" MEANS (1) IN THE  CASE  OF  A  CORPORATION,
EITHER  FIFTY  PERCENT OR MORE OF THE TOTAL COMBINED VOTING POWER OF ALL
CLASSES OF STOCK OF THE CORPORATION, OR FIFTY PERCENT  OR  MORE  OF  THE
CAPITAL,  PROFITS  OR  BENEFICIAL  INTEREST  IN  THE VOTING STOCK OF THE
CORPORATION, AND (2) IN THE CASE OF A PARTNERSHIP, ASSOCIATION, TRUST OR
OTHER ENTITY, FIFTY PERCENT OR MORE OF THE CAPITAL, PROFITS  OR  BENEFI-
CIAL INTEREST IN THE PARTNERSHIP, ASSOCIATION, TRUST OR OTHER ENTITY.
  (C)  "REAL  PROPERTY" MEANS EVERY ESTATE OR RIGHT, LEGAL OR EQUITABLE,
PRESENT OR FUTURE, VESTED OR CONTINGENT, IN LANDS, TENEMENTS OR  HEREDI-
TAMENTS, INCLUDING BUILDINGS, STRUCTURES AND OTHER IMPROVEMENTS THEREON,
WHICH  ARE  LOCATED IN WHOLE OR IN PART WITHIN ANY DESIGNATED COMMUNITY.
IT SHALL NOT INCLUDE RIGHTS TO SEPULTURE.
  (D) "CONSIDERATION" MEANS THE PRICE ACTUALLY PAID OR  REQUIRED  TO  BE
PAID FOR THE REAL PROPERTY OR INTEREST THEREIN, INCLUDING PAYMENT FOR AN
OPTION  OR  CONTRACT TO PURCHASE REAL PROPERTY, WHETHER OR NOT EXPRESSED
IN THE DEED AND WHETHER PAID OR REQUIRED TO BE PAID BY MONEY,  PROPERTY,
OR  ANY  OTHER  THING  OF  VALUE.  IT  SHALL INCLUDE THE CANCELLATION OR
DISCHARGE OF AN INDEBTEDNESS OR OBLIGATION. IT SHALL  ALSO  INCLUDE  THE
AMOUNT  OF  ANY  MORTGAGE, PURCHASE MONEY MORTGAGE, LIEN OR OTHER ENCUM-
BRANCE, WHETHER OR NOT THE UNDERLYING INDEBTEDNESS IS ASSUMED  OR  TAKEN
SUBJECT TO.
  (1)  IN THE CASE OF A CREATION OF A LEASEHOLD INTEREST OR THE GRANTING
OF AN OPTION WITH USE AND  OCCUPANCY  OF  REAL  PROPERTY,  CONSIDERATION
SHALL  INCLUDE, BUT NOT BE LIMITED TO, THE VALUE OF THE RENTAL AND OTHER
PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL  PROPERTY  OR
INTEREST THEREIN, THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO PURCHASE
OR  RENEW  AND THE VALUE OF RENTAL OR OTHER PAYMENTS ATTRIBUTABLE TO THE
EXERCISE OF ANY OPTION TO RENEW.

A. 8571                             7

  (2) IN THE CASE OF A CREATION OF A  SUBLEASEHOLD  INTEREST,  CONSIDER-
ATION  SHALL  INCLUDE,  BUT NOT BE LIMITED TO, THE VALUE OF THE SUBLEASE
RENTAL PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL  PROP-
ERTY,  THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO RENEW AND THE VALUE
OF  RENTAL  OR OTHER PAYMENTS ATTRIBUTABLE TO THE EXERCISE OF ANY OPTION
TO RENEW LESS THE VALUE OF THE REMAINING  PRIME  LEASE  RENTAL  PAYMENTS
REQUIRED TO BE MADE.
  (3) IN THE CASE OF A CONTROLLING INTEREST IN ANY ENTITY THAT OWNS REAL
PROPERTY,  CONSIDERATION  SHALL  MEAN  THE FAIR MARKET VALUE OF THE REAL
PROPERTY OR INTEREST THEREIN, APPORTIONED BASED ON THE PERCENTAGE OF THE
OWNERSHIP INTEREST TRANSFERRED OR ACQUIRED IN THE ENTITY.
  (4) IN THE CASE OF AN ASSIGNMENT OR SURRENDER OF A LEASEHOLD  INTEREST
OR THE ASSIGNMENT OR SURRENDER OF AN OPTION OR CONTRACT TO PURCHASE REAL
PROPERTY,  CONSIDERATION  SHALL  NOT  INCLUDE THE VALUE OF THE REMAINING
RENTAL PAYMENTS REQUIRED TO BE MADE PURSUANT TO THE TERMS OF SUCH  LEASE
OR  THE AMOUNT TO BE PAID FOR THE REAL PROPERTY PURSUANT TO THE TERMS OF
THE OPTION OR CONTRACT BEING ASSIGNED OR SURRENDERED.
  (5) IN THE CASE OF (A) THE ORIGINAL CONVEYANCE OF SHARES OF STOCK IN A
COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER
OF A PROPRIETARY LEASEHOLD BY THE COOPERATIVE CORPORATION OR COOPERATIVE
PLAN SPONSOR, AND (B) THE SUBSEQUENT CONVEYANCE BY THE OWNER THEREOF  OF
SUCH  STOCK  IN A COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH THE
GRANT OR TRANSFER OF A PROPRIETARY  LEASEHOLD  FOR  A  COOPERATIVE  UNIT
OTHER THAN AN INDIVIDUAL RESIDENTIAL UNIT, CONSIDERATION SHALL INCLUDE A
PROPORTIONATE  SHARE OF THE UNPAID PRINCIPAL OF ANY MORTGAGE ON THE REAL
PROPERTY OF THE COOPERATIVE HOUSING CORPORATION COMPRISING  THE  COOPER-
ATIVE DWELLING OR DWELLINGS. SUCH SHARE SHALL BE DETERMINED BY MULTIPLY-
ING THE TOTAL UNPAID PRINCIPAL OF THE MORTGAGE BY A FRACTION, THE NUMER-
ATOR  OF  WHICH SHALL BE THE NUMBER OF SHARES OF STOCK BEING CONVEYED IN
THE COOPERATIVE HOUSING CORPORATION IN  CONNECTION  WITH  THE  GRANT  OR
TRANSFER  OF  A PROPRIETARY LEASEHOLD AND THE DENOMINATOR OF WHICH SHALL
BE THE TOTAL NUMBER OF SHARES OF STOCK IN THE COOPERATIVE HOUSING CORPO-
RATION.
  (E) "CONVEYANCE" MEANS THE TRANSFER OR TRANSFERS OF  ANY  INTEREST  IN
REAL  PROPERTY  BY  ANY  METHOD,  INCLUDING  BUT  NOT  LIMITED TO, SALE,
EXCHANGE, ASSIGNMENT, SURRENDER, MORTGAGE FORECLOSURE, TRANSFER IN  LIEU
OF  FORECLOSURE,  OPTION,  TRUST  INDENTURE,  TAKING  BY EMINENT DOMAIN,
CONVEYANCE UPON LIQUIDATION OR BY A RECEIVER, OR TRANSFER OR ACQUISITION
OF A CONTROLLING INTEREST IN ANY ENTITY WITH AN INTEREST IN REAL PROPER-
TY. TRANSFER OF AN INTEREST IN REAL PROPERTY SHALL INCLUDE THE  CREATION
OF  A  LEASEHOLD  OR  SUBLEASE ONLY WHERE (1) THE SUM OF THE TERM OF THE
LEASE OR SUBLEASE AND ANY OPTIONS FOR RENEWAL EXCEEDS FORTY-NINE  YEARS,
(2)  SUBSTANTIAL  CAPITAL  IMPROVEMENTS ARE OR MAY BE MADE BY OR FOR THE
BENEFIT OF THE LESSEE OR SUBLESSEE, AND (3) THE LEASE OR SUBLEASE IS FOR
SUBSTANTIALLY ALL  OF  THE  PREMISES  CONSTITUTING  THE  REAL  PROPERTY.
NOTWITHSTANDING  THE FOREGOING PROVISIONS OF THIS SUBSECTION, CONVEYANCE
OF REAL PROPERTY SHALL NOT INCLUDE A CONVEYANCE MADE PURSUANT TO DEVISE,
BEQUEST OR INHERITANCE; THE CREATION, MODIFICATION,  EXTENSION,  SPREAD-
ING,  SEVERANCE,  CONSOLIDATION, ASSIGNMENT, TRANSFER, RELEASE OR SATIS-
FACTION OF A MORTGAGE; A MORTGAGE SUBORDINATION  AGREEMENT,  A  MORTGAGE
SEVERANCE  AGREEMENT,  AN  INSTRUMENT  GIVEN  TO  PERFECT  OR  CORRECT A
RECORDED MORTGAGE; OR A RELEASE OF LIEN OF TAX PURSUANT TO THIS  CHAPTER
OR THE INTERNAL REVENUE CODE.
  (F) "INTEREST IN THE REAL PROPERTY" INCLUDES TITLE IN FEE, A LEASEHOLD
INTEREST, A BENEFICIAL INTEREST, AN ENCUMBRANCE, DEVELOPMENT RIGHTS, AIR
SPACE  AND  AIR  RIGHTS,  OR ANY OTHER INTEREST WITH THE RIGHT TO USE OR

A. 8571                             8

OCCUPANCY OF REAL PROPERTY OR THE RIGHT TO  RECEIVE  RENTS,  PROFITS  OR
OTHER INCOME DERIVED FROM REAL PROPERTY. IT SHALL ALSO INCLUDE AN OPTION
OR  CONTRACT  TO PURCHASE REAL PROPERTY. IT SHALL NOT INCLUDE A RIGHT OF
FIRST REFUSAL TO PURCHASE REAL PROPERTY.
  (G)  "SELLER"  MEANS THE PERSON MAKING THE CONVEYANCE OF REAL PROPERTY
OR INTEREST THEREIN.  WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OR  AN
ACQUISITION  OF  A CONTROLLING INTEREST IN AN ENTITY WITH AN INTEREST IN
REAL PROPERTY, "SELLER" MEANS THE ENTITY WITH AN INTEREST IN REAL  PROP-
ERTY  OR  A  SHAREHOLDER  OR  PARTNER  TRANSFERRING STOCK OR PARTNERSHIP
INTEREST, RESPECTIVELY.
  (H) "BUYER" MEANS THE PERSON WHO OBTAINS  REAL  PROPERTY  OR  INTEREST
THEREIN AS A RESULT OF A CONVEYANCE.
  (I)  "COMMUNITY PRESERVATION FUND" MEANS A COMMUNITY PRESERVATION FUND
ESTABLISHED PURSUANT TO SECTION SIX-T OF THE GENERAL MUNICIPAL LAW.
  (J) "RECORDING OFFICER" MEANS THE COUNTY CLERK WHERE THE REAL PROPERTY
IS LOCATED EXCEPT IN A COUNTY HAVING A  REGISTER,  WHERE  IT  MEANS  THE
REGISTER OF THE COUNTY.
  (K)  "DESIGNATED  COMMUNITY" MEANS ANY TOWN OR CITY IN THE STATE WHICH
HAS ESTABLISHED A VALID COMMUNITY PRESERVATION FUND PURSUANT TO  SECTION
SIX-T OF THE GENERAL MUNICIPAL LAW.
  (L) "TREASURER" MEANS THE COUNTY TREASURER.
  (M)  "GOVERNING  BODY" MEANS THE TOWN BOARD OF A TOWN, OR THE BOARD OF
ALDERMEN, COMMON COUNCIL, COUNCIL OR COMMISSION OF A CITY.
  (N) "RESIDENTIAL REAL PROPERTY"  MEANS  PROPERTY  WHICH  SATISFIES  AT
LEAST ONE OF THE FOLLOWING CONDITIONS:
  (1)  THE  PROPERTY CLASSIFICATION CODE ASSIGNED TO THE PROPERTY ON THE
LATEST FINAL ASSESSMENT ROLL, AS REPORTED ON THE TRANSFER  REPORT  FORM,
INDICATES  THAT  THE  PROPERTY  IS  A ONE, TWO OR THREE FAMILY HOME OR A
RURAL RESIDENCE; OR
  (2) THE TRANSFER REPORT FORM INDICATES THAT THE  PROPERTY  IS  A  ONE,
TWO,   OR   THREE  FAMILY  RESIDENTIAL  PROPERTY  THAT  HAS  BEEN  NEWLY
CONSTRUCTED ON VACANT LAND; OR
  (3) THE TRANSFER REPORT FORM INDICATES THAT THE PROPERTY IS A RESIDEN-
TIAL CONDOMINIUM.
  (O) "TAX" MEANS THE REAL ESTATE TRANSFER TAX PAYABLE ON A REAL PROPER-
TY CONVEYANCE PURSUANT TO SECTION THIRTEEN HUNDRED  EIGHTY-SIX  OF  THIS
ARTICLE, UNLESS THE CONTEXT CLEARLY INDICATES A DIFFERENT MEANING.
  S 1386. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW
TO  THE CONTRARY, ANY DESIGNATED COMMUNITY, ACTING THROUGH ITS GOVERNING
BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL  LAW  IMPOSING
IN THE DESIGNATED COMMUNITY A TAX ON EACH CONVEYANCE OF REAL PROPERTY OR
INTEREST WHERE THE CONSIDERATION EXCEEDS FIVE HUNDRED DOLLARS, AT A RATE
OF  UP TO TWO PERCENT OF THE CONSIDERATION FOR THE CONVEYANCE; THE LOCAL
LAW SHALL FIX THE RATE OF THE TAX. ANY LOCAL LAW IMPOSING, REPEALING  OR
REIMPOSING  THE  TAX SHALL BE SUBJECT TO A MANDATORY REFERENDUM PURSUANT
TO SECTION TWENTY-THREE OF THE MUNICIPAL HOME RULE LAW.  THE  LOCAL  LAW
SHALL  ONLY  BE SUBMITTED FOR THE APPROVAL OF THE ELECTORS AT A NOVEMBER
GENERAL ELECTION. IN ADDITION TO THE FILINGS REQUIRED PURSUANT TO  ARTI-
CLE  THREE  OF THE MUNICIPAL HOME RULE LAW, THE LOCAL LAW SHALL BE FILED
WITH THE STATE BOARD OF REAL PROPERTY SERVICES WITHIN TWENTY DAYS OF ITS
APPROVAL BY THE ELECTORS. REVENUES FROM THE TAX SHALL  BE  DEPOSITED  IN
THE  COMMUNITY PRESERVATION FUND AND MAY BE USED SOLELY FOR THE PURPOSES
OF THE COMMUNITY PRESERVATION FUND.  THE LOCAL LAW SHALL  APPLY  TO  ANY
CONVEYANCE  OCCURRING  ON OR AFTER THE FIRST DAY OF A MONTH TO BE DESIG-
NATED BY THE GOVERNING BODY, WHICH IS NOT LESS THAN SIXTY DAYS AFTER THE
ENACTMENT OF THE LOCAL LAW, BUT SHALL NOT APPLY TO CONVEYANCES  MADE  ON

A. 8571                             9

OR  AFTER  THAT  DATE PURSUANT TO BINDING WRITTEN CONTRACTS ENTERED INTO
PRIOR TO THAT DATE, PROVIDED THAT THE DATE OF EXECUTION OF THE  CONTRACT
IS  CONFIRMED  BY  INDEPENDENT  EVIDENCE  SUCH  AS  THE RECORDING OF THE
CONTRACT,  PAYMENT  OF  A  DEPOSIT  OR  OTHER FACTS AND CIRCUMSTANCES AS
DETERMINED BY THE TREASURER.
  S 1387. LIABILITY FOR TAX. (A) THE TAX AUTHORIZED  TO  BE  IMPOSED  BY
THIS ARTICLE SHALL BE PAID BY THE BUYER.
  (B)  FOR  THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND
TO PREVENT EVASION OF THE TAX, IT SHALL BE PRESUMED THAT ALL CONVEYANCES
ARE TAXABLE. WHERE THE CONSIDERATION INCLUDES PROPERTY OTHER THAN MONEY,
IT SHALL BE PRESUMED THAT THE CONSIDERATION IS THE FAIR MARKET VALUE  OF
THE  REAL PROPERTY OR INTEREST THEREIN. THESE PRESUMPTIONS SHALL PREVAIL
UNTIL THE CONTRARY IS PROVEN, AND THE BURDEN  OF  PROVING  THE  CONTRARY
SHALL BE ON THE PERSON LIABLE FOR PAYMENT OF THE TAX.
  S  1388.  PAYMENT OF TAX. (A) THE TAX IMPOSED PURSUANT TO THIS ARTICLE
SHALL BE PAID TO THE TREASURER OR THE RECORDING OFFICER  ACTING  AS  THE
AGENT  OF THE TREASURER UPON DESIGNATION AS SUCH AGENT BY THE TREASURER.
THE TAX SHALL BE PAID AT THE SAME TIME AS THE REAL ESTATE  TRANSFER  TAX
IMPOSED  BY  ARTICLE  THIRTY-ONE OF THIS CHAPTER IS REQUIRED TO BE PAID.
SUCH TREASURER OR RECORDING OFFICER SHALL  ENDORSE  UPON  EACH  DEED  OR
INSTRUMENT  EFFECTING  A  CONVEYANCE A RECEIPT FOR THE AMOUNT OF THE TAX
PAID.
  (B) A RETURN SHALL BE FILED WITH THE TREASURER  OR  RECORDING  OFFICER
FOR  PURPOSES  OF THE TAX AT THE SAME TIME AS A RETURN IS REQUIRED TO BE
FILED FOR PURPOSES OF THE REAL ESTATE TRANSFER TAX  IMPOSED  BY  ARTICLE
THIRTY-ONE  OF  THIS  CHAPTER. THE TREASURER SHALL PRESCRIBE THE FORM OF
RETURN, THE INFORMATION WHICH IT SHALL CONTAIN,  AND  THE  DOCUMENTATION
THAT SHALL ACCOMPANY THE RETURN. THE FORM SHALL BE IDENTICAL TO THE REAL
ESTATE  TRANSFER  TAX  RETURN  REQUIRED  TO BE FILED PURSUANT TO SECTION
FOURTEEN HUNDRED NINE OF THIS CHAPTER, EXCEPT THAT THE  TREASURER  SHALL
ADAPT THE FORM TO REFLECT THE PROVISIONS IN THIS CHAPTER THAT ARE INCON-
SISTENT,  DIFFERENT, OR IN ADDITION TO THE PROVISIONS OF ARTICLE THIRTY-
ONE OF THIS CHAPTER. THE TAX RETURNS REQUIRED TO BE  FILED  PURSUANT  TO
THIS SECTION SHALL BE PRESERVED FOR AT LEAST THREE YEARS.
  (C)  THE  RECORDING OFFICER SHALL NOT RECORD AN INSTRUMENT EFFECTING A
CONVEYANCE UNLESS THE RETURN REQUIRED BY THIS SECTION HAS BEEN FILED AND
THE TAX IMPOSED PURSUANT TO THIS ARTICLE HAS BEEN PAID  AS  REQUIRED  IN
THIS SECTION.
  (D)  IF A RETURN REQUIRED BY THIS ARTICLE IS NOT FILED, OR IF A RETURN
FILED IS INCORRECT OR INSUFFICIENT, THE  AMOUNT  OF  TAX  DUE  SHALL  BE
DETERMINED  BY  THE TREASURER FROM SUCH RECORDS OR INFORMATION AS MAY BE
OBTAINABLE, INCLUDING ASSESSED VALUATION OF THE REAL PROPERTY OR  INTER-
EST  THEREIN AND OTHER APPROPRIATE FACTORS. NOTICE OF THIS DETERMINATION
SHALL BE GIVEN TO THE PERSON LIABLE FOR THE  PAYMENT  OF  THE  TAX.  THE
DETERMINATION  SHALL  FINALLY  AND  IRREVOCABLY  FIX  THE TAX UNLESS THE
PERSON AGAINST WHOM IT IS ASSESSED, WITHIN NINETY DAYS AFTER THE  GIVING
OF  NOTICE  OF  THE  DETERMINATION,  SEEKS  JUDICIAL  REVIEW PURSUANT TO
SECTION THIRTEEN HUNDRED NINETY-SIX OF THIS ARTICLE, OR UNLESS THE TREA-
SURER ON THE TREASURER'S OWN MOTION SHALL REDETERMINE THE TAX.
  S 1389. EXEMPTIONS. (A) THE FOLLOWING SHALL BE EXEMPT FROM THE PAYMENT
OF THE TAX:
  (1) THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES,  INSTRUMENTALITIES,
POLITICAL  SUBDIVISIONS,  OR  PUBLIC  CORPORATIONS  (INCLUDING  A PUBLIC
CORPORATION CREATED PURSUANT TO AN AGREEMENT  OR  COMPACT  WITH  ANOTHER
STATE OR THE DOMINION OF CANADA); AND

A. 8571                            10

  (2)  THE UNITED NATIONS, OR THE UNITED STATES OF AMERICA OR ANY OF ITS
AGENCIES OR INSTRUMENTALITIES.
  (B) THE TAX SHALL NOT APPLY TO ANY OF THE FOLLOWING CONVEYANCES:
  (1)  CONVEYANCES  TO THE UNITED NATIONS, THE UNITED STATES OF AMERICA,
THE STATE OF NEW YORK, OR ANY OF THEIR  INSTRUMENTALITIES,  AGENCIES  OR
POLITICAL  SUBDIVISIONS  OR  ANY  PUBLIC CORPORATION (INCLUDING A PUBLIC
CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER  STATE
OR THE DOMINION OF CANADA);
  (2) CONVEYANCES WHICH ARE OR WERE USED TO SECURE A DEBT OR OTHER OBLI-
GATION;
  (3)  CONVEYANCES  WHICH,  WITHOUT  ADDITIONAL  CONSIDERATION, CONFIRM,
CORRECT, MODIFY OR SUPPLEMENT A DEED PREVIOUSLY RECORDED;
  (4) CONVEYANCES OF REAL PROPERTY WITHOUT CONSIDERATION  AND  OTHERWISE
THAN IN CONNECTION WITH A SALE, INCLUDING DEEDS CONVEYING REALTY AS BONA
FIDE GIFTS;
  (5) CONVEYANCES GIVEN IN CONNECTION WITH A TAX SALE;
  (6)  CONVEYANCES  TO  EFFECTUATE  A MERE CHANGE OF IDENTITY OR FORM OF
OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFICIAL  OWNER-
SHIP, OTHER THAN CONVEYANCES TO A COOPERATIVE HOUSING CORPORATION OF THE
REAL PROPERTY COMPRISING THE COOPERATIVE DWELLING OR DWELLINGS;
  (7) CONVEYANCES WHICH CONSIST OF A DEED OF PARTITION;
  (8) CONVEYANCES GIVEN PURSUANT TO THE FEDERAL BANKRUPTCY ACT;
  (9)  CONVEYANCES  OF REAL PROPERTY WHICH CONSIST OF THE EXECUTION OF A
CONTRACT TO SELL REAL PROPERTY WITHOUT THE  USE  OR  OCCUPANCY  OF  SUCH
PROPERTY  OR THE GRANTING OF AN OPTION TO PURCHASE REAL PROPERTY WITHOUT
THE USE OR OCCUPANCY OF SUCH PROPERTY;
  (10) CONVEYANCES OF REAL PROPERTY FOR OPEN SPACE, PARKS,  OR  HISTORIC
PRESERVATION PURPOSES TO ANY NOT-FOR-PROFIT TAX EXEMPT CORPORATION OPER-
ATED  FOR  CONSERVATION,  ENVIRONMENTAL,  PARKS OR HISTORIC PRESERVATION
PURPOSES; AND
  (11) CONVEYANCES OF REAL PROPERTY WHERE THE PROPERTY IS  PREDOMINANTLY
VIABLE  AGRICULTURAL  LAND  AS  DEFINED  IN SUBDIVISION SEVEN OF SECTION
THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS  LAW,  AND  THE  ENTIRE
PROPERTY  TO  BE  CONVEYED  IS  SUBJECT  TO  A  DEVELOPMENT RESTRICTION,
PROVIDED THAT THE DEVELOPMENT RESTRICTION PRECLUDES  THE  CONVERSION  OF
THE  PROPERTY  TO  A  NON-AGRICULTURAL  USE  AND  THAT  THE  DEVELOPMENT
RESTRICTION IS EVIDENCED BY AN EASEMENT, AGREEMENT,  OR  OTHER  SUITABLE
INSTRUMENT  WHICH  IS  TO BE CONVEYED TO THE MUNICIPALITY SIMULTANEOUSLY
WITH THE CONVEYANCE OF THE REAL PROPERTY.
  (C) AN EXEMPTION FROM THE TAX WHICH IS EQUAL TO THE MEDIAN SALES PRICE
OF RESIDENTIAL REAL PROPERTY WITHIN THE  APPLICABLE  TOWN  OR  CITY,  AS
DETERMINED  BY  THE  OFFICE OF REAL PROPERTY SERVICES PURSUANT TO PROCE-
DURES ADOPTED FOR THIS PURPOSE BY  THE  STATE  BOARD  OF  REAL  PROPERTY
SERVICES  ESTABLISHED  PURSUANT  TO ARTICLE TWO OF THE REAL PROPERTY TAX
LAW, SHALL BE ALLOWED ON THE CONSIDERATION OF THE CONVEYANCE OF IMPROVED
OR UNIMPROVED REAL PROPERTY OR AN INTEREST THEREIN.
  S 1390. CREDIT. A BUYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX  DUE
ON  A  CONVEYANCE OF REAL PROPERTY TO THE EXTENT THE TAX WAS PAID BY THE
BUYER ON A PRIOR CREATION OF A LEASEHOLD OF ALL OR A PORTION OF THE SAME
REAL PROPERTY OR ON THE GRANTING OF AN OPTION OR  CONTRACT  TO  PURCHASE
ALL  OR  A  PORTION  OF THE SAME REAL PROPERTY BY THE BUYER. SUCH CREDIT
SHALL BE COMPUTED BY MULTIPLYING THE TAX PAID ON  THE  CREATION  OF  THE
LEASEHOLD  OR  ON  THE GRANTING OF THE OPTION OR CONTRACT BY A FRACTION,
THE NUMERATOR OF WHICH IS THE VALUE OF THE CONSIDERATION USED TO COMPUTE
SUCH TAX PAID WHICH IS NOT YET DUE TO SUCH SELLER ON  THE  DATE  OF  THE
SUBSEQUENT  CONVEYANCE  (AND  WHICH  SUCH SELLER WILL NOT BE ENTITLED TO

A. 8571                            11

RECEIVE AFTER SUCH DATE), AND THE DENOMINATOR  OF  WHICH  IS  THE  TOTAL
VALUE OF THE CONSIDERATION USED TO COMPUTE SUCH TAX PAID.
  S 1391. COOPERATIVE HOUSING CORPORATION TRANSFERS. (A) NOTWITHSTANDING
THE  DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN SUBSECTION (B) OF
SECTION THIRTEEN HUNDRED EIGHTY-FIVE OF THIS ARTICLE OR ANYTHING TO  THE
CONTRARY  CONTAINED  IN  SUBSECTION (E) OF SUCH SECTION, THE TAX IMPOSED
PURSUANT TO THIS ARTICLE SHALL APPLY TO (1) THE ORIGINAL  CONVEYANCE  OF
SHARES  OF STOCK IN A COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH
THE GRANT OR TRANSFER OF A  PROPRIETARY  LEASEHOLD  BY  THE  COOPERATIVE
CORPORATION  OR COOPERATIVE PLAN SPONSOR, AND (2) THE SUBSEQUENT CONVEY-
ANCE OF THE STOCK IN A COOPERATIVE  HOUSING  CORPORATION  IN  CONNECTION
WITH THE GRANT OR TRANSFER OF A PROPRIETARY LEASEHOLD BY THE OWNER THER-
EOF.  WITH RESPECT TO ANY SUBSEQUENT CONVEYANCE WHERE THE PROPERTY IS AN
INDIVIDUAL RESIDENTIAL UNIT, THE CONSIDERATION FOR THE INTEREST CONVEYED
SHALL EXCLUDE THE VALUE OF ANY LIENS ON CERTIFICATES OF STOCK  OR  OTHER
EVIDENCES  OF  AN  OWNERSHIP  INTEREST IN AND A PROPRIETARY LEASE FROM A
CORPORATION OR PARTNERSHIP FORMED FOR THE PURPOSE OF COOPERATIVE  OWNER-
SHIP  OF  RESIDENTIAL  INTEREST  IN REAL ESTATE REMAINING THEREON AT THE
TIME OF CONVEYANCE. IN DETERMINING THE TAX ON A CONVEYANCE DESCRIBED  IN
PARAGRAPH  ONE  OF  THIS  SUBSECTION,  A  CREDIT  SHALL BE ALLOWED FOR A
PROPORTIONATE PART OF THE AMOUNT OF ANY TAX PAID UPON THE CONVEYANCE  TO
THE  COOPERATIVE HOUSING CORPORATION OF THE REAL PROPERTY COMPRISING THE
COOPERATIVE DWELLING OR DWELLINGS TO THE  EXTENT  THAT  SUCH  CONVEYANCE
EFFECTUATED A MERE CHANGE OF IDENTITY OR FORM OF OWNERSHIP OF SUCH PROP-
ERTY  AND NOT A CHANGE IN THE BENEFICIAL OWNERSHIP OF SUCH PROPERTY. THE
AMOUNT OF THE CREDIT SHALL BE DETERMINED BY MULTIPLYING  THE  AMOUNT  OF
TAX PAID UPON THE CONVEYANCE TO THE COOPERATIVE HOUSING CORPORATION BY A
PERCENTAGE REPRESENTING THE EXTENT TO WHICH THE CONVEYANCE EFFECTUATED A
MERE  CHANGE  OF  IDENTITY  OR FORM OF OWNERSHIP AND NOT A CHANGE IN THE
BENEFICIAL OWNERSHIP OF THE PROPERTY, AND THEN MULTIPLYING THE RESULTING
PRODUCT BY A FRACTION, THE NUMERATOR OF WHICH SHALL  BE  THE  NUMBER  OF
SHARES  OF STOCK CONVEYED IN A TRANSACTION DESCRIBED IN PARAGRAPH ONE OF
THIS SUBSECTION, AND THE DENOMINATOR OF WHICH SHALL BE THE TOTAL  NUMBER
OF SHARES OF STOCK OF THE COOPERATIVE HOUSING CORPORATION (INCLUDING ANY
STOCK  HELD BY THE CORPORATION). IN NO EVENT, HOWEVER, SHALL SUCH CREDIT
REDUCE THE TAX ON A  CONVEYANCE  DESCRIBED  IN  PARAGRAPH  ONE  OF  THIS
SUBSECTION  BELOW  ZERO,  NOR SHALL ANY SUCH CREDIT BE ALLOWED FOR A TAX
PAID MORE THAN TWENTY-FOUR MONTHS PRIOR TO THE DATE ON WHICH OCCURS  THE
FIRST  IN  A  SERIES OF CONVEYANCES OF SHARES OF STOCK IN AN OFFERING OF
COOPERATIVE HOUSING CORPORATION SHARES DESCRIBED  IN  PARAGRAPH  ONE  OF
THIS SUBSECTION.
  (B) EVERY COOPERATIVE HOUSING CORPORATION SHALL BE REQUIRED TO FILE AN
INFORMATION  RETURN  WITH  THE  TREASURER BY JULY FIFTEENTH OF EACH YEAR
COVERING THE PRECEDING PERIOD OF JANUARY FIRST  THROUGH  JUNE  THIRTIETH
AND  BY  JANUARY FIFTEENTH OF EACH YEAR COVERING THE PRECEDING PERIOD OF
JULY FIRST THROUGH DECEMBER THIRTY-FIRST. THE RETURN SHALL CONTAIN  SUCH
INFORMATION  REGARDING  THE CONVEYANCE OF SHARES OF STOCK IN THE COOPER-
ATIVE HOUSING CORPORATION AS THE TREASURER MAY DEEM  NECESSARY,  INCLUD-
ING,  BUT  NOT LIMITED TO, THE NAMES, ADDRESSES AND EMPLOYEE IDENTIFICA-
TION NUMBERS OR SOCIAL SECURITY NUMBERS OF THE SELLER AND THE BUYER, THE
NUMBER OF SHARES CONVEYED, THE DATE OF THE CONVEYANCE AND THE  CONSIDER-
ATION PAID FOR SUCH CONVEYANCE.
  S  1392.  DESIGNATION OF AGENTS. THE TREASURER IS AUTHORIZED TO DESIG-
NATE THE RECORDING OFFICER TO ACT AS HIS OR HER AGENT  FOR  PURPOSES  OF
COLLECTING  THE  TAX  AUTHORIZED  BY  THIS  ARTICLE. THE TREASURER SHALL
PROVIDE FOR THE MANNER IN WHICH A PERSON MAY BE DESIGNATED AS HIS OR HER

A. 8571                            12

AGENT SUBJECT  TO  SUCH  TERMS  AND  CONDITIONS  AS  THE  TREASURER  MAY
PRESCRIBE.    THE  TAX SHALL BE PAID TO THE AGENT AS PROVIDED IN SECTION
THIRTEEN HUNDRED EIGHTY-EIGHT OF THIS ARTICLE.
  S  1393. LIABILITY OF RECORDING OFFICER. A RECORDING OFFICER SHALL NOT
BE LIABLE FOR ANY UNINTENTIONAL INACCURACY IN THE AMOUNT OF TAX THAT  HE
OR  SHE  COLLECTS  SO LONG AS HE OR SHE COMPUTES AND COLLECTS THE TAX ON
THE AMOUNT OF CONSIDERATION OR THE VALUE OF  THE  INTEREST  CONVEYED  AS
THOSE AMOUNTS ARE PROVIDED TO HIM OR HER BY THE PERSON PAYING THE TAX.
  S  1394.  REFUNDS.  WHENEVER  THE TREASURER DETERMINES THAT ANY MONEYS
RECEIVED UNDER THE PROVISIONS OF THE LOCAL LAW ENACTED PURSUANT TO  THIS
ARTICLE  WERE  PAID  IN  ERROR,  HE  OR  SHE MAY CAUSE SUCH MONEYS TO BE
REFUNDED PURSUANT TO THE REQUIREMENTS HE OR SHE MAY PRESCRIBE,  PROVIDED
THAT ANY APPLICATION FOR A REFUND IS FILED WITH THE TREASURER WITHIN TWO
YEARS FROM THE DATE THE ERRONEOUS PAYMENT WAS MADE.
  S  1395.  DEPOSIT AND DISPOSITION OF REVENUE. (A) ALL TAXES, PENALTIES
AND INTEREST IMPOSED BY THE DESIGNATED COMMUNITY UNDER THE AUTHORITY  OF
SECTION THIRTEEN HUNDRED EIGHTY-SIX OF THIS ARTICLE, WHICH ARE COLLECTED
BY  THE  TREASURER  OR HIS OR HER AGENTS, SHALL BE DEPOSITED IN A SINGLE
TRUST FUND FOR THE DESIGNATED COMMUNITY AND SHALL BE KEPT IN  TRUST  AND
SEPARATE AND APART FROM ALL OTHER MONEYS IN POSSESSION OF THE TREASURER.
MONEYS  IN  THIS  FUND  SHALL  BE  DEPOSITED  AND  SECURED IN THE MANNER
PROVIDED BY SECTION TEN OF THE GENERAL MUNICIPAL LAW.  PENDING  EXPENDI-
TURE  FROM  THIS  FUND, MONEYS IN THE FUND MAY BE INVESTED IN THE MANNER
PROVIDED IN SECTION ELEVEN OF THE GENERAL MUNICIPAL  LAW.  ANY  INTEREST
EARNED  OR  CAPITAL  GAIN  REALIZED  ON THESE MONEYS SHALL ACCRUE TO AND
BECOME PART OF THE FUND.
  (B) THE TREASURER SHALL RETAIN THE AMOUNT HE OR SHE DETERMINES  TO  BE
NECESSARY  FOR REFUNDS WITH RESPECT TO THE TAX IMPOSED BY THE DESIGNATED
COMMUNITY, UNDER THE AUTHORITY OF SECTION THIRTEEN HUNDRED EIGHTY-SIX OF
THIS ARTICLE, OUT OF WHICH THE TREASURER SHALL PAY ANY REFUNDS OF  TAXES
TO  THOSE  TAXPAYERS  ENTITLED TO A REFUND PURSUANT TO THE PROVISIONS OF
THIS ARTICLE.
  (C) THE TREASURER, AFTER RESERVING THESE REFUNDS, SHALL ON  OR  BEFORE
THE TWELFTH DAY OF EACH MONTH PAY TO THE DESIGNATED COMMUNITY THE TAXES,
PENALTIES,  AND  INTEREST  IMPOSED BY THE DESIGNATED COMMUNITY UNDER THE
AUTHORITY OF  SECTION  THIRTEEN  HUNDRED  EIGHTY-SIX  OF  THIS  ARTICLE,
COLLECTED  BY  THE  TREASURER,  DURING THE PRECEDING CALENDAR MONTH. THE
AMOUNT PAYABLE SHALL BE CERTIFIED TO THE  DESIGNATED  COMMUNITY  BY  THE
TREASURER, WHO SHALL NOT BE HELD LIABLE FOR ANY UNINTENTIONAL INACCURACY
IN  THE CERTIFICATION. PROVIDED, HOWEVER, ANY CERTIFICATION MAY BE BASED
ON INFORMATION AS MAY BE AVAILABLE TO THE  TREASURER  AT  THE  TIME  THE
CERTIFICATION  MUST  BE  MADE  UNDER THIS SECTION. WHERE THE AMOUNT PAID
OVER TO THE DESIGNATED COMMUNITY IN ANY MONTH IS MORE OR LESS  THAN  THE
AMOUNT DUE TO THE DESIGNATED COMMUNITY, THE AMOUNT OF THE OVERPAYMENT OR
UNDERPAYMENT SHALL BE CERTIFIED TO THE DESIGNATED COMMUNITY BY THE TREA-
SURER,  WHO SHALL NOT BE HELD LIABLE FOR ANY UNINTENTIONAL INACCURACY IN
THE CERTIFICATION.  THE AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT  SHALL
BE  CERTIFIED TO THE DESIGNATED COMMUNITY AS SOON AFTER THE DISCOVERY OF
THE OVERPAYMENT OR UNDERPAYMENT AS REASONABLY  POSSIBLE  AND  SUBSEQUENT
PAYMENTS  BY THE TREASURER TO THE DESIGNATED COMMUNITY SHALL BE ADJUSTED
BY SUBTRACTING THE AMOUNT OF ANY  OVERPAYMENT  FROM  OR  BY  ADDING  THE
AMOUNT  OF  ANY UNDERPAYMENT TO SUBSEQUENT PAYMENTS AS THE TREASURER AND
DESIGNATED COMMUNITY CONSIDER REASONABLE IN VIEW OF THE  OVERPAYMENT  OR
UNDERPAYMENT AND ALL OTHER FACTS AND CIRCUMSTANCES.

A. 8571                            13

  (D)  ALL  MONEYS RECEIVED BY A DESIGNATED COMMUNITY FROM THE TREASURER
SHALL BE DEPOSITED IN THE COMMUNITY PRESERVATION FUND OF THE  DESIGNATED
COMMUNITY, PURSUANT TO SECTION SIX-T OF THE GENERAL MUNICIPAL LAW.
  S  1396. JUDICIAL REVIEW. (A) ANY FINAL DETERMINATION OF THE AMOUNT OF
ANY TAX PAYABLE UNDER SECTION  THIRTEEN  HUNDRED  EIGHTY-EIGHT  OF  THIS
ARTICLE SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY
OR   ANY   OTHER   REASON  WHATSOEVER  BY  A  PROCEEDING  UNDER  ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES IF APPLICATION  THERE-
FOR  IS MADE TO THE SUPREME COURT WITHIN FOUR MONTHS AFTER THE GIVING OF
THE NOTICE OF THE  FINAL  DETERMINATION,  PROVIDED,  HOWEVER,  THAT  ANY
PROCEEDING  UNDER  ARTICLE  SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND
RULES SHALL NOT BE INSTITUTED UNLESS (1) THE AMOUNT OF ANY TAX SOUGHT TO
BE REVIEWED, WITH THE INTEREST AND PENALTIES THEREON AS MAY BE  PROVIDED
FOR  BY  LOCAL LAW SHALL BE FIRST DEPOSITED AND THERE IS FILED AN UNDER-
TAKING, ISSUED BY A SURETY COMPANY AUTHORIZED TO  TRANSACT  BUSINESS  IN
THIS  STATE  AND APPROVED BY THE STATE SUPERINTENDENT OF INSURANCE AS TO
SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT AS A JUSTICE OF THE  SUPREME
COURT  SHALL  APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED
OR THE TAX CONFIRMED THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH
MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING OR (2) AT THE OPTION OF
THE PETITIONER, SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT TO COVER THE
TAXES, INTEREST AND PENALTIES STATED IN  SUCH  DETERMINATION,  PLUS  THE
COSTS  AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF THE
PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED  TO  PAY
SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLI-
CATION.
  (B) WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY, ILLE-
GALLY  OR  UNCONSTITUTIONALLY  ASSESSED OR COLLECTED AND APPLICATION FOR
THE REFUND OR REVISION THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR
OFFICERS, AND SUCH OFFICER OR OFFICERS SHALL HAVE MADE  A  DETERMINATION
DENYING  SUCH REFUND OR REVISION, SUCH DETERMINATION SHALL BE REVIEWABLE
BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW
AND  RULES;  PROVIDED,  HOWEVER,  THAT (1) SUCH PROCEEDING IS INSTITUTED
WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH DENIAL, (2)  A
FINAL  DETERMINATION  OF  TAX  DUE  WAS  NOT PREVIOUSLY MADE, AND (3) AN
UNDERTAKING IS FILED WITH THE PROPER FISCAL OFFICER OR OFFICERS IN  SUCH
AMOUNT  AND  WITH  SUCH SURETIES AS A JUSTICE OF THE SUPREME COURT SHALL
APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED  OR  THE  TAX
CONFIRMED,  THE  PETITIONER  WILL  PAY  ALL  COSTS AND CHARGES WHICH MAY
ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING.
  S 1397. APPORTIONMENT. A LOCAL LAW ADOPTED BY ANY DESIGNATED  COMMUNI-
TY,  PURSUANT  TO THIS ARTICLE, SHALL PROVIDE FOR A METHOD OF APPORTION-
MENT FOR DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR
INTEREST THEREIN IS SITUATED WITHIN AND WITHOUT THE DESIGNATED  COMMUNI-
TY.
  S 1398. MISCELLANEOUS. A LOCAL LAW ADOPTED BY ANY DESIGNATED COMMUNITY
PURSUANT  TO  THIS  ARTICLE  MAY CONTAIN OTHER PROVISIONS THE DESIGNATED
COMMUNITY DEEMS NECESSARY FOR  THE  PROPER  ADMINISTRATION  OF  THE  TAX
IMPOSED  PURSUANT  TO  THIS ARTICLE, INCLUDING PROVISIONS CONCERNING THE
DETERMINATION OF TAX, THE IMPOSITION OF INTEREST  ON  UNDERPAYMENTS  AND
OVERPAYMENTS  AND  THE  IMPOSITION  OF  CIVIL PENALTIES. SUCH PROVISIONS
SHALL BE IDENTICAL TO THE CORRESPONDING PROVISIONS OF  THE  REAL  ESTATE
TRANSFER  TAX  IMPOSED  BY ARTICLE THIRTY-ONE OF THIS CHAPTER, SO FAR AS
THOSE PROVISIONS CAN BE MADE APPLICABLE TO THE TAX IMPOSED  PURSUANT  TO
THIS ARTICLE.

A. 8571                            14

  S  1399.  RETURNS  TO BE CONFIDENTIAL.   (A) EXCEPT IN ACCORDANCE WITH
PROPER JUDICIAL ORDER OR AS OTHERWISE  PROVIDED  BY  LAW,  IT  SHALL  BE
UNLAWFUL  FOR  THE TREASURER OR ANY OFFICER OR EMPLOYEE OF THE COUNTY OR
DESIGNATED COMMUNITY, INCLUDING ANY PERSON ENGAGED  OR  RETAINED  ON  AN
INDEPENDENT  CONTRACT  BASIS, TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE
PARTICULARS SET FORTH OR DISCLOSED IN ANY RETURN REQUIRED UNDER A  LOCAL
LAW ENACTED PURSUANT TO THIS ARTICLE. PROVIDED, HOWEVER, THAT NOTHING IN
THIS SECTION SHALL PROHIBIT THE RECORDING OFFICER FROM MAKING A NOTATION
ON  AN  INSTRUMENT  EFFECTING  A CONVEYANCE INDICATING THE AMOUNT OF TAX
PAID. NO RECORDED INSTRUMENT EFFECTING A CONVEYANCE SHALL BE  CONSIDERED
A RETURN FOR PURPOSES OF THIS SECTION.
  (B) THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS SHALL NOT BE
REQUIRED  TO  PRODUCE  ANY  OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
COUNTY OR DESIGNATED COMMUNITY IN ANY ACTION OR PROCEEDING INVOLVING THE
COLLECTION OF A TAX DUE UNDER A LOCAL LAW ENACTED PURSUANT TO THIS ARTI-
CLE  TO WHICH THE COUNTY OR DESIGNATED COMMUNITY IS A PARTY, OR A CLAIM-
ANT, OR ON BEHALF OF ANY PARTY TO ANY ACTION  OR  PROCEEDING  UNDER  THE
PROVISIONS  OF  A  LOCAL  LAW  ENACTED PURSUANT TO THIS ARTICLE WHEN THE
RETURNS OR FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN  THE  ACTION  OR
PROCEEDING,  IN ANY OF WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION
OF, AND MAY ADMIT IN EVIDENCE, SO MUCH OF THE RETURNS OR  OF  THE  FACTS
SHOWN THEREBY, AS ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE.
  (C)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DELIV-
ERY TO A SELLER OR BUYER OF AN INSTRUMENT EFFECTING A CONVEYANCE OR  THE
DULY  AUTHORIZED REPRESENTATIVE OF A SELLER OR BUYER OF A CERTIFIED COPY
OF ANY RETURN FILED IN CONNECTION WITH THAT INSTRUMENT  OR  TO  PROHIBIT
THE  PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFI-
CATION OF PARTICULAR RETURNS AND THE ITEMS THEREOF, OR THE INSPECTION BY
THE LEGAL REPRESENTATIVES OF THE COUNTY OR DESIGNATED COMMUNITY  OF  THE
RETURN OF ANY TAXPAYER WHO SHALL BRING ACTION TO SET ASIDE OR REVIEW THE
TAX BASED THEREON.
  S 4. This act shall take effect immediately.