| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jan 06, 2010 |
referred to local government |
| Jun 08, 2009 |
referred to rules |
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Senate Bill S5821
2009-2010 Legislative Session
Authorizes cities and towns to establish community preservation funds, and to impose a tax on real property transfers to provide revenue to such funds
download bill text pdfSponsored By
(D, WF) 35th Senate District
Archive: Last Bill Status - In Senate Committee Local Government Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2009-S5821 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A8571
- Current Committee:
- Senate Local Government
- Law Section:
- General Municipal Law
- Laws Affected:
- Add §6-t, Gen Muni L; amd §9-0101, En Con L; add Art 30-C §§1385 - 1399, Tax L
2009-S5821 (ACTIVE) - Sponsor Memo
BILL NUMBER: S5821
TITLE OF BILL :
An act to amend the general municipal law and the environmental
conservation 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
PURPOSE :
The purpose of this bill is to permit any town or city in the State
to: (1) establish a community preservation fund by local law; and (2)
impose, upon voter approval, a real estate transfer tax to fund
community preservation.
SUMMARY OF PROVISIONS :
Section 1 of this bill adds a new section 6-t to the General Municipal
Law ("GML") to authorize any town or city in the State to establish,
by local law, a community preservation fund ("Fund"). Monies in the
Fund may only be used for specific purposes related to preserving the
community's character, including implementation of a community
preservation project plan and acquisition of interests or rights in
real property connected to that purpose. Preservation of community
character includes such activities as establishment of parks, nature
preserves, recreation areas, community gardens, forests and wildlife
refuges; and preservation of open space, lands of exceptional scenic
value, wetlands, undeveloped shoreline, unique or threatened
ecological areas, rivers in a natural free-flowing condition, historic
properties, viable or unique and irreplaceable agricultural land and
littoral and riparian areas.
A town or city ("Designated Community") that establishes a Fund must
adopt by local law a community preservation project plan, which must
include any project the community plans to undertake and every
property necessary to be acquired with monies from the Fund, and must
include an evaluation of land use alternatives to protect community
character. The plan must be filed with the Designated Community's
clerk at least 60 days before the mandatory referendum required to
adopt a real estate transfer tax (discussed below), and be updated at
least every five years. A public hearing must be held prior to
acquiring any interest or right in real property.
A Designated Community that establishes a Fund must also establish an
advisory board to review and make recommendations on proposed
acquisitions using the Fund. The Designated Community may designate an
appropriate existing board, or create a separate board, to serve as
its advisory board.
Any property acquired using the Fund must be administered and managed
to protect community character, allow public use and enjoyment,
preserve biodiversity, limit improvements to those which promote
access, and preserve historical culture.
Absent legislative authority, rights or interests in real property
acquired with monies from the Fund may not be sold, leased or
otherwise disposed of to anyone other than the State, a municipality,
or a not-for-profit organization where such property will continue to
be used for a qualifying purpose under the plan.
Section 2 of this bill adds a new subdivision 10 to Environmental
Conservation Law § 90101 to define "community forest."
Section 3 of this bill adds a new Article 30-C to the Tax Law to
authorize a Designated Community to adopt a local law imposing a real
estate transfer tax of up to 2 percent of the consideration for each
conveyance of real property or interest, where the consideration
exceeds $500. The local law would be subject to a mandatory referendum
pursuant to Municipal Home Rule Law § 23. Revenues from the tax must
be deposited in the Fund created pursuant to GML § 6-1.
Section 3 further provides that certain conveyances would be exempt
from the tax, including, for example, conveyances that: (1) involve
certain government entities; (2) are used to secure a debt or other
obligation; (3) make bona fide gifts; (4) involve a tax sale; (5)
transfer property for open space, parks, or historic preservation
purposes to certain not-for-profit corporations; and (6) transfer
certain agricultural land. The bill also provides an exemption from
the tax on that portion of the consideration which is equal to the
median sales price of residential real property within the applicable
town or city. The tax would be payable by the buyer on any conveyance
of real property in the Designated Community to the county treasurer
at the same time as the state real estate transfer tax and be held in
trust on behalf of the Designated . Community. Once a month, the
treasurer would pay the tax revenue to the Designated Community for
deposit in its Fund.
Section 4 of this bill provides for an immediate effective date.
EXISTING LAW :
Currently, an individual municipality must seek approval of the State
Legislature to establish a real estate transfer tax and use the
revenues for a community preservation fund. Legislation has been
enacted to allow the establishment of community preservation funds in
the Peconic Bay region (Chapter 114 of the Laws of 1998); the towns of
Brookhaven (Chapter 282 of the Laws of 2003), Warwick (Chapter 262 of
the Laws of 2005), Chatham (Chapter 543 of the Laws of 2007),
Northeast (Chapter 333 of the Laws of 2008), Fishkill (Chapter 544 of
the Laws of 2007) and Red Hook (Chapter 443 of the Laws of 2006); and
any city or town in the counties of Westchester or Putnam (Chapter 596
of 2007).
LEGISLATIVE HISTORY :
Similar legislation has been considered by the Legislature since 2004.
A.7333 passed the Assembly in 2007, and was reported to the calendar
in 2008, but did not pass. A.5767 was reported to the Ways and Means
Committee on March 11, 2009.
STATEMENT IN SUPPORT :
This legislation would give all towns and cities in the State the
opportunity to preserve their natural resources and selected
undeveloped lands using monies funded by a local real estate transfer
tax, without the need to obtain specific approval from the State
Legislature.
Across New York State, communities struggle with sprawling development
that destroys productive agricultural lands, forest lands, critical
wildlife habitat and important open space areas within their
boundaries. Often these communities have limited funds available for
comprehensive planning and other tools to effectively manage
development and preserve open space. Municipalities are increasingly
requesting legislative authority to establish a Fund because they
recognize it can be an effective tool to complement their land use
regulatory authority in protecting community character and preserving
important natural resources. By imposing a modest tax on real estate
transfers after a local referendum, a community would have access to
financial resources to acquire rights or interests in real property
and implement a management and stewardship program necessary to
protect important open spaces and preserve community character.
In addition, enactment of this legislation would give municipalities a
new, optional tool to pursue smart growth and discourage sprawl, by
encouraging and facilitating preservation of open space in all
communities across the State that struggle with unimpeded development.
A municipality that implements a community-wide planning process that
promotes preservation of open space and quality of life encourages
sustainable development and enhances the community's long-term
viability. Communities that have received authority to establish Funds
are already using Fund monies to implement plans which take future
growth into consideration. The availability of a Fund would enable
more communities to take advantage of State programs by providing a
source of local matching funds. For example, the Farmland Protection
Program is under utilized because it is difficult for many local
governments to meet the local match requirement.
Similar legislation has been enacted for communities on Long Island,
Chatham in Columbia County, Fishkill, Northeast and Red Hook in
Dutchess County, Warwick in Orange County and municipalities in Putnam
and Westchester Counties. This legislation would provide all towns and
cities across the State with the authority to develop a dedicated,
locally-derived funding source to enable them to protect significant
lands at the local level.
BUDGET IMPLICATIONS :
This bill would have no fiscal impacts on the State.
EFFECTIVE DATE :
This bill would take effect immediately.
2009-S5821 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
5821
2009-2010 Regular Sessions
I N S E N A T E
June 8, 2009
___________
Introduced by Sen. STEWART-COUSINS -- (at request of the Governor) --
read twice and ordered printed, and when printed to be committed to
the Committee on Rules
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12025-06-9
S. 5821 2
FUND MAY INCLUDE REVENUES OF THE LOCAL GOVERNMENT FROM LAWFULLY AVAIL-
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
S. 5821 3
ONE OF SECTION THIRTY-ONE-G OF THE AGRICULTURE AND MARKETS LAW, OR
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.
S. 5821 4
6. THE GOVERNING BODY OF ANY DESIGNATED COMMUNITY WHICH HAS ESTAB-
LISHED A COMMUNITY PRESERVATION FUND SHALL, BY LOCAL LAW, ADOPT A COMMU-
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
S. 5821 5
FOR HISTORIC PRESERVATION. IN FURTHERING THE PURPOSES OF THIS SECTION,
THE DESIGNATED COMMUNITY MAY ENTER INTO AGREEMENTS WITH NOT-FOR-PROFIT
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:
S. 5821 6
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.
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
S. 5821 7
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.
(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.
S. 5821 8
(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
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
S. 5821 9
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
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
S. 5821 10
CORPORATION CREATED PURSUANT TO AN AGREEMENT OR COMPACT WITH ANOTHER
STATE OR THE DOMINION OF CANADA); AND
(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
S. 5821 11
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
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
S. 5821 12
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
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.
S. 5821 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.
S. 5821 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.
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