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

                                   852

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M. of A. DESTITO, SCHROEDER -- read once and referred to
  the Committee on Local Governments

AN ACT to amend the general municipal law, in  relation  to  authorizing
  municipalities  to re-direct a portion of the real property taxes made
  by certain project occupants

  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 74-a to read as follows:
  S 74-A. RE-DIRECTION OF REAL PROPERTY TAXES MADE  BY  CERTAIN  PROJECT
OCCUPANTS. 1.  ANY MUNICIPALITY MAY, UPON APPROVAL OF THE GOVERNING BODY
OF SUCH MUNICIPALITY, ESTABLISH A PROGRAM WHICH PROVIDES FOR A MECHANISM
BY WHICH THE MUNICIPALITY MAY RE-DIRECT REAL ESTATE TAX PAYMENTS, TO THE
EXTENT THAT SUCH PAYMENTS EXCEED THE THEN EXISTING TAXES ATTRIBUTABLE TO
THE  INCREMENTAL  INCREASE IN ASSESSED VALUE AND/OR REAL ESTATE TAX PAID
FOR THE SUBJECT PROPERTY. SUCH RE-DIRECTION SHALL PROVIDE,  PURSUANT  TO
AN  AGREEMENT  BETWEEN  THE MUNICIPALITY AND THE PROJECT OWNER, THAT THE
OWNER WILL CAUSE THE INFRASTRUCTURE IMPROVEMENTS TO BE BUILT IN CONJUNC-
TION WITH AN AFFORDABLE  HOUSING  AND/OR  ECONOMIC  DEVELOPMENT  PROJECT
APPROVED  BY  THE  MUNICIPALITY.  SUCH INFRASTRUCTURE IMPROVEMENTS SHALL
INCLUDE, BUT NOT BE LIMITED TO, UNDERGROUND AND OVERHEAD UTILITIES  SUCH
AS  STORM  DRAINAGE OR STORM WATER MANAGEMENT MEASURES, SANITARY SEWERS,
WATER LINES, GAS LINES, ELECTRICAL LINES, ROAD  AND  TRANSPORTATION  AND
OTHER  PUBLIC INFRASTRUCTURE FACILITIES AS DEEMED BY THE MUNICIPALITY TO
BENEFIT THE PUBLIC GOOD. THE  MUNICIPALITY SHALL CAUSE SUCH RE-DIRECTION
OF TAX PAYMENTS TO BE UTILIZED FOR THE EXCLUSIVE PURPOSE OF RETIRING ANY
DEBT INCURRED FOR THE CONSTRUCTION AND  DEVELOPMENT  OF  THESE  IMPROVE-
MENTS.
  2.  THE  AMOUNT  OF SUCH RE-DIRECTED TAX PAYMENTS SHALL BE ONE HUNDRED
PERCENT OF THE TOTAL COST OF THE APPROVED  INFRASTRUCTURE  IMPROVEMENTS,

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

                                                           LBD01632-01-1

A. 852                              2

INCLUDING  ANY  INTEREST OR FINANCING COSTS DIRECTLY ATTRIBUTABLE TO THE
INFRASTRUCTURE FACILITIES. EACH PORTION OF SUCH PAYMENT SHALL  BE  TAKEN
DURING EACH YEAR THE PROJECT IS OBLIGATED TO PAY REAL ESTATE TAXES UNTIL
SUCH  TIME  AS THE DEBT INCURRED FOR THE DEVELOPMENT AND CONSTRUCTION OF
THE IMPROVEMENTS IS RETIRED.
  3. THE RESIDUAL OF THE RE-DIRECTED PAYMENTS, AFTER THE PAYMENT OF  THE
DEBT  SERVICE,  SHALL BE PAID TO THE AFFECTED TAXING JURISDICTION, AS IN
THE NORMAL COURSE OF PAYMENT OF REAL PROPERTY TAXES.
  S 2. This act shall take effect immediately.