S T A T E   O F   N E W   Y O R K
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    S. 3036                                                  A. 4766

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            February 7, 2011
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment

IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
  to the Committee on Local Governments

AN ACT to amend the town  law,  in  relation  to  payments  for  certain
  school,  fire,  fire  protection,  and  ambulance  districts for lands
  exempt from real property taxation for purposes  which  implement  the
  Peconic  Bay  community  preservation fund, and permitting the town of
  Southampton to make such payments in certain cases; and providing  for
  the repeal of certain provisions upon expiration thereof

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

  Section 1. Subdivision 3 of section 64-e of the town law,  as  amended
by chapter 373 of the laws of 2008, is amended to read as follows:
  3.  The  purposes of the fund shall be exclusively, (a) to implement a
plan for the preservation of community character  as  required  by  this
section,  (b)  to  acquire  interests or rights in real property for the
preservation of community character within the town  including  villages
therein  in  accordance  with  such plan and in cooperation with willing
sellers, (c) to establish a bank pursuant to a transfer  of  development
rights  program  consistent with section two hundred sixty-one-a of this
chapter, AND (d) to provide a management  and  stewardship  program  for
such  interests  and rights consistent with subdivisions nine and nine-a
of this section and in accordance with such plan  designed  to  preserve
community character; provided that not more than ten percent of the fund
shall  be  utilized for the management and stewardship program[, and (e)
to make payments to fire, fire protection  and  ambulance  districts  in
connection  with  lands  owned by the state or any municipal corporation
within the central pine barrens area as defined in  subdivision  ten  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05688-03-1
              

S. 3036                             2                            A. 4766

section 57-0107 of the environmental conservation law. Such payments may
only  be  made  to  districts where more than twenty-five percent of the
assessed value of such district is  wholly  exempt  from  real  property
taxation  pursuant  to  the real property tax law because it is owned by
the state or a municipal corporation. Not more than ten percent  of  the
fund may be used for said purpose in any calendar year. School districts
shall also be eligible for such payments, provided (1) that real proper-
ty  within  such  school  district has been made wholly exempt from real
property taxation pursuant to the real property tax  law  to  effectuate
the  purposes of the fund, and (2) such school district is determined to
be a high need or average need school  district  pursuant  to  the  need
resource  capacity  index established by the state education department.
Such payments from the fund shall not exceed the  actual  tax  liability
that  would  have  been due if such lands of the state or of a municipal
corporation had been subject to real property taxation. Where more  than
one  district  is  eligible for such a payment under this provision, and
such payment is less than the actual tax liability that would have  been
due  if  such  lands  of  the  state or a municipal corporation had been
subject to real property taxation, the town shall apportion such  annual
payment on the basis of the total tax levied by each district within the
town  for  the  year such payment is made. Such payment made by the town
shall be used solely to reduce the property tax liability of the remain-
ing taxpayers of the district within said town].  If the  implementation
of  the community preservation project plan, adopted by a town board, as
provided in subdivision six of this section,  has  been  completed,  and
funds  are  no  longer needed for the purposes outlined in this subdivi-
sion, then any remaining monies in the fund shall be applied  to  reduce
any  bonded  indebtedness  or  obligations  incurred  to  effectuate the
purposes of this section.
  S 2. Notwithstanding any provision of law to the contrary, the town of
Southampton may make annual payments  from  its  community  preservation
fund  to  certain  high-tax school, fire, fire protection, and ambulance
districts, as specified  in  this  section,  located  either  wholly  or
partially within the central Pine Barrens area as defined in subdivision
10  of  section  57-0107  of  the environmental conservation law.   Such
payments may be made to mitigate the impact of  the  lost  tax  revenues
from  lands  made  wholly exempt as a result of their acquisition by the
federal, state, or local government for the  preservation  of  community
character  as  defined in subdivision 4 of section 64-e of the town law.
The following districts shall  be  eligible:  Riverhead  central  school
district,  Hampton Bays union free school district, Eastport-South Manor
central  school  district,  Riverhead  fire  district,   Flanders   fire
district,  Flanders  - Northampton ambulance district, and the North End
Quogue fire protection district.
  S 3. Such payments made by the town of Southampton  pursuant  to  this
act  shall only be made for lands within such districts which are wholly
exempt from real property taxation pursuant to the real property tax law
that have been acquired by the federal government, state government,  or
a  municipal corporation for community preservation purposes pursuant to
section 64-e of the town law, whether or not said  lands  were  actually
acquired  with  community preservation funds. For the purposes of deter-
mining the payment to each eligible district, each eligible parcel shall
be assessed as provided for in the real property tax law.  Such  assess-
ments  shall  be approved by commissioner of taxation and finance in the
same manner as state lands, as provided for in subdivision 3 of  section
542  of the real property tax law.  Such eligible parcels shall be reas-

S. 3036                             3                            A. 4766

sessed annually. The town shall apply each eligible district's tax  rate
to  determine  the  maximum  payment  for  each  eligible parcel in that
district for each year.
  S  4.  Where the total annual budget appropriation by the town for the
payments provided for by this act is less than  the  aggregate  payments
for all districts, then the town shall apportion such annual payment for
each  district  based on a percentage calculated as a proportion of each
district's payment to the aggregate of payments to all  districts.    In
such  case,  each  district  shall receive its proportional share of the
budget appropriation.  Such payment made by the town shall be used sole-
ly to reduce the property tax liability of the  remaining  taxpayers  of
the  district  within  such  town.  Not more than 10 percent of the fund
collected in any fiscal year may be used for  the  purpose  outlined  in
this  section.    The  last  fiscal year for which twelve full months of
collected revenue is available shall be used to  determine  the  maximum
appropriation  permitted  by this section. The maximum percentage of the
fund to be appropriated for such payments for any year or years  may  be
reduced  below  10  percent  by an election upon proposition pursuant to
section 81 of the town law.
  S 5. The town board shall adopt an annual  plan  before  the  payments
authorized  by  this  act  may be made. No monies from the fund shall be
expended for such payments, except as approved in said plan.  Said  plan
shall  specify  each parcel eligible for a payment and shall provide for
the amount of payment for each eligible parcel for  the  current  fiscal
year  as well as an estimate for the following fiscal year. In addition,
such plan shall provide the assessed value of each eligible parcel. Said
plan shall be approved and adopted by the  town  board  after  a  public
hearing.
  S  6.  All  appropriations by the town of Southampton to the Riverhead
central school district, Hampton Bays union free school district,  East-
port-South Manor central school district, Riverhead fire district, Flan-
ders  fire  district, Flanders - Northampton ambulance district, and the
North End Quogue fire protection district pursuant to paragraph  (e)  of
subdivision  3  of  section 64-e of the town law for the years 2008, and
2009 are hereby legalized, validated, ratified, and confirmed,  provided
that  the  town of Southampton shall repay to its community preservation
fund, established pursuant to subdivision 2 of section 64-e of the  town
law,  from its general fund or capital fund an amount equal to $664,647,
said amount representing the aggregate overpayments made to  the  afore-
mentioned school and special districts for the years 2008, and 2009,  as
determined  by  the Office of the State Comptroller in an audit entitled
"Town of Southampton, Peconic Bay Community Preservation  Fund,  Payment
in  Lieu  of Taxes, Period Covered January 1, 2008-June 30, 2009", dated
November 2010. If such repayment shall be made from  the  capital  fund,
the  period of probable usefulness for such indebtedness shall be twenty
years.  In the alternative, the town may provide for the  dedication  of
additional  lands  to the community preservation fund with a fair market
value equal to $664,647 or more, said lands shall not have been acquired
with monies from the community preservation fund.
  S 7. This  act  shall  take  effect  immediately,  provided  that  the
provisions  of  sections  two,  three,  four  and five of this act shall
remain in full force and effect until December 31, 2030 when  upon  such
date  the  provisions  of  such  sections  shall  expire  and  be deemed
repealed.