Senate Bill S6546A

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

                                 6546--A
    Cal. No. 1625

                            I N  S E N A T E

                            January 25, 2016
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Local  Government  --
  committee discharged and said bill committed to the Committee on Rules
  --  ordered to a third reading, amended and ordered reprinted, retain-
  ing its place in the order of third reading

AN ACT to amend the real property tax  law,  in  relation  to  technical
  amendments  to  the  assessment  and payment of taxes on watershed and
  agricultural easements

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

  Section  1. Subdivision 4 of section 583 of the real property tax law,
as added by chapter 2 of the  laws  of  1997,  is  amended  to  read  as
follows:
  4.  "Watershed  conservation  easement"  means  an easement, covenant,
restriction or other interest in real property purchased by or on behalf
of the city of New York [on or before December thirty-first,  two  thou-
sand  sixteen]  THAT  IS located in those areas of the counties of Dela-
ware, Dutchess, Greene, Putnam, Schoharie, Sullivan,  Ulster  and  West-
chester  located  in  the  watershed  of the New York city water supply,
created under and subject to the provisions of article forty-nine of the
environmental conservation law which, for the purpose of maintaining the
open space, natural condition, or character of the real  property  in  a
manner consistent with the protection of water quality generally and the
New  York  city  water supply specifically, limits or restricts develop-
ment, management or use of such real property.
  S 2. Section 585 of the real property tax law, as added by  chapter  2
of the laws of 1997, is amended to read as follows:
  S  585.  Taxation or exemption of watershed agricultural easements. 1.
Any watershed agricultural easement ACQUIRED BEFORE JANUARY  FIRST,  TWO
THOUSAND  ELEVEN shall be exempt from taxation on any assessment roll on
which the land subject to the easement qualifies  for  and  receives  an
agricultural  assessment pursuant to article twenty-five-AA of the agri-
culture and markets law.

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

                                                           LBD11957-02-6

S. 6546--A                          2

  2. Any watershed agricultural easement that burdens  land  which  does
not  receive an agricultural assessment pursuant to article twenty-five-
AA of the agriculture and markets law OR WHICH IS ACQUIRED ON  OR  AFTER
JANUARY  FIRST,  TWO THOUSAND SEVENTEEN shall be subject to taxation for
all  purposes.  The  taxes  levied  on  such easement shall be levied as
provided in this title.
  S 3. Subdivision 2, subparagraphs i and ii of paragraph  a  and  para-
graph  b of subdivision 5 and subdivisions 6 and 7 of section 586 of the
real property tax law, as added by chapter 2 of the laws  of  1997,  are
amended to read as follows:
  2.  The  assessment  of a watershed conservation easement or watershed
agricultural easement shall be determined by multiplying the  allocation
factor  for that easement as computed in subdivision one of this section
by the assessment determined by the assessor for  the  land  subject  to
such  easement  exclusive of the improvements thereon. After subtracting
the assessment for each watershed  conservation  easement  or  watershed
agricultural  easement from the parcel's total assessment, the remaining
assessment shall be entered on the assessment roll  as  taxable  to  the
owner of the property. Each watershed conservation easement or watershed
agricultural  easement, WHETHER IT ENCUMBERS THE ENTIRE PARCEL OR ONLY A
PORTION THEREOF, shall be entered as a separate parcel  on  the  taxable
portion  of the assessment roll and shall be assessed in the name of the
city of New York.
  (i) On a parcel of property which is otherwise fully exempt from taxa-
tion, the assessor shall determine  the  taxable  [assessment]  ASSESSED
VALUE  of the easement by multiplying the allocation factor by the total
assessed value of the land; or
  (ii) On a parcel of property which is partially exempt from  taxation,
the  assessor shall determine the taxable [assessment] ASSESSED VALUE of
the easement by multiplying the allocation factor by the total  assessed
value of the land; or
  (b)  The  provisions  of  this subdivision shall not apply to [parcels
receiving an agricultural assessment pursuant to article  twenty-five-AA
of  the agriculture and markets law] WATERSHED AGRICULTURAL EASEMENTS AS
DESCRIBED IN SUBDIVISION ONE OF SECTION FIVE HUNDRED EIGHTY-FIVE OF THIS
TITLE OR TO PARCELS BURDENED BY SUCH EASEMENTS.
  6. [Whenever a watershed conservation easement or  watershed  agricul-
tural  easement encumbers only a portion of a parcel, the assessor shall
henceforth enter that portion of the parcel encumbered by such  easement
as a separate parcel on all subsequent assessment rolls.
  7.]  Whenever  a watershed conservation easement or watershed agricul-
tural  easement  encumbers  a  parcel  containing  improvements,   those
improvements shall be separately assessed in the name of the owner ther-
eof.
  S  4.  Section 589 of the real property tax law, as added by chapter 2
of the laws of 1997, subdivisions 2 and 4 as further amended by subdivi-
sion (b) of section 1 of part W of chapter 56 of the laws  of  2010,  is
amended to read as follows:
  S  589.  Change in allocation factor. 1. [The allocation factor deter-
mined in subdivision one of section  five  hundred  eighty-six  of  this
title  shall remain in effect for at least twenty years from the date it
is initially certified to the assessing unit.
  2.] At any time after [twenty years  from  the  date]  the  allocation
factor is initially certified to the assessing unit, upon the request of
the  city  or  the  owner  of  the  parcel burdened by the easement, the
commissioner may compute and certify a new allocation factor based on  a

S. 6546--A                          3

change in circumstances. A request for a review of the allocation factor
shall be made by submitting to the commissioner (a) a written request by
the  landowner,  (b)  a  written  request  by the city setting forth the
claimed  change in circumstances, (c) a written stipulation entered into
by the city and the landowner setting forth the new  allocation  factor,
or  (d)  an  appraisal or appraisals performed by a licensed real estate
appraiser within one year of submission setting forth the  current  fair
market  value  of  the easement and the current fair market value of the
land subject to the easement exclusive of improvements and  unencumbered
by  the  easement.  The commissioner shall define the changes in circum-
stances required to change the allocation factor. The party seeking  the
change  in  allocation factor shall provide copies of the appraisals and
written request to the other party.
  [3.] 2. If one party objects to a change in the allocation factor, the
party may submit the appraisals specified in subdivision  [two]  ONE  of
this  section  within  ninety  days  of  receipt  of  the other parties'
appraisal or written request.
  [4.] 3. The commissioner shall  review  the  materials  submitted  and
issue a current allocation factor determined by the materials submitted.
  [5.]  4.  If  judicial  review  is sought to challenge a determination
under this section, the action shall be commenced in the county in which
the real property is located.
  S 5. This act shall take effect immediately.