S T A T E   O F   N E W   Y O R K
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                                  6211

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 17, 2015
                               ___________

Introduced by M. of A. BRABENEC -- read once and referred to the Commit-
  tee on Real Property Taxation

AN  ACT  to  amend the real property tax law, in relation to authorizing
  the imposition of service charges upon certain real property

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

  Section  1. Subdivision 20 of section 102 of the real property tax law
is amended and a new subdivision 13-a is added to read as follows:
  13-A. "SERVICE CHARGE" MEANS A CHARGE, OTHER THAN A SPECIAL AD VALOREM
LEVY OR SPECIAL ASSESSMENT, IMPOSED UPON REAL PROPERTY BY OR  ON  BEHALF
OF  A  COUNTY, CITY, TOWN OR VILLAGE, TO DEFRAY THE COST OF SERVICES AND
IMPROVEMENTS NECESSARY OR CONVENIENT IN PROVIDING SUCH SERVICES FOR  THE
FOLLOWING PURPOSES: POLICE PROTECTION; FIRE PROTECTION; STREET AND HIGH-
WAY  CONSTRUCTION,  MAINTENANCE  AND  LIGHTING;  SANITATION;  AND  WATER
SUPPLY. ALL IMPROVEMENTS SPECIFIED IN PARAGRAPH (A) OF  SUBDIVISION  ONE
OF  SECTION  FOUR  HUNDRED  NINETY  OF THIS CHAPTER SHALL BE DEEMED SUCH
IMPROVEMENTS.
  20. "Tax" or "taxation" means a charge imposed upon real  property  by
or  on  behalf  of  a county, city, town, village or school district for
municipal or school district purposes, INCLUDING A SERVICE  CHARGE,  but
does  not include a special ad valorem levy or a special assessment. The
term "tax" or "taxes" as used in articles five, nine[, ten]  and  eleven
of  this  chapter shall for levy and collection purposes include special
ad valorem levies.
  S 2. The real property tax law is amended by adding a new section  403
to read as follows:
  S  403.  LIMITATION  ON EXEMPTIONS GRANTED BY THIS TITLE. 1.  NOTWITH-
STANDING THE PROVISIONS OF SECTIONS FOUR HUNDRED FOUR AND  FOUR  HUNDRED
SIX  OF  THIS TITLE, ALL REAL PROPERTY FOR WHICH EXEMPTION IS ALLOWED BY
ANY OF SUCH SECTIONS, EXCLUSIVE OF PROPERTY USED EXCLUSIVELY FOR  CHARI-
TABLE,  HOSPITAL,  EDUCATIONAL OR CEMETERY PURPOSES, SHALL BE SUBJECT TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09893-01-5
              

A. 6211                             2

SERVICE CHARGES COMPUTED AS PROVIDED IN SECTION FOUR HUNDRED NINETY-SEV-
EN OF THIS ARTICLE AND TO SUCH SPECIAL AD  VALOREM  LEVIES  AND  SPECIAL
ASSESSMENTS  AS ARE SPECIFIED IN SUBDIVISION TWO OF SECTION FOUR HUNDRED
NINETY OF THIS ARTICLE, EXCEPT THAT:
  (A)  REAL  PROPERTY OWNED BY A MUNICIPAL CORPORATION WITHIN ITS CORPO-
RATE LIMITS WHICH IS OTHERWISE EXEMPT FROM TAXATION SHALL BE EXEMPT FROM
ANY SUCH SERVICE CHARGE, SPECIAL AD VALOREM LEVY OR  SPECIAL  ASSESSMENT
IMPOSED BY OR ON BEHALF OF SUCH MUNICIPAL CORPORATION; OR
  (B)  REAL  PROPERTY  OWNED  BY  A MUNICIPAL CORPORATION NOT WITHIN ITS
CORPORATE LIMITS WHICH IS OTHERWISE EXEMPT FROM TAXATION, EITHER  WHOLLY
OR  PARTIALLY,  SHALL BE EXEMPT FROM ANY SUCH SERVICE CHARGE, SPECIAL AD
VALOREM LEVY OR SPECIAL ASSESSMENT IMPOSED BY OR ON BEHALF OF ANY MUNIC-
IPAL CORPORATION IN WHICH SUCH PROPERTY IS LOCATED, PROVIDED THE GOVERN-
ING BOARD THEREOF SHALL SO AGREE IN WRITING.
  2. TO THE EXTENT THAT THE PROVISIONS OF THIS SECTION ARE  INCONSISTENT
WITH ANY OTHER PROVISION OF LAW, THE PROVISIONS OF THIS SECTION SHALL BE
CONTROLLING.
  S  3.  Title 2 of article 4 of the real property tax law is amended by
adding a new section 420 to read as follows:
  S 420. LIMITATION ON EXEMPTIONS GRANTED BY THIS TITLE.  1.    NOTWITH-
STANDING  THE  PROVISIONS  OF  SECTIONS  FOUR HUNDRED TWENTY-ONE-A, FOUR
HUNDRED TWENTY-FOUR THROUGH  FOUR  HUNDRED  TWENTY-EIGHT,  FOUR  HUNDRED
THIRTY-TWO,  FOUR HUNDRED THIRTY-FOUR, FOUR HUNDRED THIRTY-EIGHT THROUGH
FOUR HUNDRED FORTY-FOUR, FOUR HUNDRED  FIFTY,  FOUR  HUNDRED  FIFTY-TWO,
FOUR  HUNDRED  SIXTY-FOUR, FOUR HUNDRED SEVENTY-TWO, FOUR HUNDRED SEVEN-
TY-FOUR, FOUR HUNDRED EIGHTY-SIX AND FOUR HUNDRED EIGHTY-EIGHT  OF  THIS
TITLE;  REAL  PROPERTY  FOR  WHICH  EXEMPTION  IS  ALLOWED  BY  ANY SUCH
SECTIONS, EXCLUSIVE OF PROPERTY OWNED BY A  CORPORATION  OR  ASSOCIATION
ORGANIZED  OR CONDUCTED EXCLUSIVELY FOR RELIGIOUS, CHARITABLE, HOSPITAL,
EDUCATIONAL OR CEMETERY PURPOSES, SHALL BE SUBJECT  TO  SERVICE  CHARGES
COMPUTED  AS PROVIDED IN SECTION FOUR HUNDRED NINETY-SEVEN OF THIS ARTI-
CLE AND TO SUCH AD VALOREM LEVIES AND SPECIAL ASSESSMENTS AS ARE  SPECI-
FIED IN SUBDIVISION TWO OF SECTION FOUR HUNDRED NINETY OF THIS CHAPTER.
  2.  TO THE EXTENT THAT THE PROVISIONS OF THIS SECTION ARE INCONSISTENT
WITH ANY OTHER PROVISION OF LAW, THE PROVISIONS OF THIS SECTION SHALL BE
CONTROLLING.
  S 4. Section 490 of the real property tax law, as amended  by  chapter
87 of the laws of 2001, is amended to read as follows:
  S  490.  Exemption  from special ad valorem levies and special assess-
ments.  [Real] 1.  EXCEPT AS OTHERWISE PROVIDED IN  SUBDIVISION  TWO  OF
THIS SECTION, REAL property exempt from taxation pursuant to subdivision
two  of  section  four  hundred, subdivision one of section four hundred
four, subdivision one of section four hundred six, sections four hundred
eight, four hundred ten, four hundred ten-a, four  hundred  ten-b,  four
hundred  eighteen,  four  hundred  twenty-a, four hundred twenty-b, four
hundred twenty-two, four hundred twenty-six, four hundred  twenty-seven,
four hundred twenty-eight, four hundred thirty, four hundred thirty-two,
four  hundred thirty-four, four hundred thirty-six, four hundred thirty-
eight, four hundred fifty, four hundred fifty-two, four  hundred  fifty-
four,  four  hundred  fifty-six,  four  hundred sixty-four, four hundred
seventy-two, four hundred seventy-four and four hundred  eighty-five  of
this  chapter  shall  also  be exempt from special ad valorem levies and
special assessments against real property  located  outside  cities  and
villages  for  a  special  improvement  or service or a special district
improvement or service and special ad valorem levies and special assess-
ments imposed by a county improvement district or  district  corporation

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except  [(1)]  (A) those levied to pay for the costs, including interest
and incidental and preliminary costs, of the acquisition,  installation,
construction,  reconstruction  and  enlargement  of  or additions to the
following   improvements,  including  original  equipment,  furnishings,
machinery or apparatus, and the replacements thereof: water  supply  and
distribution systems; sewer systems (either sanitary or surface drainage
or  both, including purification, treatment or disposal plants or build-
ings); waterways and drainage improvements; street,  highway,  road  and
parkway  improvements  (including  sidewalks,  curbs, gutters, drainage,
landscaping, grading or improving  the  right  of  way)  and  [(2)]  (B)
special assessments payable in installments on an indebtedness including
interest  contracted  prior to July first, nineteen hundred fifty-three,
pursuant to section two hundred forty-two of the town law or pursuant to
any other comparable provision of law.
  2.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
REAL PROPERTY SUBJECT TO SERVICE CHARGES AS  PROVIDED  IN  SECTION  FOUR
HUNDRED  THREE  OR  FOUR  HUNDRED  TWENTY  OF THIS ARTICLE SHALL ALSO BE
SUBJECT TO SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS IMPOSED  TO
DEFRAY  THE  COST,  INCLUDING  OPERATION  AND  MAINTENANCE,  OF  SPECIAL
DISTRICT IMPROVEMENTS OR SERVICES OR OF SPECIAL IMPROVEMENTS OR SERVICES
FOR THE FOLLOWING PURPOSES: POLICE PROTECTION; FIRE  PROTECTION;  STREET
AND  HIGHWAY  CONSTRUCTION,  MAINTENANCE  AND  LIGHTING; SANITATION; AND
WATER SUPPLY. ALL IMPROVEMENTS SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION
ONE OF THIS SECTION SHALL BE DEEMED SUCH IMPROVEMENTS.
  S 5.  The real property tax law is amended by adding a new section 497
to read as follows:
  S 497. SERVICE CHARGES. 1. ANY SERVICE CHARGE TO WHICH ANY REAL  PROP-
ERTY MAY BE SUBJECT AS PROVIDED IN SECTION FOUR HUNDRED THREE OR SECTION
FOUR  HUNDRED TWENTY OF THIS ARTICLE SHALL BE IMPOSED AT A RATE COMPUTED
AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION.
  2. FOR THE PURPOSES OF THIS SECTION, "CHARGEABLE SERVICES AND IMPROVE-
MENTS" MEANS SERVICES,  AND  IMPROVEMENTS  NECESSARY  OR  CONVENIENT  IN
PROVIDING  SUCH SERVICES, FOR THE FOLLOWING PURPOSES: POLICE PROTECTION;
FIRE PROTECTION; STREET AND HIGHWAY CONSTRUCTION, MAINTENANCE AND LIGHT-
ING; SANITATION; AND WATER SUPPLY. ALL IMPROVEMENTS SPECIFIED  IN  PARA-
GRAPH  (A)  OF  SUBDIVISION  ONE  OF SECTION FOUR HUNDRED NINETY OF THIS
TITLE SHALL BE DEEMED CHARGEABLE IMPROVEMENTS.
  3. THE AMOUNT OF THE SERVICE CHARGE SHALL BE DETERMINED AS FOLLOWS:
  (A) THE SERVICE CHARGE SHALL BE BASED ON THE ASSESSED VALUE OF THE TAX
EXEMPT REAL PROPERTY AND THE AMOUNT WHICH THE COUNTY, CITY  OR  TOWN  OR
VILLAGE EXPENDED, IN THE YEAR PRECEDING THE YEAR IN WHICH SUCH CHARGE IS
ASSESSED,  FOR CHARGEABLE SERVICES AND IMPROVEMENTS. ANY AMOUNT RECEIVED
FROM FEDERAL OR STATE AID SPECIFICALLY  DESIGNATED  FOR  THE  ABOVE-MEN-
TIONED  PURPOSES  SHALL  NOT  BE  CONSIDERED  IN DETERMINING THE COST OF
PROVIDING SUCH SERVICES FOR THE  REAL  PROPERTY.  THE  EXPENDITURES  FOR
SERVICES  NOT PROVIDED FOR CERTAIN REAL PROPERTY SHALL NOT BE CONSIDERED
IN THE CALCULATION OF THE SERVICE CHARGE FOR  SUCH  REAL  PROPERTY,  NOR
SHALL SUCH EXPENDITURES BE CONSIDERED WHEN A SERVICE IS CURRENTLY FUNDED
BY ANOTHER SPECIAL AD VALOREM LEVY OR SPECIAL ASSESSMENT.
  (B)  THE  SERVICE  CHARGE  RATE  FOR  THE TAX-EXEMPT PROPERTY SHALL BE
DETERMINED BY DIVIDING THE EXPENDITURES DETERMINED PURSUANT TO PARAGRAPH
(A) OF THIS SUBDIVISION BY THE  ASSESSED  VALUE  OF  ALL  REAL  PROPERTY
LOCATED  WITHIN  THE  COUNTY, CITY, TOWN OR VILLAGE IMPOSING THE SERVICE
CHARGE, INCLUDING NONTAXABLE PROPERTY.

A. 6211                             4

  (C) THE RESULTING RATE SHALL THEN BE APPLIED TO THE ASSESSED VALUATION
OF THE TAX EXEMPT PROPERTY SUBJECT TO SERVICE CHARGES TO  DETERMINE  THE
AMOUNT OF SUCH CHARGES.
  (D)  UNDER  NO  CIRCUMSTANCES  SHALL THE AMOUNT OF SUCH SERVICE CHARGE
EXCEED TEN PERCENT OF THE PROPERTY TAX LIABILITY IF  THE  PROPERTY  WERE
SUBJECT TO TAXATION.
  4.  THE  PROVISIONS OF THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION
OF ANY SERVICE CHARGE, SPECIAL AD VALOREM LEVY OR SPECIAL ASSESSMENT  BY
ANY  MUNICIPAL CORPORATION ON REAL PROPERTY OTHERWISE EXEMPT BY LAW FROM
TAXATION UNLESS THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION  SHALL
PREVIOUSLY, AFTER PUBLIC HEARING, HAVE ADOPTED A LOCAL LAW, ORDINANCE OR
RESOLUTION  ELECTING  TO MAKE THE PROVISIONS OF THIS SECTION APPLICABLE.
FOR THE PURPOSES OF THIS SECTION, GOVERNING BOARD, WITH RESPECT  TO  THE
CITY  OF  NEW  YORK, SHALL MEAN THE BOARD OF ESTIMATE OF THE CITY OF NEW
YORK.
  S 6. This act shall take effect on the first of April of the  calendar
year  next  succeeding the date on which it shall have become a law, and
shall apply to all assessments made with reference to a  taxable  status
date which falls on or after such effective date.