S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3990
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2017
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on Local Governments
 
 AN  ACT  to  amend the general municipal law, in relation to authorizing
   designated cities and towns to establish community preservation funds;
   and to amend the tax law, in relation to authorizing towns to impose a
   real estate transfer tax with revenues therefrom to  be  deposited  in
   such community preservation funds
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The section heading of section 6-s of the general municipal
 law, as added by chapter 596 of the laws of 2007, is amended to read  as
 follows:
   Community  preservation funds IN TOWNS IN PUTNAM AND WESTCHESTER COUN-
 TIES.
   § 2. The general municipal law is amended by adding a new section  6-t
 to read as follows:
   §  6-T.  COMMUNITY PRESERVATION FUNDS. 1. AS USED IN THIS SECTION, THE
 FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "COMMUNITY  PRESERVATION"  SHALL  MEAN  AND  INCLUDE  ANY  OF  THE
 PURPOSES OUTLINED IN SUBDIVISION FOUR OF THIS SECTION.
   (B)  "BOARD" MEANS THE ADVISORY BOARD REQUIRED PURSUANT TO SUBDIVISION
 FIVE OF THIS SECTION.
   (C) "DESIGNATED CITY OR TOWN" MEANS A CITY OUTSIDE OF A  CITY  WITH  A
 POPULATION OF ONE MILLION OR MORE, OR A TOWN.
   (D)  "GOVERNING  BODY" OR "LOCAL GOVERNING BODY" MEANS A CITY COUNCIL,
 TOWN BOARD, OR OTHER SIMILAR GROUP OF OFFICIALS  ELECTED  TO  ADMINISTER
 LOCAL LAWS.
   (E)  "FUND"  MEANS THE COMMUNITY PRESERVATION FUND CREATED PURSUANT TO
 SUBDIVISION TWO OF THIS SECTION.
   (F) "WATER QUALITY IMPROVEMENT PROJECT" MEANS: (1)  WASTEWATER  TREAT-
 MENT  IMPROVEMENT  PROJECTS;  (2) NON-POINT SOURCE ABATEMENT AND CONTROL

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

                                                            LBD04582-01-7

 A. 3990                             2
 
 PROGRAM PROJECTS DEVELOPED PURSUANT TO SECTION ELEVEN-B OF THE SOIL  AND
 WATER CONSERVATION DISTRICTS LAW, TITLE FOURTEEN OF ARTICLE SEVENTEEN OF
 THE ENVIRONMENTAL CONSERVATION LAW, SECTION 1455B OF THE FEDERAL COASTAL
 ZONE  MANAGEMENT  ACT,  OR  ARTICLE  FORTY-TWO OF THE EXECUTIVE LAW; (3)
 AQUATIC  HABITAT  RESTORATION  PROJECTS;  OR  (4)  POLLUTION  PREVENTION
 PROJECTS.  SUCH  PROJECTS SHALL HAVE AS THEIR PURPOSE THE IMPROVEMENT OF
 EXISTING WATER QUALITY TO MEET EXISTING SPECIFIC  WATER  QUALITY  STAND-
 ARDS.    PROJECTS  WHICH  HAVE AS A PURPOSE TO PERMIT OR ACCOMMODATE NEW
 GROWTH SHALL NOT BE INCLUDED WITHIN THIS DEFINITION.
   (G) "WASTEWATER TREATMENT IMPROVEMENT  PROJECT"  MEANS  THE  PLANNING,
 DESIGN, CONSTRUCTION, ACQUISITION, ENLARGEMENT, EXTENSION, OR ALTERATION
 OF  A  WASTEWATER TREATMENT FACILITY, INCLUDING ALTERNATIVE SYSTEMS TO A
 SEWAGE TREATMENT PLANT OR TRADITIONAL SEPTIC SYSTEM, TO TREAT,  NEUTRAL-
 IZE, STABILIZE, ELIMINATE OR PARTIALLY ELIMINATE SEWAGE OR REDUCE POLLU-
 TANTS  IN  TREATMENT  FACILITY  EFFLUENT,  INCLUDING  PERMANENT OR PILOT
 DEMONSTRATION WASTEWATER TREATMENT PROJECTS, OR EQUIPMENT OR FURNISHINGS
 THEREOF. STORMWATER COLLECTING SYSTEMS AND VESSEL PUMPOUT STATIONS SHALL
 ALSO BE INCLUDED WITHIN  THE  DEFINITION  OF  A  WASTEWATER  IMPROVEMENT
 PROJECT.
   (H)  "AQUATIC HABITAT RESTORATION PROJECT" MEANS THE PLANNING, DESIGN,
 CONSTRUCTION, MANAGEMENT, MAINTENANCE,  RECONSTRUCTION,  REVITALIZATION,
 OR  REJUVENATION  ACTIVITIES  INTENDED TO IMPROVE WATERS OF THE STATE OF
 ECOLOGICAL SIGNIFICANCE OR ANY PART THEREOF, INCLUDING, BUT NOT  LIMITED
 TO  PONDS,  BOGS,  WETLANDS, BAYS, SOUNDS, STREAMS, RIVERS, OR LAKES AND
 SHORELINES THEREOF, TO SUPPORT A SPAWNING, NURSERY, WINTERING,  MIGRATO-
 RY,  NESTING,  BREEDING,  FEEDING,  OR FORAGING ENVIRONMENT FOR FISH AND
 WILDLIFE AND OTHER BIOTA.
   (I)  "POLLUTION  PREVENTION  PROJECT"  MEANS  THE  PLANNING,   DESIGN,
 CONSTRUCTION,  IMPROVEMENT,  MAINTENANCE  OR  ACQUISITION OF FACILITIES,
 PRODUCTION PROCESSES, EQUIPMENT OR BUILDINGS OWNED OR OPERATED BY  MUNI-
 CIPALITIES  FOR  THE  REDUCTION, AVOIDANCE, OR ELIMINATION OF THE USE OF
 TOXIC OR HAZARDOUS SUBSTANCES OR THE GENERATION OF  SUCH  SUBSTANCES  OR
 POLLUTANTS  SO  AS  TO REDUCE RISKS TO PUBLIC HEALTH OR THE ENVIRONMENT,
 INCLUDING  CHANGES  IN  PRODUCTION  PROCESSES  OR  RAW  MATERIALS;  SUCH
 PROJECTS  SHALL  NOT  INCLUDE  INCINERATION, TRANSFER FROM ONE MEDIUM OF
 RELEASE OR DISCHARGE TO ANOTHER MEDIUM,  OFF-SITE  OR  OUT-OF-PRODUCTION
 RECYCLING, END-OF-PIPE TREATMENT OR POLLUTION CONTROL.
   (J)  "STORMWATER  COLLECTING SYSTEM" MEANS SYSTEMS OF CONDUITS AND ALL
 OTHER  CONSTRUCTION,  DEVICES,  AND  APPLIANCES   APPURTENANT   THERETO,
 DESIGNED  AND  USED  TO  COLLECT AND CARRY STORMWATER AND SURFACE WATER,
 STREET WASH, AND OTHER WASH AND DRAINAGE WATERS TO A  POINT  SOURCE  FOR
 DISCHARGE.
   (K) "VESSEL PUMPOUT STATION" MEANS A PROJECT FOR THE PLANNING, DESIGN,
 ACQUISITION OR CONSTRUCTION OF A PERMANENT OR PORTABLE DEVICE CAPABLE OF
 REMOVING HUMAN SEWAGE FROM A MARINE HOLDING TANK.
   2.  THE LOCAL GOVERNING BODY OF ANY DESIGNATED CITY OR TOWN IS AUTHOR-
 IZED TO ESTABLISH BY LOCAL LAW A COMMUNITY PRESERVATION FUND PURSUANT TO
 THE PROVISIONS OF THIS SECTION.  DEPOSITS  INTO  THE  FUND  MAY  INCLUDE
 REVENUES OF THE LOCAL GOVERNMENT FROM WHATEVER SOURCE AND SHALL INCLUDE,
 AT  A MINIMUM, ALL REVENUES FROM A TAX IMPOSED UPON THE TRANSFER OF REAL
 PROPERTY INTERESTS IN SUCH CITY OR  TOWN  PURSUANT  TO  ARTICLE  THIRTY-
 THREE-C  OF  THE  TAX  LAW.  THE FUND SHALL ALSO BE AUTHORIZED TO ACCEPT
 GIFTS OF ANY SUCH INTERESTS IN LAND OR OF  FUNDS.  INTEREST  ACCRUED  BY
 MONIES  DEPOSITED  INTO  THE  FUND  SHALL BE CREDITED TO THE FUND. IN NO
 EVENT SHALL MONIES DEPOSITED IN THE FUND BE  TRANSFERRED  TO  ANY  OTHER
 ACCOUNT. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO PREVENT

 A. 3990                             3
 
 THE FINANCING IN WHOLE OR IN PART, PURSUANT TO THE LOCAL FINANCE LAW, OF
 ANY  ACQUISITION  AUTHORIZED  PURSUANT  TO THIS SECTION. MONIES 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. 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 DESIGNATED CITY OR TOWN
 INCLUDING VILLAGES THEREIN IN ACCORDANCE WITH SUCH PLAN AND  IN  COOPER-
 ATION WITH WILLING SELLERS, (C) TO ESTABLISH A BANK PURSUANT TO A TRANS-
 FER  OF  DEVELOPMENT  RIGHTS PROGRAM CONSISTENT WITH SECTION TWO HUNDRED
 SIXTY-ONE-A OF THE TOWN LAW, (D) TO PROVIDE A MANAGEMENT AND STEWARDSHIP
 PROGRAM FOR SUCH INTERESTS AND RIGHTS CONSISTENT WITH  SUBDIVISION  NINE
 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
 IMPLEMENT WATER QUALITY IMPROVEMENT PROJECTS IN ACCORDANCE WITH  A  PLAN
 TO  PRESERVE COMMUNITY CHARACTER. IF THE IMPLEMENTATION OF THE COMMUNITY
 PRESERVATION PROJECT  PLAN,  ADOPTED  BY  A  LOCAL  GOVERNING  BODY,  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. PRELIMINARY AND INCIDENTAL COSTS IN CONNECTION
 WITH  THE  ACQUISITION OF INTERESTS OR RIGHTS IN REAL PROPERTY, PURSUANT
 TO THIS SUBDIVISION, SHALL BE DEEMED PART OF THE COST OF THE ACQUISITION
 FOR WHICH THEY WERE INCURRED. SUCH EXPENDITURES MAY INCLUDE ANY ADMINIS-
 TRATIVE OR OTHER EXPENDITURES DIRECTLY ARISING THEREFROM. NO EXPENDITURE
 SHALL BE CHARGED TO THE FUND, UNLESS AUTHORIZED BY LAW. A FULL  ACCOUNT-
 ING  OF SUCH COSTS FOR EACH ACQUISITION OF LAND SHALL BE PROVIDED TO THE
 LOCAL GOVERNING BODY.
   4. PRESERVATION OF COMMUNITY CHARACTER SHALL INVOLVE ONE  OR  MORE  OF
 THE  FOLLOWING:  (A) ESTABLISHMENT OF PARKS, NATURE PRESERVES, OR RECRE-
 ATION AREAS; (B) PRESERVATION  OF  OPEN  SPACE,  INCLUDING  AGRICULTURAL
 LANDS PROVIDED, HOWEVER, THAT FARM BUILDINGS AND STRUCTURES USED FOR THE
 MARKETING  OF FARM PRODUCTS PRODUCED ON SUCH AGRICULTURAL LANDS WHERE AT
 LEAST FIFTY PERCENT OF THE GROSS ANNUAL INCOME  RESULTS  FROM  SALES  OF
 PRODUCTS  PRODUCED  ON SUCH LANDS AND, IN ADDITION THE SALE OF ANY OTHER
 LOCALLY SOURCED AND/OR PRODUCED FOOD AND PLANT PRODUCTS SHALL BE PERMIT-
 TED; (C) PRESERVATION OF LANDS OF EXCEPTIONAL SCENIC VALUE; (D)  PRESER-
 VATION  OF  FRESH AND SALTWATER MARSHES OR OTHER WETLANDS; (E) PRESERVA-
 TION  OF  AQUIFER  RECHARGE  AREAS;  (F)  PRESERVATION  OF   UNDEVELOPED
 BEACHLANDS  OR  SHORELINE INCLUDING THOSE AT SIGNIFICANT RISK OF COASTAL
 FLOODING DUE TO PROJECTED SEA LEVEL RISE AND FUTURE STORMS;  (G)  ESTAB-
 LISHMENT  OF  WILDLIFE  REFUGES  FOR  THE  PURPOSE OF MAINTAINING NATIVE
 ANIMAL SPECIES DIVERSITY, INCLUDING THE PROTECTION OF HABITAT  ESSENTIAL
 TO THE RECOVERY OF RARE, THREATENED OR ENDANGERED SPECIES; (H) PRESERVA-
 TION  OF  PINE  BARRENS CONSISTING OF SUCH BIOTA AS PITCH PINE AND SCRUB
 OAK; (I) PRESERVATION OF UNIQUE  OR  THREATENED  ECOLOGICAL  AREAS;  (J)
 PRESERVATION OF RIVERS AND RIVER AREAS IN A NATURAL, FREE-FLOWING CONDI-
 TION;  (K)  PRESERVATION  OF  FORESTED  LAND; (L) PRESERVATION OF PUBLIC
 ACCESS TO LANDS FOR PUBLIC USE INCLUDING STREAM  RIGHTS  AND  WATERWAYS;
 (M)  PRESERVATION  OF  HISTORIC  PLACES AND PROPERTIES LISTED ON THE NEW
 YORK STATE REGISTER OF HISTORIC PLACES AND/OR PROTECTED UNDER A  MUNICI-
 PAL  HISTORIC  PRESERVATION ORDINANCE OR LAW; AND (N) UNDERTAKING ANY OF

 A. 3990                             4
 
 THE AFOREMENTIONED IN FURTHERANCE OF THE ESTABLISHMENT OF  A  GREENBELT.
 PRESERVATION  OF  COMMUNITY  CHARACTER SHALL ALSO INCLUDE THE PROTECTION
 AND IMPROVEMENT OF THE QUALITY OF ALL WATER RESOURCES.
   5.  THE GOVERNING BODY OF ANY DESIGNATED CITY OR TOWN WHICH HAS ESTAB-
 LISHED A COMMUNITY PRESERVATION FUND SHALL CREATE AN ADVISORY  BOARD  TO
 REVIEW AND MAKE RECOMMENDATIONS ON PROPOSED ACQUISITIONS OF INTERESTS IN
 REAL  PROPERTY  OR  WATER QUALITY IMPROVEMENT PROJECTS USING MONIES FROM
 THE FUND. SUCH BOARD SHALL CONSIST OF FIVE OR SEVEN LEGAL  RESIDENTS  OF
 THE  MUNICIPALITY WHO SHALL SERVE WITHOUT COMPENSATION. NO MEMBER OF THE
 LOCAL LEGISLATIVE BODY SHALL SERVE ON  THE  BOARD.  A  MAJORITY  OF  THE
 MEMBERS  OF  THE BOARD SHALL HAVE DEMONSTRATED EXPERIENCE WITH CONSERVA-
 TION AND LAND  PRESERVATION  ACTIVITIES  OR  WATER  QUALITY  IMPROVEMENT
 ACTIVITIES.  THE  BOARD  SHALL  ACT IN AN ADVISORY CAPACITY TO THE LOCAL
 GOVERNING BODY.
   6. THE GOVERNING BODY OF ANY DESIGNATED CITY OR TOWN WHICH HAS  ESTAB-
 LISHED A COMMUNITY PRESERVATION FUND SHALL, BY LOCAL LAW, ADOPT A COMMU-
 NITY PRESERVATION PROJECT PLAN. THIS PLAN SHALL LIST EVERY PROJECT WHICH
 THE  CITY OR TOWN PLANS TO UNDERTAKE PURSUANT TO THE COMMUNITY PRESERVA-
 TION FUND.   IT SHALL INCLUDE EVERY PARCEL  WHICH  IS  NECESSARY  TO  BE
 ACQUIRED  IN  THE  CITY OR TOWN IN ORDER TO PROTECT COMMUNITY CHARACTER.
 SUCH 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,  INCLUD-
 ING  DENSITY  REDUCTIONS,  CLUSTER DEVELOPMENT, AND SITE PLAN AND DESIGN
 REQUIREMENTS, (C) TRANSFER OF DEVELOPMENT RIGHTS, (D)  THE  PURCHASE  OF
 DEVELOPMENT  RIGHTS,  AND  (E)  SCENIC  AND CONSERVATION EASEMENTS. SAID
 EVALUATION SHALL BE  AS  SPECIFIC  AS  PRACTICABLE  AS  TO  EACH  PARCEL
 SELECTED FOR INCLUSION IN THE PLAN. THE PLAN SHALL ESTABLISH THE PRIORI-
 TIES  FOR  PRESERVATION.   SAID PLAN SHALL ALSO LIST EVERY WATER QUALITY
 IMPROVEMENT PROJECT WHICH THE CITY OR TOWN PLANS TO  UNDERTAKE  PURSUANT
 TO  THE  COMMUNITY  PRESERVATION  FUND  AND SHALL STATE HOW SUCH PROJECT
 WOULD IMPROVE EXISTING WATER  QUALITY.  PROJECTS  WHICH  HAVE  AS  THEIR
 PURPOSE THE ACCOMMODATION OF NEW GROWTH AS OPPOSED TO THE REMEDIATION OF
 WATER  QUALITY  SHALL  NOT QUALIFY FOR FUNDING UNDER THIS SECTION. FUNDS
 FROM THE COMMUNITY PRESERVATION FUND MAY ONLY BE EXPENDED  FOR  PROJECTS
 WHICH  HAVE  BEEN  INCLUDED IN SAID PLAN. SAID PLAN SHALL BE UPDATED NOT
 LESS THAN ONCE EVERY FIVE YEARS. SAID PLAN SHALL BE COMPLETED  AT  LEAST
 SIXTY DAYS BEFORE THE SUBMISSION OF THE MANDATORY REFERENDUM REQUIRED BY
 SECTION  FIFTEEN  HUNDRED  SEVENTY-SIX OF THE TAX LAW. AS PART OF, OR IN
 ADDITION, TO SAID COMMUNITY PRESERVATION FUND PROJECT PLAN,  EACH  LOCAL
 GOVERNING  BODY  MAY  ALSO  ADOPT  A MANAGEMENT AND STEWARDSHIP PLAN FOR
 INTERESTS OR RIGHTS IN REAL PROPERTY ACQUIRED PURSUANT TO THIS  SECTION.
 NO  MONIES  FROM  THE FUND SHALL BE EXPENDED FOR MANAGEMENT AND STEWARD-
 SHIP, EXCEPT AS APPROVED IN SAID PLAN. SAID PLAN MAY PROVIDE  MANAGEMENT
 AND STEWARDSHIP PROJECTS FOR UP TO A THREE YEAR PERIOD AND SHALL PROVIDE
 A  DESCRIPTION  AND  ESTIMATED COST FOR EACH PROJECT. SAID PLAN SHALL BE
 APPROVED AND ADOPTED BY LOCAL LAW AND MAY BE UPDATED FROM TIME  TO  TIME
 AT  THE  DISCRETION  OF  THE  LOCAL  GOVERNING BODY. ONLY MANAGEMENT AND
 STEWARDSHIP PROJECTS PERMITTED PURSUANT  TO  SUBDIVISION  NINE  OF  THIS
 SECTION SHALL BE ELIGIBLE TO BE INCLUDED IN THE PLAN.
   7.  THE GOVERNING BODY OF ANY DESIGNATED CITY OR TOWN WHICH HAS ESTAB-
 LISHED A COMMUNITY PRESERVATION FUND  PURSUANT  TO  THIS  SECTION  SHALL
 STUDY AND CONSIDER ESTABLISHING A TRANSFER OF DEVELOPMENT RIGHTS PROGRAM
 TO  PROTECT  COMMUNITY  CHARACTER AS PROVIDED FOR BY SECTION TWO HUNDRED
 SIXTY-ONE-A OF THE TOWN LAW. ALL PROVISIONS OF SUCH SECTION TWO  HUNDRED
 SIXTY-ONE-A  SHALL  BE  COMPLIED WITH. IF AT ANY TIME DURING THE LIFE OF

 A. 3990                             5
 
 THE COMMUNITY PRESERVATION FUND A TRANSFER OF DEVELOPMENT RIGHTS PROGRAM
 IS ESTABLISHED, THE CITY OR TOWN MAY UTILIZE MONIES FROM  THE  COMMUNITY
 PRESERVATION  FUND  IN  ORDER  TO  CREATE AND FUND A CENTRAL BANK OF THE
 TRANSFER  OF DEVELOPMENT RIGHTS PROGRAM.  IF AT ANY TIME DURING THE LIFE
 OF THE COMMUNITY PRESERVATION FUND, A  TRANSFER  OF  DEVELOPMENT  RIGHTS
 PROGRAM  IS  REPEALED  BY  THE CITY OR TOWN, ALL MONIES FROM THE CENTRAL
 BANK SHALL BE RETURNED TO THE COMMUNITY PRESERVATION 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 LOCAL  GOVERNING  BODY  FROM  ENTERING
 INTO  A  CONDITIONAL PURCHASE AGREEMENT BEFORE A PUBLIC HEARING IS HELD.
 ANY RESOLUTION OF A LOCAL GOVERNING BODY  APPROVING  AN  ACQUISITION  OF
 LAND  PURSUANT TO THIS SECTION, SHALL FIND THAT ACQUISITION WAS THE BEST
 ALTERNATIVE FOR THE PROTECTION OF COMMUNITY CHARACTER OF ALL THE REASON-
 ABLE ALTERNATIVES AVAILABLE TO THE CITY OR TOWN.
   9. LANDS 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  SUCH LANDS; (B) PRESERVES THE NATIVE BIOLOGICAL DIVERSITY
 OF SUCH LANDS; (C) WITH REGARD TO OPEN SPACES,  LIMITS  IMPROVEMENTS  TO
 ENHANCING  ACCESS  FOR  PASSIVE USE OF SUCH LANDS SUCH AS NATURE TRAILS,
 BOARDWALKS, BICYCLE PATHS, AND PERIPHERAL PARKING  AREAS  PROVIDED  THAT
 SUCH  IMPROVEMENTS  DO  NOT  DEGRADE THE ECOLOGICAL VALUE OF THE LAND OR
 THREATEN ESSENTIAL WILDLIFE HABITAT; AND (D) PRESERVES CULTURAL PROPERTY
 CONSISTENT WITH  ACCEPTED  STANDARDS  FOR  HISTORIC  PRESERVATION.    IN
 FURTHERING THE PURPOSES OF THIS SECTION, THE CITY OR TOWN MAY ENTER INTO
 AGREEMENTS  WITH  CORPORATIONS ORGANIZED UNDER THE NOT-FOR-PROFIT CORPO-
 RATION LAW AND ENGAGE IN LAND TRUST ACTIVITIES TO MANAGE LANDS INCLUDING
 LESS THAN FEE INTERESTS ACQUIRED PURSUANT  TO  THE  PROVISIONS  OF  THIS
 SECTION, PROVIDED THAT ANY SUCH AGREEMENT SHALL CONTAIN A PROVISION THAT
 SUCH  CORPORATION  SHALL  KEEP THE LANDS ACCESSIBLE TO THE PUBLIC UNLESS
 SUCH CORPORATION SHALL DEMONSTRATE TO THE SATISFACTION OF  THE  CITY  OR
 TOWN  THAT PUBLIC ACCESSIBILITY WOULD BE DETRIMENTAL TO THE LANDS OR ANY
 NATURAL RESOURCES ASSOCIATED THEREWITH.  EXCEPT FOR INTERESTS OR  RIGHTS
 IN REAL PROPERTY ACQUIRED FOR HISTORIC PRESERVATION PURPOSES, MANAGEMENT
 AND  STEWARDSHIP  PROJECTS SHALL BE ONLY EXPENDED FOR (1) PROJECTS WHICH
 PROMOTE THE PROTECTION OR ENHANCEMENT OF THE NATURAL, SCENIC,  AND  OPEN
 SPACE  CHARACTER FOR WHICH THE INTERESTS OR RIGHTS IN REAL PROPERTY WERE
 ACQUIRED, OR (2) ACCESSORY USES RELATED TO THE  PURPOSE  FOR  WHICH  THE
 INTERESTS  OR RIGHTS IN REAL PROPERTY WERE ACQUIRED CONSISTENT WITH THIS
 SUBDIVISION, OR (3) RESTORATION OF ACQUIRED REAL PROPERTY TO ITS NATURAL
 STATE INCLUDING THE DEMOLITION OF EXISTING BUILDINGS AND STRUCTURES.  IN
 THE  CASE  OF INTERESTS OR RIGHTS IN REAL PROPERTY ACQUIRED FOR HISTORIC
 PRESERVATION PURPOSES, FUNDS MAY BE EXPENDED ONLY  FOR  THE  RESTORATION
 AND  REHABILITATION OF BUILDINGS AND STRUCTURES CONSISTENT WITH ACCEPTED
 STANDARDS FOR HISTORIC PRESERVATION. EXPENSES RELATED TO  THE  CUSTOMARY
 OPERATION  AND MAINTENANCE OF ACQUIRED INTERESTS OR RIGHTS IN REAL PROP-
 ERTY SHALL NOT BE PERMITTED FROM THE FUND. ANY EXPENDITURE FROM THE FUND
 FOR A PURPOSE OTHER THAN THAT PERMITTED, HEREIN, SHALL BE DEEMED  TO  BE
 PROHIBITED.
   10.  RIGHTS  OR  INTERESTS  IN REAL PROPERTY ACQUIRED WITH MONIES FROM
 SUCH FUND SHALL NOT BE SOLD, LEASED, EXCHANGED,  DONATED,  OR  OTHERWISE
 DISPOSED  OF  OR  USED  FOR  OTHER  THAN  THE PURPOSES PERMITTED BY THIS
 SECTION WITHOUT THE EXPRESS AUTHORITY OF  AN  ACT  OF  THE  LEGISLATURE,
 WHICH  SHALL  PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL ENVI-

 A. 3990                             6
 
 RONMENTAL VALUE AND FAIR MARKET VALUE AND REASONABLY EQUIVALENT  USEFUL-
 NESS  AND LOCATION TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED OF, AND
 SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE LEGISLATURE.   NOTH-
 ING  IN  THIS SECTION SHALL PRECLUDE A DESIGNATED CITY OR TOWN, 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  CITY  OR  TOWN  ACQUIRED
 PURSUANT  TO  THIS  SECTION,  WHERE  SAID SALE IS MADE BY A CENTRAL BANK
 CREATED BY A CITY OR TOWN, PURSUANT TO A TRANSFER OF DEVELOPMENT  RIGHTS
 PROGRAM   ESTABLISHED   BY  A  TOWN  PURSUANT  TO  SECTION  TWO  HUNDRED
 SIXTY-ONE-A OF THE TOWN LAW, PROVIDED, HOWEVER (A) THAT THE  LANDS  FROM
 WHICH  SAID  DEVELOPMENT  RIGHTS WERE ACQUIRED SHALL REMAIN PRESERVED IN
 PERPETUITY BY A PERMANENT CONSERVATION EASEMENT OR OTHER INSTRUMENT THAT
 SIMILARLY PRESERVES THE COMMUNITY CHARACTER  REFERENCED  IN  SUBDIVISION
 FOUR  OF  THIS  SECTION,  AND  (B)  THE PROCEEDS FROM SUCH SALE SHALL BE
 DEPOSITED IN THE COMMUNITY PRESERVATION FUND.
   11. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  DESIGNATED
 CITIES  OR  TOWNS  MAY ENTER INTO INTER-MUNICIPAL AGREEMENTS PURSUANT TO
 ARTICLE FIVE-G OF THIS CHAPTER FOR THE FOLLOWING PURPOSES: (A) TO JOINT-
 LY ACQUIRE INTERESTS OR RIGHTS IN REAL  PROPERTY,  CONSISTENT  WITH  THE
 PURPOSES  OF  THIS  SECTION,  WHERE THE ACQUISITION OF SUCH INTERESTS OR
 RIGHTS PROMOTES A REGIONAL PUBLIC BENEFIT FOR TWO OR MORE TOWNS PURSUANT
 TO A REGIONAL PLAN, (B) TO ESTABLISH AN OFFICE OR DEPARTMENT  TO  RENDER
 LEGAL  OPINIONS  AND  INTERPRETATIONS  TO  FACILITATE  THE EFFICIENT AND
 CONSISTENT ADMINISTRATION OF EACH FUND CREATED UNDER THIS  SECTION,  (C)
 TO  PROVIDE  FOR AN INDEPENDENT FINANCIAL AUDIT OF EACH CITY'S OR TOWN'S
 FUND, AND (D) TO HIRE EMPLOYEES NECESSARY TO IMPLEMENT THE PROVISIONS OF
 THIS SECTION.
   12. EACH DESIGNATED CITY OR TOWN WHICH  HAS  ESTABLISHED  A  COMMUNITY
 PRESERVATION  FUND SHALL ANNUALLY COMMISSION AN INDEPENDENT AUDIT OF THE
 FUND. THE AUDIT SHALL BE CONDUCTED BY AN  INDEPENDENT  CERTIFIED  PUBLIC
 ACCOUNTANT  OR  AN  INDEPENDENT  PUBLIC  ACCOUNTANT. SAID AUDIT SHALL BE
 PERFORMED BY A CERTIFIED PUBLIC  ACCOUNTANT  OR  AN  INDEPENDENT  PUBLIC
 ACCOUNTANT  OTHER  THAN  THE ONE THAT PERFORMS THE GENERAL AUDIT OF EACH
 CITY'S OR TOWN'S FINANCES. SUCH AUDIT SHALL BE  AN  EXAMINATION  OF  THE
 FUND AND SHALL DETERMINE WHETHER THE FUND HAS BEEN ADMINISTERED CONSIST-
 ENT  WITH  THE  PROVISIONS  OF  THIS  SECTION  AND  ALL OTHER APPLICABLE
 PROVISIONS OF STATE LAW. SAID AUDIT SHALL BE INITIATED WITHIN SIXTY DAYS
 OF THE CLOSE OF THE FISCAL YEAR OF  EACH  CITY  OR  TOWN  AND  SHALL  BE
 COMPLETED  WITHIN  ONE  HUNDRED  TWENTY  DAYS OF THE CLOSE OF THE FISCAL
 YEAR. A COPY OF THE AUDIT SHALL BE SUBMITTED ANNUALLY TO THE STATE COMP-
 TROLLER AND THE CITY OR TOWN CLERK. A COPY OF THE AUDIT  SHALL  BE  MADE
 AVAILABLE  TO  THE PUBLIC WITHIN THIRTY DAYS OF ITS COMPLETION. A NOTICE
 OF THE COMPLETION OF THE AUDIT SHALL BE PUBLISHED IN THE OFFICIAL  NEWS-
 PAPER  OF  THE CITY OR TOWN AND POSTED ON THE OFFICIAL SIGN BOARD OF THE
 CITY OR TOWN WITHIN TEN DAYS OF ITS FILING WITH  THE  TOWN  CLERK.  SAID
 AUDIT  AND NOTICE SHALL ALSO BE POSTED ON THE INTERNET SITE FOR THE CITY
 OR TOWN. THE COST OF THE AUDIT MAY BE A CHARGE TO THE FUND.
   13. THE COST OF EMPLOYEES AND INDEPENDENT CONTRACTORS TO IMPLEMENT THE
 PROVISIONS OF THIS SECTION MAY ONLY BE PAID FOR BY THE  FUND  WHERE  THE
 DUTIES  AND  RESPONSIBILITIES OF SAID EMPLOYEES AND INDEPENDENT CONTRAC-
 TORS ARE DIRECTLY DEDICATED  TO  IMPLEMENTING  THE  PROVISIONS  OF  THIS
 SECTION.    WHERE  SUCH  EMPLOYEES  AND  INDEPENDENT CONTRACTORS ARE NOT
 EXCLUSIVELY DEDICATED TO IMPLEMENTING THE PROVISIONS OF THIS SECTION, NO
 MORE THAN THE COST OF THE ACTUAL TIME  EXPENDED  DIRECTLY  DEDICATED  TO
 IMPLEMENTING  THE  PROVISIONS OF THIS SECTION MAY BE CHARGED. SUCH COSTS

 A. 3990                             7
 
 SHALL BE EXPRESSLY IDENTIFIED IN THE CITY OR TOWN BUDGET  AND  ANY  PLAN
 ADOPTED  PURSUANT  TO  THIS  SECTION  BEFORE FUNDS FOR SUCH COSTS MAY BE
 EXPENDED. IN ADDITION, SUCH COSTS MUST BE DOCUMENTED BY A TIME  ACCOUNT-
 ING  SYSTEM,  SUBJECT  TO  AUDIT.    COSTS RELATING TO THE ACTIVITIES OF
 ELECTED OFFICIALS IMPLEMENTING THE PURPOSES OF THIS SECTION MAY NOT BE A
 CHARGE TO THE FUND.
   § 3. The article heading of article 33-B of the tax law, as  added  by
 chapter 596 of the laws of 2007, is amended to read as follows:
            TAX ON REAL ESTATE TRANSFERS IN TOWNS IN PUTNAM AND
                           WESTCHESTER COUNTIES
   §  4.  The  tax law is amended by adding a new article 33-C to read as
 follows:
                               ARTICLE 33-C
              TAX ON REAL ESTATE TRANSFERS IN CITIES OR TOWNS
 SECTION 1575. DEFINITIONS.
         1576. IMPOSITION OF TAX.
         1577. PAYMENT OF TAX.
         1578. LIABILITY FOR TAX.
         1579. EXEMPTIONS.
         1580. CREDIT.
         1581. COOPERATIVE HOUSING CORPORATION TRANSFERS.
         1582. DESIGNATION OF AGENTS.
         1583. LIABILITY OF RECORDING OFFICER.
         1584. DEPOSIT AND DISPOSITION OF REVENUE.
         1585. JUDICIAL REVIEW.
         1586. APPORTIONMENT.
         1587. MISCELLANEOUS.
         1588. RETURNS TO BE SECRET.
   § 1575. DEFINITIONS. WHEN  USED  IN  THIS  ARTICLE,  UNLESS  OTHERWISE
 EXPRESSLY STATED, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   1. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPA-
 NY,  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.
   2.  "CONTROLLING  INTEREST"  MEANS  (A)  IN THE CASE OF A CORPORATION,
 EITHER FIFTY PERCENT OR MORE OF THE TOTAL COMBINED VOTING POWER  OF  ALL
 CLASSES  OF  STOCK  OF SUCH CORPORATION, OR FIFTY PERCENT OR MORE OF THE
 CAPITAL, PROFITS OR BENEFICIAL INTEREST IN SUCH  VOTING  STOCK  OF  SUCH
 CORPORATION, AND (B) IN THE CASE OF A PARTNERSHIP, ASSOCIATION, TRUST OR
 OTHER  ENTITY,  FIFTY PERCENT OR MORE OF THE CAPITAL, PROFITS OR BENEFI-
 CIAL INTEREST IN SUCH PARTNERSHIP, ASSOCIATION, TRUST OR OTHER ENTITY.
   3. "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 CITY OR TOWN. IT  SHALL
 NOT INCLUDE RIGHTS TO SEPULTURE.
   4.  "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-

 A. 3990                             8
 
 BRANCE,  WHETHER  OR NOT THE UNDERLYING INDEBTEDNESS IS ASSUMED OR TAKEN
 SUBJECT TO.
   (A)  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
 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.
   (B) 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.
   (C) 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.
   (D)  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.
   (E) IN THE CASE OF (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 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.
   5.  "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 (A) THE SUM OF  THE  TERM  OF  THE
 LEASE  OR SUBLEASE AND ANY OPTIONS FOR RENEWAL EXCEEDS FORTY-NINE YEARS,
 (B) SUBSTANTIAL CAPITAL IMPROVEMENTS ARE OR MAY BE MADE BY  OR  FOR  THE
 BENEFIT OF THE LESSEE OR SUBLESSEE, AND (C) THE LEASE OR SUBLEASE IS FOR
 SUBSTANTIALLY  ALL  OF  THE  PREMISES  CONSTITUTING  THE  REAL PROPERTY.
 NOTWITHSTANDING THE FOREGOING, CONVEYANCE OF  REAL  PROPERTY  SHALL  NOT
 INCLUDE  A  CONVEYANCE  MADE PURSUANT TO DEVISE, BEQUEST OR INHERITANCE;

 A. 3990                             9
 
 THE CREATION, MODIFICATION,  EXTENSION,  SPREADING,  SEVERANCE,  CONSOL-
 IDATION,  ASSIGNMENT, TRANSFER, RELEASE OR SATISFACTION 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.
   6.  "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.
   7.  "GRANTOR"  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, "GRANTOR" MEANS THE ENTITY WITH AN INTEREST IN REAL PROP-
 ERTY OR A SHAREHOLDER  OR  PARTNER  TRANSFERRING  STOCK  OR  PARTNERSHIP
 INTEREST, RESPECTIVELY.
   8.  "GRANTEE"  MEANS  THE PERSON WHO OBTAINS REAL PROPERTY OR INTEREST
 THEREIN AS A RESULT OF A CONVEYANCE.
   9. "FUND" MEANS A COMMUNITY  PRESERVATION  FUND  CREATED  PURSUANT  TO
 SECTION SIX-T OF THE GENERAL MUNICIPAL LAW.
   10. "RECORDING OFFICER" MEANS THE COUNTY CLERK.
   11. "CITY OR TOWN" MEANS A MUNICIPAL CORPORATION COMPRISING THE INHAB-
 ITANTS  WITHIN  ITS BOUNDARIES, AND FORMED FOR THE PURPOSE OF EXERCISING
 SUCH POWERS AND DISCHARGING SUCH DUTIES OF LOCAL GOVERNMENT AND ADMINIS-
 TRATION OF PUBLIC AFFAIRS AS HAVE BEEN, OR, MAY BE CONFERRED OR  IMPOSED
 UPON IT BY LAW AND HAS A POPULATION OF ONE MILLION OR FEWER PERSONS.
   12. "TREASURER" MEANS THE COUNTY TREASURER.
   § 1576. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW
 TO  THE  CONTRARY,  ANY CITY OR TOWN, ACTING THROUGH ITS LOCAL GOVERNING
 BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL  LAW  IMPOSING
 IN SUCH CITY OR TOWN A TAX ON EACH CONVEYANCE OF REAL PROPERTY OR INTER-
 EST THEREIN WHERE THE CONSIDERATION EXCEEDS FIVE HUNDRED DOLLARS, AT THE
 RATE  OF  UP  TO  TWO  PERCENT OF THE CONSIDERATION FOR SUCH CONVEYANCE.
 PROVIDED, HOWEVER, ANY SUCH LOCAL LAW IMPOSING, REPEALING OR  REIMPOSING
 SUCH  TAX SHALL BE SUBJECT TO A MANDATORY REFERENDUM PURSUANT TO SECTION
 TWENTY-THREE OF THE MUNICIPAL HOME RULE LAW. SUCH LOCAL LAW  SHALL  ONLY
 BE  SUBMITTED  FOR  THE  APPROVAL OF THE ELECTORS AT A GENERAL ELECTION.
 NOTWITHSTANDING THE FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL LAW,  THE
 CITY  OR  TOWN  MUST ESTABLISH A COMMUNITY PRESERVATION FUND PURSUANT TO
 SECTION SIX-T OF THE GENERAL MUNICIPAL LAW. REVENUES FROM SUCH TAX SHALL
 BE DEPOSITED IN SUCH FUND AND MAY BE USED SOLELY  FOR  THE  PURPOSES  OF
 SUCH  FUND. SUCH LOCAL LAW SHALL APPLY TO ANY CONVEYANCE OCCURRING ON OR
 AFTER THE FIRST DAY OF A MONTH TO BE DESIGNATED BY SUCH LOCAL  GOVERNING
 BODY,  WHICH  IS  NOT  LESS  THAN SIXTY DAYS AFTER THE ENACTMENT OF SUCH
 LOCAL LAW, BUT SHALL NOT APPLY TO CONVEYANCES MADE ON OR AFTER SUCH DATE
 PURSUANT TO BINDING WRITTEN CONTRACTS ENTERED INTO PRIOR TO  SUCH  DATE,
 PROVIDED  THAT  THE  DATE  OF EXECUTION OF SUCH 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.
   § 1577. PAYMENT OF TAX. 1. THE REAL ESTATE TRANSFER TAX IMPOSED PURSU-
 ANT 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. SUCH TAX SHALL BE PAID AT THE SAME TIME  AS  THE
 REAL  ESTATE  TRANSFER TAX IMPOSED BY ARTICLE THIRTY-ONE OF THIS CHAPTER

 A. 3990                            10
 
 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 SO PAID.
   2.  A  RETURN  SHALL  BE  REQUIRED  TO BE FILED WITH SUCH TREASURER OR
 RECORDING OFFICER FOR PURPOSES OF THE REAL ESTATE TRANSFER  TAX  IMPOSED
 PURSUANT  TO THIS ARTICLE 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. SAID 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  SAID  FORM  TO  REFLECT  THE  PROVISIONS IN THIS CHAPTER THAT ARE
 INCONSISTENT, DIFFERENT, OR IN ADDITION TO  THE  PROVISIONS  OF  ARTICLE
 THIRTY-ONE  OF  THIS  CHAPTER.  THE  REAL  ESTATE  TRANSFER  TAX RETURNS
 REQUIRED TO BE FILED PURSUANT TO THIS SECTION  SHALL  BE  PRESERVED  FOR
 THREE  YEARS  AND  THEREAFTER  UNTIL SUCH TREASURER OR RECORDING OFFICER
 ORDERS THEM TO BE DESTROYED.
   3. 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  SHALL  HAVE BEEN PAID AS
 REQUIRED IN THIS SECTION.
   § 1578. LIABILITY FOR TAX. 1. THE REAL ESTATE TRANSFER  TAX  SHALL  BE
 PAID  BY  THE  GRANTEE. IF THE GRANTEE HAS FAILED TO PAY THE TAX IMPOSED
 PURSUANT TO THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX,  THE
 GRANTOR  SHALL  HAVE  THE DUTY TO PAY THE TAX. WHERE THE GRANTOR HAS THE
 DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY THE TAX,  SUCH
 TAX  SHALL  BE  THE  JOINT  AND SEVERAL LIABILITY OF THE GRANTEE AND THE
 GRANTOR.
   2. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO
 PREVENT EVASION OF THE TAX HEREBY IMPOSED, 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 PRESUMP-
 TIONS 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.
   § 1579. EXEMPTIONS. 1. THE FOLLOWING SHALL BE EXEMPT FROM THE  PAYMENT
 OF  THE  REAL  ESTATE TRANSFER TAX: (A) THE STATE OF NEW YORK, OR ANY OF
 ITS  AGENCIES,  INSTRUMENTALITIES,  POLITICAL  SUBDIVISIONS,  OR  PUBLIC
 CORPORATIONS  (INCLUDING  A  PUBLIC  CORPORATION  CREATED PURSUANT TO AN
 AGREEMENT OR COMPACT WITH ANOTHER STATE OR DOMINION OF CANADA); AND  (B)
 THE  UNITED NATIONS, THE UNITED STATES OF AMERICA OR ANY OF ITS AGENCIES
 OR INSTRUMENTALITIES.
   2. THE TAX SHALL NOT APPLY TO ANY OF THE  FOLLOWING  CONVEYANCES:  (A)
 CONVEYANCES  TO  THE  UNITED  NATIONS, THE UNITED STATES OF AMERICA, THE
 STATE OF NEW YORK, OR ANY OF THEIR INSTRUMENTALITIES, AGENCIES OR  POLI-
 TICAL SUBDIVISIONS (OR ANY PUBLIC CORPORATION, INCLUDING A PUBLIC CORPO-
 RATION  CREATED  PURSUANT  TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR
 THE DOMINION OF CANADA); (B) CONVEYANCES  WHICH  ARE  OR  WERE  USED  TO
 SECURE  A DEBT OR OTHER OBLIGATION; (C) CONVEYANCES WHICH, WITHOUT ADDI-
 TIONAL CONSIDERATION, CONFIRM, CORRECT,  MODIFY  OR  SUPPLEMENT  A  DEED
 PREVIOUSLY  RECORDED; (D) CONVEYANCES OF REAL PROPERTY WITHOUT CONSIDER-
 ATION AND OTHERWISE THAN IN CONNECTION  WITH  A  SALE,  INCLUDING  DEEDS
 CONVEYING REALTY AS BONA FIDE GIFTS; (E) CONVEYANCES GIVEN IN CONNECTION
 WITH A TAX SALE; (F) CONVEYANCES TO EFFECTUATE A MERE CHANGE OF IDENTITY

 A. 3990                            11
 
 OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFI-
 CIAL  OWNERSHIP,  OTHER THAN CONVEYANCES TO A COOPERATIVE HOUSING CORPO-
 RATION OF THE REAL  PROPERTY  COMPRISING  THE  COOPERATIVE  DWELLING  OR
 DWELLINGS;  (G)  CONVEYANCES  WHICH  CONSIST OF A DEED OF PARTITION; (H)
 CONVEYANCES GIVEN PURSUANT TO THE FEDERAL BANKRUPTCY ACT; (I) CONVEYANC-
 ES 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 OCCU-
 PANCY  OF  SUCH  PROPERTY;  (J)  CONVEYANCES OF REAL PROPERTY, WHERE THE
 ENTIRE PARCEL OF REAL PROPERTY TO BE CONVEYED IS THE SUBJECT OF  ONE  OR
 MORE  OF  THE  FOLLOWING  DEVELOPMENT  RESTRICTIONS:  (1)  AGRICULTURAL,
 CONSERVATION, SCENIC, OR  AN  OPEN  SPACE  EASEMENT,  (2)  COVENANTS  OR
 RESTRICTIONS  PROHIBITING  DEVELOPMENT,  (3)  A  PURCHASE OF DEVELOPMENT
 RIGHTS AGREEMENT, (4) A TRANSFER OF DEVELOPMENT RIGHTS AGREEMENT,  WHERE
 THE  PROPERTY BEING CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS REMOVED, (5)
 SAID REAL PROPERTY IS SUBJECT TO THE DEVELOPMENT RESTRICTION OF AN AGRI-
 CULTURAL DISTRICT OR INDIVIDUAL COMMITMENT, PURSUANT TO ARTICLE  TWENTY-
 FIVE-AA OF THE AGRICULTURE AND MARKETS LAW, (6) REAL PROPERTY SUBJECT TO
 ANY LOCALLY ADOPTED LAND PRESERVATION AGREEMENT, PROVIDED SAID EXEMPTION
 IS  INCLUDED  IN THE LOCAL LAW IMPOSING THE TAX AUTHORIZED BY THIS ARTI-
 CLE; (K) CONVEYANCES OF REAL PROPERTY,  WHERE  THE  PROPERTY  IS  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  TO  BE  MADE  SUBJECT  TO  ONE  OF THE DEVELOPMENT
 RESTRICTIONS PROVIDED FOR IN SUBPARAGRAPH TWO OF PARAGRAPH (J)  OF  THIS
 SUBDIVISION  PROVIDED  THAT  SAID  DEVELOPMENT RESTRICTION PRECLUDES THE
 CONVERSION OF THE PROPERTY TO A NON-AGRICULTURAL USE FOR AT LEAST  THREE
 YEARS  FROM  THE  DATE  OF TRANSFER, AND SAID DEVELOPMENT RESTRICTION IS
 EVIDENCED BY AN EASEMENT, AGREEMENT, OR OTHER SUITABLE INSTRUMENT  WHICH
 IS TO BE CONVEYED TO THE CITY OR TOWN SIMULTANEOUSLY WITH THE CONVEYANCE
 OF  THE  REAL  PROPERTY;  OR  (L)  CONVEYANCES OF REAL PROPERTY FOR OPEN
 SPACE, PARKS, OR HISTORIC PRESERVATION PURPOSES  TO  ANY  NOT-FOR-PROFIT
 TAX  EXEMPT  CORPORATION  OPERATED  FOR  CONSERVATION, ENVIRONMENTAL, OR
 HISTORIC PRESERVATION PURPOSES.
   3. AN EXEMPTION WHICH IS EQUAL IN VALUE TO THE RESIDENTIAL MEDIAN SALE
 PRICE OF THE COUNTY IN WHICH THE CITY OR TOWN IS  LOCATED  ACCORDING  TO
 THE  OFFICE OF REAL PROPERTY SERVICES, SHALL BE ALLOWED ON THE CONSIDER-
 ATION OF THE CONVEYANCE OF IMPROVED REAL PROPERTY OR AN INTEREST  THERE-
 IN.
   §  1580.  CREDIT.  A GRANTEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX
 DUE ON A CONVEYANCE OF REAL PROPERTY TO THE EXTENT TAX WAS PAID BY  SUCH
 GRANTEE  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 SUCH GRANTEE.
 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  SUCH TAX PAID WHICH IS NOT YET DUE TO SUCH GRANTOR ON
 THE DATE OF THE SUBSEQUENT CONVEYANCE (AND WHICH SUCH GRANTOR  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.
   §  1581. COOPERATIVE HOUSING CORPORATION TRANSFERS. 1. NOTWITHSTANDING
 THE DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN SUBDIVISION TWO OF
 SECTION FIFTEEN HUNDRED SEVENTY-FIVE OF THIS ARTICLE OR ANYTHING TO  THE
 CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED SEVEN-
 TY-FIVE  OF THIS ARTICLE, THE TAX IMPOSED PURSUANT TO THIS ARTICLE SHALL

 A. 3990                            12
 
 APPLY TO (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 OF SUCH STOCK IN A COOPER-
 ATIVE HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER OF  A
 PROPRIETARY  LEASEHOLD  BY  THE OWNER THEREOF.  WITH RESPECT TO ANY SUCH
 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 OWNERSHIP OF  RESIDEN-
 TIAL  INTEREST  IN  REAL ESTATE REMAINING THEREON AT THE TIME OF CONVEY-
 ANCE. IN DETERMINING THE TAX ON A CONVEYANCE DESCRIBED IN PARAGRAPH  (A)
 OF  THIS SUBDIVISION, 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 PROPERTY 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  SUCH CONVEYANCE EFFECTUATED A MERE
 CHANGE OF IDENTITY OR FORM OF OWNERSHIP AND NOT A CHANGE IN THE  BENEFI-
 CIAL  OWNERSHIP  OF  SUCH  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 (A) OF
 THIS SUBDIVISION, 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 (A) OF THIS
 SUBDIVISION, 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 (A) OF
 THIS SUBDIVISION.
   2. 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 GRANTOR AND THE  GRANTEE,
 THE  NUMBER  OF  SHARES  CONVEYED,  THE  DATE  OF THE CONVEYANCE AND THE
 CONSIDERATION PAID FOR SUCH CONVEYANCE.
   § 1582. DESIGNATION OF AGENTS. THE TREASURER IS AUTHORIZED  TO  DESIG-
 NATE  THE  RECORDING  OFFICER TO ACT AS HIS OR HER AGENT FOR PURPOSES OF
 COLLECTING THE TAX AUTHORIZED  BY  THIS  ARTICLE.  THE  TREASURER  SHALL
 PROVIDE  FOR THE MANNER IN WHICH SUCH PERSON MAY BE DESIGNATED AS HIS OR
 HER AGENT SUBJECT TO SUCH TERMS AND CONDITIONS AS  THE  TREASURER  SHALL
 PRESCRIBE.  THE  REAL ESTATE TRANSFER TAX SHALL BE PAID TO SUCH AGENT AS
 PROVIDED IN SECTION FIFTEEN HUNDRED SEVENTY-SEVEN OF THIS ARTICLE.
   § 1583. LIABILITY OF RECORDING OFFICER. A RECORDING OFFICER SHALL  NOT
 BE  LIABLE  FOR  ANY INACCURACY IN THE AMOUNT OF TAX IMPOSED PURSUANT TO
 THIS ARTICLE THAT HE OR SHE SHALL COLLECT SO LONG AS  HE  OR  SHE  SHALL

 A. 3990                            13
 
 COMPUTE AND COLLECT SUCH TAX ON THE AMOUNT OF CONSIDERATION OR THE VALUE
 OF  THE  INTEREST CONVEYED AS SUCH AMOUNTS ARE PROVIDED TO HIM OR HER BY
 THE PERSON PAYING THE TAX.
   §  1584.  DEPOSIT  AND DISPOSITION OF REVENUE. 1. ALL TAXES, PENALTIES
 AND INTEREST IMPOSED BY THE CITY OR TOWN UNDER THE AUTHORITY OF  SECTION
 FIFTEEN  HUNDRED SEVENTY-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  CITY OR TOWN AND SHALL BE KEPT IN TRUST AND SEPARATE AND
 APART FROM ALL OTHER MONIES IN POSSESSION OF THE  TREASURER.  MONEYS  IN
 SUCH  FUND  SHALL  BE  DEPOSITED  AND  SECURED IN THE MANNER PROVIDED BY
 SECTION TEN OF THE GENERAL MUNICIPAL LAW. PENDING EXPENDITURE FROM  SUCH
 FUND,  MONEYS  THEREIN MAY BE INVESTED IN THE MANNER PROVIDED IN SECTION
 ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN
 REALIZED ON THE MONEYS SO DEPOSITED OR  INVESTED  SHALL  ACCRUE  TO  AND
 BECOME PART OF SUCH FUND.
   2.  THE  TREASURER SHALL RETAIN SUCH AMOUNT AS HE OR SHE MAY DETERMINE
 TO BE NECESSARY FOR REFUNDS WITH RESPECT TO THE TAX IMPOSED BY THE  CITY
 OR  TOWN,  UNDER THE AUTHORITY OF SECTION FIFTEEN HUNDRED SEVENTY-SIX OF
 THIS ARTICLE, OUT OF WHICH THE TREASURER SHALL PAY ANY REFUNDS  OF  SUCH
 TAXES TO THOSE TAXPAYERS ENTITLED TO A REFUND PURSUANT TO THE PROVISIONS
 OF THIS ARTICLE.
   3. THE TREASURER, AFTER RESERVING SUCH REFUNDS, SHALL ON OR BEFORE THE
 TWELFTH DAY OF EACH MONTH PAY TO THE CITY COMPTROLLER OR THE TOWN SUPER-
 VISOR  THE  TAXES,  PENALTIES AND INTEREST IMPOSED BY THE TOWN UNDER THE
 AUTHORITY OF  SECTION  FIFTEEN  HUNDRED  SEVENTY-SIX  OF  THIS  ARTICLE,
 COLLECTED  BY  THE  TREASURER,  PURSUANT TO THIS ARTICLE DURING THE NEXT
 PRECEDING CALENDAR MONTH. THE AMOUNT SO PAYABLE SHALL  BE  CERTIFIED  TO
 THE  CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASURER, WHO SHALL
 NOT BE HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIFICATION.   PROVIDED,
 HOWEVER,  ANY SUCH CERTIFICATION MAY BE BASED ON SUCH INFORMATION AS MAY
 BE AVAILABLE TO THE TREASURER AT THE TIME  SUCH  CERTIFICATION  MUST  BE
 MADE  UNDER  THIS  SECTION. WHERE THE AMOUNT SO PAID OVER TO THE CITY OR
 TOWN IN ANY SUCH DISTRIBUTION IS MORE OR LESS THAN THE AMOUNT DUE TO THE
 CITY OR TOWN, THE AMOUNT OF THE OVERPAYMENT  OR  UNDERPAYMENT  SHALL  BE
 CERTIFIED TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASUR-
 ER,  WHO  SHALL  NOT  BE  HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIF-
 ICATION. THE AMOUNT OF THE  OVERPAYMENT  OR  UNDERPAYMENT  SHALL  BE  SO
 CERTIFIED  TO  THE CITY COMPTROLLER OR THE TOWN SUPERVISOR AS SOON AFTER
 THE DISCOVERY OF THE OVERPAYMENT OR UNDERPAYMENT AS REASONABLY  POSSIBLE
 AND  SUBSEQUENT PAYMENTS AND DISTRIBUTIONS BY THE TREASURER TO SUCH CITY
 OR TOWN SHALL BE ADJUSTED BY SUBTRACTING THE AMOUNT OF ANY SUCH OVERPAY-
 MENT FROM OR BY ADDING THE AMOUNT  OF  ANY  SUCH  UNDERPAYMENT  TO  SUCH
 NUMBER  OF  SUBSEQUENT  PAYMENTS  AND DISTRIBUTIONS AS THE TREASURER AND
 CITY COMPTROLLER OR TOWN SUPERVISOR SHALL CONSIDER REASONABLE IN VIEW OF
 THE OVERPAYMENT OR UNDERPAYMENT AND ALL OTHER FACTS AND CIRCUMSTANCES.
   4. ALL MONIES RECEIVED FROM THE TREASURER SHALL BE  DEPOSITED  IN  THE
 FUND  OF  THE  CITY  OR  TOWN,  PURSUANT TO SECTION SIX-T OF THE GENERAL
 MUNICIPAL LAW.
   § 1585. JUDICIAL REVIEW. 1. ANY FINAL DETERMINATION OF THE  AMOUNT  OF
 ANY  TAX  PAYABLE  UNDER  SECTION  FIFTEEN HUNDRED SEVENTY-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 THEREFOR IS
 MADE TO THE SUPREME COURT WITHIN FOUR MONTHS AFTER  THE  GIVING  OF  THE
 NOTICE  OF  SUCH  FINAL  DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH
 PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW  AND

 A. 3990                            14
 
 RULES SHALL NOT BE INSTITUTED UNLESS (A) THE AMOUNT OF ANY TAX SOUGHT TO
 BE REVIEWED, WITH SUCH 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 (B) 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.
   2. 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 (A) SUCH PROCEEDING IS INSTITUTED
 WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH DENIAL, (B)  A
 FINAL  DETERMINATION  OF  TAX  DUE  WAS  NOT PREVIOUSLY MADE, AND (C) 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.
   § 1586. APPORTIONMENT. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
 ANT TO THIS ARTICLE, SHALL PROVIDE FOR A  METHOD  OF  APPORTIONMENT  FOR
 DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR INTEREST
 THEREIN IS SITUATED WITHIN AND WITHOUT THE CITY OR TOWN.
   § 1587. MISCELLANEOUS. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
 ANT  TO  THIS  ARTICLE, MAY CONTAIN SUCH OTHER PROVISIONS AS THE CITY OR
 TOWN DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF  THE  TAX  IMPOSED
 PURSUANT  TO  THIS ARTICLE, INCLUDING PROVISIONS CONCERNING THE DETERMI-
 NATION OF TAX, THE IMPOSITION OF INTEREST ON UNDERPAYMENTS AND  OVERPAY-
 MENTS  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 SUCH
 PROVISIONS CAN BE MADE APPLICABLE TO THE TAX IMPOSED  PURSUANT  TO  THIS
 ARTICLE.
   §  1588.  RETURNS  TO  BE  SECRET. 1. 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,  CITY  OR  TOWN,
 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
 AFFECTING A CONVEYANCE INDICATING THE AMOUNT OF TAX  PAID.  NO  RECORDED
 INSTRUMENT  AFFECTING  A  CONVEYANCE  SHALL  BE  CONSIDERED A RETURN FOR
 PURPOSES OF THIS SECTION.
   2. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS SHALL NOT  BE
 REQUIRED  TO  PRODUCE  ANY  OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN

 A. 3990                            15
 
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COUNTY,  CITY,  OR  TOWN  IN  ANY  ACTION  OR  PROCEEDING  INVOLVING THE
 COLLECTION OF A TAX DUE UNDER A LOCAL LAW ENACTED PURSUANT TO THIS ARTI-
 CLE TO WHICH SUCH COUNTY, CITY, OR TOWN IS A PARTY, OR A CLAIMANT, 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 SUCH ACTION OR PROCEEDING, IN ANY
 OF  WHICH  EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT
 IN EVIDENCE, SO MUCH OF SAID RETURNS OR OF THE FACTS SHOWN  THEREBY,  AS
 ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE.
   3. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY
 TO  A  GRANTOR OR GRANTEE OF AN INSTRUMENT EFFECTING A CONVEYANCE OR THE
 DULY AUTHORIZED REPRESENTATIVE OF A GRANTOR OR GRANTEE  OF  A  CERTIFIED
 COPY  OF  ANY  RETURN  FILED  IN  CONNECTION  WITH SUCH INSTRUMENT OR TO
 PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO  PREVENT  THE
 IDENTIFICATION  OF  PARTICULAR  RETURNS  AND  THE  ITEMS THEREOF, OR THE
 INSPECTION BY THE LEGAL REPRESENTATIVES OF SUCH COUNTY, CITY, OR TOWN OF
 THE RETURN OF ANY TAXPAYER WHO SHALL BRING ACTION TO SET ASIDE OR REVIEW
 THE TAX BASED THEREON.
   § 5. Severability. If any provision of this  act  or  the  application
 thereof  shall  for  any  reason  be  adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder of this act, but shall be confined in its oper-
 ation  to  the provision thereof directly involved in the controversy in
 which such judgment shall have been rendered.
   § 6. This act shall take effect immediately.