S T A T E   O F   N E W   Y O R K
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     S. 3526                                                  A. 3028
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             January 24, 2017
                                ___________
 
 IN SENATE -- Introduced by Sen. BRESLIN -- 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. FAHY -- read once and referred to
   the Committee on Local Governments

 AN ACT to amend the town law, in relation to  authorizing  the  town  of
   Bethlehem  to establish community preservation funds; to amend the tax
   law, in relation to authorizing the town of Bethlehem to impose a real
   estate transfer tax with revenues therefrom to be  deposited  in  said
   community  preservation  fund; 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.  The  town  law is amended by adding a new section 64-k to
 read as follows:
   § 64-K. TOWN OF BETHLEHEM PRESERVATION  FUNDS.  1.  AS  USED  IN  THIS
 SECTION,  THE  FOLLOWING  WORDS AND TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   (A) "TOWN" MEANS THE TOWN OF BETHLEHEM.
   (B) "COMMUNITY  PRESERVATION"  SHALL  MEAN  AND  INCLUDE  ANY  OF  THE
 PURPOSES OUTLINED IN SUBDIVISION FIVE OF THIS SECTION.
   (C)  "BOARD" MEANS THE ADVISORY BOARD REQUIRED PURSUANT TO SUBDIVISION
 SIX OF THIS SECTION.
   (D) "FUND" MEANS THE COMMUNITY PRESERVATION FUND CREATED  PURSUANT  TO
 SUBDIVISION TWO OF THIS SECTION.
   (E)  "TAX" SHALL MEAN THE REAL ESTATE TRANSFER TAX IMPOSED PURSUANT TO
 SECTION FOURTEEN HUNDRED THIRTY-NINE-BB  OF  THE  TAX  LAW  OR,  IF  THE
 CONTEXT  CLEARLY  INDICATES,  SHALL  MEAN  THE  REAL ESTATE TRANSFER TAX
 IMPOSED PURSUANT TO ARTICLE THIRTY-ONE OF THE TAX LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06787-01-7
              

 S. 3526                             2                            A. 3028
 
   2. THE TOWN BOARD OF THE TOWN OF BETHLEHEM IS AUTHORIZED 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  TOWN PURSUANT TO ARTICLE THIRTY-ONE-A-FOUR 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 THE FINANCING IN WHOLE OR IN PART,
 PURSUANT  TO THE LOCAL FINANCE LAW, OF ANY ACQUISITION AUTHORIZED PURSU-
 ANT 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 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  SUBDIVISION  TEN  OF  THIS
 SECTION  AND IN ACCORDANCE WITH SUCH PLAN DESIGNED TO PRESERVE COMMUNITY
 CHARACTER. NOT MORE THAN TEN PERCENT OF THE FUND SHALL BE  UTILIZED  FOR
 THE MANAGEMENT AND STEWARDSHIP PROGRAM.
   4.  IF  THE IMPLEMENTATION OF THE COMMUNITY PRESERVATION PROJECT PLAN,
 ADOPTED BY THE TOWN BOARD, AS PROVIDED  IN  SUBDIVISION  SEVEN  OF  THIS
 SECTION,  HAS  BEEN  COMPLETED,  AND  FUNDS ARE NO LONGER NEEDED FOR THE
 PURPOSES OUTLINED IN THIS SUBDIVISION, 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.
   5. PRESERVATION OF COMMUNITY CHARACTER SHALL INVOLVE ONE  OR  MORE  OF
 THE FOLLOWING:
   (A) PRESERVATION OF OPEN SPACE;
   (B) ESTABLISHMENT OF PARKS, NATURE PRESERVES, OR RECREATION AREAS;
   (C)  PRESERVATION  OF  LAND WHICH IS PREDOMINANTLY VIABLE AGRICULTURAL
 LAND, AS DEFINED IN SUBDIVISION SEVEN OF SECTION THREE  HUNDRED  ONE  OF
 THE  AGRICULTURE  AND  MARKETS LAW, OR UNIQUE AND IRREPLACEABLE AGRICUL-
 TURAL LAND, AS DEFINED IN SUBDIVISION SIX OF SECTION THREE  HUNDRED  ONE
 OF THE AGRICULTURE AND MARKETS LAW;
   (D) PRESERVATION OF LANDS OF EXCEPTIONAL SCENIC VALUE;
   (E) PRESERVATION OF FRESHWATER MARSHES OR OTHER WETLANDS;
   (F) PRESERVATION OF AQUIFER RECHARGE AREAS;
   (G) PRESERVATION OF UNDEVELOPED BEACH-LANDS OR SHORELINE;
   (H)  ESTABLISHMENT  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;
   (I) PRESERVATION OF UNIQUE OR THREATENED ECOLOGICAL AREAS;
   (J)  PRESERVATION OF RIVERS AND RIVER AREAS IN A NATURAL, FREE-FLOWING
 CONDITION;
   (K) PRESERVATION OF FORESTED LAND;
   (L) PRESERVATION OF PUBLIC ACCESS TO LANDS FOR  PUBLIC  USE  INCLUDING
 STREAM RIGHTS AND WATERWAYS;

 S. 3526                             3                            A. 3028
 
   (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 THE PURPOSES OF THIS SUBDIVISION IN FURTHERANCE
 OF THE ESTABLISHMENT OF A GREENBELT.
   6.  THE TOWN BOARD WHICH HAS ESTABLISHED A COMMUNITY PRESERVATION FUND
 SHALL CREATE AN ADVISORY BOARD TO REVIEW  AND  MAKE  RECOMMENDATIONS  ON
 PROPOSED  ACQUISITIONS  OF  INTERESTS IN REAL PROPERTY 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 OR LAND PRESERVATION ACTIVITIES. THE BOARD SHALL ACT IN AN ADVISORY
 CAPACITY TO THE TOWN BOARD. AT LEAST ONE MEMBER OF THE BOARD SHALL BE AN
 ACTIVE FARMER. BOARD MEMBERS' TERMS SHALL BE STAGGERED.
   7. THE TOWN BOARD WHICH HAS ESTABLISHED A COMMUNITY PRESERVATION  FUND
 SHALL,  BY  LOCAL LAW, ADOPT A COMMUNITY PRESERVATION PROJECT PLAN. SUCH
 PLAN SHALL LIST EVERY PROJECT WHICH THE TOWN PLANS TO UNDERTAKE PURSUANT
 TO THE COMMUNITY PRESERVATION FUND. IT SHALL INCLUDE EVERY PARCEL  WHICH
 IS  NECESSARY  TO  BE ACQUIRED IN THE 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, INCLUD-
 ING BUT NOT LIMITED TO: (A) FEE SIMPLE  ACQUISITION,  (B)  ZONING  REGU-
 LATIONS,  INCLUDING  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 SUCH PLAN. SUCH PLAN SHALL ESTAB-
 LISH THE PRIORITIES FOR PRESERVATION, AND SHALL INCLUDE THE PRESERVATION
 OF FARMLAND AS ITS HIGHEST PRIORITY. FUNDS FROM THE COMMUNITY  PRESERVA-
 TION  FUND MAY ONLY BE EXPENDED FOR PROJECTS WHICH HAVE BEEN INCLUDED IN
 SUCH PLAN. SUCH PLAN SHALL BE UPDATED NOT  LESS  THAN  ONCE  EVERY  FIVE
 YEARS,  BUT IN NO EVENT UNTIL AT LEAST THREE YEARS AFTER THE ADOPTION OF
 THE ORIGINAL PLAN. A COPY OF SUCH PLAN SHALL  BE  FILED  WITH  THE  TOWN
 CLERK,  THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION, THE COMMISSIONER
 OF AGRICULTURE AND MARKETS AND THE COMMISSIONER OF THE OFFICE OF  PARKS,
 RECREATION  AND  HISTORIC  PRESERVATION. SUCH PLAN SHALL BE COMPLETED AT
 LEAST SIXTY DAYS BEFORE  THE  SUBMISSION  OF  THE  MANDATORY  REFERENDUM
 REQUIRED  BY  SECTION FOURTEEN HUNDRED THIRTY-NINE-BB OF THE TAX LAW. IF
 AT THE TIME OF REFERENDUM, THE TOWN SHALL HAVE IN PLACE AN ADOPTED  OPEN
 SPACE  PLAN, SUCH PLAN SHALL BE DEEMED SUFFICIENT TO WAIVE THE PRESERVA-
 TION PLAN REQUIREMENTS OF THIS SUBDIVISION. ANY MONIES EXPENDED FROM THE
 COMMUNITY PRESERVATION  PLAN  SHALL,  HOWEVER  BE  CONSISTENT  WITH  THE
 PURPOSES  OUTLINED  IN  SUBDIVISIONS  THREE AND FIVE OF THIS SECTION AND
 WITH THE OPEN SPACE PLAN FOR A PERIOD NOT TO EXCEED TWELVE MONTHS.
   8. THE TOWN BOARD WHICH HAS ESTABLISHED A COMMUNITY PRESERVATION  FUND
 PURSUANT  TO THIS SECTION MAY 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 THIS CHAPTER.  ALL  PROVISIONS
 OF  SUCH  SECTION  TWO HUNDRED SIXTY-ONE-A SHALL BE COMPLIED WITH. IF AT
 ANY TIME DURING THE LIFE OF THE COMMUNITY PRESERVATION FUND  A  TRANSFER
 OF  DEVELOPMENT  RIGHTS  PROGRAM  IS  ESTABLISHED,  THE 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

 S. 3526                             4                            A. 3028

 DEVELOPMENT  RIGHTS PROGRAM IS REPEALED BY THE TOWN, ALL MONIES FROM THE
 CENTRAL BANK SHALL BE RETURNED TO THE COMMUNITY PRESERVATION FUND.
   9.  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 THE GENERAL MUNICIPAL LAW; PROVIDED, HOWEVER,
 THAT  NOTHING  HEREIN  SHALL PREVENT THE TOWN BOARD FROM ENTERING INTO A
 CONDITIONAL PURCHASE AGREEMENT BEFORE A  PUBLIC  HEARING  IS  HELD.  ANY
 RESOLUTION  OF  THE  TOWN  BOARD  APPROVING  AN ACQUISITION OF RIGHTS OR
 INTEREST IN REAL PROPERTY PURSUANT TO  THIS  SECTION,  SHALL  FIND  THAT
 ACQUISITION  WAS  THE  BEST  ALTERNATIVE FOR THE PROTECTION OF COMMUNITY
 CHARACTER OF ALL THE REASONABLE ALTERNATIVES AVAILABLE TO THE TOWN.
   10. RIGHTS OR INTEREST IN REAL  PROPERTY  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 ECOLOG-
 ICAL  VALUE  OF THE LAND OR THREATEN ESSENTIAL WILDLIFE HABITAT; AND (D)
 PRESERVES CULTURAL  PROPERTY  CONSISTENT  WITH  ACCEPTED  STANDARDS  FOR
 HISTORIC  PRESERVATION.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF THIS
 SUBDIVISION THERE SHALL BE NO RIGHT TO PUBLIC USE AND ENJOYMENT OF  LAND
 USED  IN  CONJUNCTION  WITH  A  FARM OPERATION AS DEFINED BY SUBDIVISION
 ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS  LAW.
 IN  FURTHERING  THE  PURPOSES  OF  THIS SECTION, THE 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 TOWN THAT
 PUBLIC ACCESSIBILITY WOULD BE DETRIMENTAL TO THE LANDS  OR  ANY  NATURAL
 RESOURCES ASSOCIATED THEREWITH.
   11.  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  STATE  LEGISLA-
 TURE,  WHICH  SHALL PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL
 ENVIRONMENTAL VALUE AND FAIR  MARKET  VALUE  AND  REASONABLY  EQUIVALENT
 USEFULNESS  AND  LOCATION  TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED
 OF, AND SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE STATE LEGIS-
 LATURE. ANY CONSERVATION EASEMENTS, CREATED UNDER TITLE THREE OF ARTICLE
 FORTY-NINE OF THE ENVIRONMENTAL CONSERVATION  LAW,  WHICH  ARE  ACQUIRED
 WITH  MONIES  FROM  SUCH  FUND  MAY  ONLY BE MODIFIED OR EXTINGUISHED AS
 PROVIDED IN SECTION 49-0307 OF SUCH LAW.  NOTHING IN THIS SECTION  SHALL
 PRECLUDE   THE   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 THE TOWN ACQUIRED PURSUANT TO THIS SECTION, WHERE SAID SALE IS
 MADE BY A CENTRAL BANK CREATED BY THE TOWN, PURSUANT TO  A  TRANSFER  OF
 DEVELOPMENT  RIGHTS  PROGRAM ESTABLISHED BY THE TOWN PURSUANT TO SECTION
 TWO HUNDRED SIXTY-ONE-A OF THIS CHAPTER, PROVIDED, HOWEVER THAT (A)  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

 S. 3526                             5                            A. 3028
 
 IN SUBDIVISION FIVE OF THIS SECTION, AND (B) THE PROCEEDS FROM SUCH SALE
 SHALL BE DEPOSITED IN THE COMMUNITY PRESERVATION FUND.
   §  2. The tax law is amended by adding a new article 31-A-4 to read as
 follows:
                              ARTICLE 31-A-4
           TAX ON REAL ESTATE TRANSFERS IN THE TOWN OF BETHLEHEM
 SECTION 1439-AAA. DEFINITIONS.
         1439-BBB. IMPOSITION OF TAX.
         1439-CCC. PAYMENT OF TAX.
         1439-DDD. LIABILITY FOR TAX.
         1439-EEE. EXEMPTIONS.
         1439-FFF. CREDIT.
         1439-GGG. COOPERATIVE HOUSING CORPORATION TRANSFERS.
         1439-HHH. DESIGNATION OF AGENTS.
         1439-III. LIABILITY OF RECORDING OFFICER.
         1439-JJJ. REFUNDS.
         1439-KKK. DEPOSIT AND DISPOSITION OF REVENUE.
         1439-LLL. JUDICIAL REVIEW.
         1439-MMM. APPORTIONMENT.
         1439-NNN. MISCELLANEOUS.
         1439-OOO. RETURNS TO BE SECRET.
   § 1439-AAA. 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 THE TOWN OF BETHLEHEM.   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-
 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

 S. 3526                             6                            A. 3028
 
 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 MULTI-
 PLYING THE TOTAL UNPAID PRINCIPAL OF THE MORTGAGE  BY  A  FRACTION,  THE
 NUMERATOR 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;
 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

 S. 3526                             7                            A. 3028

 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 SIXTY-FOUR-K OF THE TOWN LAW.
   10. "RECORDING OFFICER" MEANS THE COUNTY CLERK OF THE COUNTY OF  ALBA-
 NY.
   11. "TOWN" MEANS THE TOWN OF BETHLEHEM, COUNTY OF ALBANY.
   12. "TREASURER" MEANS THE TREASURER OF THE COUNTY OF ALBANY.
   13. "TOWN SUPERVISOR" MEANS THE TOWN SUPERVISOR OF THE TOWN OF BETHLE-
 HEM.
   14.  "TAX" SHALL MEAN THE REAL ESTATE TRANSFER TAX IMPOSED PURSUANT TO
 SECTION FOURTEEN HUNDRED THIRTY-NINE-BBB OF  THIS  ARTICLE  OR,  IF  THE
 CONTEXT  CLEARLY  INDICATES,  SHALL  MEAN  THE  REAL ESTATE TRANSFER TAX
 IMPOSED PURSUANT TO ARTICLE THIRTY-ONE OF THIS CHAPTER.
   15. "RESIDENTIAL REAL PROPERTY"  MEANS  PROPERTY  WHICH  SATISFIES  AT
 LEAST ONE OF THE FOLLOWING CONDITIONS:
   (A)  THE  PROPERTY CLASSIFICATION CODE ASSIGNED TO THE PROPERTY ON THE
 LATEST FINAL ASSESSMENT ROLL, AS REPORTED ON THE TRANSFER  REPORT  FORM,
 INDICATES  THAT  THE  PROPERTY  IS  A ONE, TWO OR THREE FAMILY HOME OR A
 RURAL RESIDENCE; OR
   (B) THE TRANSFER REPORT INDICATES THAT THE PROPERTY IS A ONE,  TWO  OR
 THREE  FAMILY  RESIDENTIAL  PROPERTY  THAT HAS BEEN NEWLY CONSTRUCTED ON
 VACANT LAND; OR
   (C) THE TRANSFER REPORT FORM INDICATES THAT THE PROPERTY IS A RESIDEN-
 TIAL CONDOMINIUM.
   § 1439-BBB. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISIONS OF
 LAW TO THE CONTRARY, THE TOWN OF  BETHLEHEM,  ACTING  THROUGH  ITS  TOWN
 BOARD,  IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL LAW IMPOSING
 IN SUCH TOWN A TAX ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THER-
 EIN NOT TO EXCEED A MAXIMUM OF TWO PERCENT OF THE CONSIDERATION FOR SUCH
 CONVEYANCE, SUBJECT TO THE EXEMPTIONS  SET  FORTH  IN  SECTION  FOURTEEN
 HUNDRED  THIRTY-NINE-EEE  OF  THIS ARTICLE; ANY SUCH LOCAL LAW SHALL FIX
 THE RATE OF SUCH TAX. PROVIDED, HOWEVER, ANY SUCH  LOCAL  LAW  IMPOSING,
 REPEALING  OR REIMPOSING SUCH TAX SHALL BE SUBJECT TO A MANDATORY REFER-
 ENDUM PURSUANT TO SECTION TWENTY-THREE OF THE MUNICIPAL HOME  RULE  LAW.
 NOTWITHSTANDING  THE FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE
 TOWN MUST ESTABLISH A COMMUNITY PRESERVATION FUND  PURSUANT  TO  SECTION
 SIXTY-FOUR-K  OF THE TOWN 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 TOWN BOARD, 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

 S. 3526                             8                            A. 3028
 
 SUCH  AS  THE  RECORDING  OF THE CONTRACT, PAYMENT OF A DEPOSIT OR OTHER
 FACTS AND CIRCUMSTANCES AS DETERMINED BY THE TREASURER.
   §  1439-CCC.  PAYMENT  OF TAX. 1. THE REAL ESTATE TRANSFER TAX IMPOSED
 PURSUANT 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
 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.
   § 1439-DDD. 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  SUBJECT  TO  THE TAX. 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
 PRESUMPTIONS  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.
   § 1439-EEE. EXEMPTIONS. 1. THE FOLLOWING  SHALL  BE  EXEMPT  FROM  THE
 PAYMENT OF THE REAL ESTATE TRANSFER TAX IMPOSED BY THIS ARTICLE:
   (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 THE 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
 POLITICAL  SUBDIVISIONS  (OR  ANY PUBLIC CORPORATION, INCLUDING A PUBLIC

 S. 3526                             9                            A. 3028
 
 CORPORATION 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 OBLI-
 GATION;
   (C)  CONVEYANCES  WHICH,  WITHOUT  ADDITIONAL  CONSIDERATION, CONFIRM,
 CORRECT, MODIFY OR SUPPLEMENT A DEED PREVIOUSLY RECORDED;
   (D) CONVEYANCES OF REAL PROPERTY WITHOUT CONSIDERATION  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 OR FORM OF
 OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFICIAL  OWNER-
 SHIP, OTHER THAN CONVEYANCES TO A COOPERATIVE HOUSING CORPORATION 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)  CONVEYANCES  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 OCCUPANCY OF SUCH PROPERTY;
   (J) CONVEYANCES OF REAL PROPERTY OR A  PORTION  OR  PORTIONS  OF  REAL
 PROPERTY  THAT  ARE THE SUBJECT OF ONE OR MORE OF THE FOLLOWING DEVELOP-
 MENT RESTRICTIONS:
   (1) AGRICULTURAL, CONSERVATION, SCENIC, OR AN OPEN SPACE EASEMENT,
   (2) COVENANTS OR RESTRICTIONS PROHIBITING DEVELOPMENT WHERE THE  PROP-
 ERTY  OR  PORTION  OF  PROPERTY  BEING  CONVEYED HAS HAD ITS DEVELOPMENT
 RIGHTS PERMANENTLY REMOVED,
   (3) A PURCHASE OF DEVELOPMENT RIGHTS AGREEMENT WHERE THE  PROPERTY  OR
 PORTION OF PROPERTY BEING CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS PERMA-
 NENTLY REMOVED,
   (4)  A  TRANSFER  OF  DEVELOPMENT RIGHTS AGREEMENT, WHERE THE PROPERTY
 BEING CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS REMOVED,
   (5) 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 ARTICLE;
   (K)  CONVEYANCES  OF REAL PROPERTY, WHERE THE PROPERTY IS VIABLE AGRI-
 CULTURAL 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 EIGHT 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  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 OPER-
 ATED FOR CONSERVATION, ENVIRONMENTAL, OR HISTORIC PRESERVATION PURPOSES.
   3.  AN EXEMPTION FROM THE TAX WHICH IS EQUAL TO THE MEDIAN SALES PRICE
 OF RESIDENTIAL REAL PROPERTY WITHIN THE APPLICABLE COUNTY, AS DETERMINED
 BY THE OFFICE OF REAL PROPERTY SERVICES PURSUANT TO SECTION FOUR HUNDRED
 TWENTY-FIVE OF THE REAL PROPERTY  TAX  LAW,  SHALL  BE  ALLOWED  ON  THE
 CONSIDERATION  OF THE CONVEYANCE OF IMPROVED OR UNIMPROVED REAL PROPERTY
 OR AN INTEREST THEREIN.

 S. 3526                            10                            A. 3028
 
   § 1439-FFF. 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.
   §  1439-GGG.  COOPERATIVE  HOUSING CORPORATION TRANSFERS. 1.  NOTWITH-
 STANDING THE DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN  SUBDIVI-
 SION  TWO OF SECTION FOURTEEN HUNDRED THIRTY-NINE-AAA OF THIS ARTICLE OR
 ANYTHING TO THE CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION  FOUR-
 TEEN  HUNDRED  THIRTY-NINE-AAA OF THIS ARTICLE, THE TAX IMPOSED PURSUANT
 TO THIS ARTICLE SHALL 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 COOPERATIVE 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 INDI-
 VIDUAL  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  OWNER-
 SHIP  OF  RESIDENTIAL  INTEREST  IN REAL ESTATE REMAINING THEREON AT THE
 TIME OF CONVEYANCE. 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 PROP-
 ERTY  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
 BENEFICIAL  OWNERSHIP OF SUCH PROPERTY, AND THEN MULTIPLYING THE RESULT-
 ING 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

 S. 3526                            11                            A. 3028

 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.
   § 1439-HHH. DESIGNATION OF AGENTS.  THE  TREASURER  IS  AUTHORIZED  TO
 DESIGNATE  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 FOURTEEN HUNDRED THIRTY-NINE-CCC OF THIS ARTICLE.
   § 1439-III. 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
 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.
   § 1439-JJJ. REFUNDS. WHENEVER THE TREASURER SHALL DETERMINE  THAT  ANY
 MONEYS  RECEIVED  UNDER THE PROVISIONS OF THE LOCAL LAW ENACTED PURSUANT
 TO THIS ARTICLE WERE PAID IN ERROR, HE OR SHE MAY CAUSE SUCH  MONEYS  TO
 BE  REFUNDED  PURSUANT  TO SUCH REQUIREMENTS AS HE OR SHE MAY PRESCRIBE,
 PROVIDED THAT ANY APPLICATION FOR SUCH REFUND IS FILED WITH THE TREASUR-
 ER WITHIN TWO YEARS FROM THE DATE THE ERRONEOUS PAYMENT WAS MADE.
   § 1439-KKK. DEPOSIT AND DISPOSITION OF REVENUE. 1. ALL  TAXES,  PENAL-
 TIES  AND  INTEREST  IMPOSED  BY THE TOWN UNDER THE AUTHORITY OF SECTION
 FOURTEEN HUNDRED THIRTY-NINE-BBB OF THIS ARTICLE, WHICH ARE COLLECTED BY
 THE TREASURER OR HIS OR HER AGENTS, SHALL BE DEPOSITED IN A SINGLE TRUST
 FUND FOR THE 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 TOWN,
 UNDER  THE AUTHORITY OF SECTION FOURTEEN HUNDRED THIRTY-NINE-BBB 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 TOWN SUPERVISOR THE  TAXES,  PENAL-
 TIES  AND  INTEREST  IMPOSED  BY THE TOWN UNDER THE AUTHORITY OF SECTION
 FOURTEEN HUNDRED THIRTY-NINE-BBB OF THIS ARTICLE, COLLECTED BY THE TREA-
 SURER, PURSUANT TO THIS  ARTICLE  DURING  THE  NEXT  PRECEDING  CALENDAR
 MONTH.  THE  AMOUNT SO PAYABLE SHALL BE CERTIFIED TO 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 TOWN IN ANY SUCH DISTRIBUTION IS MORE OR LESS
 THAN THE AMOUNT DUE TO THE TOWN, THE AMOUNT OF THE OVERPAYMENT OR UNDER-

 S. 3526                            12                            A. 3028
 
 PAYMENT SHALL BE CERTIFIED TO THE TOWN SUPERVISOR BY THE TREASURER,  WHO
 SHALL  NOT  BE HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIFICATION. THE
 AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE SO CERTIFIED  TO  THE
 TOWN SUPERVISOR AS SOON AFTER THE DISCOVERY OF THE OVERPAYMENT OR UNDER-
 PAYMENT AS REASONABLY POSSIBLE AND SUBSEQUENT PAYMENTS AND DISTRIBUTIONS
 BY THE TREASURER TO THE TOWN SHALL BE ADJUSTED BY SUBTRACTING THE AMOUNT
 OF  ANY SUCH OVERPAYMENT FROM OR BY ADDING THE AMOUNT OF ANY SUCH UNDER-
 PAYMENT TO SUCH NUMBER OF SUBSEQUENT PAYMENTS AND DISTRIBUTIONS  AS  THE
 TREASURER  AND  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 TOWN, PURSUANT TO SECTION SIXTY-FOUR-K OF THE TOWN LAW.
   §  1439-LLL. JUDICIAL REVIEW. 1. ANY FINAL DETERMINATION OF THE AMOUNT
 OF ANY TAX PAYABLE UNDER SECTION  FOURTEEN  HUNDRED  THIRTY-NINE-CCC  OF
 THIS  ARTICLE  SHALL  BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITU-
 TIONALITY OR ANY OTHER REASON WHATSOEVER BY A PROCEEDING  UNDER  ARTICLE
 SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND RULES IF APPLICATION THERE-
 FOR 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
 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.
   § 1439-MMM. APPORTIONMENT. A LOCAL LAW ADOPTED BY THE TOWN OF  BETHLE-
 HEM,  PURSUANT TO THIS ARTICLE, SHALL PROVIDE FOR A METHOD OF APPORTION-
 MENT FOR DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR
 INTEREST THEREIN IS SITUATED WITHIN AND WITHOUT THE TOWN.
   § 1439-NNN. MISCELLANEOUS. A LOCAL LAW ADOPTED BY THE TOWN OF  BETHLE-
 HEM,  PURSUANT TO THIS ARTICLE, MAY CONTAIN SUCH OTHER PROVISIONS AS THE
 TOWN DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF  THE  TAX  IMPOSED

 S. 3526                            13                            A. 3028
 
 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.
   § 1439-OOO. 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 OR TOWN, INCLUD-
 ING 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.  HOWEVER, THAT NOTHING IN THIS SECTION SHALL PROHIBIT THE
 RECORDING OFFICER FROM MAKING A NOTATION ON AN  INSTRUMENT  EFFECTING  A
 CONVEYANCE  INDICATING  THE  AMOUNT  OF TAX PAID. NO RECORDED INSTRUMENT
 EFFECTING 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
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COUNTY OR TOWN IN ANY ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A
 TAX DUE UNDER A LOCAL LAW ENACTED PURSUANT TO THIS ARTICLE TO WHICH SUCH
 COUNTY  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  HEREIN  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  OR  TOWN  OF THE RETURN OF ANY
 TAXPAYER WHO SHALL BRING ACTION TO SET ASIDE OR  REVIEW  THE  TAX  BASED
 THEREON.
   4.  ANY  OFFICER  OR  EMPLOYEE  OF  SUCH  COUNTY OR TOWN WHO WILLFULLY
 VIOLATES THE PROVISIONS OF THIS SECTION SHALL BE DISMISSED  FROM  OFFICE
 AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A PERIOD
 OF FIVE YEARS THEREAFTER.
   §  3.  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.
   §  4.  This act shall take effect immediately; provided, however, that
 section two of this act shall take effect on the ninetieth day after  it
 shall  have  become  a  law and shall expire December 31, 2037 when upon
 such date the provisions of such section shall be deemed repealed.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 3526--A                                            A. 3028--A
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             January 24, 2017
                                ___________
 
 IN SENATE -- Introduced by Sen. BRESLIN -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Local Govern-
   ment  --  committee  discharged,  bill  amended,  ordered reprinted as
   amended and recommitted to said committee
 
 IN ASSEMBLY -- Introduced by M. of A. FAHY -- read once and referred  to
   the  Committee  on  Local  Governments  --  committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to  amend  the town law, in relation to authorizing the town of
   Bethlehem to establish community preservation funds; to amend the  tax
   law, in relation to authorizing the town of Bethlehem to impose a real
   estate  transfer  tax  with revenues therefrom to be deposited in said
   community preservation fund; 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. The town law is amended by adding a  new  section  64-k  to
 read as follows:
   §  64-K.  TOWN  OF  BETHLEHEM  PRESERVATION  FUNDS. 1. AS USED IN THIS
 SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE  THE  FOLLOWING  MEAN-
 INGS:
   (A) "TOWN" MEANS THE TOWN OF BETHLEHEM.
   (B)  "COMMUNITY  PRESERVATION"  SHALL  MEAN  AND  INCLUDE  ANY  OF THE
 PURPOSES OUTLINED IN SUBDIVISION FIVE OF THIS SECTION.
   (C) "BOARD" MEANS THE ADVISORY BOARD REQUIRED PURSUANT TO  SUBDIVISION
 SIX OF THIS SECTION.
   (D)  "FUND"  MEANS THE COMMUNITY PRESERVATION FUND CREATED PURSUANT TO
 SUBDIVISION TWO OF THIS SECTION.
   (E) "TAX" SHALL MEAN THE REAL ESTATE TRANSFER TAX IMPOSED PURSUANT  TO
 SECTION  FOURTEEN  HUNDRED  THIRTY-NINE-BB  OF  THE  TAX  LAW OR, IF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06787-02-7

 S. 3526--A                          2                         A. 3028--A
 
 CONTEXT CLEARLY INDICATES, SHALL  MEAN  THE  REAL  ESTATE  TRANSFER  TAX
 IMPOSED PURSUANT TO ARTICLE THIRTY-ONE OF THE TAX LAW.
   2.  THE TOWN BOARD OF THE TOWN OF BETHLEHEM IS AUTHORIZED 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 TOWN PURSUANT TO ARTICLE THIRTY-ONE-A-FOUR 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 THE FINANCING IN WHOLE OR IN PART,
 PURSUANT TO THE LOCAL FINANCE LAW, OF ANY ACQUISITION AUTHORIZED  PURSU-
 ANT  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 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  SUBDIVISION  TEN OF THIS
 SECTION AND IN ACCORDANCE WITH SUCH PLAN DESIGNED TO PRESERVE  COMMUNITY
 CHARACTER.  NOT  MORE THAN TEN PERCENT OF THE FUND SHALL BE UTILIZED FOR
 THE MANAGEMENT AND STEWARDSHIP PROGRAM.
   4. IF THE IMPLEMENTATION OF THE COMMUNITY PRESERVATION  PROJECT  PLAN,
 ADOPTED  BY  THE  TOWN  BOARD,  AS PROVIDED IN SUBDIVISION SEVEN OF THIS
 SECTION, HAS BEEN COMPLETED, AND FUNDS ARE  NO  LONGER  NEEDED  FOR  THE
 PURPOSES  OUTLINED IN THIS SUBDIVISION, 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.
   5.  PRESERVATION  OF  COMMUNITY CHARACTER SHALL INVOLVE ONE OR MORE OF
 THE FOLLOWING:
   (A) PRESERVATION OF OPEN SPACE;
   (B) ESTABLISHMENT OF PARKS, NATURE PRESERVES, OR RECREATION AREAS;
   (C) PRESERVATION OF LAND WHICH IS  PREDOMINANTLY  VIABLE  AGRICULTURAL
 LAND,  AS  DEFINED  IN SUBDIVISION SEVEN OF SECTION THREE HUNDRED ONE OF
 THE AGRICULTURE AND MARKETS LAW, OR UNIQUE  AND  IRREPLACEABLE  AGRICUL-
 TURAL  LAND,  AS DEFINED IN SUBDIVISION SIX OF SECTION THREE HUNDRED ONE
 OF THE AGRICULTURE AND MARKETS LAW;
   (D) PRESERVATION OF LANDS OF EXCEPTIONAL SCENIC VALUE;
   (E) PRESERVATION OF FRESHWATER MARSHES OR OTHER WETLANDS;
   (F) PRESERVATION OF AQUIFER RECHARGE AREAS;
   (G) PRESERVATION OF UNDEVELOPED BEACH-LANDS OR SHORELINE;
   (H) ESTABLISHMENT 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;
   (I) PRESERVATION OF UNIQUE OR THREATENED ECOLOGICAL AREAS;
   (J) PRESERVATION OF RIVERS AND RIVER AREAS IN A NATURAL,  FREE-FLOWING
 CONDITION;
   (K) PRESERVATION OF FORESTED LAND;

 S. 3526--A                          3                         A. 3028--A
 
   (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 THE PURPOSES OF THIS SUBDIVISION IN FURTHERANCE
 OF THE ESTABLISHMENT OF A GREENBELT.
   6.  THE TOWN BOARD WHICH HAS ESTABLISHED A COMMUNITY PRESERVATION FUND
 SHALL CREATE AN ADVISORY BOARD TO REVIEW  AND  MAKE  RECOMMENDATIONS  ON
 PROPOSED  ACQUISITIONS  OF  INTERESTS IN REAL PROPERTY 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 OR LAND PRESERVATION ACTIVITIES. THE BOARD SHALL ACT IN AN ADVISORY
 CAPACITY TO THE TOWN BOARD. AT LEAST ONE MEMBER OF THE BOARD SHALL BE AN
 ACTIVE FARMER. BOARD MEMBERS' TERMS SHALL BE STAGGERED.
   7. THE TOWN BOARD WHICH HAS ESTABLISHED A COMMUNITY PRESERVATION  FUND
 SHALL,  BY  LOCAL LAW, ADOPT A COMMUNITY PRESERVATION PROJECT PLAN. SUCH
 PLAN SHALL LIST EVERY PROJECT WHICH THE TOWN PLANS TO UNDERTAKE PURSUANT
 TO THE COMMUNITY PRESERVATION FUND.   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 ACQUI-
 SITION, (B) ZONING REGULATIONS, INCLUDING  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  SUCH  PLAN.
 SUCH  PLAN  SHALL  ESTABLISH  THE PRIORITIES FOR PRESERVATION, AND SHALL
 INCLUDE THE PRESERVATION OF FARMLAND AS ITS HIGHEST PRIORITY. FUNDS FROM
 THE COMMUNITY PRESERVATION FUND MAY ONLY BE EXPENDED FOR PROJECTS  WHICH
 HAVE  BEEN  INCLUDED  IN  SUCH PLAN. SUCH PLAN SHALL BE UPDATED NOT LESS
 THAN ONCE EVERY FIVE YEARS, BUT IN NO EVENT UNTIL AT LEAST  THREE  YEARS
 AFTER  THE  ADOPTION  OF THE ORIGINAL PLAN. A COPY OF SUCH PLAN SHALL BE
 FILED WITH THE TOWN CLERK, THE COMMISSIONER OF  ENVIRONMENTAL  CONSERVA-
 TION,  THE  COMMISSIONER OF AGRICULTURE AND MARKETS AND THE COMMISSIONER
 OF THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION. SUCH  PLAN
 SHALL  BE  COMPLETED  AT  LEAST  SIXTY DAYS BEFORE THE SUBMISSION OF THE
 MANDATORY REFERENDUM REQUIRED BY SECTION FOURTEEN HUNDRED THIRTY-NINE-BB
 OF THE TAX LAW. IF AT THE TIME OF REFERENDUM, THE  TOWN  SHALL  HAVE  IN
 PLACE  AN  ADOPTED OPEN SPACE PLAN, SUCH PLAN SHALL BE DEEMED SUFFICIENT
 TO WAIVE THE PRESERVATION PLAN REQUIREMENTS  OF  THIS  SUBDIVISION.  ANY
 MONIES  EXPENDED  FROM THE COMMUNITY PRESERVATION PLAN SHALL, HOWEVER BE
 CONSISTENT WITH THE PURPOSES OUTLINED IN SUBDIVISIONS THREE AND FIVE  OF
 THIS  SECTION  AND  WITH  THE OPEN SPACE PLAN FOR A PERIOD NOT TO EXCEED
 TWELVE MONTHS.
   8. THE TOWN BOARD WHICH HAS ESTABLISHED A COMMUNITY PRESERVATION  FUND
 PURSUANT  TO THIS SECTION MAY 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 THIS CHAPTER.  ALL  PROVISIONS
 OF  SUCH  SECTION  TWO HUNDRED SIXTY-ONE-A SHALL BE COMPLIED WITH. IF AT
 ANY TIME DURING THE LIFE OF THE COMMUNITY PRESERVATION FUND  A  TRANSFER
 OF  DEVELOPMENT  RIGHTS  PROGRAM  IS  ESTABLISHED,  THE 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

 S. 3526--A                          4                         A. 3028--A
 
 DEVELOPMENT  RIGHTS PROGRAM IS REPEALED BY THE TOWN, ALL MONIES FROM THE
 CENTRAL BANK SHALL BE RETURNED TO THE COMMUNITY PRESERVATION FUND.
   9.  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 THE GENERAL MUNICIPAL LAW; PROVIDED, HOWEVER,
 THAT  NOTHING  HEREIN  SHALL PREVENT THE TOWN BOARD FROM ENTERING INTO A
 CONDITIONAL PURCHASE AGREEMENT BEFORE A  PUBLIC  HEARING  IS  HELD.  ANY
 RESOLUTION  OF  THE  TOWN  BOARD  APPROVING  AN ACQUISITION OF RIGHTS OR
 INTEREST IN REAL PROPERTY PURSUANT TO  THIS  SECTION,  SHALL  FIND  THAT
 ACQUISITION  WAS  THE  BEST  ALTERNATIVE FOR THE PROTECTION OF COMMUNITY
 CHARACTER OF ALL THE REASONABLE ALTERNATIVES AVAILABLE TO THE TOWN.
   10. RIGHTS OR INTEREST IN REAL  PROPERTY  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 ECOLOG-
 ICAL  VALUE  OF THE LAND OR THREATEN ESSENTIAL WILDLIFE HABITAT; AND (D)
 PRESERVES CULTURAL  PROPERTY  CONSISTENT  WITH  ACCEPTED  STANDARDS  FOR
 HISTORIC  PRESERVATION.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF THIS
 SUBDIVISION THERE SHALL BE NO RIGHT TO PUBLIC USE AND ENJOYMENT OF  LAND
 USED  IN  CONJUNCTION  WITH  A  FARM OPERATION AS DEFINED BY SUBDIVISION
 ELEVEN OF SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS  LAW.
 IN  FURTHERING  THE  PURPOSES  OF  THIS SECTION, THE 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 TOWN THAT
 PUBLIC ACCESSIBILITY WOULD BE DETRIMENTAL TO THE LANDS  OR  ANY  NATURAL
 RESOURCES ASSOCIATED THEREWITH.
   11.  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  STATE  LEGISLA-
 TURE,  WHICH  SHALL PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL
 ENVIRONMENTAL VALUE AND FAIR  MARKET  VALUE  AND  REASONABLY  EQUIVALENT
 USEFULNESS  AND  LOCATION  TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED
 OF, AND SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE STATE LEGIS-
 LATURE. ANY CONSERVATION EASEMENTS, CREATED UNDER TITLE THREE OF ARTICLE
 FORTY-NINE OF THE ENVIRONMENTAL CONSERVATION  LAW,  WHICH  ARE  ACQUIRED
 WITH  MONIES  FROM  SUCH  FUND  MAY  ONLY BE MODIFIED OR EXTINGUISHED AS
 PROVIDED IN SECTION 49-0307 OF SUCH LAW.  NOTHING IN THIS SECTION  SHALL
 PRECLUDE   THE   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 THE TOWN ACQUIRED PURSUANT TO THIS SECTION, WHERE SAID SALE IS
 MADE BY A CENTRAL BANK CREATED BY THE TOWN, PURSUANT TO  A  TRANSFER  OF
 DEVELOPMENT  RIGHTS  PROGRAM ESTABLISHED BY THE TOWN PURSUANT TO SECTION
 TWO HUNDRED SIXTY-ONE-A OF THIS CHAPTER, PROVIDED, HOWEVER THAT (A)  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

 S. 3526--A                          5                         A. 3028--A
 
 IN SUBDIVISION FIVE OF THIS SECTION, AND (B) THE PROCEEDS FROM SUCH SALE
 SHALL BE DEPOSITED IN THE COMMUNITY PRESERVATION FUND.
   §  2. The tax law is amended by adding a new article 31-A-4 to read as
 follows:
                              ARTICLE 31-A-4
           TAX ON REAL ESTATE TRANSFERS IN THE TOWN OF BETHLEHEM
 SECTION 1439-AAA. DEFINITIONS.
         1439-BBB. IMPOSITION OF TAX.
         1439-CCC. PAYMENT OF TAX.
         1439-DDD. LIABILITY FOR TAX.
         1439-EEE. EXEMPTIONS.
         1439-FFF. CREDIT.
         1439-GGG. COOPERATIVE HOUSING CORPORATION TRANSFERS.
         1439-HHH. DESIGNATION OF AGENTS.
         1439-III. LIABILITY OF RECORDING OFFICER.
         1439-JJJ. REFUNDS.
         1439-KKK. DEPOSIT AND DISPOSITION OF REVENUE.
         1439-LLL. JUDICIAL REVIEW.
         1439-MMM. APPORTIONMENT.
         1439-NNN. MISCELLANEOUS.
         1439-OOO. RETURNS TO BE SECRET.
   § 1439-AAA. 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 THE TOWN OF BETHLEHEM.   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-
 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

 S. 3526--A                          6                         A. 3028--A
 
 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 MULTI-
 PLYING THE TOTAL UNPAID PRINCIPAL OF THE MORTGAGE  BY  A  FRACTION,  THE
 NUMERATOR 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;
 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

 S. 3526--A                          7                         A. 3028--A
 
 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 SIXTY-FOUR-K OF THE TOWN LAW.
   10. "RECORDING OFFICER" MEANS THE COUNTY CLERK OF THE COUNTY OF  ALBA-
 NY.
   11. "TOWN" MEANS THE TOWN OF BETHLEHEM, COUNTY OF ALBANY.
   12. "TREASURER" MEANS THE TREASURER OF THE COUNTY OF ALBANY.
   13. "TOWN SUPERVISOR" MEANS THE TOWN SUPERVISOR OF THE TOWN OF BETHLE-
 HEM.
   14.  "TAX" SHALL MEAN THE REAL ESTATE TRANSFER TAX IMPOSED PURSUANT TO
 SECTION FOURTEEN HUNDRED THIRTY-NINE-BBB OF  THIS  ARTICLE  OR,  IF  THE
 CONTEXT  CLEARLY  INDICATES,  SHALL  MEAN  THE  REAL ESTATE TRANSFER TAX
 IMPOSED PURSUANT TO ARTICLE THIRTY-ONE OF THIS CHAPTER.
   15. "RESIDENTIAL REAL PROPERTY"  MEANS  PROPERTY  WHICH  SATISFIES  AT
 LEAST ONE OF THE FOLLOWING CONDITIONS:
   (A)  THE  PROPERTY CLASSIFICATION CODE ASSIGNED TO THE PROPERTY ON THE
 LATEST FINAL ASSESSMENT ROLL, AS REPORTED ON THE TRANSFER  REPORT  FORM,
 INDICATES  THAT  THE  PROPERTY  IS  A ONE, TWO OR THREE FAMILY HOME OR A
 RURAL RESIDENCE; OR
   (B) THE TRANSFER REPORT INDICATES THAT THE PROPERTY IS A ONE,  TWO  OR
 THREE  FAMILY  RESIDENTIAL  PROPERTY  THAT HAS BEEN NEWLY CONSTRUCTED ON
 VACANT LAND; OR
   (C) THE TRANSFER REPORT FORM INDICATES THAT THE PROPERTY IS A RESIDEN-
 TIAL CONDOMINIUM.
   § 1439-BBB. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISIONS OF
 LAW TO THE CONTRARY, THE TOWN OF  BETHLEHEM,  ACTING  THROUGH  ITS  TOWN
 BOARD,  IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL LAW IMPOSING
 IN SUCH TOWN A TAX ON EACH CONVEYANCE OF REAL PROPERTY OR INTEREST THER-
 EIN NOT TO EXCEED A MAXIMUM OF TWO PERCENT OF THE CONSIDERATION FOR SUCH
 CONVEYANCE, SUBJECT TO THE EXEMPTIONS  SET  FORTH  IN  SECTION  FOURTEEN
 HUNDRED  THIRTY-NINE-EEE  OF  THIS ARTICLE; ANY SUCH LOCAL LAW SHALL FIX
 THE RATE OF SUCH TAX. PROVIDED, HOWEVER, ANY SUCH  LOCAL  LAW  IMPOSING,
 REPEALING  OR REIMPOSING SUCH TAX SHALL BE SUBJECT TO A MANDATORY REFER-
 ENDUM PURSUANT TO SECTION TWENTY-THREE OF THE MUNICIPAL HOME  RULE  LAW.
 NOTWITHSTANDING  THE FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE
 TOWN MUST ESTABLISH A COMMUNITY PRESERVATION FUND  PURSUANT  TO  SECTION
 SIXTY-FOUR-K  OF THE TOWN 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 TOWN BOARD, 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

 S. 3526--A                          8                         A. 3028--A

 SUCH  AS  THE  RECORDING  OF THE CONTRACT, PAYMENT OF A DEPOSIT OR OTHER
 FACTS AND CIRCUMSTANCES AS DETERMINED BY THE TREASURER.
   §  1439-CCC.  PAYMENT  OF TAX. 1. THE REAL ESTATE TRANSFER TAX IMPOSED
 PURSUANT 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
 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.
   § 1439-DDD. 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  SUBJECT  TO  THE TAX. 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
 PRESUMPTIONS  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.
   § 1439-EEE. EXEMPTIONS. 1. THE FOLLOWING  SHALL  BE  EXEMPT  FROM  THE
 PAYMENT OF THE REAL ESTATE TRANSFER TAX IMPOSED BY THIS ARTICLE:
   (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 THE 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
 POLITICAL  SUBDIVISIONS  (OR  ANY PUBLIC CORPORATION, INCLUDING A PUBLIC

 S. 3526--A                          9                         A. 3028--A
 
 CORPORATION 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 OBLI-
 GATION;
   (C)  CONVEYANCES  WHICH,  WITHOUT  ADDITIONAL  CONSIDERATION, CONFIRM,
 CORRECT, MODIFY OR SUPPLEMENT A DEED PREVIOUSLY RECORDED;
   (D) CONVEYANCES OF REAL PROPERTY WITHOUT CONSIDERATION  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 OR FORM OF
 OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFICIAL  OWNER-
 SHIP, OTHER THAN CONVEYANCES TO A COOPERATIVE HOUSING CORPORATION 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)  CONVEYANCES  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 OCCUPANCY OF SUCH PROPERTY;
   (J) CONVEYANCES OF REAL PROPERTY OR A  PORTION  OR  PORTIONS  OF  REAL
 PROPERTY  THAT  ARE THE SUBJECT OF ONE OR MORE OF THE FOLLOWING DEVELOP-
 MENT RESTRICTIONS:
   (1) AGRICULTURAL, CONSERVATION, SCENIC, OR AN OPEN SPACE EASEMENT,
   (2) COVENANTS OR RESTRICTIONS PROHIBITING DEVELOPMENT WHERE THE  PROP-
 ERTY  OR  PORTION  OF  PROPERTY  BEING  CONVEYED HAS HAD ITS DEVELOPMENT
 RIGHTS PERMANENTLY REMOVED,
   (3) A PURCHASE OF DEVELOPMENT RIGHTS AGREEMENT WHERE THE  PROPERTY  OR
 PORTION OF PROPERTY BEING CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS PERMA-
 NENTLY REMOVED,
   (4)  A  TRANSFER  OF  DEVELOPMENT RIGHTS AGREEMENT, WHERE THE PROPERTY
 BEING CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS REMOVED,
   (5) 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 ARTICLE;
   (K)  CONVEYANCES  OF REAL PROPERTY, WHERE THE PROPERTY IS VIABLE AGRI-
 CULTURAL 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 EIGHT 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  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 OPER-
 ATED FOR CONSERVATION, ENVIRONMENTAL, OR HISTORIC PRESERVATION PURPOSES.
   3.  AN EXEMPTION FROM THE TAX WHICH IS EQUAL TO THE MEDIAN SALES PRICE
 OF RESIDENTIAL REAL PROPERTY WITHIN THE APPLICABLE COUNTY, AS DETERMINED
 BY THE OFFICE OF REAL PROPERTY SERVICES PURSUANT TO SECTION FOUR HUNDRED
 TWENTY-FIVE OF THE REAL PROPERTY  TAX  LAW,  SHALL  BE  ALLOWED  ON  THE
 CONSIDERATION  OF THE CONVEYANCE OF IMPROVED OR UNIMPROVED REAL PROPERTY
 OR AN INTEREST THEREIN.

 S. 3526--A                         10                         A. 3028--A
 
   § 1439-FFF. 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.
   §  1439-GGG.  COOPERATIVE  HOUSING CORPORATION TRANSFERS. 1.  NOTWITH-
 STANDING THE DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN  SUBDIVI-
 SION  TWO OF SECTION FOURTEEN HUNDRED THIRTY-NINE-AAA OF THIS ARTICLE OR
 ANYTHING TO THE CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION  FOUR-
 TEEN  HUNDRED  THIRTY-NINE-AAA OF THIS ARTICLE, THE TAX IMPOSED PURSUANT
 TO THIS ARTICLE SHALL 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 COOPERATIVE 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 INDI-
 VIDUAL  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  OWNER-
 SHIP  OF  RESIDENTIAL  INTEREST  IN REAL ESTATE REMAINING THEREON AT THE
 TIME OF CONVEYANCE. 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 PROP-
 ERTY  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
 BENEFICIAL  OWNERSHIP OF SUCH PROPERTY, AND THEN MULTIPLYING THE RESULT-
 ING 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

 S. 3526--A                         11                         A. 3028--A
 
 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.
   § 1439-HHH. DESIGNATION OF AGENTS.  THE  TREASURER  IS  AUTHORIZED  TO
 DESIGNATE  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 FOURTEEN HUNDRED THIRTY-NINE-CCC OF THIS ARTICLE.
   § 1439-III. 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
 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.
   § 1439-JJJ. REFUNDS. WHENEVER THE TREASURER SHALL DETERMINE  THAT  ANY
 MONEYS  RECEIVED  UNDER THE PROVISIONS OF THE LOCAL LAW ENACTED PURSUANT
 TO THIS ARTICLE WERE PAID IN ERROR, HE OR SHE MAY CAUSE SUCH  MONEYS  TO
 BE  REFUNDED  PURSUANT  TO SUCH REQUIREMENTS AS HE OR SHE MAY PRESCRIBE,
 PROVIDED THAT ANY APPLICATION FOR SUCH REFUND IS FILED WITH THE TREASUR-
 ER WITHIN TWO YEARS FROM THE DATE THE ERRONEOUS PAYMENT WAS MADE.
   § 1439-KKK. DEPOSIT AND DISPOSITION OF REVENUE. 1. ALL  TAXES,  PENAL-
 TIES  AND  INTEREST  IMPOSED  BY THE TOWN UNDER THE AUTHORITY OF SECTION
 FOURTEEN HUNDRED THIRTY-NINE-BBB OF THIS ARTICLE, WHICH ARE COLLECTED BY
 THE TREASURER OR HIS OR HER AGENTS, SHALL BE DEPOSITED IN A SINGLE TRUST
 FUND FOR THE 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 TOWN,
 UNDER  THE AUTHORITY OF SECTION FOURTEEN HUNDRED THIRTY-NINE-BBB 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 TOWN SUPERVISOR THE  TAXES,  PENAL-
 TIES  AND  INTEREST  IMPOSED  BY THE TOWN UNDER THE AUTHORITY OF SECTION
 FOURTEEN HUNDRED THIRTY-NINE-BBB OF THIS ARTICLE, COLLECTED BY THE TREA-
 SURER, PURSUANT TO THIS  ARTICLE  DURING  THE  NEXT  PRECEDING  CALENDAR
 MONTH.  THE  AMOUNT SO PAYABLE SHALL BE CERTIFIED TO 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 TOWN IN ANY SUCH DISTRIBUTION IS MORE OR LESS
 THAN THE AMOUNT DUE TO THE TOWN, THE AMOUNT OF THE OVERPAYMENT OR UNDER-

 S. 3526--A                         12                         A. 3028--A
 
 PAYMENT SHALL BE CERTIFIED TO THE TOWN SUPERVISOR BY THE TREASURER,  WHO
 SHALL  NOT  BE HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIFICATION. THE
 AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE SO CERTIFIED  TO  THE
 TOWN SUPERVISOR AS SOON AFTER THE DISCOVERY OF THE OVERPAYMENT OR UNDER-
 PAYMENT AS REASONABLY POSSIBLE AND SUBSEQUENT PAYMENTS AND DISTRIBUTIONS
 BY THE TREASURER TO THE TOWN SHALL BE ADJUSTED BY SUBTRACTING THE AMOUNT
 OF  ANY SUCH OVERPAYMENT FROM OR BY ADDING THE AMOUNT OF ANY SUCH UNDER-
 PAYMENT TO SUCH NUMBER OF SUBSEQUENT PAYMENTS AND DISTRIBUTIONS  AS  THE
 TREASURER  AND  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 TOWN, PURSUANT TO SECTION SIXTY-FOUR-K OF THE TOWN LAW.
   §  1439-LLL. JUDICIAL REVIEW. 1. ANY FINAL DETERMINATION OF THE AMOUNT
 OF ANY TAX PAYABLE UNDER SECTION  FOURTEEN  HUNDRED  THIRTY-NINE-CCC  OF
 THIS  ARTICLE  SHALL  BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITU-
 TIONALITY OR ANY OTHER REASON WHATSOEVER BY A PROCEEDING  UNDER  ARTICLE
 SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND RULES IF APPLICATION THERE-
 FOR 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
 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.
   § 1439-MMM. APPORTIONMENT. A LOCAL LAW ADOPTED BY THE TOWN OF  BETHLE-
 HEM,  PURSUANT TO THIS ARTICLE, SHALL PROVIDE FOR A METHOD OF APPORTION-
 MENT FOR DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR
 INTEREST THEREIN IS SITUATED WITHIN AND WITHOUT THE TOWN.
   § 1439-NNN. MISCELLANEOUS. A LOCAL LAW ADOPTED BY THE TOWN OF  BETHLE-
 HEM,  PURSUANT TO THIS ARTICLE, MAY CONTAIN SUCH OTHER PROVISIONS AS THE
 TOWN DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF  THE  TAX  IMPOSED

 S. 3526--A                         13                         A. 3028--A

 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.
   § 1439-OOO. 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 OR TOWN, INCLUD-
 ING 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.  HOWEVER, THAT NOTHING IN THIS SECTION SHALL PROHIBIT THE
 RECORDING OFFICER FROM MAKING A NOTATION ON AN  INSTRUMENT  EFFECTING  A
 CONVEYANCE  INDICATING  THE  AMOUNT  OF TAX PAID. NO RECORDED INSTRUMENT
 EFFECTING 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
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COUNTY OR TOWN IN ANY ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A
 TAX DUE UNDER A LOCAL LAW ENACTED PURSUANT TO THIS ARTICLE TO WHICH SUCH
 COUNTY  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  HEREIN  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  OR  TOWN  OF THE RETURN OF ANY
 TAXPAYER WHO SHALL BRING ACTION TO SET ASIDE OR  REVIEW  THE  TAX  BASED
 THEREON.
   4.  ANY  OFFICER  OR  EMPLOYEE  OF  SUCH  COUNTY OR TOWN WHO WILLFULLY
 VIOLATES THE PROVISIONS OF THIS SECTION SHALL BE DISMISSED  FROM  OFFICE
 AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A PERIOD
 OF FIVE YEARS THEREAFTER.
   §  3.  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.
   §  4.  This act shall take effect immediately; provided, however, that
 section two of this act shall take effect on the ninetieth day after  it
 shall  have  become  a  law and shall expire December 31, 2037 when upon
 such date the provisions of such section shall be deemed repealed.