S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8863
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 18, 2019
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on Local Governments
 
 AN  ACT  to  amend the general municipal law, in relation to authorizing
   designated cities and towns to establish community preservation funds;
   and to amend the tax law, in relation to authorizing towns to impose a
   real estate transfer tax with revenues therefrom to  be  deposited  in
   such community preservation funds
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 6-w to read as follows:
   §  6-W.  COMMUNITY PRESERVATION FUNDS. 1. AS USED IN THIS SECTION, THE
 FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "COMMUNITY  PRESERVATION"  SHALL  MEAN  AND  INCLUDE  ANY  OF  THE
 PURPOSES OUTLINED IN SUBDIVISION FOUR OF THIS SECTION.
   (B)  "BOARD" MEANS THE ADVISORY BOARD REQUIRED PURSUANT TO SUBDIVISION
 FIVE OF THIS SECTION.
   (C) "DESIGNATED CITY OR TOWN" MEANS A CITY OUTSIDE OF A  CITY  WITH  A
 POPULATION OF ONE MILLION OR MORE, OR A TOWN.
   (D)  "GOVERNING  BODY" OR "LOCAL GOVERNING BODY" MEANS A CITY COUNCIL,
 TOWN BOARD, OR OTHER SIMILAR GROUP OF OFFICIALS  ELECTED  TO  ADMINISTER
 LOCAL LAWS.
   (E)  "FUND"  MEANS THE COMMUNITY PRESERVATION FUND CREATED PURSUANT TO
 SUBDIVISION TWO OF THIS SECTION.
   (F) "WATER QUALITY IMPROVEMENT PROJECT" MEANS: (1)  WASTEWATER  TREAT-
 MENT  IMPROVEMENT  PROJECTS;  (2) NON-POINT SOURCE ABATEMENT AND CONTROL
 PROGRAM PROJECTS DEVELOPED PURSUANT TO SECTION ELEVEN-B OF THE SOIL  AND
 WATER CONSERVATION DISTRICTS LAW, TITLE FOURTEEN OF ARTICLE SEVENTEEN OF
 THE ENVIRONMENTAL CONSERVATION LAW, SECTION 1455B OF THE FEDERAL COASTAL
 ZONE  MANAGEMENT  ACT,  OR  ARTICLE  FORTY-TWO OF THE EXECUTIVE LAW; (3)
 AQUATIC  HABITAT  RESTORATION  PROJECTS;  OR  (4)  POLLUTION  PREVENTION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14273-01-9

 A. 8863                             2
 
 PROJECTS.  SUCH  PROJECTS SHALL HAVE AS THEIR PURPOSE THE IMPROVEMENT OF
 EXISTING WATER QUALITY TO MEET EXISTING SPECIFIC  WATER  QUALITY  STAND-
 ARDS.    PROJECTS  WHICH  HAVE AS A PURPOSE TO PERMIT OR ACCOMMODATE NEW
 GROWTH SHALL NOT BE INCLUDED WITHIN THIS DEFINITION.
   (G)  "WASTEWATER  TREATMENT  IMPROVEMENT  PROJECT" MEANS THE PLANNING,
 DESIGN, CONSTRUCTION, ACQUISITION, ENLARGEMENT, EXTENSION, OR ALTERATION
 OF A WASTEWATER TREATMENT FACILITY, INCLUDING ALTERNATIVE SYSTEMS  TO  A
 SEWAGE  TREATMENT PLANT OR TRADITIONAL SEPTIC SYSTEM, TO TREAT, NEUTRAL-
 IZE, STABILIZE, ELIMINATE OR PARTIALLY ELIMINATE SEWAGE OR REDUCE POLLU-
 TANTS IN TREATMENT  FACILITY  EFFLUENT,  INCLUDING  PERMANENT  OR  PILOT
 DEMONSTRATION WASTEWATER TREATMENT PROJECTS, OR EQUIPMENT OR FURNISHINGS
 THEREOF. STORMWATER COLLECTING SYSTEMS AND VESSEL PUMPOUT STATIONS SHALL
 ALSO  BE  INCLUDED  WITHIN  THE  DEFINITION  OF A WASTEWATER IMPROVEMENT
 PROJECT.
   (H) "AQUATIC HABITAT RESTORATION PROJECT" MEANS THE PLANNING,  DESIGN,
 CONSTRUCTION,  MANAGEMENT,  MAINTENANCE, RECONSTRUCTION, REVITALIZATION,
 OR REJUVENATION ACTIVITIES INTENDED TO IMPROVE WATERS OF  THE  STATE  OF
 ECOLOGICAL  SIGNIFICANCE OR ANY PART THEREOF, INCLUDING, BUT NOT LIMITED
 TO PONDS, BOGS, WETLANDS, BAYS, SOUNDS, STREAMS, RIVERS,  OR  LAKES  AND
 SHORELINES  THEREOF, TO SUPPORT A SPAWNING, NURSERY, WINTERING, MIGRATO-
 RY, NESTING, BREEDING, FEEDING, OR FORAGING  ENVIRONMENT  FOR  FISH  AND
 WILDLIFE AND OTHER BIOTA.
   (I)   "POLLUTION  PREVENTION  PROJECT"  MEANS  THE  PLANNING,  DESIGN,
 CONSTRUCTION, IMPROVEMENT, MAINTENANCE  OR  ACQUISITION  OF  FACILITIES,
 PRODUCTION  PROCESSES, EQUIPMENT OR BUILDINGS OWNED OR OPERATED BY MUNI-
 CIPALITIES FOR THE REDUCTION, AVOIDANCE, OR ELIMINATION OF  THE  USE  OF
 TOXIC  OR  HAZARDOUS  SUBSTANCES OR THE GENERATION OF SUCH SUBSTANCES OR
 POLLUTANTS SO AS TO REDUCE RISKS TO PUBLIC HEALTH  OR  THE  ENVIRONMENT,
 INCLUDING  CHANGES  IN  PRODUCTION  PROCESSES  OR  RAW  MATERIALS;  SUCH
 PROJECTS SHALL NOT INCLUDE INCINERATION, TRANSFER  FROM  ONE  MEDIUM  OF
 RELEASE  OR  DISCHARGE  TO ANOTHER MEDIUM, OFF-SITE OR OUT-OF-PRODUCTION
 RECYCLING, END-OF-PIPE TREATMENT OR POLLUTION CONTROL.
   (J) "STORMWATER COLLECTING SYSTEM" MEANS SYSTEMS OF CONDUITS  AND  ALL
 OTHER   CONSTRUCTION,   DEVICES,  AND  APPLIANCES  APPURTENANT  THERETO,
 DESIGNED AND USED TO COLLECT AND CARRY  STORMWATER  AND  SURFACE  WATER,
 STREET  WASH,  AND  OTHER WASH AND DRAINAGE WATERS TO A POINT SOURCE FOR
 DISCHARGE.
   (K) "VESSEL PUMPOUT STATION" MEANS A PROJECT FOR THE PLANNING, DESIGN,
 ACQUISITION OR CONSTRUCTION OF A PERMANENT OR PORTABLE DEVICE CAPABLE OF
 REMOVING HUMAN SEWAGE FROM A MARINE HOLDING TANK.
   2. THE LOCAL GOVERNING BODY OF ANY DESIGNATED CITY OR TOWN IS  AUTHOR-
 IZED TO ESTABLISH BY LOCAL LAW A COMMUNITY PRESERVATION FUND PURSUANT TO
 THE  PROVISIONS  OF  THIS  SECTION.  DEPOSITS  INTO THE FUND MAY INCLUDE
 REVENUES OF THE LOCAL GOVERNMENT FROM WHATEVER SOURCE AND SHALL INCLUDE,
 AT A MINIMUM, ALL REVENUES FROM A TAX IMPOSED UPON THE TRANSFER OF  REAL
 PROPERTY   INTERESTS   IN   SUCH   CITY  OR  TOWN  PURSUANT  TO  ARTICLE
 THIRTY-THREE-C OF THE TAX LAW. THE FUND  SHALL  ALSO  BE  AUTHORIZED  TO
 ACCEPT GIFTS OF ANY SUCH INTERESTS IN LAND OR OF FUNDS. INTEREST ACCRUED
 BY  MONIES  DEPOSITED INTO THE FUND SHALL BE CREDITED TO THE FUND. IN NO
 EVENT SHALL MONIES DEPOSITED IN THE FUND BE  TRANSFERRED  TO  ANY  OTHER
 ACCOUNT. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO PREVENT
 THE FINANCING IN WHOLE OR IN PART, PURSUANT TO THE LOCAL FINANCE LAW, OF
 ANY  ACQUISITION  AUTHORIZED  PURSUANT  TO THIS SECTION. MONIES FROM THE
 FUND MAY BE UTILIZED TO REPAY ANY INDEBTEDNESS OR  OBLIGATIONS  INCURRED
 PURSUANT  TO  THE  LOCAL  FINANCE  LAW  CONSISTENT WITH EFFECTUATING THE
 PURPOSES OF THIS SECTION.

 A. 8863                             3
 
   3. THE PURPOSES OF THE FUND SHALL BE EXCLUSIVELY, (A) TO  IMPLEMENT  A
 PLAN  FOR  THE  PRESERVATION  OF COMMUNITY CHARACTER AS REQUIRED BY THIS
 SECTION, (B) TO ACQUIRE INTERESTS OR RIGHTS IN  REAL  PROPERTY  FOR  THE
 PRESERVATION  OF  COMMUNITY CHARACTER WITHIN THE DESIGNATED CITY OR TOWN
 INCLUDING  VILLAGES  THEREIN IN ACCORDANCE WITH SUCH PLAN AND IN COOPER-
 ATION WITH WILLING SELLERS, (C) TO ESTABLISH A BANK PURSUANT TO A TRANS-
 FER OF DEVELOPMENT RIGHTS PROGRAM CONSISTENT WITH  SECTION  TWO  HUNDRED
 SIXTY-ONE-A OF THE TOWN LAW, (D) TO PROVIDE A MANAGEMENT AND STEWARDSHIP
 PROGRAM  FOR  SUCH INTERESTS AND RIGHTS CONSISTENT WITH SUBDIVISION NINE
 OF THIS SECTION AND IN ACCORDANCE WITH SUCH PLAN  DESIGNED  TO  PRESERVE
 COMMUNITY CHARACTER; PROVIDED THAT NOT MORE THAN TEN PERCENT OF THE FUND
 SHALL BE UTILIZED FOR THE MANAGEMENT AND STEWARDSHIP PROGRAM, AND (E) TO
 IMPLEMENT  WATER  QUALITY IMPROVEMENT PROJECTS IN ACCORDANCE WITH A PLAN
 TO PRESERVE COMMUNITY CHARACTER. IF THE IMPLEMENTATION OF THE  COMMUNITY
 PRESERVATION  PROJECT  PLAN,  ADOPTED  BY  A  LOCAL  GOVERNING  BODY, AS
 PROVIDED IN SUBDIVISION SIX OF THIS SECTION,  HAS  BEEN  COMPLETED,  AND
 FUNDS  ARE  NO  LONGER NEEDED FOR THE PURPOSES OUTLINED IN THIS SUBDIVI-
 SION, THEN ANY REMAINING MONIES IN THE FUND SHALL BE APPLIED  TO  REDUCE
 ANY  BONDED  INDEBTEDNESS  OR  OBLIGATIONS  INCURRED  TO  EFFECTUATE THE
 PURPOSES OF THIS SECTION. PRELIMINARY AND INCIDENTAL COSTS IN CONNECTION
 WITH THE ACQUISITION OF INTERESTS OR RIGHTS IN REAL  PROPERTY,  PURSUANT
 TO THIS SUBDIVISION, SHALL BE DEEMED PART OF THE COST OF THE ACQUISITION
 FOR WHICH THEY WERE INCURRED. SUCH EXPENDITURES MAY INCLUDE ANY ADMINIS-
 TRATIVE OR OTHER EXPENDITURES DIRECTLY ARISING THEREFROM. NO EXPENDITURE
 SHALL  BE CHARGED TO THE FUND, UNLESS AUTHORIZED BY LAW. A FULL ACCOUNT-
 ING OF SUCH COSTS FOR EACH ACQUISITION OF LAND SHALL BE PROVIDED TO  THE
 LOCAL GOVERNING BODY.
   4.  PRESERVATION  OF  COMMUNITY CHARACTER SHALL INVOLVE ONE OR MORE OF
 THE FOLLOWING: (A) ESTABLISHMENT OF PARKS, NATURE PRESERVES,  OR  RECRE-
 ATION  AREAS;  (B)  PRESERVATION  OF  OPEN SPACE, INCLUDING AGRICULTURAL
 LANDS PROVIDED, HOWEVER, THAT FARM BUILDINGS AND STRUCTURES USED FOR THE
 MARKETING OF FARM PRODUCTS PRODUCED ON SUCH AGRICULTURAL LANDS WHERE  AT
 LEAST  FIFTY  PERCENT  OF  THE GROSS ANNUAL INCOME RESULTS FROM SALES OF
 PRODUCTS PRODUCED ON SUCH LANDS AND, IN ADDITION THE SALE OF  ANY  OTHER
 LOCALLY SOURCED AND/OR PRODUCED FOOD AND PLANT PRODUCTS SHALL BE PERMIT-
 TED;  (C) PRESERVATION OF LANDS OF EXCEPTIONAL SCENIC VALUE; (D) PRESER-
 VATION OF FRESH AND SALTWATER MARSHES OR OTHER WETLANDS;  (E)  PRESERVA-
 TION   OF  AQUIFER  RECHARGE  AREAS;  (F)  PRESERVATION  OF  UNDEVELOPED
 BEACHLANDS OR SHORELINE INCLUDING THOSE AT SIGNIFICANT RISK  OF  COASTAL
 FLOODING  DUE  TO PROJECTED SEA LEVEL RISE AND FUTURE STORMS; (G) ESTAB-
 LISHMENT OF WILDLIFE REFUGES  FOR  THE  PURPOSE  OF  MAINTAINING  NATIVE
 ANIMAL  SPECIES DIVERSITY, INCLUDING THE PROTECTION OF HABITAT ESSENTIAL
 TO THE RECOVERY OF RARE, THREATENED OR ENDANGERED SPECIES; (H) PRESERVA-
 TION OF PINE BARRENS CONSISTING OF SUCH BIOTA AS PITCH  PINE  AND  SCRUB
 OAK;  (I)  PRESERVATION  OF  UNIQUE  OR THREATENED ECOLOGICAL AREAS; (J)
 PRESERVATION OF RIVERS AND RIVER AREAS IN A NATURAL, FREE-FLOWING CONDI-
 TION; (K) PRESERVATION OF FORESTED  LAND;  (L)  PRESERVATION  OF  PUBLIC
 ACCESS  TO  LANDS  FOR PUBLIC USE INCLUDING STREAM RIGHTS AND WATERWAYS;
 (M) PRESERVATION OF HISTORIC PLACES AND PROPERTIES  LISTED  ON  THE  NEW
 YORK  STATE REGISTER OF HISTORIC PLACES AND/OR PROTECTED UNDER A MUNICI-
 PAL HISTORIC PRESERVATION ORDINANCE OR LAW; AND (N) UNDERTAKING  ANY  OF
 THE  AFOREMENTIONED  IN FURTHERANCE OF THE ESTABLISHMENT OF A GREENBELT.
 PRESERVATION OF COMMUNITY CHARACTER SHALL ALSO  INCLUDE  THE  PROTECTION
 AND IMPROVEMENT OF THE QUALITY OF ALL WATER RESOURCES.
   5.  THE GOVERNING BODY OF ANY DESIGNATED CITY OR TOWN WHICH HAS ESTAB-
 LISHED A COMMUNITY PRESERVATION FUND SHALL CREATE AN ADVISORY  BOARD  TO

 A. 8863                             4
 
 REVIEW AND MAKE RECOMMENDATIONS ON PROPOSED ACQUISITIONS OF INTERESTS IN
 REAL  PROPERTY  OR  WATER QUALITY IMPROVEMENT PROJECTS USING MONIES FROM
 THE FUND. SUCH BOARD SHALL CONSIST OF FIVE OR SEVEN LEGAL  RESIDENTS  OF
 THE  MUNICIPALITY WHO SHALL SERVE WITHOUT COMPENSATION. NO MEMBER OF THE
 LOCAL LEGISLATIVE BODY SHALL SERVE ON  THE  BOARD.  A  MAJORITY  OF  THE
 MEMBERS  OF  THE BOARD SHALL HAVE DEMONSTRATED EXPERIENCE WITH CONSERVA-
 TION AND LAND  PRESERVATION  ACTIVITIES  OR  WATER  QUALITY  IMPROVEMENT
 ACTIVITIES.  THE  BOARD  SHALL  ACT IN AN ADVISORY CAPACITY TO THE LOCAL
 GOVERNING BODY.
   6. THE GOVERNING BODY OF ANY DESIGNATED CITY OR TOWN WHICH HAS  ESTAB-
 LISHED A COMMUNITY PRESERVATION FUND SHALL, BY LOCAL LAW, ADOPT A COMMU-
 NITY PRESERVATION PROJECT PLAN. THIS PLAN SHALL LIST EVERY PROJECT WHICH
 THE  CITY OR TOWN PLANS TO UNDERTAKE PURSUANT TO THE COMMUNITY PRESERVA-
 TION FUND.   IT SHALL INCLUDE EVERY PARCEL  WHICH  IS  NECESSARY  TO  BE
 ACQUIRED  IN  THE  CITY OR TOWN IN ORDER TO PROTECT COMMUNITY CHARACTER.
 SUCH PLAN SHALL PROVIDE FOR A DETAILED EVALUATION OF ALL AVAILABLE  LAND
 USE  ALTERNATIVES  TO  PROTECT  COMMUNITY  CHARACTER,  INCLUDING BUT NOT
 LIMITED TO: (A) FEE SIMPLE ACQUISITION, (B) ZONING REGULATIONS,  INCLUD-
 ING  DENSITY  REDUCTIONS,  CLUSTER DEVELOPMENT, AND SITE PLAN AND DESIGN
 REQUIREMENTS, (C) TRANSFER OF DEVELOPMENT RIGHTS, (D)  THE  PURCHASE  OF
 DEVELOPMENT  RIGHTS,  AND  (E)  SCENIC  AND CONSERVATION EASEMENTS. SAID
 EVALUATION SHALL BE  AS  SPECIFIC  AS  PRACTICABLE  AS  TO  EACH  PARCEL
 SELECTED FOR INCLUSION IN THE PLAN. THE PLAN SHALL ESTABLISH THE PRIORI-
 TIES  FOR  PRESERVATION.   SAID PLAN SHALL ALSO LIST EVERY WATER QUALITY
 IMPROVEMENT PROJECT WHICH THE CITY OR TOWN PLANS TO  UNDERTAKE  PURSUANT
 TO  THE  COMMUNITY  PRESERVATION  FUND  AND SHALL STATE HOW SUCH PROJECT
 WOULD IMPROVE EXISTING WATER  QUALITY.  PROJECTS  WHICH  HAVE  AS  THEIR
 PURPOSE THE ACCOMMODATION OF NEW GROWTH AS OPPOSED TO THE REMEDIATION OF
 WATER  QUALITY  SHALL  NOT QUALIFY FOR FUNDING UNDER THIS SECTION. FUNDS
 FROM THE COMMUNITY PRESERVATION FUND MAY ONLY BE EXPENDED  FOR  PROJECTS
 WHICH  HAVE  BEEN  INCLUDED IN SAID PLAN. SAID PLAN SHALL BE UPDATED NOT
 LESS THAN ONCE EVERY FIVE YEARS. SAID PLAN SHALL BE COMPLETED  AT  LEAST
 SIXTY DAYS BEFORE THE SUBMISSION OF THE MANDATORY REFERENDUM REQUIRED BY
 SECTION  FIFTEEN  HUNDRED  SEVENTY-SIX OF THE TAX LAW. AS PART OF, OR IN
 ADDITION, TO SAID COMMUNITY PRESERVATION FUND PROJECT PLAN,  EACH  LOCAL
 GOVERNING  BODY  MAY  ALSO  ADOPT  A MANAGEMENT AND STEWARDSHIP PLAN FOR
 INTERESTS OR RIGHTS IN REAL PROPERTY ACQUIRED PURSUANT TO THIS  SECTION.
 NO  MONIES  FROM  THE FUND SHALL BE EXPENDED FOR MANAGEMENT AND STEWARD-
 SHIP, EXCEPT AS APPROVED IN SAID PLAN. SAID PLAN MAY PROVIDE  MANAGEMENT
 AND STEWARDSHIP PROJECTS FOR UP TO A THREE YEAR PERIOD AND SHALL PROVIDE
 A  DESCRIPTION  AND  ESTIMATED COST FOR EACH PROJECT. SAID PLAN SHALL BE
 APPROVED AND ADOPTED BY LOCAL LAW AND MAY BE UPDATED FROM TIME  TO  TIME
 AT  THE  DISCRETION  OF  THE  LOCAL  GOVERNING BODY. ONLY MANAGEMENT AND
 STEWARDSHIP PROJECTS PERMITTED PURSUANT  TO  SUBDIVISION  NINE  OF  THIS
 SECTION SHALL BE ELIGIBLE TO BE INCLUDED IN THE PLAN.
   7.  THE GOVERNING BODY OF ANY DESIGNATED CITY OR TOWN WHICH HAS ESTAB-
 LISHED A COMMUNITY PRESERVATION FUND  PURSUANT  TO  THIS  SECTION  SHALL
 STUDY AND CONSIDER ESTABLISHING A TRANSFER OF DEVELOPMENT RIGHTS PROGRAM
 TO  PROTECT  COMMUNITY  CHARACTER AS PROVIDED FOR BY SECTION TWO HUNDRED
 SIXTY-ONE-A OF THE TOWN LAW. ALL PROVISIONS OF SUCH SECTION TWO  HUNDRED
 SIXTY-ONE-A  SHALL  BE  COMPLIED WITH. IF AT ANY TIME DURING THE LIFE OF
 THE COMMUNITY PRESERVATION FUND A TRANSFER OF DEVELOPMENT RIGHTS PROGRAM
 IS ESTABLISHED, THE CITY OR TOWN MAY UTILIZE MONIES FROM  THE  COMMUNITY
 PRESERVATION  FUND  IN  ORDER  TO  CREATE AND FUND A CENTRAL BANK OF THE
 TRANSFER OF DEVELOPMENT RIGHTS PROGRAM.  IF AT ANY TIME DURING THE  LIFE
 OF  THE  COMMUNITY  PRESERVATION  FUND, A TRANSFER OF DEVELOPMENT RIGHTS

 A. 8863                             5

 PROGRAM IS REPEALED BY THE CITY OR TOWN, ALL  MONIES  FROM  THE  CENTRAL
 BANK SHALL BE RETURNED TO THE COMMUNITY PRESERVATION FUND.
   8.  NO INTERESTS OR RIGHTS IN REAL PROPERTY SHALL BE ACQUIRED PURSUANT
 TO THIS SECTION UNTIL A PUBLIC HEARING IS HELD AS  REQUIRED  BY  SECTION
 TWO HUNDRED FORTY-SEVEN OF THIS CHAPTER; PROVIDED, HOWEVER, THAT NOTHING
 IN  THIS  SECTION  SHALL  PREVENT THE LOCAL GOVERNING BODY FROM ENTERING
 INTO A CONDITIONAL PURCHASE AGREEMENT BEFORE A PUBLIC HEARING  IS  HELD.
 ANY  RESOLUTION  OF  A  LOCAL GOVERNING BODY APPROVING AN ACQUISITION OF
 LAND PURSUANT TO THIS SECTION, SHALL FIND THAT ACQUISITION WAS THE  BEST
 ALTERNATIVE FOR THE PROTECTION OF COMMUNITY CHARACTER OF ALL THE REASON-
 ABLE ALTERNATIVES AVAILABLE TO THE CITY OR TOWN.
   9.  LANDS  ACQUIRED PURSUANT TO THIS SECTION SHALL BE ADMINISTERED AND
 MANAGED IN A MANNER WHICH (A) ALLOWS  PUBLIC  USE  AND  ENJOYMENT  IN  A
 MANNER  COMPATIBLE  WITH  THE  NATURAL,  SCENIC, HISTORIC AND OPEN SPACE
 CHARACTER OF SUCH LANDS; (B) PRESERVES THE NATIVE  BIOLOGICAL  DIVERSITY
 OF  SUCH  LANDS;  (C) WITH REGARD TO OPEN SPACES, LIMITS IMPROVEMENTS TO
 ENHANCING ACCESS FOR PASSIVE USE OF SUCH LANDS SUCH  AS  NATURE  TRAILS,
 BOARDWALKS,  BICYCLE  PATHS,  AND PERIPHERAL PARKING AREAS PROVIDED THAT
 SUCH IMPROVEMENTS DO NOT DEGRADE THE ECOLOGICAL VALUE  OF  THE  LAND  OR
 THREATEN ESSENTIAL WILDLIFE HABITAT; AND (D) PRESERVES CULTURAL PROPERTY
 CONSISTENT  WITH  ACCEPTED  STANDARDS  FOR  HISTORIC  PRESERVATION.   IN
 FURTHERING THE PURPOSES OF THIS SECTION, THE CITY OR TOWN MAY ENTER INTO
 AGREEMENTS WITH CORPORATIONS ORGANIZED UNDER THE  NOT-FOR-PROFIT  CORPO-
 RATION LAW AND ENGAGE IN LAND TRUST ACTIVITIES TO MANAGE LANDS INCLUDING
 LESS  THAN  FEE  INTERESTS  ACQUIRED  PURSUANT TO THE PROVISIONS OF THIS
 SECTION, PROVIDED THAT ANY SUCH AGREEMENT SHALL CONTAIN A PROVISION THAT
 SUCH CORPORATION SHALL KEEP THE LANDS ACCESSIBLE TO  THE  PUBLIC  UNLESS
 SUCH  CORPORATION  SHALL  DEMONSTRATE TO THE SATISFACTION OF THE CITY OR
 TOWN THAT PUBLIC ACCESSIBILITY WOULD BE DETRIMENTAL TO THE LANDS OR  ANY
 NATURAL  RESOURCES ASSOCIATED THEREWITH.  EXCEPT FOR INTERESTS OR RIGHTS
 IN REAL PROPERTY ACQUIRED FOR HISTORIC PRESERVATION PURPOSES, MANAGEMENT
 AND STEWARDSHIP PROJECTS SHALL BE ONLY EXPENDED FOR (1)  PROJECTS  WHICH
 PROMOTE  THE  PROTECTION OR ENHANCEMENT OF THE NATURAL, SCENIC, AND OPEN
 SPACE CHARACTER FOR WHICH THE INTERESTS OR RIGHTS IN REAL PROPERTY  WERE
 ACQUIRED,  OR  (2)  ACCESSORY  USES RELATED TO THE PURPOSE FOR WHICH THE
 INTERESTS OR RIGHTS IN REAL PROPERTY WERE ACQUIRED CONSISTENT WITH  THIS
 SUBDIVISION, OR (3) RESTORATION OF ACQUIRED REAL PROPERTY TO ITS NATURAL
 STATE  INCLUDING THE DEMOLITION OF EXISTING BUILDINGS AND STRUCTURES. IN
 THE CASE OF INTERESTS OR RIGHTS IN REAL PROPERTY ACQUIRED  FOR  HISTORIC
 PRESERVATION  PURPOSES,  FUNDS  MAY BE EXPENDED ONLY FOR THE RESTORATION
 AND REHABILITATION OF BUILDINGS AND STRUCTURES CONSISTENT WITH  ACCEPTED
 STANDARDS  FOR  HISTORIC PRESERVATION. EXPENSES RELATED TO THE CUSTOMARY
 OPERATION AND MAINTENANCE OF ACQUIRED INTERESTS OR RIGHTS IN REAL  PROP-
 ERTY SHALL NOT BE PERMITTED FROM THE FUND. ANY EXPENDITURE FROM THE FUND
 FOR  A  PURPOSE OTHER THAN THAT PERMITTED, HEREIN, SHALL BE DEEMED TO BE
 PROHIBITED.
   10. RIGHTS OR INTERESTS IN REAL PROPERTY  ACQUIRED  WITH  MONIES  FROM
 SUCH  FUND  SHALL  NOT BE SOLD, LEASED, EXCHANGED, DONATED, OR OTHERWISE
 DISPOSED OF OR USED FOR  OTHER  THAN  THE  PURPOSES  PERMITTED  BY  THIS
 SECTION  WITHOUT  THE  EXPRESS  AUTHORITY  OF AN ACT OF THE LEGISLATURE,
 WHICH SHALL PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF  EQUAL  ENVI-
 RONMENTAL  VALUE AND FAIR MARKET VALUE AND REASONABLY EQUIVALENT USEFUL-
 NESS AND LOCATION TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED OF,  AND
 SUCH  OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE LEGISLATURE.  NOTH-
 ING IN THIS SECTION SHALL PRECLUDE A DESIGNATED CITY OR TOWN,  BY  LOCAL
 LAW,  FROM  ESTABLISHING  ADDITIONAL  RESTRICTIONS  TO THE ALIENATION OF

 A. 8863                             6
 
 LANDS ACQUIRED PURSUANT TO THIS  SECTION.  THIS  SUBDIVISION  SHALL  NOT
 APPLY  TO  THE  SALE  OF  DEVELOPMENT  RIGHTS BY A CITY OR TOWN ACQUIRED
 PURSUANT TO THIS SECTION, WHERE SAID SALE IS  MADE  BY  A  CENTRAL  BANK
 CREATED  BY A CITY OR TOWN, PURSUANT TO A TRANSFER OF DEVELOPMENT RIGHTS
 PROGRAM  ESTABLISHED  BY  A  TOWN  PURSUANT  TO  SECTION   TWO   HUNDRED
 SIXTY-ONE-A  OF  THE TOWN LAW, PROVIDED, HOWEVER (A) THAT THE LANDS FROM
 WHICH SAID DEVELOPMENT RIGHTS WERE ACQUIRED SHALL  REMAIN  PRESERVED  IN
 PERPETUITY BY A PERMANENT CONSERVATION EASEMENT OR OTHER INSTRUMENT THAT
 SIMILARLY  PRESERVES  THE  COMMUNITY CHARACTER REFERENCED IN SUBDIVISION
 FOUR OF THIS SECTION, AND (B) THE  PROCEEDS  FROM  SUCH  SALE  SHALL  BE
 DEPOSITED IN THE COMMUNITY PRESERVATION FUND.
   11.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, DESIGNATED
 CITIES OR TOWNS MAY ENTER INTO INTER-MUNICIPAL  AGREEMENTS  PURSUANT  TO
 ARTICLE FIVE-G OF THIS CHAPTER FOR THE FOLLOWING PURPOSES: (A) TO JOINT-
 LY  ACQUIRE  INTERESTS  OR  RIGHTS IN REAL PROPERTY, CONSISTENT WITH THE
 PURPOSES OF THIS SECTION, WHERE THE ACQUISITION  OF  SUCH  INTERESTS  OR
 RIGHTS PROMOTES A REGIONAL PUBLIC BENEFIT FOR TWO OR MORE TOWNS PURSUANT
 TO  A  REGIONAL PLAN, (B) TO ESTABLISH AN OFFICE OR DEPARTMENT TO RENDER
 LEGAL OPINIONS AND  INTERPRETATIONS  TO  FACILITATE  THE  EFFICIENT  AND
 CONSISTENT  ADMINISTRATION  OF EACH FUND CREATED UNDER THIS SECTION, (C)
 TO PROVIDE FOR AN INDEPENDENT FINANCIAL AUDIT OF EACH CITY'S  OR  TOWN'S
 FUND, AND (D) TO HIRE EMPLOYEES NECESSARY TO IMPLEMENT THE PROVISIONS OF
 THIS SECTION.
   12.  EACH  DESIGNATED  CITY  OR TOWN WHICH HAS ESTABLISHED A COMMUNITY
 PRESERVATION FUND SHALL ANNUALLY COMMISSION AN INDEPENDENT AUDIT OF  THE
 FUND.  THE  AUDIT  SHALL BE CONDUCTED BY AN INDEPENDENT CERTIFIED PUBLIC
 ACCOUNTANT OR AN INDEPENDENT PUBLIC  ACCOUNTANT.  SAID  AUDIT  SHALL  BE
 PERFORMED  BY  A  CERTIFIED  PUBLIC  ACCOUNTANT OR AN INDEPENDENT PUBLIC
 ACCOUNTANT OTHER THAN THE ONE THAT PERFORMS THE GENERAL  AUDIT  OF  EACH
 CITY'S  OR  TOWN'S  FINANCES.  SUCH AUDIT SHALL BE AN EXAMINATION OF THE
 FUND AND SHALL DETERMINE WHETHER THE FUND HAS BEEN ADMINISTERED CONSIST-
 ENT WITH THE  PROVISIONS  OF  THIS  SECTION  AND  ALL  OTHER  APPLICABLE
 PROVISIONS OF STATE LAW. SAID AUDIT SHALL BE INITIATED WITHIN SIXTY DAYS
 OF  THE  CLOSE  OF  THE  FISCAL  YEAR  OF EACH CITY OR TOWN AND SHALL BE
 COMPLETED WITHIN ONE HUNDRED TWENTY DAYS OF  THE  CLOSE  OF  THE  FISCAL
 YEAR. A COPY OF THE AUDIT SHALL BE SUBMITTED ANNUALLY TO THE STATE COMP-
 TROLLER  AND  THE  CITY OR TOWN CLERK. A COPY OF THE AUDIT SHALL BE MADE
 AVAILABLE TO THE PUBLIC WITHIN THIRTY DAYS OF ITS COMPLETION.  A  NOTICE
 OF  THE COMPLETION OF THE AUDIT SHALL BE PUBLISHED IN THE OFFICIAL NEWS-
 PAPER OF THE CITY OR TOWN AND POSTED ON THE OFFICIAL SIGN BOARD  OF  THE
 CITY  OR  TOWN  WITHIN  TEN DAYS OF ITS FILING WITH THE TOWN CLERK. SAID
 AUDIT AND NOTICE SHALL ALSO BE POSTED ON THE INTERNET SITE FOR THE  CITY
 OR TOWN. THE COST OF THE AUDIT MAY BE A CHARGE TO THE FUND.
   13. THE COST OF EMPLOYEES AND INDEPENDENT CONTRACTORS TO IMPLEMENT THE
 PROVISIONS  OF  THIS  SECTION MAY ONLY BE PAID FOR BY THE FUND WHERE THE
 DUTIES AND RESPONSIBILITIES OF SAID EMPLOYEES AND  INDEPENDENT  CONTRAC-
 TORS  ARE  DIRECTLY  DEDICATED  TO  IMPLEMENTING  THE PROVISIONS OF THIS
 SECTION.   WHERE SUCH EMPLOYEES  AND  INDEPENDENT  CONTRACTORS  ARE  NOT
 EXCLUSIVELY DEDICATED TO IMPLEMENTING THE PROVISIONS OF THIS SECTION, NO
 MORE  THAN  THE  COST  OF THE ACTUAL TIME EXPENDED DIRECTLY DEDICATED TO
 IMPLEMENTING THE PROVISIONS OF THIS SECTION MAY BE CHARGED.  SUCH  COSTS
 SHALL  BE  EXPRESSLY  IDENTIFIED IN THE CITY OR TOWN BUDGET AND ANY PLAN
 ADOPTED PURSUANT TO THIS SECTION BEFORE FUNDS  FOR  SUCH  COSTS  MAY  BE
 EXPENDED.  IN ADDITION, SUCH COSTS MUST BE DOCUMENTED BY A TIME ACCOUNT-
 ING SYSTEM, SUBJECT TO AUDIT.   COSTS  RELATING  TO  THE  ACTIVITIES  OF

 A. 8863                             7
 
 ELECTED OFFICIALS IMPLEMENTING THE PURPOSES OF THIS SECTION MAY NOT BE A
 CHARGE TO THE FUND.
   §  2.  The  tax law is amended by adding a new article 33-C to read as
 follows:
                               ARTICLE 33-C
              TAX ON REAL ESTATE TRANSFERS IN CITIES OR TOWNS
 SECTION 1575. DEFINITIONS.
         1576. IMPOSITION OF TAX.
         1577. PAYMENT OF TAX.
         1578. LIABILITY FOR TAX.
         1579. EXEMPTIONS.
         1580. CREDIT.
         1581. COOPERATIVE HOUSING CORPORATION TRANSFERS.
         1582. DESIGNATION OF AGENTS.
         1583. LIABILITY OF RECORDING OFFICER.
         1584. DEPOSIT AND DISPOSITION OF REVENUE.
         1585. JUDICIAL REVIEW.
         1586. APPORTIONMENT.
         1587. MISCELLANEOUS.
         1588. RETURNS TO BE SECRET.
   § 1575. DEFINITIONS. WHEN  USED  IN  THIS  ARTICLE,  UNLESS  OTHERWISE
 EXPRESSLY STATED, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   1. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPA-
 NY,  SOCIETY,  ASSOCIATION,  JOINT  STOCK  COMPANY, CORPORATION, ESTATE,
 RECEIVER, TRUSTEE, ASSIGNEE, REFEREE OR ANY OTHER  PERSON  ACTING  IN  A
 FIDUCIARY  OR  REPRESENTATIVE  CAPACITY, WHETHER APPOINTED BY A COURT OR
 OTHERWISE, ANY COMBINATION OF INDIVIDUALS, AND ANY OTHER FORM  OF  UNIN-
 CORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR MORE PERSONS.
   2.  "CONTROLLING  INTEREST"  MEANS  (A)  IN THE CASE OF A CORPORATION,
 EITHER FIFTY PERCENT OR MORE OF THE TOTAL COMBINED VOTING POWER  OF  ALL
 CLASSES  OF  STOCK  OF SUCH CORPORATION, OR FIFTY PERCENT OR MORE OF THE
 CAPITAL, PROFITS OR BENEFICIAL INTEREST IN SUCH  VOTING  STOCK  OF  SUCH
 CORPORATION, AND (B) IN THE CASE OF A PARTNERSHIP, ASSOCIATION, TRUST OR
 OTHER  ENTITY,  FIFTY PERCENT OR MORE OF THE CAPITAL, PROFITS OR BENEFI-
 CIAL INTEREST IN SUCH PARTNERSHIP, ASSOCIATION, TRUST OR OTHER ENTITY.
   3. "REAL PROPERTY" MEANS EVERY ESTATE OR RIGHT,  LEGAL  OR  EQUITABLE,
 PRESENT  OR FUTURE, VESTED OR CONTINGENT, IN LANDS, TENEMENTS OR HEREDI-
 TAMENTS, INCLUDING BUILDINGS, STRUCTURES AND OTHER IMPROVEMENTS THEREON,
 WHICH ARE LOCATED IN WHOLE OR IN PART WITHIN ANY CITY OR TOWN. IT  SHALL
 NOT INCLUDE RIGHTS TO SEPULTURE.
   4.  "CONSIDERATION"  MEANS  THE  PRICE ACTUALLY PAID OR REQUIRED TO BE
 PAID FOR THE REAL PROPERTY OR INTEREST THEREIN, INCLUDING PAYMENT FOR AN
 OPTION OR CONTRACT TO PURCHASE REAL PROPERTY, WHETHER OR  NOT  EXPRESSED
 IN  THE DEED AND WHETHER PAID OR REQUIRED TO BE PAID BY MONEY, PROPERTY,
 OR ANY OTHER THING OF  VALUE.  IT  SHALL  INCLUDE  THE  CANCELLATION  OR
 DISCHARGE  OF  AN  INDEBTEDNESS OR OBLIGATION. IT SHALL ALSO INCLUDE THE
 AMOUNT OF ANY MORTGAGE, PURCHASE MONEY MORTGAGE, LIEN  OR  OTHER  ENCUM-
 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

 A. 8863                             8
 
 OR RENEW AND THE VALUE OF RENTAL OR OTHER PAYMENTS ATTRIBUTABLE  TO  THE
 EXERCISE OF ANY OPTION TO RENEW.
   (B)  IN  THE  CASE OF A CREATION OF A SUBLEASEHOLD INTEREST, CONSIDER-
 ATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE VALUE  OF  THE  SUBLEASE
 RENTAL  PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL PROP-
 ERTY, THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO RENEW AND THE  VALUE
 OF  RENTAL  OR OTHER PAYMENTS ATTRIBUTABLE TO THE EXERCISE OF ANY OPTION
 TO RENEW LESS THE VALUE OF THE REMAINING  PRIME  LEASE  RENTAL  PAYMENTS
 REQUIRED TO BE MADE.
   (C) IN THE CASE OF A CONTROLLING INTEREST IN ANY ENTITY THAT OWNS REAL
 PROPERTY,  CONSIDERATION  SHALL  MEAN  THE FAIR MARKET VALUE OF THE REAL
 PROPERTY OR INTEREST THEREIN, APPORTIONED BASED ON THE PERCENTAGE OF THE
 OWNERSHIP INTEREST TRANSFERRED OR ACQUIRED IN THE ENTITY.
   (D) IN THE CASE OF AN ASSIGNMENT OR SURRENDER OF A LEASEHOLD  INTEREST
 OR THE ASSIGNMENT OR SURRENDER OF AN OPTION OR CONTRACT TO PURCHASE REAL
 PROPERTY,  CONSIDERATION  SHALL  NOT  INCLUDE THE VALUE OF THE REMAINING
 RENTAL PAYMENTS REQUIRED TO BE MADE PURSUANT TO THE TERMS OF SUCH  LEASE
 OR  THE AMOUNT TO BE PAID FOR THE REAL PROPERTY PURSUANT TO THE TERMS OF
 THE OPTION OR CONTRACT BEING ASSIGNED OR SURRENDERED.
   (E) IN THE CASE OF (1) THE ORIGINAL CONVEYANCE OF SHARES OF STOCK IN A
 COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER
 OF A PROPRIETARY LEASEHOLD BY THE COOPERATIVE CORPORATION OR COOPERATIVE
 PLAN SPONSOR, AND (2) THE SUBSEQUENT CONVEYANCE BY THE OWNER THEREOF  OF
 SUCH  STOCK  IN A COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH THE
 GRANT OR TRANSFER OF A PROPRIETARY  LEASEHOLD  FOR  A  COOPERATIVE  UNIT
 OTHER THAN AN INDIVIDUAL RESIDENTIAL UNIT, CONSIDERATION SHALL INCLUDE A
 PROPORTIONATE  SHARE OF THE UNPAID PRINCIPAL OF ANY MORTGAGE ON THE REAL
 PROPERTY OF THE COOPERATIVE HOUSING CORPORATION COMPRISING  THE  COOPER-
 ATIVE DWELLING OR DWELLINGS. SUCH SHARE SHALL BE DETERMINED BY MULTIPLY-
 ING THE TOTAL UNPAID PRINCIPAL OF THE MORTGAGE BY A FRACTION, THE NUMER-
 ATOR  OF  WHICH SHALL BE THE NUMBER OF SHARES OF STOCK BEING CONVEYED IN
 THE COOPERATIVE HOUSING CORPORATION IN  CONNECTION  WITH  THE  GRANT  OR
 TRANSFER  OF  A PROPRIETARY LEASEHOLD AND THE DENOMINATOR OF WHICH SHALL
 BE THE TOTAL NUMBER OF SHARES OF STOCK IN THE COOPERATIVE HOUSING CORPO-
 RATION.
   5. "CONVEYANCE" MEANS THE TRANSFER OR TRANSFERS  OF  ANY  INTEREST  IN
 REAL  PROPERTY  BY  ANY  METHOD,  INCLUDING  BUT  NOT  LIMITED TO, SALE,
 EXCHANGE, ASSIGNMENT, SURRENDER, MORTGAGE FORECLOSURE, TRANSFER IN  LIEU
 OF  FORECLOSURE,  OPTION,  TRUST  INDENTURE,  TAKING  BY EMINENT DOMAIN,
 CONVEYANCE UPON LIQUIDATION OR BY A RECEIVER, OR TRANSFER OR ACQUISITION
 OF A CONTROLLING INTEREST IN ANY ENTITY WITH AN INTEREST IN REAL PROPER-
 TY. TRANSFER OF AN INTEREST IN REAL PROPERTY SHALL INCLUDE THE  CREATION
 OF  A  LEASEHOLD  OR  SUBLEASE ONLY WHERE (A) THE SUM OF THE TERM OF THE
 LEASE OR SUBLEASE AND ANY OPTIONS FOR RENEWAL EXCEEDS FORTY-NINE  YEARS,
 (B)  SUBSTANTIAL  CAPITAL  IMPROVEMENTS ARE OR MAY BE MADE BY OR FOR THE
 BENEFIT OF THE LESSEE OR SUBLESSEE, AND (C) THE LEASE OR SUBLEASE IS FOR
 SUBSTANTIALLY ALL  OF  THE  PREMISES  CONSTITUTING  THE  REAL  PROPERTY.
 NOTWITHSTANDING  THE  FOREGOING,  CONVEYANCE  OF REAL PROPERTY SHALL NOT
 INCLUDE A CONVEYANCE MADE PURSUANT TO DEVISE,  BEQUEST  OR  INHERITANCE;
 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

 A. 8863                             9
 
 SPACE  AND  AIR  RIGHTS,  OR ANY OTHER INTEREST WITH THE RIGHT TO USE OR
 OCCUPANCY OF REAL PROPERTY OR THE RIGHT TO  RECEIVE  RENTS,  PROFITS  OR
 OTHER INCOME DERIVED FROM REAL PROPERTY. IT SHALL ALSO INCLUDE AN OPTION
 OR  CONTRACT  TO PURCHASE REAL PROPERTY. IT SHALL NOT INCLUDE A RIGHT OF
 FIRST REFUSAL TO PURCHASE REAL PROPERTY.
   7. "GRANTOR" MEANS THE PERSON MAKING THE CONVEYANCE OF  REAL  PROPERTY
 OR  INTEREST THEREIN.  WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OR AN
 ACQUISITION OF A CONTROLLING INTEREST IN AN ENTITY WITH AN  INTEREST  IN
 REAL PROPERTY, "GRANTOR" MEANS THE ENTITY WITH AN INTEREST IN REAL PROP-
 ERTY  OR  A  SHAREHOLDER  OR  PARTNER  TRANSFERRING STOCK OR PARTNERSHIP
 INTEREST, RESPECTIVELY.
   8. "GRANTEE" MEANS THE PERSON WHO OBTAINS REAL  PROPERTY  OR  INTEREST
 THEREIN AS A RESULT OF A CONVEYANCE.
   9.  "FUND"  MEANS  A  COMMUNITY  PRESERVATION FUND CREATED PURSUANT TO
 SECTION SIX-W OF THE GENERAL MUNICIPAL LAW.
   10. "RECORDING OFFICER" MEANS THE COUNTY CLERK.
   11. "CITY OR TOWN" MEANS A MUNICIPAL CORPORATION COMPRISING THE INHAB-
 ITANTS WITHIN ITS BOUNDARIES, AND FORMED FOR THE PURPOSE  OF  EXERCISING
 SUCH POWERS AND DISCHARGING SUCH DUTIES OF LOCAL GOVERNMENT AND ADMINIS-
 TRATION  OF PUBLIC AFFAIRS AS HAVE BEEN, OR, MAY BE CONFERRED OR IMPOSED
 UPON IT BY LAW AND HAS A POPULATION OF ONE MILLION OR FEWER PERSONS.
   12. "TREASURER" MEANS THE COUNTY TREASURER.
   § 1576. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW
 TO THE CONTRARY, ANY CITY OR TOWN, ACTING THROUGH  ITS  LOCAL  GOVERNING
 BODY,  IS  HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL LAW IMPOSING
 IN SUCH CITY OR TOWN A TAX ON EACH CONVEYANCE OF REAL PROPERTY OR INTER-
 EST THEREIN WHERE THE CONSIDERATION EXCEEDS FIVE HUNDRED DOLLARS, AT THE
 RATE OF UP TO TWO PERCENT OF  THE  CONSIDERATION  FOR  SUCH  CONVEYANCE.
 PROVIDED,  HOWEVER, ANY SUCH LOCAL LAW IMPOSING, REPEALING OR REIMPOSING
 SUCH TAX SHALL BE SUBJECT TO A MANDATORY REFERENDUM PURSUANT TO  SECTION
 TWENTY-THREE  OF  THE MUNICIPAL HOME RULE LAW. SUCH LOCAL LAW SHALL ONLY
 BE SUBMITTED FOR THE APPROVAL OF THE ELECTORS  AT  A  GENERAL  ELECTION.
 NOTWITHSTANDING  THE FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL LAW, THE
 CITY OR TOWN MUST ESTABLISH A COMMUNITY PRESERVATION  FUND  PURSUANT  TO
 SECTION SIX-W OF THE GENERAL MUNICIPAL LAW. REVENUES FROM SUCH TAX SHALL
 BE  DEPOSITED  IN  SUCH  FUND AND MAY BE USED SOLELY FOR THE PURPOSES OF
 SUCH FUND. SUCH LOCAL LAW SHALL APPLY TO ANY CONVEYANCE OCCURRING ON  OR
 AFTER  THE FIRST DAY OF A MONTH TO BE DESIGNATED BY SUCH LOCAL GOVERNING
 BODY, WHICH IS NOT LESS THAN SIXTY DAYS  AFTER  THE  ENACTMENT  OF  SUCH
 LOCAL LAW, BUT SHALL NOT APPLY TO CONVEYANCES MADE ON OR AFTER SUCH DATE
 PURSUANT  TO  BINDING WRITTEN CONTRACTS ENTERED INTO PRIOR TO SUCH DATE,
 PROVIDED THAT THE DATE OF EXECUTION OF SUCH  CONTRACT  IS  CONFIRMED  BY
 INDEPENDENT EVIDENCE SUCH AS THE RECORDING OF THE CONTRACT, PAYMENT OF A
 DEPOSIT OR OTHER FACTS AND CIRCUMSTANCES AS DETERMINED BY THE TREASURER.
   § 1577. PAYMENT OF TAX. 1. THE REAL ESTATE TRANSFER TAX IMPOSED PURSU-
 ANT  TO  THIS  ARTICLE  SHALL  BE PAID TO THE TREASURER OR THE RECORDING
 OFFICER ACTING AS THE AGENT OF THE TREASURER UPON  DESIGNATION  AS  SUCH
 AGENT  BY  THE TREASURER. SUCH TAX SHALL BE PAID AT THE SAME TIME AS THE
 REAL ESTATE TRANSFER TAX IMPOSED BY ARTICLE THIRTY-ONE OF  THIS  CHAPTER
 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

 A. 8863                            10
 
 THIRTY-ONE  OF  THIS CHAPTER.  THE TREASURER SHALL PRESCRIBE THE FORM OF
 RETURN, THE INFORMATION WHICH IT SHALL CONTAIN,  AND  THE  DOCUMENTATION
 THAT  SHALL  ACCOMPANY  THE  RETURN. SAID FORM SHALL BE IDENTICAL TO THE
 REAL ESTATE TRANSFER TAX RETURN REQUIRED TO BE FILED PURSUANT TO SECTION
 FOURTEEN  HUNDRED  NINE OF THIS CHAPTER, EXCEPT THAT THE TREASURER SHALL
 ADAPT SAID FORM TO REFLECT THE  PROVISIONS  IN  THIS  CHAPTER  THAT  ARE
 INCONSISTENT,  DIFFERENT,  OR  IN  ADDITION TO THE PROVISIONS OF ARTICLE
 THIRTY-ONE OF  THIS  CHAPTER.  THE  REAL  ESTATE  TRANSFER  TAX  RETURNS
 REQUIRED  TO  BE  FILED  PURSUANT TO THIS SECTION SHALL BE PRESERVED FOR
 THREE YEARS AND THEREAFTER UNTIL SUCH  TREASURER  OR  RECORDING  OFFICER
 ORDERS THEM TO BE DESTROYED.
   3.  THE  RECORDING  OFFICER SHALL NOT RECORD AN INSTRUMENT EFFECTING A
 CONVEYANCE UNLESS THE RETURN REQUIRED BY THIS SECTION HAS BEEN FILED AND
 THE TAX IMPOSED PURSUANT  TO  THIS  ARTICLE  SHALL  HAVE  BEEN  PAID  AS
 REQUIRED IN THIS SECTION.
   §  1578.  LIABILITY  FOR TAX. 1. THE REAL ESTATE TRANSFER TAX SHALL BE
 PAID BY THE GRANTEE. IF THE GRANTEE HAS FAILED TO PAY  THE  TAX  IMPOSED
 PURSUANT  TO THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX, THE
 GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE  GRANTOR  HAS  THE
 DUTY  TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY THE TAX, SUCH
 TAX SHALL BE THE JOINT AND SEVERAL LIABILITY  OF  THE  GRANTEE  AND  THE
 GRANTOR.
   2. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO
 PREVENT EVASION OF THE TAX HEREBY IMPOSED, IT SHALL BE PRESUMED THAT ALL
 CONVEYANCES ARE TAXABLE. WHERE THE CONSIDERATION INCLUDES PROPERTY OTHER
 THAN  MONEY,  IT  SHALL  BE  PRESUMED THAT THE CONSIDERATION IS THE FAIR
 MARKET VALUE OF THE REAL PROPERTY OR INTEREST  THEREIN.  THESE  PRESUMP-
 TIONS  SHALL  PREVAIL  UNTIL  THE  CONTRARY IS PROVEN, AND THE BURDEN OF
 PROVING THE CONTRARY SHALL BE ON THE PERSON LIABLE FOR  PAYMENT  OF  THE
 TAX.
   §  1579. EXEMPTIONS. 1. THE FOLLOWING SHALL BE EXEMPT FROM THE PAYMENT
 OF THE REAL ESTATE TRANSFER TAX: (A) THE STATE OF NEW YORK,  OR  ANY  OF
 ITS  AGENCIES,  INSTRUMENTALITIES,  POLITICAL  SUBDIVISIONS,  OR  PUBLIC
 CORPORATIONS (INCLUDING A PUBLIC  CORPORATION  CREATED  PURSUANT  TO  AN
 AGREEMENT  OR COMPACT WITH ANOTHER STATE OR DOMINION OF CANADA); AND (B)
 THE UNITED NATIONS, THE UNITED STATES OF AMERICA OR ANY OF ITS  AGENCIES
 OR INSTRUMENTALITIES.
   2.  THE  TAX  SHALL NOT APPLY TO ANY OF THE FOLLOWING CONVEYANCES: (A)
 CONVEYANCES TO THE UNITED NATIONS, THE UNITED  STATES  OF  AMERICA,  THE
 STATE  OF NEW YORK, OR ANY OF THEIR INSTRUMENTALITIES, AGENCIES OR POLI-
 TICAL SUBDIVISIONS (OR ANY PUBLIC CORPORATION, INCLUDING A PUBLIC CORPO-
 RATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH  ANOTHER  STATE  OR
 THE  DOMINION  OF  CANADA);  (B)  CONVEYANCES  WHICH ARE OR WERE USED TO
 SECURE A DEBT OR OTHER OBLIGATION; (C) CONVEYANCES WHICH, WITHOUT  ADDI-
 TIONAL  CONSIDERATION,  CONFIRM,  CORRECT,  MODIFY  OR SUPPLEMENT A DEED
 PREVIOUSLY RECORDED; (D) CONVEYANCES OF REAL PROPERTY WITHOUT  CONSIDER-
 ATION  AND  OTHERWISE  THAN  IN  CONNECTION WITH A SALE, INCLUDING DEEDS
 CONVEYING REALTY AS BONA FIDE GIFTS; (E) CONVEYANCES GIVEN IN CONNECTION
 WITH A TAX SALE; (F) CONVEYANCES TO EFFECTUATE A MERE CHANGE OF IDENTITY
 OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFI-
 CIAL OWNERSHIP, OTHER THAN CONVEYANCES TO A COOPERATIVE  HOUSING  CORPO-
 RATION  OF  THE  REAL  PROPERTY  COMPRISING  THE COOPERATIVE DWELLING OR
 DWELLINGS; (G) CONVEYANCES WHICH CONSIST OF A  DEED  OF  PARTITION;  (H)
 CONVEYANCES GIVEN PURSUANT TO THE FEDERAL BANKRUPTCY ACT; (I) CONVEYANC-
 ES OF REAL PROPERTY WHICH CONSIST OF THE EXECUTION OF A CONTRACT TO SELL
 REAL  PROPERTY  WITHOUT  THE  USE  OR  OCCUPANCY OF SUCH PROPERTY OR THE

 A. 8863                            11

 GRANTING OF AN OPTION TO PURCHASE REAL PROPERTY WITHOUT THE USE OR OCCU-
 PANCY OF SUCH PROPERTY; (J) CONVEYANCES  OF  REAL  PROPERTY,  WHERE  THE
 ENTIRE  PARCEL  OF REAL PROPERTY TO BE CONVEYED IS THE SUBJECT OF ONE OR
 MORE  OF  THE  FOLLOWING  DEVELOPMENT  RESTRICTIONS:  (1)  AGRICULTURAL,
 CONSERVATION, SCENIC, OR  AN  OPEN  SPACE  EASEMENT,  (2)  COVENANTS  OR
 RESTRICTIONS  PROHIBITING  DEVELOPMENT,  (3)  A  PURCHASE OF DEVELOPMENT
 RIGHTS AGREEMENT, (4) A TRANSFER OF DEVELOPMENT RIGHTS AGREEMENT,  WHERE
 THE  PROPERTY BEING CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS REMOVED, (5)
 SAID REAL PROPERTY IS SUBJECT TO THE DEVELOPMENT RESTRICTION OF AN AGRI-
 CULTURAL DISTRICT OR INDIVIDUAL COMMITMENT, PURSUANT TO ARTICLE  TWENTY-
 FIVE-AA OF THE AGRICULTURE AND MARKETS LAW, (6) REAL PROPERTY SUBJECT TO
 ANY LOCALLY ADOPTED LAND PRESERVATION AGREEMENT, PROVIDED SAID EXEMPTION
 IS  INCLUDED  IN THE LOCAL LAW IMPOSING THE TAX AUTHORIZED BY THIS ARTI-
 CLE; (K) CONVEYANCES OF REAL PROPERTY,  WHERE  THE  PROPERTY  IS  VIABLE
 AGRICULTURAL  LAND  AS  DEFINED  IN  SUBDIVISION  SEVEN OF SECTION THREE
 HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW AND THE  ENTIRE  PROPERTY
 TO  BE  CONVEYED  IS  TO  BE  MADE  SUBJECT  TO  ONE  OF THE DEVELOPMENT
 RESTRICTIONS PROVIDED FOR IN SUBPARAGRAPH TWO OF PARAGRAPH (J)  OF  THIS
 SUBDIVISION  PROVIDED  THAT  SAID  DEVELOPMENT RESTRICTION PRECLUDES THE
 CONVERSION OF THE PROPERTY TO A NON-AGRICULTURAL USE FOR AT LEAST  THREE
 YEARS  FROM  THE  DATE  OF TRANSFER, AND SAID DEVELOPMENT RESTRICTION IS
 EVIDENCED BY AN EASEMENT, AGREEMENT, OR OTHER SUITABLE INSTRUMENT  WHICH
 IS TO BE CONVEYED TO THE CITY OR TOWN SIMULTANEOUSLY WITH THE CONVEYANCE
 OF  THE  REAL  PROPERTY;  OR  (L)  CONVEYANCES OF REAL PROPERTY FOR OPEN
 SPACE, PARKS, OR HISTORIC PRESERVATION PURPOSES  TO  ANY  NOT-FOR-PROFIT
 TAX  EXEMPT  CORPORATION  OPERATED  FOR  CONSERVATION, ENVIRONMENTAL, OR
 HISTORIC PRESERVATION PURPOSES.
   3. AN EXEMPTION WHICH IS EQUAL IN VALUE TO THE RESIDENTIAL MEDIAN SALE
 PRICE OF THE COUNTY IN WHICH THE CITY OR TOWN IS  LOCATED  ACCORDING  TO
 THE  OFFICE OF REAL PROPERTY SERVICES, SHALL BE ALLOWED ON THE CONSIDER-
 ATION OF THE CONVEYANCE OF IMPROVED REAL PROPERTY OR AN INTEREST  THERE-
 IN.
   §  1580.  CREDIT.  A GRANTEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX
 DUE ON A CONVEYANCE OF REAL PROPERTY TO THE EXTENT TAX WAS PAID BY  SUCH
 GRANTEE  ON  A  PRIOR CREATION OF A LEASEHOLD OF ALL OR A PORTION OF THE
 SAME REAL PROPERTY OR ON THE  GRANTING  OF  AN  OPTION  OR  CONTRACT  TO
 PURCHASE  ALL  OR  A  PORTION OF THE SAME REAL PROPERTY BY SUCH GRANTEE.
 SUCH CREDIT SHALL BE  COMPUTED  BY  MULTIPLYING  THE  TAX  PAID  ON  THE
 CREATION  OF  THE LEASEHOLD OR ON THE GRANTING OF THE OPTION OR CONTRACT
 BY A FRACTION, THE NUMERATOR OF WHICH IS THE VALUE OF THE  CONSIDERATION
 USED  TO  COMPUTE  SUCH TAX PAID WHICH IS NOT YET DUE TO SUCH GRANTOR ON
 THE DATE OF THE SUBSEQUENT CONVEYANCE (AND WHICH SUCH GRANTOR  WILL  NOT
 BE ENTITLED TO RECEIVE AFTER SUCH DATE), AND THE DENOMINATOR OF WHICH IS
 THE TOTAL VALUE OF THE CONSIDERATION USED TO COMPUTE SUCH TAX PAID.
   §  1581. COOPERATIVE HOUSING CORPORATION TRANSFERS. 1. NOTWITHSTANDING
 THE DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN SUBDIVISION TWO OF
 SECTION FIFTEEN HUNDRED SEVENTY-FIVE OF THIS ARTICLE OR ANYTHING TO  THE
 CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED SEVEN-
 TY-FIVE  OF THIS ARTICLE, THE TAX IMPOSED PURSUANT TO THIS ARTICLE SHALL
 APPLY TO (A) THE ORIGINAL CONVEYANCE OF SHARES OF STOCK IN A COOPERATIVE
 HOUSING CORPORATION IN CONNECTION  WITH  THE  GRANT  OR  TRANSFER  OF  A
 PROPRIETARY LEASEHOLD BY THE COOPERATIVE CORPORATION OR COOPERATIVE PLAN
 SPONSOR,  AND  (B)  THE SUBSEQUENT CONVEYANCE OF SUCH STOCK IN A COOPER-
 ATIVE HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER OF  A
 PROPRIETARY  LEASEHOLD  BY  THE OWNER THEREOF.  WITH RESPECT TO ANY SUCH
 SUBSEQUENT CONVEYANCE WHERE THE PROPERTY IS  AN  INDIVIDUAL  RESIDENTIAL

 A. 8863                            12
 
 UNIT,  THE  CONSIDERATION  FOR  THE  INTEREST CONVEYED SHALL EXCLUDE THE
 VALUE OF ANY LIENS ON CERTIFICATES OF STOCK OR  OTHER  EVIDENCES  OF  AN
 OWNERSHIP  INTEREST  IN  AND  A  PROPRIETARY LEASE FROM A CORPORATION OR
 PARTNERSHIP  FORMED FOR THE PURPOSE OF COOPERATIVE OWNERSHIP OF RESIDEN-
 TIAL INTEREST IN REAL ESTATE REMAINING THEREON AT THE  TIME  OF  CONVEY-
 ANCE.  IN DETERMINING THE TAX ON A CONVEYANCE DESCRIBED IN PARAGRAPH (A)
 OF THIS SUBDIVISION, A CREDIT SHALL BE ALLOWED FOR A PROPORTIONATE  PART
 OF  THE  AMOUNT  OF  ANY TAX PAID UPON THE CONVEYANCE TO THE COOPERATIVE
 HOUSING CORPORATION OF THE  REAL  PROPERTY  COMPRISING  THE  COOPERATIVE
 DWELLING  OR  DWELLINGS TO THE EXTENT THAT SUCH CONVEYANCE EFFECTUATED A
 MERE CHANGE OF IDENTITY OR FORM OF OWNERSHIP OF SUCH PROPERTY AND NOT  A
 CHANGE  IN  THE BENEFICIAL OWNERSHIP OF SUCH PROPERTY. THE AMOUNT OF THE
 CREDIT SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT OF  TAX  PAID  UPON
 THE  CONVEYANCE  TO  THE COOPERATIVE HOUSING CORPORATION BY A PERCENTAGE
 REPRESENTING THE EXTENT TO WHICH  SUCH  CONVEYANCE  EFFECTUATED  A  MERE
 CHANGE  OF IDENTITY OR FORM OF OWNERSHIP AND NOT A CHANGE IN THE BENEFI-
 CIAL OWNERSHIP OF SUCH PROPERTY,  AND  THEN  MULTIPLYING  THE  RESULTING
 PRODUCT  BY  A  FRACTION,  THE NUMERATOR OF WHICH SHALL BE THE NUMBER OF
 SHARES OF STOCK CONVEYED IN A TRANSACTION DESCRIBED IN PARAGRAPH (A)  OF
 THIS SUBDIVISION, AND THE DENOMINATOR OF WHICH SHALL BE THE TOTAL NUMBER
 OF SHARES OF STOCK OF THE COOPERATIVE HOUSING CORPORATION (INCLUDING ANY
 STOCK  HELD BY THE CORPORATION). IN NO EVENT, HOWEVER, SHALL SUCH CREDIT
 REDUCE THE TAX, ON A CONVEYANCE  DESCRIBED  IN  PARAGRAPH  (A)  OF  THIS
 SUBDIVISION,  BELOW ZERO, NOR SHALL ANY SUCH CREDIT BE ALLOWED FOR A TAX
 PAID MORE THAN TWENTY-FOUR MONTHS PRIOR TO THE DATE ON WHICH OCCURS  THE
 FIRST  IN  A  SERIES OF CONVEYANCES OF SHARES OF STOCK IN AN OFFERING OF
 COOPERATIVE HOUSING CORPORATION SHARES DESCRIBED  IN  PARAGRAPH  (A)  OF
 THIS SUBDIVISION.
   2.  EVERY COOPERATIVE HOUSING CORPORATION SHALL BE REQUIRED TO FILE AN
 INFORMATION RETURN WITH THE TREASURER BY JULY  FIFTEENTH  OF  EACH  YEAR
 COVERING  THE  PRECEDING  PERIOD OF JANUARY FIRST THROUGH JUNE THIRTIETH
 AND BY JANUARY FIFTEENTH OF EACH YEAR COVERING THE PRECEDING  PERIOD  OF
 JULY  FIRST THROUGH DECEMBER THIRTY-FIRST. THE RETURN SHALL CONTAIN SUCH
 INFORMATION REGARDING THE CONVEYANCE OF SHARES OF STOCK IN  THE  COOPER-
 ATIVE  HOUSING  CORPORATION AS THE TREASURER MAY DEEM NECESSARY, INCLUD-
 ING, BUT NOT LIMITED TO, THE NAMES, ADDRESSES AND  EMPLOYEE  IDENTIFICA-
 TION  NUMBERS OR SOCIAL SECURITY NUMBERS OF THE GRANTOR AND THE GRANTEE,
 THE NUMBER OF SHARES CONVEYED,  THE  DATE  OF  THE  CONVEYANCE  AND  THE
 CONSIDERATION PAID FOR SUCH CONVEYANCE.
   §  1582.  DESIGNATION OF AGENTS. THE TREASURER IS AUTHORIZED TO DESIG-
 NATE THE RECORDING OFFICER TO ACT AS HIS OR HER AGENT  FOR  PURPOSES  OF
 COLLECTING  THE  TAX  AUTHORIZED  BY  THIS  ARTICLE. THE TREASURER SHALL
 PROVIDE FOR THE MANNER IN WHICH SUCH PERSON MAY BE DESIGNATED AS HIS  OR
 HER  AGENT  SUBJECT  TO SUCH TERMS AND CONDITIONS AS THE TREASURER SHALL
 PRESCRIBE. THE REAL ESTATE TRANSFER TAX SHALL BE PAID TO SUCH  AGENT  AS
 PROVIDED IN SECTION FIFTEEN HUNDRED SEVENTY-SEVEN OF THIS ARTICLE.
   §  1583. LIABILITY OF RECORDING OFFICER. A RECORDING OFFICER SHALL NOT
 BE LIABLE FOR ANY INACCURACY IN THE AMOUNT OF TAX  IMPOSED  PURSUANT  TO
 THIS  ARTICLE  THAT  HE  OR SHE SHALL COLLECT SO LONG AS HE OR SHE SHALL
 COMPUTE AND COLLECT SUCH TAX ON THE AMOUNT OF CONSIDERATION OR THE VALUE
 OF THE INTEREST CONVEYED AS SUCH AMOUNTS ARE PROVIDED TO HIM OR  HER  BY
 THE PERSON PAYING THE TAX.
   §  1584.  DEPOSIT  AND DISPOSITION OF REVENUE. 1. ALL TAXES, PENALTIES
 AND INTEREST IMPOSED BY THE CITY OR TOWN UNDER THE AUTHORITY OF  SECTION
 FIFTEEN  HUNDRED SEVENTY-SIX OF THIS ARTICLE, WHICH ARE COLLECTED BY THE
 TREASURER OR HIS OR HER AGENTS, SHALL BE DEPOSITED  IN  A  SINGLE  TRUST

 A. 8863                            13
 
 FUND  FOR  THE  CITY OR TOWN AND SHALL BE KEPT IN TRUST AND SEPARATE AND
 APART FROM ALL OTHER MONIES IN POSSESSION OF THE  TREASURER.  MONEYS  IN
 SUCH  FUND  SHALL  BE  DEPOSITED  AND  SECURED IN THE MANNER PROVIDED BY
 SECTION  TEN OF THE GENERAL MUNICIPAL LAW. PENDING EXPENDITURE FROM SUCH
 FUND, MONEYS THEREIN MAY BE INVESTED IN THE MANNER PROVIDED  IN  SECTION
 ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN
 REALIZED  ON  THE  MONEYS  SO  DEPOSITED OR INVESTED SHALL ACCRUE TO AND
 BECOME PART OF SUCH FUND.
   2. THE TREASURER SHALL RETAIN SUCH AMOUNT AS HE OR SHE  MAY  DETERMINE
 TO  BE NECESSARY FOR REFUNDS WITH RESPECT TO THE TAX IMPOSED BY THE CITY
 OR TOWN, UNDER THE AUTHORITY OF SECTION FIFTEEN HUNDRED  SEVENTY-SIX  OF
 THIS  ARTICLE,  OUT OF WHICH THE TREASURER SHALL PAY ANY REFUNDS OF SUCH
 TAXES TO THOSE TAXPAYERS ENTITLED TO A REFUND PURSUANT TO THE PROVISIONS
 OF THIS ARTICLE.
   3. THE TREASURER, AFTER RESERVING SUCH REFUNDS, SHALL ON OR BEFORE THE
 TWELFTH DAY OF EACH MONTH PAY TO THE CITY COMPTROLLER OR THE TOWN SUPER-
 VISOR THE TAXES, PENALTIES AND INTEREST IMPOSED BY THE  TOWN  UNDER  THE
 AUTHORITY  OF  SECTION  FIFTEEN  HUNDRED  SEVENTY-SIX  OF  THIS ARTICLE,
 COLLECTED BY THE TREASURER, PURSUANT TO THIS  ARTICLE  DURING  THE  NEXT
 PRECEDING  CALENDAR  MONTH.  THE AMOUNT SO PAYABLE SHALL BE CERTIFIED TO
 THE CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASURER, WHO  SHALL
 NOT  BE HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIFICATION.  PROVIDED,
 HOWEVER, ANY SUCH CERTIFICATION MAY BE BASED ON SUCH INFORMATION AS  MAY
 BE  AVAILABLE  TO  THE  TREASURER AT THE TIME SUCH CERTIFICATION MUST BE
 MADE UNDER THIS SECTION. WHERE THE AMOUNT SO PAID OVER TO  THE  CITY  OR
 TOWN IN ANY SUCH DISTRIBUTION IS MORE OR LESS THAN THE AMOUNT DUE TO THE
 CITY  OR  TOWN,  THE  AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE
 CERTIFIED TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASUR-
 ER, WHO SHALL NOT BE HELD LIABLE FOR  ANY  INACCURACY  IN  SUCH  CERTIF-
 ICATION.  THE  AMOUNT  OF  THE  OVERPAYMENT  OR UNDERPAYMENT SHALL BE SO
 CERTIFIED TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR AS  SOON  AFTER
 THE  DISCOVERY OF THE OVERPAYMENT OR UNDERPAYMENT AS REASONABLY POSSIBLE
 AND SUBSEQUENT PAYMENTS AND DISTRIBUTIONS BY THE TREASURER TO SUCH  CITY
 OR TOWN SHALL BE ADJUSTED BY SUBTRACTING THE AMOUNT OF ANY SUCH OVERPAY-
 MENT  FROM  OR  BY  ADDING  THE  AMOUNT OF ANY SUCH UNDERPAYMENT TO SUCH
 NUMBER OF SUBSEQUENT PAYMENTS AND DISTRIBUTIONS  AS  THE  TREASURER  AND
 CITY COMPTROLLER OR TOWN SUPERVISOR SHALL CONSIDER REASONABLE IN VIEW OF
 THE OVERPAYMENT OR UNDERPAYMENT AND ALL OTHER FACTS AND CIRCUMSTANCES.
   4.  ALL  MONIES  RECEIVED FROM THE TREASURER SHALL BE DEPOSITED IN THE
 FUND OF THE CITY OR TOWN, PURSUANT  TO  SECTION  SIX-W  OF  THE  GENERAL
 MUNICIPAL LAW.
   §  1585.  JUDICIAL REVIEW. 1. ANY FINAL DETERMINATION OF THE AMOUNT OF
 ANY TAX PAYABLE UNDER SECTION  FIFTEEN  HUNDRED  SEVENTY-EIGHT  OF  THIS
 ARTICLE SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITUTIONALITY
 OR  ANY  OTHER  REASON WHATSOEVER BY A PROCEEDING UNDER ARTICLE SEVENTY-
 EIGHT OF THE CIVIL PRACTICE LAW AND RULES  IF  APPLICATION  THEREFOR  IS
 MADE  TO  THE  SUPREME  COURT WITHIN FOUR MONTHS AFTER THE GIVING OF THE
 NOTICE OF SUCH FINAL DETERMINATION, PROVIDED,  HOWEVER,  THAT  ANY  SUCH
 PROCEEDING  UNDER  ARTICLE  SEVENTY-EIGHT  OF THE CIVIL PRACTICE LAW AND
 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

 A. 8863                            14
 
 OR THE TAX CONFIRMED THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH
 MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING OR (B) AT THE OPTION OF
 THE PETITIONER, SUCH UNDERTAKING MAY BE IN A SUM SUFFICIENT TO COVER THE
 TAXES,  INTEREST  AND  PENALTIES  STATED IN SUCH DETERMINATION, PLUS THE
 COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT IN THE PROSECUTION OF  THE
 PROCEEDING,  IN  WHICH EVENT THE PETITIONER SHALL NOT BE REQUIRED TO PAY
 SUCH TAXES, INTEREST OR PENALTIES AS A CONDITION PRECEDENT TO THE APPLI-
 CATION.
   2. WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,  ILLE-
 GALLY  OR  UNCONSTITUTIONALLY  ASSESSED OR COLLECTED AND APPLICATION FOR
 THE REFUND OR REVISION THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR
 OFFICERS, AND SUCH OFFICER OR OFFICERS SHALL HAVE MADE  A  DETERMINATION
 DENYING  SUCH REFUND OR REVISION, SUCH DETERMINATION SHALL BE REVIEWABLE
 BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW
 AND  RULES;  PROVIDED,  HOWEVER,  THAT (A) SUCH PROCEEDING IS INSTITUTED
 WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH DENIAL, (B)  A
 FINAL  DETERMINATION  OF  TAX  DUE  WAS  NOT PREVIOUSLY MADE, AND (C) AN
 UNDERTAKING IS FILED WITH THE PROPER FISCAL OFFICER OR OFFICERS IN  SUCH
 AMOUNT  AND  WITH  SUCH SURETIES AS A JUSTICE OF THE SUPREME COURT SHALL
 APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED  OR  THE  TAX
 CONFIRMED,  THE  PETITIONER  WILL  PAY  ALL  COSTS AND CHARGES WHICH MAY
 ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING.
   § 1586. APPORTIONMENT. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
 ANT TO THIS ARTICLE, SHALL PROVIDE FOR A  METHOD  OF  APPORTIONMENT  FOR
 DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR INTEREST
 THEREIN IS SITUATED WITHIN AND WITHOUT THE CITY OR TOWN.
   § 1587. MISCELLANEOUS. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
 ANT  TO  THIS  ARTICLE, MAY CONTAIN SUCH OTHER PROVISIONS AS THE CITY OR
 TOWN DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF  THE  TAX  IMPOSED
 PURSUANT  TO  THIS ARTICLE, INCLUDING PROVISIONS CONCERNING THE DETERMI-
 NATION OF TAX, THE IMPOSITION OF INTEREST ON UNDERPAYMENTS AND  OVERPAY-
 MENTS  AND  THE IMPOSITION OF CIVIL PENALTIES.  SUCH PROVISIONS SHALL BE
 IDENTICAL TO THE CORRESPONDING PROVISIONS OF THE  REAL  ESTATE  TRANSFER
 TAX  IMPOSED  BY  ARTICLE  THIRTY-ONE  OF  THIS  CHAPTER, SO FAR AS SUCH
 PROVISIONS CAN BE MADE APPLICABLE TO THE TAX IMPOSED  PURSUANT  TO  THIS
 ARTICLE.
   §  1588.  RETURNS  TO  BE  SECRET. 1. EXCEPT IN ACCORDANCE WITH PROPER
 JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR
 THE TREASURER OR ANY OFFICER OR EMPLOYEE OF THE COUNTY,  CITY  OR  TOWN,
 INCLUDING  ANY  PERSON  ENGAGED  OR  RETAINED ON AN INDEPENDENT CONTRACT
 BASIS, TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE PARTICULARS SET  FORTH
 OR  DISCLOSED  IN ANY RETURN REQUIRED UNDER A LOCAL LAW ENACTED PURSUANT
 TO THIS ARTICLE. PROVIDED, HOWEVER, THAT NOTHING IN THIS  SECTION  SHALL
 PROHIBIT  THE  RECORDING OFFICER FROM MAKING A NOTATION ON AN INSTRUMENT
 AFFECTING A CONVEYANCE INDICATING THE AMOUNT OF TAX  PAID.  NO  RECORDED
 INSTRUMENT  AFFECTING  A  CONVEYANCE  SHALL  BE  CONSIDERED A RETURN FOR
 PURPOSES OF THIS SECTION.
   2. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS SHALL NOT  BE
 REQUIRED  TO  PRODUCE  ANY  OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COUNTY,  CITY,  OR  TOWN  IN  ANY  ACTION  OR  PROCEEDING  INVOLVING THE
 COLLECTION OF A TAX DUE UNDER A LOCAL LAW ENACTED PURSUANT TO THIS ARTI-
 CLE TO WHICH SUCH COUNTY, CITY, OR TOWN IS A PARTY, OR A CLAIMANT, OR ON
 BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS  OF
 A  LOCAL  LAW ENACTED PURSUANT TO THIS ARTICLE WHEN THE RETURNS OR FACTS
 SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY

 A. 8863                            15

 OF WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND  MAY  ADMIT
 IN  EVIDENCE,  SO MUCH OF SAID RETURNS OR OF THE FACTS SHOWN THEREBY, AS
 ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE.
   3. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY
 TO  A  GRANTOR OR GRANTEE OF AN INSTRUMENT EFFECTING A CONVEYANCE OR THE
 DULY AUTHORIZED REPRESENTATIVE OF A GRANTOR OR GRANTEE  OF  A  CERTIFIED
 COPY  OF  ANY  RETURN  FILED  IN  CONNECTION  WITH SUCH INSTRUMENT OR TO
 PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO  PREVENT  THE
 IDENTIFICATION  OF  PARTICULAR  RETURNS  AND  THE  ITEMS THEREOF, OR THE
 INSPECTION BY THE LEGAL REPRESENTATIVES OF SUCH COUNTY, CITY, OR TOWN OF
 THE RETURN OF ANY TAXPAYER WHO SHALL BRING ACTION TO SET ASIDE OR REVIEW
 THE TAX BASED THEREON.
   § 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.