Senate Bill S1814

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1814
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2021
                                ___________
 
 Introduced  by  Sens. SKOUFIS, BIAGGI, KRUEGER -- read twice and ordered
   printed, and when printed to be committed to the  Committee  on  Local
   Government
 
 AN ACT to amend the real property tax law, in relation to assessment and
   taxation of lessees and users of certain tax exempt property

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 12 of section 102 of the real property tax  law
 is amended by adding a new paragraph (j) to read as follows:
   (J)  THE  POSSESSORY  INTEREST OF A PRIVATE LESSEE OR CONTRACTOR WHICH
 USES REAL PROPERTY OWNED BY THE UNITED STATES OR THE STATE OF NEW  YORK,
 EXCEPT  REAL  PROPERTY  OWNED  BY PUBLIC AUTHORITIES, WHERE THE PROPERTY
 WOULD BE SUBJECT TO REAL PROPERTY TAXATION IF OWNED BY  SUCH  LESSEE  OR
 CONTRACTOR,  EXCEPT  WHERE  THE  USE  IS BY WAY OF A CONCESSION WHICH IS
 AVAILABLE FOR THE USE OF THE GENERAL PUBLIC AND IS LOCATED IN  OR  ADJA-
 CENT  TO A PUBLIC AIRPORT, PARK, MARKET, FAIRGROUND, ROAD, PIER, MARINA,
 RAILROAD, BUSLINE, SUBWAY OR SIMILAR PROPERTY WHICH IS AVAILABLE FOR THE
 USE OF THE GENERAL PUBLIC.
   § 2. The section heading and subdivision 1 of section 402 of the  real
 property tax law are amended to read as follows:
   United  States  or  state  property  held  under LEASE OR contract [of
 sale].  1.  Whenever the legal title of real property is in  the  United
 States,  or  in  the  state  of  New  York,  but  the use, occupation or
 possession thereof is in a person, partnership,  association  or  corpo-
 ration, OR HIS OR ITS SUCCESSOR IN INTEREST, under a LEASE, contract [of
 sale],  OPTION  or other agreement [whereby a right to acquire the prem-
 ises through an option, a first privilege or a first refusal is granted,
 or whereby upon one or more payments the legal title thereto is to be or
 may be acquired by  such  person,  partnership,  association  or  corpo-
 ration],  SUCH  THAT  THE INTEREST IS A POSSESSORY INTEREST DESCRIBED IN
 PARAGRAPH (J) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO  OF  THIS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05684-01-1

 S. 1814                             2
 
 CHAPTER, his or its interest in such real property shall be assessed and
 taxed  [as]  FOR  THE  SAME  AMOUNT AND TO THE SAME EXTENT AS THOUGH THE
 LESSEE, CONTRACTOR OR USER WERE THE OWNER  OF  SUCH  real  property  and
 shall  be  entered  in the assessment roll in the same manner as if such
 person, partnership, association or corporation held the legal title  to
 such property, except for the addition to the description OF THE PROPER-
 TY  OF  THE  NAME  OF THE OWNER AND of the words "INTEREST UNDER LEASE",
 "interest under contract", "interest under option", or other appropriate
 words descriptive of the interest in the property so  assessed.    [Such
 assessment shall be at the full value of such interest.]
   §  3.  Subdivision  2  of  section 402 of the real property tax law is
 amended to read as follows:
   2. [The assessors shall  add  to  the  assessment  roll  opposite  the
 description  of any such interest a notation stating that the real prop-
 erty itself so owned by the United States, or by the state, is not to be
 taxed.  Every notice of sale or other process and  every  conveyance  or
 other  instrument  affecting  the title to any such property, consequent
 upon the non-payment of any such tax, shall  contain  a  statement  that
 such  legal  title is not sold or to be sold or affected] TAXES SHALL BE
 ASSESSED TO THE LESSEES, CONTRACTORS OR USERS OF SUCH REAL PROPERTY  AND
 COLLECTED IN THE SAME MANNER AS TAXES ASSESSED TO OWNERS OF REAL PROPER-
 TY,  EXCEPT  THAT  SUCH  TAXES  SHALL NOT BECOME A LIEN AGAINST THE REAL
 PROPERTY OF THE UNITED STATES OR OF THE STATE OF  NEW  YORK.  WHEN  DUE,
 SUCH  TAXES  SHALL  CONSTITUTE  A  DEBT  DUE  AND OWING FROM THE LESSEE,
 CONTRACTOR OR USER TO THE MUNICIPAL CORPORATION OR SPECIAL DISTRICT  FOR
 WHICH  THE  TAXES  WERE  LEVIED  AND  SHALL  BE RECOVERABLE BY ACTION IN
 SUPREME COURT.
   § 4. Section 402 of the real property tax law is amended by  adding  a
 new subdivision 4 to read as follows:
   4.  POSSESSORY INTERESTS, AS DESCRIBED IN PARAGRAPH (J) OF SUBDIVISION
 TWELVE OF SECTION ONE HUNDRED TWO OF THIS CHAPTER, SHALL ONLY BE TAXABLE
 AS PROVIDED IN THIS SECTION IF  THE  GOVERNING  BODY  OF  THE  MUNICIPAL
 CORPORATION  IN WHICH THE POSSESSORY INTERESTS ARE LOCATED, AFTER PUBLIC
 HEARING, ADOPTS A LOCAL  LAW,  ORDINANCE  OR  RESOLUTION  SO  PROVIDING,
 PROVIDED,  HOWEVER, THE PROVISIONS OF THIS SECTION SHALL NOT BE APPLICA-
 BLE WHERE A POSSESSORY INTEREST IS MAKING  PAYMENTS  IN  LIEU  OF  TAXES
 WHICH  PAYMENT IS EQUAL TO THE TAXES THAT WOULD BE PAID HAD THE PROPERTY
 BEEN TAXABLE. ANY SUCH LOCAL LAW, ORDINANCE OR  RESOLUTION  SHALL  APPLY
 ALIKE TO ALL POSSESSORY INTERESTS WHICH ARE LOCATED WITHIN THE MUNICIPAL
 CORPORATION.  POSSESSORY INTERESTS IN EXISTENCE ON THE EFFECTIVE DATE OF
 THE LOCAL LAW, ORDINANCE OR RESOLUTION SHALL BE  PARTIALLY  EXEMPT  FROM
 TAXATION  FOR  THE  NEXT  SUCCEEDING  FOUR YEARS IN ACCORDANCE WITH THIS
 SECTION; PROVIDED, HOWEVER, THAT (A) IF THE LEASE, CONTRACT,  OPTION  OR
 OTHER  AGREEMENT  IS  RENEGOTIATED  OR RENEWED AND SUCH RENEGOTIATION OR
 RENEWAL BECOMES EFFECTIVE DURING THOSE FOUR YEARS, THE PARTIAL EXEMPTION
 SHALL NOT BE AVAILABLE SUBSEQUENT TO  THE  EFFECTIVE  DATE  OF  THE  NEW
 AGREEMENT,  AND  (B)  IF  THE LEASE, CONTRACT, OPTION OR OTHER AGREEMENT
 CONTAINS ANY PROVISION ASSIGNING LIABILITY BETWEEN THE  PARTIES  IN  THE
 EVENT  THAT REAL PROPERTY TAXES ARE IMPOSED, THE PARTIAL EXEMPTION SHALL
 NOT BE AVAILABLE TO POSSESSORY INTERESTS CREATED THEREUNDER.  EXCEPT  IN
 THE  INSTANCES  SET  FORTH  IN  THIS  SUBDIVISION, FOR THE FIRST TAXABLE
 STATUS DATE OCCURRING SUBSEQUENT TO THE EFFECTIVE DATE OF THE LOCAL LAW,
 ORDINANCE OR RESOLUTION, TAXABLE POSSESSORY INTERESTS  SHALL  BE  EXEMPT
 FROM  TAXATION  BY  ANY  MUNICIPAL  CORPORATION  IN WHICH LOCATED TO THE
 EXTENT OF EIGHTY PERCENT OF THE ASSESSED VALUE; FOR THE  SECOND  TAXABLE
 STATUS  DATE,  TO  THE  EXTENT  OF  SIXTY PERCENT; FOR THE THIRD TAXABLE

 S. 1814                             3
 
 STATUS DATE, TO THE EXTENT OF FORTY PERCENT; AND FOR THE FOURTH  TAXABLE
 STATUS  DATE, TO THE EXTENT OF TWENTY PERCENT. NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW IN THIS CHAPTER, POSSESSORY INTERESTS ON PARCELS  WHICH
 HAVE  BEEN DESIGNATED AS MILITARY LAND SHALL BE FULLY EXEMPT FROM SCHOOL
 PROPERTY TAX IF THE SCHOOL DISTRICT WHEREUPON SUCH MILITARY LAND PARCELS
 ARE SITUATED RECEIVES IMPACT  AID  FUNDS  FROM  THE  FEDERAL  GOVERNMENT
 PURSUANT TO 30 CFR PART 222.
   §  5. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.