S T A T E O F N E W Y O R K
________________________________________________________________________
2774--A
2023-2024 Regular Sessions
I N S E N A T E
January 24, 2023
___________
Introduced by Sens. SKOUFIS, KRUEGER -- read twice and ordered printed,
and when printed to be committed to the Committee on Local Government
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
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 (k) to read as follows:
(K) 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 HER OR ITS SUCCESSOR IN INTEREST, under a LEASE,
contract [of sale], OPTION or other agreement [whereby a right to
acquire the premises 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, associ-
ation or corporation], SUCH THAT THE INTEREST IS A POSSESSORY INTEREST
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05779-04-3
S. 2774--A 2
DESCRIBED IN PARAGRAPH (K) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED
TWO OF THIS CHAPTER, his OR HER 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 PROPERTY 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 two
new subdivisions 4 and 5 to read as follows:
4. POSSESSORY INTERESTS, AS DESCRIBED IN PARAGRAPH (K) 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
S. 2774--A 3
EXTENT OF EIGHTY PERCENT OF THE ASSESSED VALUE; FOR THE SECOND TAXABLE
STATUS DATE, TO THE EXTENT OF SIXTY PERCENT; FOR THE THIRD TAXABLE
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 SECTION SHALL NOT APPLY TO BUSINESSES WITH LESS THAN TWENTY-
FIVE EMPLOYEES.
§ 5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.
