S T A T E   O F   N E W   Y O R K
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                                  6328--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 5, 2023
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on  Real  Property  Taxation  --  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
 DESCRIBED IN PARAGRAPH (K) OF SUBDIVISION TWELVE OF SECTION ONE  HUNDRED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05779-05-3
              

 A. 6328--A                          2
 
 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
 EXTENT OF EIGHTY PERCENT OF THE ASSESSED VALUE; FOR THE  SECOND  TAXABLE
 A. 6328--A                          3
 
 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.