Assembly Bill A10860

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10860
 
                           I N  A S S E M B L Y
 
                               April 8, 2026
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Local Governments
 
 AN  ACT  to  amend  the  general municipal law and the education law, in
   relation to payments in lieu of taxes
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subparagraph  (i)  of  paragraph  (b) of subdivision 3 of
 section 3-c of the general municipal law, as amended  by  section  2  of
 subpart  C  of  part  C of chapter 20 of the laws of 2015, is amended to
 read as follows:
   (i) The commissioner of taxation and finance shall calculate a quanti-
 ty change factor for each local government for the  coming  fiscal  year
 based upon the physical or quantity change, as defined by section twelve
 hundred twenty of the real property tax law, reported to the commission-
 er  of  taxation  and  finance  by the assessor or assessors pursuant to
 section five hundred seventy-five of the  real  property  tax  law.  The
 quantity change factor shall show the percentage by which the full value
 of  the taxable real property in the local government has changed due to
 physical or quantity change between the second final assessment roll  or
 rolls  preceding the final assessment roll or rolls upon which taxes are
 to be levied, and the final assessment roll or rolls immediately preced-
 ing the final assessment roll or  rolls  upon  which  taxes  are  to  be
 levied.  The commissioner of taxation and finance shall, as appropriate,
 promulgate rules and regulations regarding the calculation of the  quan-
 tity  change factor which may adjust the calculation based on the devel-
 opment on tax exempt land, INCLUDING THE CHANGE IN  ASSESSED  VALUE  FOR
 EACH  PROPERTY  ON  THE  EXEMPT SIDE OF THE TAX ROLLS UNDER A PAYMENT IN
 LIEU OF TAX AGREEMENT; PROVIDED, HOWEVER, THAT WHERE A LOCAL  GOVERNMENT
 HAS  ELECTED  PURSUANT TO PARAGRAPH (E) OF THIS SUBDIVISION, THE COMMIS-
 SIONER SHALL INCLUDE THE EQUIVALENT TAXABLE VALUE DETERMINED PURSUANT TO
 SUCH PARAGRAPH IN LIEU OF INCLUDING THE  FULL  ASSESSED  VALUE  OF  SUCH
 PROPERTY.
   §  2.  Subdivision  3  of  section 3-c of the general municipal law is
 amended by adding a new paragraph (e) to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03251-02-6
 A. 10860                            2
 
   (E)(I) NOTWITHSTANDING ANY OTHER PROVISION OF THIS  SECTION,  A  LOCAL
 GOVERNMENT MAY ELECT TO INCLUDE, FOR PURPOSES OF CALCULATING THE QUANTI-
 TY  CHANGE FACTOR, THE EQUIVALENT TAXABLE VALUE OF REAL PROPERTY SUBJECT
 TO A PAYMENT IN LIEU OF TAXES AGREEMENT.
   (II)  THE EQUIVALENT TAXABLE VALUE SHALL BE DETERMINED BY DIVIDING THE
 PORTION OF THE PAYMENT IN LIEU OF TAXES ATTRIBUTABLE  TO  REAL  PROPERTY
 TAXATION  BY  THE  APPLICABLE  TAX  RATE  OR RATES FOR THE LEVY YEAR, AS
 DETERMINED BY THE COMMISSIONER OF TAXATION AND FINANCE.
   (III) IN NO EVENT SHALL THE FULL ASSESSED VALUE OF PROPERTY SUBJECT TO
 A PAYMENT IN LIEU OF TAXES AGREEMENT BE INCLUDED IN THE QUANTITY  CHANGE
 FACTOR.
   (IV) A LOCAL GOVERNMENT MAY EXERCISE THE OPTION PROVIDED IN THIS PARA-
 GRAPH  ONLY  UPON  ADOPTION  OF  A  LOCAL LAW OR RESOLUTION, FOLLOWING A
 PUBLIC HEARING, EXPRESSLY ELECTING SUCH TREATMENT. SUCH  ELECTION  SHALL
 REMAIN  IN  EFFECT  UNLESS  SUBSEQUENTLY REPEALED BY LOCAL LAW OR RESOL-
 UTION.
   (V) THE COMMISSIONER OF TAXATION AND FINANCE  SHALL  PROMULGATE  REGU-
 LATIONS  NECESSARY  TO IMPLEMENT THIS PARAGRAPH, INCLUDING METHODOLOGIES
 FOR ALLOCATING PAYMENTS IN LIEU OF TAXES AMONG AFFECTED TAXING JURISDIC-
 TIONS AND ENSURING UNIFORM APPLICATION.
   § 3. Paragraph b of subdivision 2-a of section 2023-a of the education
 law, as amended by section 3 of subpart C of part C of chapter 20 of the
 laws of 2015, is amended to read as follows:
   b. The commissioner of taxation and finance shall calculate a quantity
 change factor for the coming school year for each school district  based
 upon  the  physical  or  quantity  change,  as defined by section twelve
 hundred twenty of the real property tax law, reported to the commission-
 er of taxation and finance by the  assessor  or  assessors  pursuant  to
 section  five  hundred  seventy-five  of  the real property tax law. The
 quantity change factor shall show the percentage by which the full value
 of the taxable real property in the school district has changed  due  to
 physical  or quantity change between the second final assessment roll or
 rolls preceding the final assessment roll or rolls upon which taxes  are
 to be levied, and the final assessment roll or rolls immediately preced-
 ing  the  final  assessment  roll  or  rolls  upon which taxes are to be
 levied. The commissioner of taxation and finance shall, as  appropriate,
 promulgate  rules and regulations regarding the calculation of the quan-
 tity change factor which may adjust the calculation based on the  devel-
 opment  on  tax  exempt land, INCLUDING THE CHANGE IN ASSESSED VALUE FOR
 EACH PROPERTY ON THE EXEMPT SIDE OF THE TAX ROLLS  UNDER  A  PAYMENT  IN
 LIEU  OF  TAX AGREEMENT; PROVIDED, HOWEVER, THAT WHERE A SCHOOL DISTRICT
 HAS MADE AN ELECTION PURSUANT TO PARAGRAPH D OF  THIS  SUBDIVISION,  THE
 COMMISSIONER  SHALL  INCLUDE  THE  EQUIVALENT  TAXABLE  VALUE DETERMINED
 PURSUANT TO SUCH ELECTION IN LIEU OF INCLUDING THE FULL  ASSESSED  VALUE
 OF SUCH PROPERTY.
   § 4. Subdivision 2-a of section 2023-a of the education law is amended
 by adding a new paragraph d to read as follows:
   D.  (I)  A SCHOOL DISTRICT MAY ELECT TO INCLUDE THE EQUIVALENT TAXABLE
 VALUE OF PROPERTY SUBJECT TO A PAYMENT IN LIEU OF TAXES AGREEMENT IN THE
 CALCULATION OF ITS QUANTITY CHANGE FACTOR, CONSISTENT WITH PARAGRAPH (E)
 OF SUBDIVISION THREE OF SECTION THREE-C OF THE GENERAL MUNICIPAL LAW.
   (II) SUCH ELECTION SHALL BE MADE BY RESOLUTION OF THE BOARD OF  EDUCA-
 TION  FOLLOWING  A  PUBLIC  MEETING  AND  SHALL  REMAIN IN EFFECT UNLESS
 RESCINDED BY SUBSEQUENT RESOLUTION.
   (III) IN NO EVENT SHALL THE FULL ASSESSED VALUE OF PROPERTY SUBJECT TO
 A PAYMENT IN LIEU OF TAXES AGREEMENT BE INCLUDED.
 A. 10860                            3
 
   (IV) NOTHING IN THIS ACT SHALL BE CONSTRUED TO ALTER, REPEAL, OR MODI-
 FY THE ALLOWABLE LEVY  GROWTH  FACTOR,  OVERRIDE  REQUIREMENTS,  OR  THE
 INCLUSION  AND  SUBTRACTION  OF  PAYMENTS  IN LIEU OF TAXES AS OTHERWISE
 REQUIRED BY LAW.
   § 5. This act shall take effect immediately and shall apply to taxable
 years  commencing  on  or after the first of January next succeeding the
 date upon which it shall have become a law.  Effective immediately,  the
 addition,  amendment  and/or  repeal of any rule or regulation necessary
 for the implementation of this act on its effective date are  authorized
 to be made and completed on or before such effective date.