Senate Bill S10095A

                                 
BILL NUMBER: S10095

SPONSOR: RHOADS
 
TITLE OF BILL:

An act authorizing the Hicksville Water District to receive retroactive
real property tax exempt status

 
PURPOSE:

This bill will authorize the Hicksville Water District to apply for and
receive a retroactive real property tax exemption for a municipally
owned parcel used for public water infrastructure purposes.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill authorizes the Nassau County Assessor to accept an
application from the Hicksville Water District for a real property tax
exemption pursuant to sections 406 and 410 of the Real Property Tax Law
for the 2024-2025 assessment rolls. The subject property is located at
109 Stewart Avenue in the Town of Oyster Bay, Nassau County (Section 45,
Block 331, Lot 40).
              

The bill further provides that:

The application shall be reviewed as though it had been timely filed by
the applicable taxable status date; Upon determination of eligibility
and approval by the Nassau County Legislature, appropriate corrections
may be made to the assessment rolls; and Any taxes paid on the property
may be refunded, and any unpaid taxes, fines, penalties, liens, or
interest may be canceled at the discretion of the appropriate governing
body.

Section 2 provides that the act shall take effect immediately.

 
JUSTIFICATION:

The Hicksville Water District, a municipal entity, acquired the subject
property on December 17, 2024, for the critical purpose of expanding its
water treatment infrastructure to ensure compliance with evolving drink-
ing water quality regulations. The acquisition was necessary due to
space limitations at the District's existing treatment facility located
across the street.

As a municipal entity, the Hicksville Water District is generally enti-
tled
 to exemption from real property taxation. However, because the property
was not exempt at the time of acquisition and the application for
exemption was not filed by the statutory deadline, the property remained
taxable for a portion of the 2024-2025 assessment rolls.

The Nassau County Department of Assessment has already recognized the
property's eligibility for exemption on a prospective basis beginning
with the 2026/2027 school tax roll and the 2027 general tax roll.  This
legislation is therefore narrow, remedial, and equitable in nature-in-
tended solely to correct a timing issue and ensure that a public entity
is not improperly burdened, with taxes on property used for essential
governmental functions.

Providing retroactive exemption authority in this case supports the
continued delivery of safe, reliable drinking water to residents, avoids
unnecessary financial strain on a public water provider, and aligns with
longstanding principles of tax exemption for municipal use properties.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect immediately.