§ 970-p. Allocation of taxes. (a) Any redevelopment plan may contain a
provision that real property taxes levied upon taxable real property in
the project area each year by or for the benefit of the municipality or
municipalities and school districts after the effective date of the
resolution approving the redevelopment plan, shall be divided as
follows:

(i) that portion of the real property taxes not in excess of the
amount which would be produced by applying the rate upon which the tax
is levied each year by or for each municipality and school district to
the total sum of the assessed value of the taxable real property in the
project area as shown upon the assessment roll used in connection with
the taxation of such property by such municipality and school district,
last adopted prior to the effective date of the resolution approving
such plan, shall be allocated to and when collected shall be paid into
the funds of the respective municipalities and school districts as real
property taxes collected by or for said municipalities and school
districts adopting the redevelopment plan;

(ii) that portion of the real property taxes levied each year in
excess of the portion allocated and paid pursuant to paragraph (i) of
this subdivision shall be allocated to and when collected shall be paid
into the fund or funds established for such purposes to pay the
principal and interest on indebtedness incurred by such municipality
pursuant to section nine hundred seventy-o of this article or, if the
redevelopment plan so provides, the amount allocated and paid in excess
of interest and principal and necessary reserves may be expended for
amounts of money to be paid in lieu of taxes. Unless and until the total
assessed valuation of the taxable property in a project area exceeds the
total assessed value of the taxable real property in such project area
as shown by the last assessment roll referred to in paragraph (i) of
this subdivision, all of the real property taxes levied and collected
upon the taxable real property in such project area shall be paid into
the funds of the respective municipalities and school districts. When
such indebtedness, if any and interest thereon, have been paid, all
moneys thereafter received from real property taxes upon the taxable
real property in such project area shall be paid into the funds of the
respective municipalities and school districts as real property taxes on
all other real property are paid;

(iii) whenever the total amount of real property taxes allocated
pursuant to paragraph (ii) of this subdivision exceeds the amounts
allocated and paid for interest and principal and necessary reserves,
and for amounts to be paid in lieu of taxes, the amount of taxes in
excess of such amounts shall be paid into the funds of the respective
municipalities and school districts as taxes on all other real property
are paid;

(iv) the allocation of taxes authorized by this section shall apply to
taxable years beginning after the effective date of the resolution
approving the redevelopment plan.

(b) Whenever real property in any redevelopment project has been
redeveloped and thereafter is leased by the municipality to any person
or persons or whenever the agency leases real property in any
redevelopment project to any person or persons for redevelopment, the
property shall be assessed and taxed in the same manner as privately
owned real property and the lease or contract shall provide that the
lessee shall pay real property taxes upon the assessed value of the
entire real property and not merely the assessed value of his or her
leasehold interest.

(c) In any municipality or school district subject to the allocation
of revenues pursuant to this section the assessed value of taxable real
property located in a project area shall be included on the taxable
portion of the assessment roll, provided, however, that notwithstanding
any provision of law to the contrary, the assessed value determined in
accordance with paragraph (ii) of subdivision (a) of this section shall
not be included in the taxable value of real property when determining
the tax rate for such municipality or school district.

(d) The rate of tax resulting from the levy of real property taxes
shall be applied to the assessed value of any real property subject to
the allocation provisions of this section as determined pursuant to
subdivision (a) of this section, however, the amount of tax levied as a
result of the application of the tax rate to the increase in assessed
value determined in accordance with paragraph (ii) of subdivision (a) of
this section shall not be paid into the fund of the municipality or the
school district as real property taxes but shall be allocated pursuant
to that paragraph.

(e) The official or officials responsible for the preparation of the
assessment roll or rolls specified in subdivision (a) of this section
shall provide to the municipality or municipalities and school
districts, in addition to the assessment roll or rolls, such information
as is deemed necessary by the legislative bodies of the municipality or
municipalities and school districts to effectuate the purpose of this
section.

(f) The allocation of real property taxes authorized by this section
shall be permitted only with respect to municipalities and school
districts which have adopted a redevelopment plan providing for such
allocation pursuant to section nine hundred seventy-h or section nine
hundred seventy-n of this article and such allocation shall not apply to
special ad valorem levies and special assessments as defined by
subdivisions fourteen and fifteen of section one hundred two of the real
property tax law.

(g) If, after adoption of a redevelopment plan, the official or
officials responsible for the preparation of the assessment roll or
rolls specified in subdivision (a) of this section undertake to revalue
real property for real property tax purposes by altering the standard of
assessment utilized to establish the value of real property for
assessment purposes, the assessment of real property within a project
area as provided by paragraph (i) of subdivision (a) of this section
shall be adjusted in such manner as if such new standard of assessment
had been utilized in the preparation of the assessment roll last adopted
prior to adoption of the redevelopment plan.