§ 543. Assessment of conservation easements. 1. Upon acquisition of a
conservation easement subject to taxation pursuant to this title and for
common law easements acquired by the state in the Adirondack or Catskill
parks and subject to taxation, the commissioner of environmental
conservation shall determine an allocation factor applicable to each
parcel subject to such conservation easement. The allocation factor
shall be the portion of the value of each parcel which the easement
represents, expressed as a percentage. The commissioner shall forthwith
certify any such allocation factor to the commissioner and to the fee
owner. The commissioner shall supply to the commissioner copies of any
appraisals made in conjunction with the acquisition of the easement for
use by the board pursuant to section five hundred forty-two of this
title.

2. Such allocation factor shall remain in effect for a period of ten
years from the date of acquisition of such easement by the state or, for
previously acquired common law easements, from the date such allocation
factor was first determined. After such ten year period has elapsed,
such allocation factor shall be subject to review and revision by the
commissioner as appropriate, based on significant change in the relative
values of the fee and easement interests.

3. After such ten year period has elapsed and in the first year in
which the commissioner independently computes the portion of the value
of the parcel attributable to a conservation easement or common law
easement, if such portion is different from the allocation factor
previously determined by the commissioner of environmental conservation,
the commissioner shall recompute the allocation factor by averaging the
previous allocation factor and the portion computed by the commissioner.
In any subsequent year, the allocation factor based upon the portion
computed by the commissioner shall supersede any previous allocation
factor.

4. Whenever a conservation easement is acquired and for common law
easements acquired by the state on land within the Adirondack or Cats-
kill parks subject to taxation, the commissioner shall be a person
aggrieved by the assessment of the parcel or parcels burdened by such
easement for purposes of seeking administrative and/or judicial review
of such assessments. Notwithstanding the provisions of section seven
hundred four of this chapter, the commissioner may seek judicial review
within two years of the acquisition of a conservation easement or, for
such state owned common law easements, within two years of the date when
the easement became subject to taxation and need not seek administrative
review prior to seeking such judicial review. Whenever the commissioner
seeks administrative or judicial review of the assessment of such
burdened parcel or parcels, it shall send a copy of the complaint or
petition to the owner of a burdened parcel within ten days of the filing
of a complaint or the service of a petition.

5. Determination and payment of the state's share of municipal real
property taxes which become a lien after vesting but prior to the next
taxable status date shall be made as follows:

(a) The state is responsible for direct payment to the municipality of
its proportionate share, determined by multiplying the amount of the tax
bill by the allocation factor which shall be certified by the
commissioner to the assessor and chief fiscal officers of the
municipalities within which the property is situated and to the state
comptroller.

(b) Upon presentation of a certificate issued pursuant to this
section, a collecting officer is hereby authorized to accept from the
underlying fee owner the taxes due and owing from the fee owner after
deducting those taxes for which the state is liable because of its
acquisition of a conservation easement or common law easement subject to
taxation pursuant to this title. Any official having custody of a final
assessment roll or tax roll is hereby authorized to make such changes on
that roll as may be required by the commissioner to incorporate the tax-
able assessed value attributable to such easement using the allocation
factor as certified pursuant to this section.

(c) The county treasurer shall submit a copy of the certificate issued
pursuant to this section, together with a statement of taxes due, to the
state comptroller for payment pursuant to section five hundred
forty-four of this title.

6. Payment of taxes by the owner of a parcel burdened by a
conservation easement or common law easement made taxable pursuant to
this title based upon the assessment of the parcel without consideration
of that easement shall entitle that owner to a refund pursuant to
section five hundred fifty-six of this article, equal to any taxes paid
by the state upon such easement. Such owner shall present the
certificate issued pursuant to this section and proof of payment to the
tax levying body.

7. (a) Whenever the state acquires a conservation easement or a common
law easement made taxable pursuant to this title which burdens a parcel
containing an improvement, the commissioner shall specify whether the
easement applies to the land, the improvements or both.

(b) Where a conservation easement created pursuant to title three of
article forty-nine of the environmental conservation law or a common law
easement for conservation purposes has been or is hereinafter acquired
by the state:

(i) on a parcel of property which is otherwise fully exempt from
taxation, the assessor shall determine the taxable assessment of the
conservation easement by multiplying the allocation factor by the total
assessed value of the land, the improvement, or the entire parcel, as
appropriate;

(ii) on a parcel of property which is partially exempt from taxation,
the assessor shall determine the taxable assessment of the conservation
easement by multiplying the allocation factor by the total assessed
value of the land, the improvement, or the entire parcel, as
appropriate;

(iii) on a parcel which is partially exempt from taxation, the taxable
assessed value of the burdened parcel shall be calculated through pro
ration of the partial exemption in the same proportions as the
allocation factor. The owner of the burdened parcel shall be entitled to
the pro rated portion of the exemption which is applicable to the
remainder fee interest.

(c) No exemption shall be applied to the total assessed value of the
conservation easement.