Directs the department of taxation and finance to study and report on the impact on localities in the counties of Westchester, Putnam and Dutchess of state-owned lands, and the methods of compensating such localities for the real property taxes lost as a result of such state-owned lands.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3550
SPONSOR: Pretlow
 
TITLE OF BILL:
An act in relation to directing the department of taxation and finance
to conduct a study of state-owned lands within the counties of Westches-
ter, Putnam and Dutchess, and the real property tax impact of such lands
upon such counties and the localities therein
 
PURPOSE:
This bill would direct the department of taxation and finance to study
and report on the impact on localities in the counties of Westchester,
Putnam and Dutchess of state owned lands.
 
SUMMARY OF PROVISIONS:
Section one establishes the legislative intent.
Section two requires the department of taxation and finance to conduct a
study of state-owned lands within the counties of Westchester, Putnam
and Dutchess. The study shall include lands owned by the state, includ-
ing but not limited to, parklands, forestation lands, forest preserves,
correctional facilities, facilities governed by the Division of military
and naval affairs, facilities of the state veterans' homes, and any
other lands located within such countries owned by the state not
described in this section. The study shall examine the methods of
compensating counties, cities, towns, villages and school districts
whose tax bases include state-owned lands, the payments currently made
by the state through sections 532, 533, 534 and 536 of the real property
tax law and section 12-2115 of the environmental conservation law. The
study shall provide the fiscal impact to the state and counties, cities,
towns, villages and school districts of the state-owned lands that are
currently tax-exempt should the state be required to provide compen-
sation to such counties, cities, towns, villages and school districts.
The commissioner shall on or.before December 1, 2018, submit a report of
findings, conclusions and recommendations of such study to the Governor,
temporary president of the Senate, the speaker of the Assembly, the
chair of the Senate Finance Committee, the chair of the Senate Investi-
gations and Government Operations Committee and the chair of the Assem-
bly Real Property Taxation Committee.
Section three establishes the effective date.
 
JUSTIFICATION:
On January 9, 2017, Governor Cuomo announced an agreement with Energy to
close the•Indian Point nuclear plant by 2020 and 2021. The plant,
located in the Village of Buchanan in Westchester County, provides a
substantial tax base to the surrounding counties and local communities,
which will be severely impacted upon the closure of the plant. The
closure of Indian Point requires analysis of other means of substantiat-
ing the lost tax revenue so the burden does not fall to the taxpayers.
Currently, New York State utilizes a piecemeal approach to the taxation
of state-owned lands. This creates a great disparity between taxpayers'
in that homeowners living in communities with untaxed state-owned land
are burdened with subsiding, through their real property taxes, the
revenue lost from these state-owned properties.
One glaring example of the disparity of the state's policy is the tax
treatment' of the Donald J. Trump State Park that sits on lands in both
Putnam and Westchester Counties. The Carmel School District, Town of
Putnam Valley and Putnam County currently receives tax revenue from the
state for the Indian Hill portion of Donald J. Trump State Park while
this same state park, which extends into the Town of Yorktown in West-
chester County, yields no tax revenue for the Lakeland School District,
town of Yorktown or Westchester County. Another example of the inequity
is the tax revenue received by the Ossining School District for Sing
Sing State Correctional Facility while the Bedford School District, less
than 15 miles away, receives no payments for the Bedford Hills State
Correctional Facility. While this inconsistency affects homeowners in
communities across the state, this fiscal burden coupled with the
closure of the Indian Point nuclear plant creates a unique situation for
the taxpayers of Westchester, Putnam and Dutchess Counties.
This bill would provide for an in depth study to review the impact of
state tax payments on state-owned lands, currently exempt from taxation,
on both the State of New York and as a means to lessen the impending
real property tax burden on school district and local government real
property taxpayers in Westchester and Dutchess counties.
 
LEGISLATIVE HISTORY:
2022 01/05/22 A2167 referred to ways and means
2019-2020 A6066 referred to ways & means
08/24/18 A7402 signed chapter.222
 
FISCAL IMPLICATIONS:
Minimal
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
3550
2023-2024 Regular Sessions
IN ASSEMBLY
February 3, 2023
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Ways and Means
AN ACT in relation to directing the department of taxation and finance
to conduct a study of state-owned lands within the counties of West-
chester, Putnam and Dutchess, and the real property tax impact of such
lands upon such counties and the localities therein
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative intent. The legislature hereby finds that on
2 January 9, 2017, the state of New York announced an agreement with
3 Entergy to close the Indian Point nuclear plant. As a result of the
4 permanent closure of this facility, it is estimated that the loss to the
5 tax base of the county of Westchester and surrounding counties in the
6 catchment area of such plant will be severe. The legislature further
7 finds that the state has utilized a piecemeal approach to the taxation
8 of state-owned land. Home owners across the state are burdened with
9 subsidizing, through real property taxes, the revenue lost from the
10 untaxed state-owned land in their communities. The impact of this fiscal
11 burden, coupled with the closure of the Indian Point nuclear plant,
12 creates a unique situation throughout communities in the counties of
13 Westchester, Putnam and Dutchess. Therefore, it is in the best interest
14 of the taxpayers of these counties to study this disparate treatment of
15 taxation on state-owned land in light of the closure of the Indian Point
16 nuclear plant, which will have a substantial impact on local taxpayers.
17 This study seeks to determine the fiscal impact of expanding state law
18 that currently requires the state to pay real property taxes to certain
19 local governments in order to pay taxes on state lands located through-
20 out the Indian Point catchment region.
21 § 2. The department of taxation and finance shall, in consultation
22 with any other department, division, board, bureau, commission, agency
23 or public authority of the state or any political subdivision thereof
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08284-01-3
A. 3550 2
1 deemed necessary by the commissioner of taxation and finance, conduct a
2 study of state-owned lands within the counties of Westchester, Putnam
3 and Dutchess. The study shall include lands owned by the state, exclu-
4 sive of the improvements erected thereon by the state including, but not
5 limited to, parklands, forestation lands, forest preserves, correctional
6 facilities, facilities governed by article 9 of the executive law,
7 facilities governed by article 26-A of the public health law, and any
8 other lands located within such counties owned by the state not
9 described in this section. Such study shall examine the methods of
10 compensating counties, cities, towns, villages and school districts
11 whose tax bases include state-owned land, the payments currently made by
12 the state through sections 532, 533, 534 and 536 of the real property
13 tax law and section 15-2115 of the environmental conservation law, and
14 provide the fiscal impact to the state and counties, cities, towns,
15 villages and school districts of the aforementioned state-owned lands
16 that are currently tax-exempt should the state be required to provide
17 compensation to such counties, cities, towns, villages and school
18 districts. The commissioner of taxation and finance shall, on or before,
19 December 1, 2023, submit a report of findings, conclusions and recommen-
20 dations of such study to the governor, the temporary president of the
21 senate, the speaker of the assembly, the chair of the senate finance
22 committee, the chair of the senate investigations and government oper-
23 ations committee, the chair of the assembly ways and means committee and
24 the chair of the assembly real property taxation committee.
25 § 3. This act shall take effect immediately.