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A03550 Summary:

BILL NOA03550
 
SAME ASNo Same As
 
SPONSORPretlow
 
COSPNSR
 
MLTSPNSR
 
 
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.
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A03550 Actions:

BILL NOA03550
 
02/03/2023referred to ways and means
01/03/2024referred to ways and means
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A03550 Memo:

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.
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A03550 Text:



 
                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.
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