Bill Text: NY A06328 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Subjects to taxation the possessory interest of a private individual or corporation which uses real property owned by the United States or the state, except for real property owned by public authorities, for business purposes; excludes private property where the use is for a concession available to the general public located on property, such as parks, available for the use of the general public.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to real property taxation [A06328 Detail]

Download: New_York-2023-A06328-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6328

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      April 5, 2023
                                       ___________

        Introduced by M. of A. THIELE -- read once and referred to the Committee
          on Real Property Taxation

        AN ACT to amend the real property tax law, in relation to assessment and
          taxation of lessees and users of certain tax exempt property

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 12 of section 102 of the real property tax  law
     2  is amended by adding a new paragraph (k) to read as follows:
     3    (k)  The  possessory  interest of a private lessee or contractor which
     4  uses real property owned by the United States or the state of New  York,
     5  except  real  property  owned  by public authorities, where the property
     6  would be subject to real property taxation if owned by  such  lessee  or
     7  contractor,  except  where  the  use  is by way of a concession which is
     8  available for the use of the general public and is located in  or  adja-
     9  cent  to a public airport, park, market, fairground, road, pier, marina,
    10  railroad, busline, subway or similar property which is available for the
    11  use of the general public.
    12    § 2. The section heading and subdivision 1 of section 402 of the  real
    13  property tax law are amended to read as follows:
    14    United  States  or  state  property  held  under lease or contract [of
    15  sale].  1.  Whenever the legal title of real property is in  the  United
    16  States,  or  in  the  state  of  New  York,  but  the use, occupation or
    17  possession thereof is in a person, partnership,  association  or  corpo-
    18  ration,  or  his  or  her  or  its successor in interest, under a lease,
    19  contract [of sale], option  or  other  agreement  [whereby  a  right  to
    20  acquire  the  premises  through  an option, a first privilege or a first
    21  refusal is granted, or whereby upon one or more payments the legal title
    22  thereto is to be or may be acquired by such person, partnership, associ-
    23  ation or corporation], such that the interest is a  possessory  interest
    24  described  in paragraph (k) of subdivision twelve of section one hundred
    25  two of this chapter, his or her or its interest in  such  real  property

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05779-01-3
        A. 6328                             2

     1  shall  be  assessed  and  taxed [as] for the same amount and to the same
     2  extent as though the lessee, contractor or user were the owner  of  such
     3  real  property  and  shall be entered in the assessment roll in the same
     4  manner  as  if such person, partnership, association or corporation held
     5  the legal title to  such  property,  except  for  the  addition  to  the
     6  description  of  the  property of the name of the owner and of the words
     7  "interest under  lease",  "interest  under  contract",  "interest  under
     8  option",  or  other appropriate words descriptive of the interest in the
     9  property so assessed.  [Such assessment shall be at the  full  value  of
    10  such interest.]
    11    §  3.  Subdivision  2  of  section 402 of the real property tax law is
    12  amended to read as follows:
    13    2. [The assessors shall  add  to  the  assessment  roll  opposite  the
    14  description  of any such interest a notation stating that the real prop-
    15  erty itself so owned by the United States, or by the state, is not to be
    16  taxed.  Every notice of sale or other process and  every  conveyance  or
    17  other  instrument  affecting  the title to any such property, consequent
    18  upon the non-payment of any such tax, shall  contain  a  statement  that
    19  such  legal  title is not sold or to be sold or affected] Taxes shall be
    20  assessed to the lessees, contractors or users of such real property  and
    21  collected in the same manner as taxes assessed to owners of real proper-
    22  ty,  except  that  such  taxes  shall not become a lien against the real
    23  property of the United States or of the state of  New  York.  When  due,
    24  such  taxes  shall  constitute  a  debt  due  and owing from the lessee,
    25  contractor or user to the municipal corporation or special district  for
    26  which  the  taxes  were  levied  and  shall  be recoverable by action in
    27  supreme court.
    28    § 4. Section 402 of the real property tax law is amended by  adding  a
    29  new subdivision 4 to read as follows:
    30    4.  Possessory interests, as described in paragraph (k) of subdivision
    31  twelve of section one hundred two of this chapter, shall only be taxable
    32  as provided in this section if  the  governing  body  of  the  municipal
    33  corporation  in which the possessory interests are located, after public
    34  hearing, adopts a local  law,  ordinance  or  resolution  so  providing,
    35  provided,  however, the provisions of this section shall not be applica-
    36  ble where a possessory interest is making  payments  in  lieu  of  taxes
    37  which  payment is equal to the taxes that would be paid had the property
    38  been taxable. Any such local law, ordinance or  resolution  shall  apply
    39  alike to all possessory interests which are located within the municipal
    40  corporation.  Possessory interests in existence on the effective date of
    41  the local law, ordinance or resolution shall be  partially  exempt  from
    42  taxation  for  the  next  succeeding  four years in accordance with this
    43  section; provided, however, that (a) if the lease, contract,  option  or
    44  other  agreement  is  renegotiated  or renewed and such renegotiation or
    45  renewal becomes effective during those four years, the partial exemption
    46  shall not be available subsequent to  the  effective  date  of  the  new
    47  agreement,  and  (b)  if  the lease, contract, option or other agreement
    48  contains any provision assigning liability between the  parties  in  the
    49  event  that real property taxes are imposed, the partial exemption shall
    50  not be available to possessory interests created thereunder.  Except  in
    51  the  instances  set  forth  in  this  subdivision, for the first taxable
    52  status date occurring subsequent to the effective date of the local law,
    53  ordinance or resolution, taxable possessory interests  shall  be  exempt
    54  from  taxation  by  any  municipal  corporation  in which located to the
    55  extent of eighty percent of the assessed value; for the  second  taxable
    56  status  date,  to  the  extent  of  sixty percent; for the third taxable
        A. 6328                             3

     1  status date, to the extent of forty percent; and for the fourth  taxable
     2  status  date, to the extent of twenty percent. Notwithstanding any other
     3  provision of law in this chapter, possessory interests on parcels  which
     4  have  been designated as military land shall be fully exempt from school
     5  property tax if the school district whereupon such military land parcels
     6  are situated receives Impact  Aid  funds  from  the  federal  government
     7  pursuant to 30 CFR Part 222.
     8    §  5. This act shall take effect on the first of January next succeed-
     9  ing the date on which it shall have become a law.