BILL NUMBER: S664
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to assessment and
taxation of lessees and users of certain tax exempt property
 
PURPOSE:
Relates to assessment and taxation of possessory interest of a private
individual who operates on real property owned by the United States or
the State of New York for business purposes.
 
SUMMARY OF PROVISIONS:
Section 1: Subdivision 12 of section 102 of the real property tax law 2
is amended by adding a new paragraph (k) to add the possessory interest
of a private lessee subject to real property taxation, except where the
use is by way of a concession which is available for the use of general
public and is located in or adjacent to a public airport, park, market,
fairground, road, pier, marina, railroad, bus line, subway, or similar
property, which is available for the use of the general public.
Section 2: Subdivision 1 of section 402 of the real property tax law is
amended to allow the possessory interest to be assessed to be entered
into the locality's assessment roll.
Section 3: Subdivision 2 of section 402 of the real property tax law is
amended to allow the taxes to be collected to the municipal corporation
or a special district for which the taxes were levied.
Section 4: Section 402 of the real property tax law is amended by adding
new subdivisions 4 and 5 that possessory interest shall only be taxable
if the governing body of the municipal corporation or special district
adopts a local law, which shall allow partial exemption from taxation
for the next succeeding four years in accordance with this section.
Notwithstanding any other provision of law in this chapter, possessory
interests on parcels that have been designated as military land shall be
fully exempt from school property tax if the school district is up on
such military land, parcels are situated to receive Impact Aid funds
from the federal government pursuant to 30 CFR Part 222. This section
shall only apply to businesses with at least twenty-five employees.
Section 5: Sets effective date.
 
JUSTIFICATION:
Currently, property owned by the Federal or State Government remains
completely tax-exempt when used by a lessee or contractor for private
business. This bill will allow municipalities to levy property taxes on
the possessory interests of private individuals and corporations:who
operate on tax-exempt real property for business purposes. Many states
have enacted legislation that requires these lessees who operate on
tax-exempt property to be subject to local property taxation like any
other business. This legislation seeks to correct this unjust tax loop-
hole.
 
LEGISLATIVE HISTORY:
Senate
2018: N/A
2019: S1679, Referred to Local Government
2020: S1679, Referred to Local Government
2021: S1814, Referred to Local Government
2022: S1814, Referred to Local Government
2023: S2774A, Amend and Recommit to Local Government
2024: S2774A, Passed Senate
Assembly
2018: A9902, Referred to Real Property Taxation
2019: N/A
2020: A10373, Referred to Real Property Taxation
2021: A6849, Referred to Real Property Taxation
2022: A6849, Referred to Real Property Taxation
2023: A6328A, Amend and Recommit to Real Property Taxation
2024: A6328A, Referred to Real Property Taxation
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
the date on which it shall have become a law.

Statutes affected:
S664: 102 real property tax law, 102(12) real property tax law, 402 real property tax law, 402(2) real property tax law