BILL NUMBER: S5603
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the real property tax law, in relation real property tax
exemptions for preservation of forest lands and state assistance to
municipalities
 
PURPOSE OR GENERAL IDEA OF BILL:
Forest lands offer a variety of benefits including forest products,
carbon sequestration and carbon storage, and wildlife habitat. State law
currently provides real property tax reductions for landowners who
manage at least fifty acres of their land for timber production for a
period of at least ten years pursuant to a timber management plan
approved by the Department of Environmental Conservation (DEC). Land-
owners who meet these criteria receive an exemption of up to 80 percent
of the assessed valuation of the lands subject to the approved timber
management plan. The existing incentive is provided to encourage land-
owners to keep cutting trees to produce forest crops (timber or pulp-
wood) to support the State's forest economy. This bill provides the same
real property tax relief for landowners who place at least ten acres of
forested land under a conservation easement that ensures that the tract
will be permanently maintained as wild forest land and prohibits the
cutting, removal or destruction of trees on the tract (with certain
exemptions such as DEC-approved actions to address invasive species).
The bill also provides state assistance from the real property transfer
tax to municipalities to compensate them for lost real property tax
revenues from landowners who receive real property tax exemptions under
the bill. This bill will incentivize landowners to keep existing and
future forests intact, without cutting mature trees, which supports the
State's greenhouse gas emissions reductions goal and the State's goal to
permanently protect 30% of lands and waters by 2030.
 
SUMMARY OF PROVISIONS:
Section one amends section 480-a of the real property tax law by adding
definitions for -easement tract," meaning a tract of privately owned
forest land of at least ten contiguous acres that is subject to a
conservation easement, and "certified tract," meaning an eligible tract
managed for the continuing production of a merchantable forest crop
pursuant to a DEC-approved management plan. The definition of "forest
land" is amended to include land that is subject to a conservation ease-
ment, suitable to sustain native tree species, and at least 75 percent
forested or is reasonably expected to be at least 75 percent forested in
10 years.
The provisions granting a real property tax exemption to forest lands
managed for timber production are maintained and supplemented to include
lands subject to a conservation easement.
The provisions governing procedures for failure to comply with or carry
out the conditions pursuant to which a real property tax exemption has
been applied for and granted are amended to encompass failure to comply
with the conditions of the conservation easement for an easement tract.
A new provision provides that failure to comply that was the result of
management actions necessary for control of invasive species and such
management actions were approved by DEC or that was the result of a
natural disaster shall not be deemed a violation of the terms of the
real property tax exemption.
A new subdivision eleven provides that land subject to a conservation
easement shall be eligible for the real property tax exemption if the
easement (i) complies with the standards and requirements set forth in
article 49 of the environmental conservation law; (ii) requires that the
owner maintain the tract as wild forest land; (iii) prohibits the
cutting, removal or destruction of trees on the tract; and (iv) is
permanent.
A new subdivision twelve authorizes the chief executive officer of a
municipal corporation in which there are privately owned forest lands
which are assessed in accordance with the provisions of subdivision
three of Section 480-a to apply for state assistance on a form
prescribed by the state board of equalization and assessment. If the
cumulative value exceeds the taxable assessed valuation on the preceding
assessment role of the private forest lands upon which the application
is based, the state board shall compute the amount of state assistance
payable by applying to the amount of the excess the appropriate tax rate
of the municipal corporation, and such amount shall be paid on audit and
warrant of the comptroller out of funds collected pursuant to article
thirty-one of the tax law (the real property transfer tax).
 
JUSTIFICATION:
The bill provides a financial incentive for landowners to conserve wild
forest lands in perpetuity to provide carbon storage and sequestration,
which is a critical strategy for mitigating climate change; to provide
wildlife habitat, improve habitat connectivity, and avoid habitat frag-
mentation; and to help New York meets its statutory goal of conserving
30 percent of lands in the state by 2030.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S5603: 480 real property tax law