BILL NUMBER: S5617
SPONSOR: ASHBY
 
TITLE OF BILL:
An act to amend the state finance law, in relation to providing state
reimbursement for lost tax revenue due to devaluation of land subject to
toxic contamination
 
PURPOSE OR GENERAL IDEA OF BILL:
Provides for state reimbursement for lost tax revenue due to devaluation
of land as a result of toxic contamination
 
SUMMARY OF PROVISIONS:
Section 1. Subdivision 2 of section 5 of the legislative law, as added
by section 7 of part CC of Section 1. The state finance law is amended
by adding a new section 54-n to read as follows:
Section 54-n. Reimbursement for lost tax revenue due to toxic contam-
ination.
1. As used in this section, "municipality" shall mean any city, village,
town or fire district located in the county of Rensselaer.
2. Any municipality subject to contamination either directly or indi-
rectly from the state hazardous waste site known as the Dewey Loeffel
Landfill, that has reduced its tax levy on properties affected by such
hazardous waste site, shall be eligible for reimbursement of such lost
tax revenue by the state. For purposes of this section, "lost tax reven-
ue" shall mean the difference between the actual valuation of such real
property and the reduced assessed value due to contamination as certi-
fied by the chief fiscal officer of the municipality in which such prop-
erties are located.
3. Such reimbursement shall be made annually to the municipality follow-
ing application by the chief fiscal officer of the municipality to the
comptroller in a manner approved and prescribed by the comptroller.
4. Such system of reimbursement shall continue until such time as the
Dewey Loeffel Landfill has been removed from the inventory of state
hazardous waste sites.
Section 2. This act shall take effect on the first of April next
succeeding the date on which it shall have become a law.
 
JUSTIFICATION:
The Dewey Loeffel State hazardous Waste Site is located in southern
Rensselaer County and contains more than twice the contamination of
infamous Love Canal waste site. It is estimated that more than 46,000
tons of toxic waste are buried in a failed capped landfill. Remediation
of this site has been ongoing for decades with no progress made in
preventing the contamination from seeping from the site and contaminat-
ing additional properties. This contamination has significantly impacted
property values as well as the assessed values of properties in the
area. Courts have continuously lowered tax assessments due to the
contamination on adjacent and area properties. The result is a signif-
icant financial hardship for communities impacted by this ongoing toxic
contamination.
The financial impact of this state hazardous waste site will continue
for some time as the Department of Environmental Conservation has indi-
cated that decades of remediation are in store for the site. This legis-
lation aims to help municipalities by providing for state reimbursement
of lost tax revenue due to devaluation of land as a result of toxic
contamination
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S.4254, referred to Finance
 
FISCAL IMPLICATIONS:
Approximately $80,000.00 annually in municipal reimbursement.
 
EFFECTIVE DATE:
This act shall take effect on the first day of April next succeeding the
date on which it shall become law.