S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  11390

                          I N  A S S E M B L Y

                              June 8, 2010
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Farrell) --
  (at request of the Governor) -- read once and referred to the  Commit-
  tee on Ways and Means

AN  ACT  to  amend the executive law, the real property tax law, and the
  tax law, in relation to merging the  state  office  of  real  property
  services  and  the  state  board  of  real  property services into the
  department of taxation and finance; and to repeal  certain  provisions
  of the real property tax law and the tax law relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. (a) The purpose of this act is to provide  for  an  orderly
transfer  of  responsibilities  relating  to  real property tax adminis-
tration to the commissioner of taxation and finance and  the  department
of  taxation and finance, from the state board of real property services
and the state office of real property services.
  (b) Wherever the terms "state board of real property services," "state
board" or "state office of real property services" appear  in  the  real
property  tax  law,  such  terms  are  hereby changed to "commissioner",
provided that in sections 204, 206, 208, 614, 816, 818, 1253 and 1263 of
the real property tax law, such terms shall be changed to  "state  board
of  real  property  tax services," and provided further that the text of
sections 200, 202, 216, 489-o, 489-11, 1210 and 1218 of the real proper-
ty tax law shall be changed only as provided by the  ensuing  provisions
of  this  act, and provided further that the provisions of this subdivi-
sion shall not apply to the text of sections 200-a, 201 and 203  of  the
real property tax law as added by sections five and seven of this act.
  (c) Wherever the terms "state board of real property services," "state
board"  or  "state  office  of real property services" appear in the tax
law, such terms are hereby changed to "commissioner",  provided  further
that  the text of subdivision (e) of section 15, paragraph 5 of subdivi-
sion (b) of section 22, subdivision 25th of  section  171  and  sections
171-o,  697, and 1564 of the tax law shall only be changed to the extent
provided by the ensuing provisions of this act.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12254-01-0
              

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  (d) Wherever the term "state  board  of  real  property  services"  or
"state  office of real property services" appears in the consolidated or
unconsolidated laws of this state other than the real property  tax  law
or the tax law, such term is hereby changed to "commissioner of taxation
and finance".  Wherever the term "state board of real property services"
is  followed  by  the term "state board" in such a statute, such term is
hereby changed to "commissioner".
  (e) The legislative bill drafting commission  is  hereby  directed  to
effectuate  this  provision,  and  shall  be  guided  by a memorandum of
instruction setting forth the specific provisions of law to be  amended.
Such  memorandum  shall  be transmitted to the legislative bill drafting
commission within sixty days of enactment of this provision. Such  memo-
randum  shall be issued jointly by the governor, the temporary president
of the senate, and the speaker of the assembly, or by  the  delegate  of
each.
  S  2.  Paragraph  (c) of subdivision 1 of section 169 of the executive
law, as amended by chapter 634 of the laws of 1998, is amended  to  read
as follows:
  (c)  commissioner of agriculture and markets, commissioner of alcohol-
ism and substance abuse services,  adjutant  general,  commissioner  and
president  of  state  civil service commission, commissioner of economic
development, chair of the energy  research  and  development  authority,
[executive  director  of the board of real property services,] president
of higher education services corporation, commissioner  of  motor  vehi-
cles, member-chair of board of parole, director of probation and correc-
tional  alternatives, chair of public employment relations board, secre-
tary  of  state,  chair  of  the  state  racing  and   wagering   board,
commissioner  of  alcoholism  and  substance  abuse  services, executive
director of the housing finance  agency,  commissioner  of  housing  and
community  renewal,  executive director of state insurance fund, commis-
sioner-chair of state liquor authority, chair of  the  workers'  compen-
sation board;
  S  3.  Subdivision  18 of section 102 of the real property tax law, as
amended by chapter 385 of the laws of  1994,  is  amended  and  two  new
subdivisions 5-a and 9-b are added to read as follows:
  18.  "State  board"  or "board" means the state board of real property
TAX services.
  5-A. "COMMISSIONER" MEANS THE COMMISSIONER OF TAXATION AND FINANCE.
  9-B. "DEPARTMENT" MEANS THE DEPARTMENT OF TAXATION AND FINANCE.
  S 4. Sections 201, 210, 212 and 214 of the real property tax  law  are
REPEALED.
  S 4-a. Section 200 of the real property tax law, as amended by chapter
403 of the laws of 1997, is amended to read as follows:
  S  200.  State  board.    There  is  hereby created in the [executive]
department OF TAXATION AND FINANCE  a  SEPARATE  AND  INDEPENDENT  state
board  of  real  property TAX services, to consist of five members to be
appointed by the governor, by and with the advice  and  consent  of  the
senate. Of those five members appointed by the governor, one such person
shall be an individual actively engaged in the commercial production for
sale of agricultural crops, livestock and livestock products of an aver-
age  gross  sales value of ten thousand dollars or more. Said individual
shall be appointed in the first instance to a term of eight  years  upon
expiration  of an existing term. Said initial term shall commence on the
first day of January next succeeding the year in which the existing term
shall expire. The governor shall designate one of  the  members  as  the
chairman  of  the  board, who shall serve as chairman at the pleasure of

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the governor.  The members of the board shall be appointed for terms  of
eight  years,  commencing on the first day of January next following the
year in which the term of his predecessor expired, except that the terms
of the members first appointed shall expire as follows:  one on December
thirty-first,  nineteen hundred sixty-one, one on December thirty-first,
nineteen hundred sixty-three, one  on  December  thirty-first,  nineteen
hundred  sixty-five,  one  on  December  thirty-first,  nineteen hundred
sixty-seven, and one on December thirty-first, nineteen hundred  eighty-
two.   Vacancies occurring otherwise than by expiration of term shall be
filled for the unexpired term.   All  members  shall  receive  necessary
expenses incurred in the performance of their duties.
  S  5. The real property tax law is amended by adding a new section 201
to read as follows:
  S 201. ASSUMPTION OF RESPONSIBILITIES BY THE  DEPARTMENT  OF  TAXATION
AND  FINANCE.  1.  ON  AND AFTER THE EFFECTIVE DATE OF THIS SECTION, THE
FUNCTIONS, POWERS AND  DUTIES  OF  THE  STATE  BOARD  OF  REAL  PROPERTY
SERVICES  AS  FORMERLY  ESTABLISHED  BY THIS CHAPTER SHALL BE CONSIDERED
FUNCTIONS, POWERS  AND  DUTIES  OF  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE,  EXCEPT TO THE EXTENT PROVIDED BY SECTION TWO HUNDRED-A OF THIS
ARTICLE.
  2. ON AND AFTER THE EFFECTIVE DATE OF  THIS  SECTION,  THE  FUNCTIONS,
POWERS  AND  DUTIES  OF THE OFFICE OF REAL PROPERTY SERVICES AS FORMERLY
ESTABLISHED BY THIS CHAPTER SHALL BE CONSIDERED  FUNCTIONS,  POWERS  AND
DUTIES OF THE COMMISSIONER OF TAXATION AND FINANCE.
  3.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE, OR REGULATION TO
THE CONTRARY, UPON THE TRANSFER OF FUNCTIONS FROM  THE  OFFICE  OF  REAL
PROPERTY  SERVICES TO THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO
THIS SECTION, ALL EMPLOYEES OF THE  OFFICE  OF  REAL  PROPERTY  SERVICES
SUBSTANTIALLY  ENGAGED  IN  THE PERFORMANCE OF THE TRANSFERRED FUNCTIONS
SHALL BE TRANSFERRED TO THE DEPARTMENT OF TAXATION AND FINANCE.  EMPLOY-
EES  TRANSFERRED  PURSUANT  TO THIS SECTION SHALL BE TRANSFERRED WITHOUT
FURTHER EXAMINATION OR QUALIFICATION AND SHALL RETAIN  THEIR  RESPECTIVE
CIVIL  SERVICE  CLASSIFICATIONS,  STATUS  AND COLLECTIVE BARGAINING UNIT
DESIGNATIONS AND COLLECTIVE BARGAINING AGREEMENTS.
  4. ALL BOOKS, PAPERS, AND PROPERTY OF  THE  OFFICE  OF  REAL  PROPERTY
SERVICES  SHALL BE DELIVERED TO THE COMMISSIONER. ALL BOOKS, PAPERS, AND
PROPERTY OF THE OFFICE OF REAL PROPERTY SERVICES SHALL  CONTINUE  TO  BE
MAINTAINED BY THE DEPARTMENT.
  5.  FOR THE PURPOSE OF SUCCESSION OF ALL FUNCTIONS, POWERS, DUTIES AND
OBLIGATIONS TRANSFERRED AND ASSIGNED TO, DEVOLVED UPON AND ASSUMED BY IT
PURSUANT TO THIS SECTION, THE DEPARTMENT SHALL BE  DEEMED  AND  HELD  TO
CONSTITUTE THE CONTINUATION OF THE OFFICE OF REAL PROPERTY SERVICES.
  6.  ANY  BUSINESS OR OTHER MATTER UNDERTAKEN OR COMMENCED BY THE STATE
BOARD OF REAL PROPERTY SERVICES, THE OFFICE OF REAL PROPERTY SERVICES OR
THE EXECUTIVE DIRECTOR THEREOF PERTAINING TO OR CONNECTED WITH THE FUNC-
TIONS, POWERS, OBLIGATIONS AND DUTIES HEREBY TRANSFERRED AND ASSIGNED TO
THE COMMISSIONER OR THE DEPARTMENT AND PENDING ON THE EFFECTIVE DATE  OF
THIS  SECTION, MAY BE CONDUCTED AND COMPLETED BY THE COMMISSIONER OR THE
DEPARTMENT IN THE SAME MANNER AND UNDER THE SAME  TERMS  AND  CONDITIONS
AND  WITH  THE  SAME  EFFECT  AS IF CONDUCTED AND COMPLETED BY THE STATE
BOARD OF REAL PROPERTY SERVICES, THE OFFICE OF REAL PROPERTY SERVICES OR
ITS EXECUTIVE DIRECTOR.
  7. (A) ALL RULES, REGULATIONS, ACTS, ORDERS, DETERMINATIONS, AND DECI-
SIONS OF THE STATE BOARD OF REAL PROPERTY SERVICES OR THE OFFICE OF REAL
PROPERTY SERVICES, IN FORCE AT THE TIME OF SUCH TRANSFER AND ASSUMPTION,
SHALL CONTINUE IN FULL FORCE AND EFFECT  AS  RULES,  REGULATIONS,  ACTS,

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ORDERS,  DETERMINATIONS AND DECISIONS OF THE DEPARTMENT UNTIL DULY MODI-
FIED OR ABROGATED BY THE COMMISSIONER OR THE DEPARTMENT.
  (B) ALL ACTS, ORDERS, DETERMINATIONS, AND DECISIONS OF THE STATE BOARD
OF  REAL  PROPERTY  SERVICES  PERTAINING  TO  THE  FUNCTIONS  AND POWERS
PROVIDED IN SECTION TWO HUNDRED-A OF THIS ARTICLE SHALL CONTINUE IN FULL
FORCE AND EFFECT AS ACTS, ORDERS, DETERMINATIONS AND  DECISIONS  OF  THE
STATE BOARD OF REAL PROPERTY TAX SERVICES.
  8.  WHENEVER  THE STATE BOARD OF REAL PROPERTY SERVICES, THE OFFICE OF
REAL PROPERTY SERVICES OR ITS  EXECUTIVE  DIRECTOR  IS  REFERRED  TO  OR
DESIGNATED IN ANY LAW, CONTRACT OR DOCUMENT PERTAINING TO THE FUNCTIONS,
POWERS, OBLIGATIONS AND DUTIES HEREBY TRANSFERRED TO AND ASSIGNED TO THE
COMMISSIONER  OR  THE DEPARTMENT, SUCH REFERENCE OR DESIGNATION SHALL BE
DEEMED TO REFER TO THE COMMISSIONER  OR  DEPARTMENT,  AS  APPLICABLE  OR
INDICATED BY THE CONTEXT.
  9.  NO  EXISTING  RIGHT  OR  REMEDY  OF  ANY  CHARACTER SHALL BE LOST,
IMPAIRED OR AFFECTED BY ANY PROVISIONS OF THIS SECTION.
  10. NO ACTION OR PROCEEDING PENDING ON THE   EFFECTIVE  DATE  OF  THIS
SECTION,  BROUGHT  BY  OR  AGAINST  THE  STATE  BOARD  OF  REAL PROPERTY
SERVICES, THE OFFICE OF REAL PROPERTY SERVICES OR ITS EXECUTIVE DIRECTOR
SHALL BE AFFECTED BY ANY PROVISION OF THIS SECTION, BUT THE SAME MAY  BE
PROSECUTED  OR  DEFENDED  IN THE NAME OF THE COMMISSIONER OR THE DEPART-
MENT. IN ALL SUCH ACTIONS AND PROCEEDINGS, THE COMMISSIONER, UPON APPLI-
CATION OF THE COURT, SHALL BE SUBSTITUTED AS A PARTY.
  11. ALL APPROPRIATIONS OR REAPPROPRIATIONS MADE TO THE OFFICE OF  REAL
PROPERTY  SERVICES TO THE EXTENT OF REMAINING UNEXPENDED OR UNENCUMBERED
BALANCE THEREOF, WHETHER ALLOCATED OR UNALLOCATED AND WHETHER  OBLIGATED
OR UNOBLIGATED, ARE HEREBY TRANSFERRED TO AND MADE AVAILABLE FOR USE AND
EXPENDITURE BY THE DEPARTMENT SUBJECT TO THE APPROVAL OF THE DIRECTOR OF
THE  BUDGET  FOR  THE SAME PURPOSES FOR WHICH ORIGINALLY APPROPRIATED OR
REAPPROPRIATED AND SHALL BE PAYABLE ON VOUCHERS CERTIFIED OR APPROVED BY
THE COMMISSIONER ON AUDIT AND WARRANT OF THE COMPTROLLER.
  12. ALL ASSETS AND LIABILITIES OF THE OFFICE OF REAL PROPERTY SERVICES
ARE HEREBY TRANSFERRED TO AND ASSUMED BY THE DEPARTMENT.
  S 6. Section 202 of the real property tax law, paragraph (c) of subdi-
vision 1 as amended by chapter 615 of the laws of 1972, paragraph (h) of
subdivision 1 as amended by chapter 261 of the laws of  1992,  paragraph
(k) of subdivision 1 as amended, paragraph (m) of subdivision 1 as added
and  paragraph  (n) of subdivision 1 as relettered by chapter 833 of the
laws of 1960, paragraph (o) of subdivision 1 as added by chapter 716  of
the laws of 1990, paragraph (p) of subdivision 1 as added by chapter 166
of  the laws of 1991, paragraph (q) of subdivision 1 as added by chapter
450 of the laws of 2004, subdivision 1-a as added by chapter 739 of  the
laws  of  1978,  subdivision  1-b as added by chapter 237 of the laws of
1995, subdivision 2 as added by chapter 522 of the  laws  of  1981,  the
opening paragraph of subdivision 2 as amended by chapter 385 of the laws
of 1994, and paragraph (a) of subdivision 2 as amended by chapter 776 of
the laws of 1988, is amended to read as follows:
  S 202. Powers and duties of [state board] THE COMMISSIONER IN RELATION
TO REAL PROPERTY TAX ADMINISTRATION.  1. The [board] COMMISSIONER shall:
  (a) Assess special franchises;
  (b) Establish state equalization rates for each county, city, town and
village;
  [(c)  Hear  and  determine  reviews relating to determinations made by
county equalization agencies;
  (d)] (C) Approve assessments of state lands subject to taxation;

A. 11390                            5

  [(e)] (D) Have  general  supervision  of  the  function  of  assessing
throughout the state;
  [(f)]  (E)  Investigate,  from time to time, the methods of assessment
throughout the state, and confer with, advise and assist  assessors  and
other officials whose duties relate to assessments;
  [(g)]  (F) Furnish assessors with such information and instructions as
may be necessary or proper to aid  them  in  making  assessments,  which
instructions shall be followed and compliance with which may be enforced
by [the board] HIM OR HER;
  [(h)]  (G)  Prescribe,  and  in [its] HIS OR HER discretion furnish to
assessors at the expense of the state, forms  relating  to  assessments,
including  applications for exemption from real property taxation, which
forms shall be used by the assessors and  applicants  for  an  exemption
granted  pursuant  to  this  or  any other chapter, and the use of which
shall be enforced by the [board] COMMISSIONER;
  [(i)] (H) Obtain from state and local officers, bodies or other  agen-
cies  such  information  as may be necessary for the proper discharge of
[its] THE duties CONFERRED UPON HIM OR HER IN RELATION TO REAL  PROPERTY
TAX  ADMINISTRATION,  which information shall be furnished on HIS OR HER
demand [of the state board];
  [(j)] (I) Inquire into the provisions of the laws of other states  and
confer  with the appropriate officials thereof regarding the most effec-
tual and equitable methods of assessing and taxing real property;
  [(k)] (J) Prepare an annual report  to  the  legislature  which  shall
include  therein  recommendations  concerning amendments to existing law
and such other information as [it] HE OR SHE may deem advisable;
  [(l)] (K) Adopt and amend such rules, regulations, orders and determi-
nations, not inconsistent with law, as may be necessary for the exercise
of [its] HIS OR HER powers and the  performance  of  [its]  HIS  OR  HER
duties under this chapter;
  [(m)] (L) Establish railroad ceilings for railroad real property;
  [(n)]  (M) Exercise and perform such other powers and duties as may be
conferred or imposed on [it] HIM OR HER by law.
  [(o) monitor] (N) MONITOR the quality of local assessment practices by
individual assessing units.
  [(p) impose,] (O) IMPOSE, collect and receive such charges or fees  as
may be authorized by statute.
  [(q)]  (P)  Promulgate rules and regulations for the ascertainment and
reporting of "assessment record billing owner" information,  as  defined
in  section  one  hundred three of the eminent domain procedure law, for
the purposes of the administration of [said] SUCH law.
  [1-a] 2.  In any instance where an assessing unit has  acted  pursuant
to the rules, regulations, orders, determinations or instructions of the
[state  board]  COMMISSIONER  ACTING PURSUANT TO THE AUTHORITY CONFERRED
UPON HIM OR HER BY THIS CHAPTER, and such action is  the  subject  of  a
judicial  review, the [state board] COMMISSIONER may upon request of the
assessing unit assist such assessing unit  by  the  filing  of  a  brief
amicus curiae or through such other means as may be appropriate.
  [1-b]  3.    The  [state board] COMMISSIONER may adopt rules and regu-
lations, as necessary, to implement the  computerized  statewide  school
district  address  match  and  income  verification  system set forth in
section one hundred seventy-one of the tax law.
  [2. The members of the board, or a majority thereof, shall  act  as  a
body  when determining reviews relating to county equalization rates and
adopting and amending rules, regulations and orders in  accordance  with
law.  The board may by resolution delegate to any officer or employee of

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the office of real property services any other power or duty to be exer-
cised or performed by it under this chapter or any other law subject  to
the following:
  (a)  Any  resolution which delegates powers and duties relating to the
assessment of special franchises, the approval of assessments  of  state
lands  subject  to taxation, and the establishment of state equalization
rates pursuant to article twelve of this chapter shall be adopted  annu-
ally.  Any  such resolution shall specify the assessment rolls for which
said delegation is made and shall set  forth  the  full  value  standard
which  shall be used. However, no such resolution may delegate the power
to make a final determination in a matter in which a complaint has  been
filed  pursuant  to  articles  six and twelve of this chapter; provided,
however, that the power to adjust a final special  franchise  assessment
which is affected by a special equalization rate established pursuant to
section  twelve  hundred  twenty-two  of  this  chapter may be delegated
whether or not a complaint has been filed pursuant  to  article  six  of
this  chapter. The executive director shall report to the members of the
board all actions taken pursuant to any such resolution within ten  days
of  taking said actions. Within ten days of receipt of the report of the
executive director, if any member of the board has an objection, a meet-
ing of the board shall be convened for the purpose  of  considering  the
objection.  Failure  to  make  a  report  shall not, however, affect the
legality of any such actions.
  (b) Any resolution which delegates powers and duties relating  to  the
establishment  of  special state equalization rates pursuant to sections
eight hundred six and thirteen hundred  fourteen  of  this  chapter  and
special  equalization  ratios pursuant to articles twelve-A and twelve-B
of this chapter and certifications of changes in the level of assessment
pursuant to this chapter or any other law shall prescribe  the  policies
or  criteria to be observed in the exercise of such powers and duties by
the officer or employee to whom they are  delegated.  However,  no  such
resolution  may  delegate  the  power to make a final determination in a
matter in which a complaint has been filed pursuant to articles twelve-A
and twelve-B of this chapter.]
  4. ANY RECORDS THAT COME INTO THE COMMISSIONER'S CUSTODY IN THE COURSE
OF DISCHARGING THE DUTIES IMPOSED UPON HIM OR HER BY THIS CHAPTER  SHALL
BE  SUBJECT TO PUBLIC ACCESS TO THE FULL EXTENT PROVIDED BY THIS CHAPTER
AND THE PUBLIC OFFICERS LAW, AND SHALL NOT BE  SUBJECT  TO  THE  SECRECY
PROVISIONS OF THE TAX LAW.
  S  7.  The real property tax law is amended by adding two new sections
200-a and 203 to read as follows:
  S 200-A. POWERS OF THE STATE BOARD OF REAL PROPERTY TAX  SERVICES.  1.
THE  POWERS,  FUNCTIONS,  DUTIES,  AND OBLIGATIONS OF THE STATE BOARD OF
REAL PROPERTY TAX SERVICES SHALL BE SEPARATE FROM AND INDEPENDENT OF THE
AUTHORITY OF THE DEPARTMENT OF TAXATION AND FINANCE. SUCH BOARD SHALL BE
EMPOWERED TO ADOPT SUCH GUIDELINES AS MAY BE NECESSARY FOR THE EFFECTIVE
MANAGEMENT OF ITS DECISION-MAKING PROCESS.
  2. THE STATE BOARD OF  REAL  PROPERTY  TAX  SERVICES  SHALL  HAVE  THE
FOLLOWING POWERS IN RELATION TO REAL PROPERTY TAX ADMINISTRATION:
  (A)  THE POWER TO DETERMINE THE FINAL SPECIAL FRANCHISE VALUE, SPECIAL
FRANCHISE ASSESSMENT, RAILROAD CEILING, STATE EQUALIZATION RATE  OR  ANY
OTHER  EQUALIZATION  PRODUCT  ESTABLISHED  PURSUANT  TO THIS CHAPTER FOR
WHICH A COMPLAINT HAS BEEN FILED, AS PROVIDED BY SECTIONS  FOUR  HUNDRED
EIGHTY-NINE-O, FOUR HUNDRED EIGHTY-NINE-LL, SIX HUNDRED FOURTEEN, TWELVE
HUNDRED  TEN, TWELVE HUNDRED FIFTY-THREE, AND TWELVE HUNDRED SIXTY-THREE
OF THIS CHAPTER;

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  (B) THE POWER TO HEAR AND DETERMINE REVIEWS RELATING TO DETERMINATIONS
MADE BY COUNTY EQUALIZATION AGENCIES,  AS  PROVIDED  BY  SECTIONS  EIGHT
HUNDRED SIXTEEN AND EIGHT HUNDRED EIGHTEEN OF THIS CHAPTER.
  3.  THE PROVISIONS OF SECTION FIVE HUNDRED TWENTY-FIVE OF THIS CHAPTER
SHALL APPLY SO FAR AS PRACTICABLE TO A HEARING CONDUCTED BY THE BOARD OF
REAL PROPERTY TAX SERVICES PURSUANT TO THIS CHAPTER.
  S 203. OFFICE OF REAL PROPERTY TAX SERVICES. THERE IS  HEREBY  CREATED
WITHIN THE DEPARTMENT OF TAXATION AND FINANCE AN OFFICE OF REAL PROPERTY
TAX  SERVICES. THE HEAD OF THE OFFICE SHALL BE A DEPUTY COMMISSIONER FOR
REAL PROPERTY TAX SERVICES, WHO SHALL ALSO BE THE EXECUTIVE OFFICER  FOR
AND  SECRETARY  OF  THE  STATE BOARD OF REAL PROPERTY TAX SERVICES.  THE
DEPUTY COMMISSIONER FOR REAL PROPERTY TAX SERVICES SHALL BE APPOINTED BY
THE GOVERNOR. HE OR  SHE  SHALL  EXERCISE  SUCH  POWERS  AND  DUTIES  IN
RELATION  TO REAL PROPERTY TAX ADMINISTRATION AS MAY BE DELEGATED TO HIM
OR HER BY THE COMMISSIONER, SHALL REPORT DIRECTLY TO THE COMMISSIONER ON
THE ACTIVITIES OF THE OFFICE, AND SHALL HOLD OFFICE AT THE  PLEASURE  OF
THE COMMISSIONER. THE COMMISSIONER MAY APPOINT SUCH OFFICERS, EMPLOYEES,
AGENTS,  CONSULTANTS AND SPECIAL COMMITTEES AS HE OR SHE MAY DEEM NECES-
SARY TO CARRY OUT THE PROVISIONS OF THIS CHAPTER,  AND  SHALL  PRESCRIBE
THEIR DUTIES.
  S 8. Section 216 of the real property tax law, as added by chapter 490
of the laws of 1988, subdivision 5 as amended by chapter 529 of the laws
of 1990, is amended to read as follows:
  S 216. Powers of [board] COMMISSIONER upon neglect or refusal of offi-
cials  to  perform duties. 1. Whenever it appears to the satisfaction of
the [state board] COMMISSIONER that any assessor or other  public  offi-
cer, employee or board of assessment review whose duties relate directly
to  real  property  tax  administration  has  failed  to comply with the
provisions of this chapter or any other law relating to such duties,  or
the  rules  and  regulations  of  the [board] COMMISSIONER made pursuant
thereto, after a hearing on the  facts,  the  [board]  COMMISSIONER  may
issue  an  order  directing such assessor, officer, employee or board of
assessment review to comply with such law, rule or regulation.
  2. If any assessor or other  public  officer,  employee  or  board  of
assessment  review  whose  duties  relate  directly to real property tax
administration shall [wilfully] WILLFULLY and  intentionally  refuse  or
neglect  to  perform  any  duty or do any act required by or pursuant to
this chapter, in addition to any other penalty  provided  by  law,  such
assessor,  public  officer,  employee or member of a board of assessment
review shall forfeit to the municipal corporation of which  such  asses-
sor,  public  officer,  employee  or  member  is an officer a sum not to
exceed  fifty  dollars  for  each  [wilful]  WILLFUL   and   intentional
violation, which may be recovered by the [state board] COMMISSIONER.
  3.  Where  a  property owner is, in a proceeding conducted pursuant to
this section, found to be directly affected by the  violation  of  state
law  or  rule,  the  [board]  COMMISSIONER  in its order shall establish
procedures by which an assessor, officer, employee or board  of  assess-
ment  review  whose duties relate directly to real property tax adminis-
tration, whether or not a party to  the  proceeding,  shall  remedy  the
failure  to  comply  with  such  state  law  or rules with respect to an
assessment roll filed not more than three years prior to  the  commence-
ment of the proceeding. Such remedy may include reconvening the board of
assessment review, identifying the class of persons eligible to complain
when the board of assessment review reconvenes, and issuing instructions
to  such  board  of  assessment  review on the law and any documentation
required of eligible complainants in relation to  the  findings  of  the

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[state board] COMMISSIONER. A copy of such order shall be mailed to such
assessor,  officer,  employee  or board of assessment review and to each
municipal corporation which utilizes such assessment  roll.  Such  order
shall,  where  appropriate, require the assessing unit to mail a copy of
the order to each eligible complainant whose name and address is readily
ascertainable from the record of the proceeding.
  4. (a) Where the [state board] COMMISSIONER has ordered the  board  of
assessment  review  to  reconvene  to  receive complaints, a copy of the
order shall be mailed by the assessing unit to each  eligible  complain-
ant,  which  mailing  shall be accompanied by the form prescribed by the
[state board] COMMISSIONER for complaints on  tentative  assessments  or
such  other  form  as  may  be  prescribed [by the state board] for such
purpose. Included with such order and form shall be a notice stating the
date, time and place at which the board of assessment review will recon-
vene. This material shall be mailed to the eligible complainant no later
than fifteen days prior to  the  meeting  of  the  board  of  assessment
review.  On  the  date  and  time specified in such notice, the board of
assessment review will reconvene to hear any complaints  filed  pursuant
to  such order and shall have the powers and duties set forth in section
five hundred twenty-five of this chapter, except  that  it  may  receive
only  complaints  with  respect to assessments of those parcels to which
the [state board's] COMMISSIONER'S order applies. A petition for  review
of the assessment of such property pursuant to either title one or one-A
of  article seven of this chapter may be filed no later than thirty days
after the determination of the board of assessment review is  mailed  to
the  petitioner, notwithstanding the provisions of section seven hundred
two or seven hundred thirty of this chapter.
  (b) The assessor shall correct the assessment roll upon receipt of the
verified statement of changes from the board of assessment review.    If
the  assessor  no  longer  has  custody of the assessment roll when such
verified statement is received, he or she shall forward a copy  of  such
verified  statement  and  a  copy  of the [state board's] COMMISSIONER'S
order to the person having custody of the assessment roll or  tax  roll,
which  person  shall  thereupon  make  the  appropriate corrections. The
assessor shall also forward a copy of the verified statement of  changes
to the clerk of each tax levying body which levies taxes on such assess-
ment roll.
  (c)  Where  a  tax,  special assessment or special ad valorem levy has
been paid prior to the correction of  the  tax  roll  pursuant  to  this
section  and  the  order  of the board of assessment review results in a
reduction of the tax liability of a parcel, the tax levying  body  shall
refund to the person who paid such tax, special assessment or special ad
valorem  levy  the  amount which exceeds the tax, special assessment, or
special ad valorem levy due upon the corrected tax roll. Any such refund
shall be a charge upon each municipal corporation or special district to
the extent that the taxes, special assessments  or  special  ad  valorem
levies were levied on its behalf or as is otherwise provided by law with
respect  to  Nassau  and  Suffolk  counties;  provided, however, that no
application need be made by the petitioner for such refund. The verified
statement of changes provided to the clerk of  the  tax  district  shall
constitute  an  application for refund for the purposes of this section.
Where a refund is not made within ninety days  of  the  receipt  of  the
verified statement of changes, interest in the amount of one percent per
month shall be added to the amount to be refunded for each month or part
thereof in excess of ninety days and paid to the property owner.

A. 11390                            9

  (d) Where taxes, special assessments or special ad valorem levies have
been  levied  prior  to  the correction of the tax roll pursuant to this
section and the verified statement of changes of the board of assessment
review results in an increase in the tax liability of a  parcel  or  the
imposition of a tax liability upon a parcel, the additional tax, special
assessment,  or  special  ad valorem levy shall be levied, collected and
accounted for as provided in the [state board's] COMMISSIONER'S order.
  (e) The provisions of title three of  article  five  of  this  chapter
shall  apply  as  far  as practicable to the correction of an assessment
roll or tax roll and, if applicable, to a refund of  taxes  pursuant  to
this  section;  provided however that no application, except as provided
herein, need be made for such correction or refund.
  5. If an assessor, or other  public  officer,  employee  or  board  of
assessment  review  whose  duties  relate  directly to real property tax
administration fails or refuses  to  comply  with  the  [state  board's]
COMMISSIONER'S  order  within  ten  days  after service of such order or
within such time as is prescribed by the [state board] COMMISSIONER  for
compliance with its order, the [state board] COMMISSIONER may commence a
special  proceeding  pursuant  to article four of the civil practice law
and rules to compel compliance with such order. Such special  proceeding
shall  be  commenced  by  the counsel to the [state board] DEPARTMENT OF
TAXATION AND FINANCE, except that the  attorney  general  of  the  state
shall commence such proceeding on behalf of the [state board] DEPARTMENT
if he or she deems it necessary.
  S 9. Section 324 of the real property tax law is REPEALED.
  S  10. Subparagraphs (iv) and (v) of paragraph (b) of subdivision 4 of
section 425 of the real property tax law, subparagraph (iv)  as  amended
by  section  3 of part E of chapter 83 of the laws of 2002, subparagraph
(v) as amended by chapter 631 of the laws of 2006, are amended  to  read
as follows:
  (iv)  Effective  with applications for the enhanced exemption on final
assessment rolls to be completed in two thousand three, the  application
form  shall  indicate  that  the  owners of the property and any owners'
spouses residing on the premises may  authorize  the  assessor  to  have
their  income  eligibility  verified  annually  thereafter  by the state
department of taxation and finance, in lieu of furnishing copies of  the
applicable  income  tax  return  or returns with the application. If the
owners of the property and any owners' spouses residing on the  premises
elect  to  participate in this program, which shall be known as the STAR
income verification program, they must furnish their taxpayer  identifi-
cation  numbers  in  order  to  facilitate  matching with records of the
department [of taxation and finance]. Thereafter, their income eligibil-
ity shall be verified annually by the [state]  department  [of  taxation
and  finance]  and  the  assessor shall not request income documentation
from them, unless such department  advises  the  assessor  [through  the
state  board] that they do not satisfy the applicable income eligibility
requirements, or that it is unable to  determine  whether  they  satisfy
those requirements.
  (v)  (A) Except in the case of a city with a population of one million
or more, the assessor shall forward to the [state board] DEPARTMENT,  in
the  time  and manner required by the [state board] DEPARTMENT, informa-
tion identifying the persons who have elected to participate in the STAR
income verification program.  [The state board shall forward such infor-
mation to the department of taxation and finance in the manner  provided
by  the agreement executed pursuant to section one hundred seventy-one-o
of the tax law, and  shall  notify  the  assessor  of  the  response  or

A. 11390                           10

responses  it receives from such department pursuant to such agreement.]
After receiving [such]  THE  DEPARTMENT'S  response  or  responses,  the
assessing  authority shall cause notices to be mailed to participants as
provided  by paragraph (b) of subdivision five of this section. Informa-
tion [obtained by the state board] PROVIDED TO THE DEPARTMENT  identify-
ing  such  persons, and responses obtained from such department shall be
confidential and shall not be subject to disclosure under article six of
the public officers law.
  (B) In the case of a city of one million or more, the  assessor  shall
forward  to  the  department  of  taxation  and finance, in the time and
manner required by the department, information identifying  the  persons
who have elected to participate in the STAR income verification program.
The  department  shall advise the assessor of its findings in the manner
provided by the agreement  executed  pursuant  to  section  one  hundred
seventy-one-o   of  the  tax  law.  After  receiving  such  response  or
responses, the assessing authority shall cause notices to be  mailed  to
participants  as  provided  by paragraph (b) of subdivision five of this
section. Information [obtained by  the  state  board]  PROVIDED  TO  THE
DEPARTMENT  identifying  such  persons, and responses obtained from such
department shall be confidential and shall not be subject to  disclosure
under article six of the public officers law.
  S  11.  The  opening  paragraph  of  paragraph (b) of subdivision 5 of
section 425 of the real property tax law, as amended by chapter  742  of
the laws of 2005, is amended to read as follows:
  Informational  notice for participants in the STAR income verification
program. In the case of a parcel which is owned by an  owner  or  owners
who have elected to participate in the STAR income verification program,
the  assessing authority shall cause a notice, preferably on a postcard,
to be mailed to such owner or owners after the assessor has  been  noti-
fied  of  their  income  eligibility  by the department [of taxation and
finance through the state board]. Each such notice shall be mailed with-
out restrictions upon forwarding or  delivery,  and  shall  contain,  in
language  prescribed  by  the [state board] DEPARTMENT, the substance of
one of the following statements, whichever is appropriate:
  S 12. Paragraph (a) of subdivision 12 of section 425 of the real prop-
erty tax law, as amended by section 9 of part E of  chapter  83  of  the
laws of 2002, is amended to read as follows:
  (a)  Generally. In addition to discontinuing the exemption on the next
ensuing tentative assessment roll, if the assessor determines  that  the
property  improperly  received the exemption on one or more of the three
preceding assessment rolls, or is advised by the department [of taxation
and finance through the state board] that the applicable income standard
was not satisfied with regard to a property which received the  enhanced
exemption  on  one  or  more  of those rolls, he or she shall proceed to
revoke the improperly granted prior  exemption  or  exemptions.  If  the
assessor  is  advised  [through the state board] that the department [of
taxation and finance] was unable to verify the income eligibility of one
or more participants in the income verification  program,  the  assessor
shall mail that person or those persons a notice in a form prescribed by
the [state board] DEPARTMENT requesting that the person or persons docu-
ment  their  income  in the same manner and to the same extent as if the
person or  persons  were  submitting  an  initial  application  for  the
enhanced  STAR  exemption.  If such income documentation is not provided
within forty-five days of such request, or if the documentation provided
does not establish the eligibility of  the  person  or  persons  to  the
assessor's  satisfaction,  the  assessor shall treat the exemption as an

A. 11390                           11

improperly granted exemption and proceed in the manner provided by  this
subdivision.
  S  13. Section 489-o of the real property tax law, as added by chapter
86 of the laws of 1963, subdivision 2 as amended by chapter 735  of  the
laws  of  1983, and subdivision 3 as added by chapter 841 of the laws of
1986, is amended to read as follows:
  S 489-o.  Final determination of railroad ceiling;  certificate.    1.
After  the hearing provided for in section four hundred eighty-nine-n of
this [chapter] TITLE, the state board  OF  REAL  PROPERTY  TAX  SERVICES
shall finally determine the railroad ceiling for the railroad real prop-
erty of each railroad company situated in each assessing unit.  Whenever
upon  complaint the state board shall revise the local reproduction cost
of a railroad company in an assessing unit, it shall revise the railroad
ceiling therefor to reflect such revision, but it shall not, on  account
of  such  revision,  modify  any other determination with respect to the
railroad ceilings for such railroad company for  such  year.    Notwith-
standing  the  fact that no complaint shall have been filed with respect
to a tentative determination of a  railroad  ceiling,  the  state  board
shall give effect to any special equalization rate established, pursuant
to  subdivision two of section four hundred eighty-nine-l of this [chap-
ter] TITLE prior to the final determination of the railroad ceiling.
  2.  Not later than ten days before the last date prescribed by law for
the levy of taxes, the state board  shall  file  a  certificate  setting
forth  each  railroad ceiling as finally determined with the assessor of
the appropriate assessing unit  or  the  town  or  county  assessor  who
prepares  a copy of the applicable part of the town or county assessment
roll for village tax  purposes  as  provided  in  subdivision  three  of
section  fourteen  hundred  two  of this chapter,   and at the same time
shall transmit to each railroad company for which such ceiling has  been
determined a duplicate copy of such certificate.
  3.  Any  final  determination of a railroad ceiling by the state board
pursuant to subdivision one of this section shall be subject to judicial
review in a proceeding under article seventy-eight of the civil practice
law and rules.
  S 14. Subdivision 1 of section 489-ll of the real property tax law, as
added by chapter 920 of the laws of 1977, is amended to read as follows:
  1.  After the hearing provided for in  section  four  hundred  eighty-
nine-kk  of  this  [chapter] TITLE, the state board OF REAL PROPERTY TAX
SERVICES shall finally determine the railroad ceiling for  the  railroad
real  property of each railroad company situated in each assessing unit.
Whenever upon complaint the state board shall revise the  local  reprod-
uction  cost of a railroad company in an assessing unit, it shall revise
the appropriate railroad ceiling to reflect such revision, but it  shall
not,  on  account  of such revision, modify any other determination with
respect to the railroad ceilings for  such  railroad  company  for  such
year.   Notwithstanding the fact that no complaint shall have been filed
with respect to a tentative determination of  a  railroad  ceiling,  the
state  board  shall  give effect to any special equalization rate estab-
lished pursuant to subdivision two of section four hundred  eighty-nine-
jj of this [chapter] TITLE prior to the final determination of the rail-
road ceiling.
  S  15.  Section 614 of the real property tax law is amended to read as
follows:
  S 614.   Determination of  final  assessment  of  special  franchises.
After  [the hearing of complaints, if any, as provided in] RECEIVING THE
COMMISSIONER'S REPORT REGARDING ANY COMPLAINT FILED PURSUANT TO  section

A. 11390                           12

six  hundred  twelve  of this [chapter] ARTICLE, the state board OF REAL
PROPERTY TAX SERVICES shall  determine  the  final  assessment  of  each
special franchise.
  S  16.  Subdivision  2 of section 740 of the real property tax law, as
added by chapter 732 of the laws of 1983, is amended to read as follows:
  2. A petition and notice shall be served by delivering two  copies  to
[a  member  of  the  state  board]  THE COMMISSIONER or to an officer or
employee authorized by [the board] HIM OR HER  to  accept  service,  not
more  than  sixty  days after the written notice of the final assessment
prescribed by section six hundred eighteen  of  this  chapter  has  been
served.  Where a proceeding is commenced by an assessing unit in which a
special  franchise is situated, an additional copy shall be filed by the
petitioner with the owner of that special franchise.  Where a proceeding
is commenced by a special franchise owner, the  petitioner,  within  ten
days  after service, shall file an additional copy with the clerk of the
city, town or village and with the clerk of the school district in which
that special franchise is situated except a school district governed  by
the provisions of article fifty-two of the education law.
  S 17. Section 1210 of the real property tax law, as amended by chapter
355 of the laws of 1990, is amended to read as follows:
  S  1210. Establishment of final state equalization rates, class ratios
and class equalization rates. After [hearing the complaints, if any,  as
provided in] RECEIVING THE COMMISSIONER'S REPORT REGARDING ANY COMPLAINT
FILED  PURSUANT TO section twelve hundred eight of this [chapter] TITLE,
the state board OF REAL PROPERTY TAX SERVICES shall establish the  final
state  equalization rate, class ratios, and class equalization rates, if
required, for each city,  town,  village,  special  assessing  unit,  or
approved assessing unit or eligible non-assessing unit village which has
adopted  the  provisions of section nineteen hundred three of this chap-
ter.
  S 18. Section 1218 of the real property tax law, as amended by chapter
685 of the laws of 2004, is amended to read as follows:
  S 1218. Review of final determinations of state board OF REAL PROPERTY
TAX SERVICES relating to state equalization rates. A final determination
of the state board OF REAL  PROPERTY  TAX  SERVICES  relating  to  state
equalization rates may be reviewed by commencing an action in the appel-
late  division  of  the  supreme court in the manner provided by article
seventy-eight of the civil practice law and rules  upon  application  of
the  county,  city,  town  or  village  for which the rate or rates were
established. The standard of review in such a  proceeding  shall  be  as
specified  in subdivision four of section seventy-eight hundred three of
the civil practice law and rules.  Whenever a final order is  issued  in
such a proceeding directing a revised state equalization rate, any coun-
ty,  village  or school district that used the former rate in the appor-
tionment of taxes must, upon receipt of such  final  order,  recalculate
the  levy  that used such former rate and credit or debit as appropriate
its constituent municipalities in its next levy.  Any special  franchise
assessments  that  were  established  using  the  former rate must, upon
receipt of such final order, be revised by the state board in accordance
with the new rate, and, if taxes have  already  been  levied  upon  such
assessments, the affected special franchise owners shall either automat-
ically  receive  a  refund  if  there  is  a  decrease or be taxed on an
increase in the next levy in the manner provided for omitted parcels  in
title three of article five of this chapter.
  S  19.  Subdivision  (e)  of  section 15 of the tax law, as amended by
chapter 161 of the laws of 2005, is amended to read as follows:

A. 11390                           13

  (e) Eligible real property taxes. The  term  "eligible  real  property
taxes"  means  taxes imposed on real property which is owned by the QEZE
and located in an empire zone with respect to which the QEZE  is  certi-
fied  pursuant  to  article  eighteen-B  of  the  general municipal law,
provided  such taxes are paid by the QEZE which is the owner of the real
property or are paid by a tenant which either  (i)  does  not  meet  the
eligibility  requirements under section fourteen of this article to be a
QEZE or (ii) cannot treat such payment as eligible real  property  taxes
pursuant  to  this  paragraph  and  such taxes become a lien on the real
property during a taxable year in which the owner of the  real  property
is  both certified pursuant to article eighteen-B of the general munici-
pal law and a qualified empire zone enterprise. In  addition,  "eligible
real  property  taxes"  shall  include  taxes  paid by a QEZE which is a
lessee of real property if the following conditions are satisfied:   (1)
the  taxes  must be paid by the lessee pursuant to explicit requirements
in a written lease executed or amended on or after June first, two thou-
sand five, (2) such taxes become a lien on the real  property  during  a
taxable  year in which the lessee of the real property is both certified
pursuant to article eighteen-B of the general municipal law and a quali-
fied empire zone enterprise, and (3) the lessee has made direct  payment
of  such  taxes  to  the taxing authority and has received a receipt for
such payment of taxes from the taxing authority.  In addition, the  term
"eligible  real  property taxes" includes payments in lieu of taxes made
by the QEZE to the state, a municipal corporation or  a  public  benefit
corporation  pursuant  to  a  written agreement entered into between the
QEZE and the state, municipal  corporation,  or  public  benefit  corpo-
ration.  Provided,  however, a payment in lieu of taxes made by the QEZE
pursuant to a written agreement executed or amended on or after  January
first,  two  thousand  one,  shall not constitute eligible real property
taxes in any taxable year to the extent that such  payment  exceeds  the
product  of  (A)  the  greater  of  (i) the basis for federal income tax
purposes, calculated without regard to depreciation,  determined  as  of
the effective date of the QEZE's certification pursuant to article eigh-
teen-B  of  the general municipal law of real property, including build-
ings and structural components of  buildings,  owned  by  the  QEZE  and
located  in  empire  zones  with  respect to which the QEZE is certified
pursuant to such article eighteen-B of the general  municipal  law,  and
provided  that  if such basis is further adjusted or reduced pursuant to
any provision of the internal revenue code, the QEZE  may  petition  the
department[,] AND the department of economic development [and the office
of real property services] to disregard such reduction or adjustment for
the purpose of this subdivision or (ii) the basis for federal income tax
purposes  of such real property described in clause (i) of this subpara-
graph, calculated without regard to depreciation, on the last day of the
taxable year, and provided that if such basis  is  further  adjusted  or
reduced pursuant to any provision of the internal revenue code, the QEZE
may  petition the department, the department of economic development and
the office of real property services  to  disregard  such  reduction  or
adjustment  for  the  purpose of this subdivision; and (B) the estimated
effective full value tax rate within the county in which  such  property
is located, as most recently [reported to] CALCULATED BY the commission-
er  [by  the  secretary of the state board of real property services, or
his or her designee]. The  [state  board]  COMMISSIONER  shall  annually
calculate  estimated  effective  full value tax rates within each county
for this purpose based upon the most current  information  available  to

A. 11390                           14

[it]  HIM  OR  HER in relation to county, city, town, village and school
district taxes.
  S  20. Paragraph 5 of subdivision (b) of section 22 of the tax law, as
amended by section 4 of part H of chapter 577 of the laws  of  2004,  is
amended to read as follows:
  (5)  Eligible  real  property  taxes. The term "eligible real property
taxes" means taxes imposed on real property which consists of  a  quali-
fied  site  owned by the developer, provided such taxes become a lien on
the real property in a period during which the real property is a quali-
fied site. In addition, the term "eligible real property taxes" includes
payments in lieu of taxes by the developer, with respect to a  qualified
site,  to  the state, a municipal corporation or a public benefit corpo-
ration pursuant to a written agreement entered into between the develop-
er and the state, a municipal corporation or  a  public  benefit  corpo-
ration.  Provided,  however,  such  a payment in lieu of taxes shall not
constitute eligible real property taxes  in  any  taxable  year  to  the
extent  that  such payment exceeds the product of (A) the greater of (i)
the basis for federal income tax purposes, determined on  the  date  the
taxpayer  becomes  a  developer  as  defined under this section, of real
property, including buildings and structural  components  of  buildings,
owned  by  the developer and located on a qualified site with respect to
which the taxpayer is a developer, or (ii) the basis for federal  income
tax  purposes  of  such  real  property  described in clause (i) of this
subparagraph on the last day of the taxable year, and (B) the  estimated
effective  full  value tax rate within the county in which such property
is located, as most recently [reported to] CALCULATED BY the commission-
er [by the secretary of the state board of real  property  services,  or
his  or  her  designee].  The  [state board] COMMISSIONER shall annually
calculate estimated and effective full value tax rates within each coun-
ty for this purpose based upon the most current information available to
[it] HIM OR HER in relation to county, city, town,  village  and  school
district  taxes. Provided further, where the amount of the credit deter-
mined under paragraph two of this subdivision is the  total  product  of
the  factors and tax specified therein, the term "eligible real property
taxes" under this paragraph shall apply only to taxes  imposed  on  real
property  which is attributed to a qualified site located in an environ-
mental zone. Where the developer is a partner  in  a  partnership  or  a
shareholder  in  a  New  York S corporation, such real property shall be
owned by the partnership or the New York S corporation, respectively.
  S 20-a. Subdivision 2 of section 170 of the tax  law,  as  amended  by
chapter 282 of the laws of 1986, is amended and a new subdivision 7-a is
added to read as follows:
  2.  Existing  divisions  or  bureaus in the department of taxation and
finance or transferred to the department shall  continue  until  consol-
idated  or  abolished  pursuant  to  this section. There shall be in the
department of taxation and finance a division of taxation, a division of
the treasury, a division of the lottery, AN OFFICE OF REAL PROPERTY  TAX
SERVICES, and a division of tax appeals.
  7-A.  THE HEAD OF THE OFFICE OF REAL PROPERTY TAX SERVICES SHALL BE AN
OFFICER TO BE APPOINTED AND HOLD  OFFICE  AS  PROVIDED  BY  SECTION  TWO
HUNDRED THREE OF THE REAL PROPERTY TAX LAW.
  S  21.  Subdivision  twenty-fifth  of  section  171 of the tax law, as
amended by chapter 170 of the laws of 1994, paragraph a  as  amended  by
section  93 of part A of chapter 436 of the laws of 1997, paragraph b as
amended and paragraph c as added by chapter 474 of the laws of 1996,  is
amended to read as follows:

A. 11390                           15

  Twenty-fifth. a. With respect to the income to be used in the computa-
tion  of  school aid payable in the school year nineteen hundred ninety-
four--ninety-five and thereafter, be required  to  design,  develop  and
implement  a  permanent  computerized  statewide school district address
match and income verification system in regard to each school district's
valuation  of  total New York adjusted gross income as determined by the
department, for use in determining state aid to education.  The  depart-
ment  shall promulgate rules and regulations to effect the provisions of
this paragraph within ninety days of the enactment of the chapter of the
laws of nineteen hundred ninety-four amending this paragraph. Commencing
September first, nineteen hundred ninety-seven, the commissioner[,]  AND
the commissioner of education[, and the executive director of the office
of  real  property services], subject to the approval of the director of
the budget shall be required to enter into a  cooperative  agreement  by
September  first  of  each  year,  which  will govern the validation and
correction and completion of the total New York adjusted gross income of
school districts until September  first  of  the  following  year.  Such
agreement  shall  include,  but  not  be  limited  to: (i) procedures to
improve the accuracy of school district income data, in a  manner  which
gives  appropriate  recognition to computerized processing capabilities,
administrative  feasibility  of  manual  processes  and  confidentiality
implications;  (ii)  procedures  to  verify  the  school  district codes
reported by taxpayers; (iii) procedures to correct identified  inaccura-
cies;  (iv)  procedures  to  assign  school  district codes based on the
permanent residence addresses of taxpayers who failed  to  complete  the
school district code; (v) the schedule for the transmittal of electronic
data  between  the agencies, as necessary, to implement such system; and
(vi) beginning in the nineteen hundred  ninety-six  state  fiscal  year,
procedures  for  the  review process provided for in paragraph c of this
subdivision.  All state departments and agencies, and  school  districts
and  other  local  governments  and  agencies,  shall cooperate with the
parties to such agreement in its implementation.
  b. 1. [With respect to income used in the computation  of  school  aid
payable  in  the  school years nineteen hundred ninety-four--ninety-five
through nineteen  hundred  ninety-seven--ninety-eight,  be  required  to
design,  develop  and  implement  a process whereby school districts may
request a review of the assignment of taxpayer addresses to their school
district. In addition to the cooperative agreement developed pursuant to
paragraph a of this subdivision between the  commissioner,  the  commis-
sioner  of  education  and  the  director of the office of real property
services, the parties shall enter into a second cooperative agreement to
establish procedures for such a review process.  Such  procedures  shall
include  but  not be limited to: (i) general criteria to be used for the
purpose of evaluating suspected inaccuracies in the  assignment  of  tax
returns  to school districts; (ii) a process for rating the requests for
review, giving appropriate recognition  to  the  relative  incidence  of
suspected inaccuracies, the relative effect of suspected inaccuracies on
the aggregate income, income per return and relative income per pupil of
the  school  district, and the relative effect of suspected inaccuracies
on state aid payable to the school district pursuant  to  the  education
law;  (iii)  a  process for identifying the school districts for partic-
ipation in the review process from the rated list  of  applicants;  (iv)
processes  by  which  addresses  assigned to identified school districts
will be reviewed and by which corrections to inaccuracies will be  iden-
tified;  (v)  a  process  by which corrections to inaccurate assignments
will be made to appropriate files; and (vi) deadlines  by  which  school

A. 11390                           16

districts  must submit requests for review to the commissioner of educa-
tion and timelines for each of the procedures included in the agreement.
  2.  School  districts  requesting  a  review  in  accordance  with the
provisions of this paragraph shall be required, in consultation with the
district superintendent of schools for the supervisory district in which
the school district is located, appointed pursuant to  section  nineteen
hundred  fifty  of  the  education law, to submit to the commissioner of
education evidence in support of a contention that the assignment of tax
returns to their district is inaccurate. Identified school districts may
be required to review ordered listings, prepared by  the  department  or
the  office of real property services or an authorized vendor contracted
by the department, of the permanent resident address of selected taxpay-
ers who filed personal income tax returns with the department  reporting
a  school district code or address which indicates that the taxpayer was
a resident of such identified school district at the close of the  taxa-
ble  year  for  which  the  return  was  filed. In no case shall ordered
address listings for school  district  review  include  those  addresses
which  the  school  district  had  the opportunity to review pursuant to
paragraph a of this subdivision.  District  superintendents  of  schools
appointed  pursuant  to  section nineteen hundred fifty of the education
law, having an  identified  school  district  within  their  supervisory
district,  shall  be required to verify any suspected inaccuracies indi-
cated by an identified district as a result of the district's review  of
ordered address listings pursuant to this paragraph.
  3.]  Any correction, pursuant to this paragraph, of verified inaccura-
cies of income data shall only result in the  removal  of  such  returns
from the identified school district.
  [4.]  2.  All state departments and agencies, and school districts and
other local governments and agencies, shall cooperate with  the  parties
to  such  agreement in the implementation of the review process provided
pursuant to this paragraph.
  c. 1. With respect to income used in the  computation  of  school  aid
payable  in  the school years nineteen hundred ninety-eight--ninety-nine
and thereafter, be required to design, develop and implement  a  process
whereby  school  districts  may  request  a  review of the assignment of
taxpayer addresses to their  school  district.  Procedures  for  such  a
review  process  shall  be included in the cooperative agreement entered
into pursuant to paragraph a of this subdivision.
  2. School  districts  requesting  a  review  in  accordance  with  the
provisions of this paragraph shall be required, in consultation with the
district superintendent of schools for the supervisory district in which
the  school  district is located, appointed pursuant to section nineteen
hundred fifty of the education law, to submit  to  the  commissioner  of
education evidence in support of a contention that the assignment of tax
returns to their district is inaccurate. Identified school districts may
be  required  to review ordered listings, prepared by the department [or
the office of real property services] or an authorized vendor contracted
by the department, of the permanent resident address of selected taxpay-
ers who filed personal income tax returns with the department  reporting
a  school district code or address which indicates that the taxpayer was
a resident of such identified school district at the close of the  taxa-
ble  year  for  which  the  return  was  filed. In no case shall ordered
address listings for school  district  review  include  those  addresses
which  the  school  district  had  the opportunity to review pursuant to
paragraph a of this subdivision.  District  superintendents  of  schools
appointed  pursuant  to  section nineteen hundred fifty of the education

A. 11390                           17

law, having an  identified  school  district  within  their  supervisory
district,  shall  be required to verify any suspected inaccuracies indi-
cated by an identified district as a result of the district's review  of
ordered address listings pursuant to this paragraph.
  3.  Any  correction, pursuant to this paragraph, of verified inaccura-
cies of income data shall only result in the  removal  of  such  returns
from the identified school district.
  4.  All state departments and agencies, and school districts and other
local governments and agencies, shall cooperate with the parties to such
agreement in the implementation of the review process provided  pursuant
to this paragraph.
  S  22.  Section 171-o of the tax law, as amended by chapter 631 of the
laws of 2006, is amended to read as follows:
  S 171-o. Income verification for [the state  board  of  real  property
services  and]  a city with a population of one million or more. (1) The
department shall enter into an agreement with [the state board  of  real
property  services to verify, to the extent practicable, whether persons
described in paragraph (b) of subdivision four of section  four  hundred
twenty-five  of  the  real  property tax law meet the income eligibility
requirements prescribed therein for  the  applicable  income  tax  year,
beginning  with  the  income  tax  year  ending in two thousand two. The
department shall also enter into an agreement with] a city with a  popu-
lation  of  one  million  or  more to verify, to the extent practicable,
whether persons described  in  paragraph  (b)  of  subdivision  four  of
section  four  hundred twenty-five of the real property tax law meet the
income eligibility requirements prescribed therein  for  the  applicable
income  tax year, beginning with the income tax year ending in two thou-
sand five. The department shall advise the [state board of real property
services, or] city[, as the case may be,] of its  findings,  stating  in
each  case  either that such person or persons do or do not satisfy such
requirements, or that the eligibility of such person or  persons  cannot
be  verified, whichever is appropriate. The department shall not provide
any other information about the income of such  persons  to  the  [state
board of real property services or] city.
  (2) The provisions of article six of the public officers law shall not
apply to any information that the department obtains from or provides to
the  [state  board  of  real property services or] city pursuant to this
section.
  (3) Any information furnished  by  the  department  pursuant  to  this
section  shall  be  deemed  confidential and the assessor, any municipal
officer or municipal employees are prohibited from disclosing  any  such
information,  except  for any disclosure necessary in the performance of
their official duties in connection with the school  tax  relief  (STAR)
exemption pursuant to section four hundred twenty-five of the real prop-
erty  tax  law. Any unauthorized disclosure of such information shall be
deemed a violation of section eight hundred five-a of the general munic-
ipal law.
  S 23. Paragraph 12 of subsection (e) of section 606 of the tax law  is
REPEALED.
  S  24.  Paragraphs  3, 4 and 5 of subsection (k) of section 697 of the
tax law, as amended by chapter 237 of the laws of 1995, are  amended  to
read as follows:
  [(3) Notwithstanding the provisions of subsection (e) of this section,
the  department  or authorized vendor contracted by the department shall
furnish annually, as required pursuant to  subdivision  twenty-fifth  of
section one hundred seventy-one of this chapter, to the executive direc-

A. 11390                           18

tor  of  the office of real property services, electronic file transfers
of the permanent residence address of each  taxpayer  who  has  filed  a
personal  income tax return with the department. Such transfers shall be
in  accordance  with  the schedule established pursuant to the agreement
developed in accordance with paragraph d of subdivision twenty-fifth  of
section  one hundred seventy-one of this chapter.  Similarly, the office
of real property services shall, subject to the  availability  of  funds
appropriated for this purpose, verify or correct or determine the school
district  for each such residence address provided by the department and
shall return such updated data to the department in accordance with  the
provisions of such agreement.]
  (4)  Notwithstanding the provisions of subsection (e) of this section,
the department [or the office of real property services] or  an  author-
ized  vendor  contracted  by  the  department shall furnish, as required
pursuant to subdivision twenty-fifth of section one hundred  seventy-one
of  this chapter, to the superintendents of schools of identified school
districts and district superintendents of schools appointed pursuant  to
section  nineteen  hundred fifty of the education law, having an identi-
fied school district within their supervisory district, an ordered list-
ing, for such identified school districts electing to participate in the
appeals process for a limited school district address review  validation
and correction process.
  (5)  The information provided pursuant to this section and subdivision
twenty-fifth of section one hundred seventy-one of this chapter shall be
used solely for the purpose of verifying the legal residence and  school
district  of a taxpayer in determining the distribution of state aid for
education and such information may only be disclosed by such commission-
er, [director,] superintendents and authorized vendor contracted by  the
department for such purposes to employees of the state education depart-
ment,  [employees  of the state office of real property services] and to
employees under  the  control  of  such  superintendents.  In  addition,
notwithstanding  the  provisions  of subsection (e) of this section, the
department may furnish to an authorized vendor contracted by the depart-
ment the permanent resident address and school code data  necessary  for
the implementation of the temporary school district address review vali-
dation  and correction process, the pilot computerized address match and
income verification project, or  the  permanent  computerized  statewide
school district address match and income verification system pursuant to
subdivision  twenty-fifth  of  section  one  hundred seventy-one of this
chapter. Any violation of  the  provisions  of  this  section  shall  be
punishable in the manner provided for in subsection (e) of this section.
Any  information  obtained  by  any  agency  or  person  pursuant to the
provisions of this section shall not be deemed a "record", as defined in
subdivision four of section eighty-six of the public officers law.
  S 25. Subdivision 3 of section 1564 of the  tax  law,  as  amended  by
chapter 17 of the laws of 2008, is amended to read as follows:
  3.  An exemption from the tax which is equal to the median sales price
of residential real property within the  applicable  town  or  city,  as
determined  by  the [office of real property services pursuant to proce-
dures adopted for this purpose by  the  state  board  of  real  property
services  established  pursuant  to article two of the real property tax
law] COMMISSIONER, shall be allowed on the consideration of the  convey-
ance of improved or unimproved real property or an interest therein.
  S 26. This act shall take effect immediately.