S T A T E   O F   N E W   Y O R K
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                                   738

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
  tee on Real Property Taxation

AN ACT to amend the real property tax law, in  relation  to  authorizing
  the imposition of service charges upon certain real property

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

  Section 1. Subdivision 20 of section 102 of the real property tax  law
is amended and a new subdivision 13-a is added to read as follows:
  13-A. "SERVICE CHARGE" MEANS A CHARGE, OTHER THAN A SPECIAL AD VALOREM
LEVY  OR  SPECIAL ASSESSMENT, IMPOSED UPON REAL PROPERTY BY OR ON BEHALF
OF A COUNTY, CITY, TOWN OR VILLAGE, TO DEFRAY THE COST OF  SERVICES  AND
IMPROVEMENTS  NECESSARY OR CONVENIENT IN PROVIDING SUCH SERVICES FOR THE
FOLLOWING PURPOSES: POLICE PROTECTION; FIRE PROTECTION; STREET AND HIGH-
WAY  CONSTRUCTION,  MAINTENANCE  AND  LIGHTING;  SANITATION;  AND  WATER
SUPPLY.  ALL  IMPROVEMENTS SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION ONE
OF SECTION FOUR HUNDRED NINETY OF THIS  CHAPTER  SHALL  BE  DEEMED  SUCH
IMPROVEMENTS.
  20.  "Tax"  or "taxation" means a charge imposed upon real property by
or on behalf of a county, city, town, village  or  school  district  for
municipal  or  school district purposes, INCLUDING A SERVICE CHARGE, but
does not include a special ad valorem levy or a special assessment.  The
term  "tax"  or "taxes" as used in articles five, nine[, ten] and eleven
of this chapter shall for levy and collection purposes  include  special
ad valorem levies.
  S  2. The real property tax law is amended by adding a new section 403
to read as follows:
  S 403. LIMITATION ON EXEMPTIONS GRANTED BY THIS TITLE.  1.    NOTWITH-
STANDING  THE  PROVISIONS OF SECTIONS FOUR HUNDRED FOUR AND FOUR HUNDRED
SIX OF THIS TITLE, ALL REAL PROPERTY FOR WHICH EXEMPTION IS  ALLOWED  BY
ANY  OF SUCH SECTIONS, EXCLUSIVE OF PROPERTY USED EXCLUSIVELY FOR CHARI-

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

                                                           LBD00968-01-9

A. 738                              2

TABLE, HOSPITAL, EDUCATIONAL OR CEMETERY PURPOSES, SHALL BE  SUBJECT  TO
SERVICE  CHARGES COMPUTED AS PROVIDED IN SECTION FOUR HUNDRED NINETY-SIX
OF THIS ARTICLE AND TO  SUCH  SPECIAL  AD  VALOREM  LEVIES  AND  SPECIAL
ASSESSMENTS  AS ARE SPECIFIED IN SUBDIVISION TWO OF SECTION FOUR HUNDRED
NINETY OF THIS ARTICLE, EXCEPT THAT:
  (A) REAL PROPERTY OWNED BY A MUNICIPAL CORPORATION WITHIN  ITS  CORPO-
RATE LIMITS WHICH IS OTHERWISE EXEMPT FROM TAXATION SHALL BE EXEMPT FROM
ANY  SUCH  SERVICE CHARGE, SPECIAL AD VALOREM LEVY OR SPECIAL ASSESSMENT
IMPOSED BY OR ON BEHALF OF SUCH MUNICIPAL CORPORATION; OR
  (B) REAL PROPERTY OWNED BY A  MUNICIPAL  CORPORATION  NOT  WITHIN  ITS
CORPORATE  LIMITS WHICH IS OTHERWISE EXEMPT FROM TAXATION, EITHER WHOLLY
OR PARTIALLY, SHALL BE EXEMPT FROM ANY SUCH SERVICE CHARGE,  SPECIAL  AD
VALOREM LEVY OR SPECIAL ASSESSMENT IMPOSED BY OR ON BEHALF OF ANY MUNIC-
IPAL CORPORATION IN WHICH SUCH PROPERTY IS LOCATED, PROVIDED THE GOVERN-
ING BOARD THEREOF SHALL SO AGREE IN WRITING.
  2.  TO THE EXTENT THAT THE PROVISIONS OF THIS SECTION ARE INCONSISTENT
WITH ANY OTHER PROVISION OF LAW, THE PROVISIONS OF THIS SECTION SHALL BE
CONTROLLING.
  S 3. Title 2 of article 4 of the real property tax law is  amended  by
adding a new section 420 to read as follows:
  S  420.  LIMITATION  ON EXEMPTIONS GRANTED BY THIS TITLE. 1.  NOTWITH-
STANDING THE PROVISIONS OF  SECTIONS  FOUR  HUNDRED  TWENTY-ONE-A,  FOUR
HUNDRED  TWENTY-FOUR  THROUGH  FOUR  HUNDRED  TWENTY-EIGHT, FOUR HUNDRED
THIRTY-TWO, FOUR HUNDRED THIRTY-FOUR, FOUR HUNDRED THIRTY-EIGHT  THROUGH
FOUR  HUNDRED  FORTY-FOUR,  FOUR  HUNDRED FIFTY, FOUR HUNDRED FIFTY-TWO,
FOUR HUNDRED SIXTY-FOUR, FOUR HUNDRED SEVENTY-TWO, FOUR  HUNDRED  SEVEN-
TY-FOUR,  FOUR  HUNDRED EIGHTY-SIX AND FOUR HUNDRED EIGHTY-EIGHT OF THIS
TITLE; REAL  PROPERTY  FOR  WHICH  EXEMPTION  IS  ALLOWED  BY  ANY  SUCH
SECTIONS,  EXCLUSIVE  OF  PROPERTY OWNED BY A CORPORATION OR ASSOCIATION
ORGANIZED OR CONDUCTED EXCLUSIVELY FOR RELIGIOUS, CHARITABLE,  HOSPITAL,
EDUCATIONAL  OR  CEMETERY  PURPOSES, SHALL BE SUBJECT TO SERVICE CHARGES
COMPUTED AS PROVIDED IN SECTION FOUR HUNDRED NINETY-SIX OF THIS  ARTICLE
AND  TO  SUCH AD VALOREM LEVIES AND SPECIAL ASSESSMENTS AS ARE SPECIFIED
IN SUBDIVISION TWO OF SECTION FOUR HUNDRED NINETY OF THIS CHAPTER.
  2. TO THE EXTENT THAT THE PROVISIONS OF THIS SECTION ARE  INCONSISTENT
WITH ANY OTHER PROVISION OF LAW, THE PROVISIONS OF THIS SECTION SHALL BE
CONTROLLING.
  S  4.  Section 490 of the real property tax law, as amended by chapter
87 of the laws of 2001, is amended to read as follows:
  S 490. Exemption from special ad valorem levies  and  special  assess-
ments.    [Real] 1.   EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION TWO OF
THIS SECTION, REAL property exempt from taxation pursuant to subdivision
two of section four hundred, subdivision one  of  section  four  hundred
four, subdivision one of section four hundred six, sections four hundred
eight,  four  hundred  ten, four hundred ten-a, four hundred ten-b, four
hundred eighteen, four hundred twenty-a,  four  hundred  twenty-b,  four
hundred  twenty-two, four hundred twenty-six, four hundred twenty-seven,
four hundred twenty-eight, four hundred thirty, four hundred thirty-two,
four hundred thirty-four, four hundred thirty-six, four hundred  thirty-
eight,  four  hundred fifty, four hundred fifty-two, four hundred fifty-
four, four hundred fifty-six,  four  hundred  sixty-four,  four  hundred
seventy-two,  four  hundred seventy-four and four hundred eighty-five of
this chapter shall also be exempt from special  ad  valorem  levies  and
special  assessments  against  real  property located outside cities and
villages for a special improvement or  service  or  a  special  district
improvement or service and special ad valorem levies and special assess-

A. 738                              3

ments  imposed  by a county improvement district or district corporation
except [(1)] (A) those levied to pay for the costs,  including  interest
and  incidental and preliminary costs, of the acquisition, installation,
construction,  reconstruction  and  enlargement  of  or additions to the
following  improvements,  including  original  equipment,   furnishings,
machinery  or  apparatus, and the replacements thereof: water supply and
distribution systems; sewer systems (either sanitary or surface drainage
or both, including purification, treatment or disposal plants or  build-
ings);  waterways  and  drainage improvements; street, highway, road and
parkway improvements (including  sidewalks,  curbs,  gutters,  drainage,
landscaping,  grading  or  improving  the  right  of  way) and [(2)] (B)
special assessments payable in installments on an indebtedness including
interest contracted prior to July first, nineteen  hundred  fifty-three,
pursuant to section two hundred forty-two of the town law or pursuant to
any other comparable provision of law.
  2.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
REAL  PROPERTY  SUBJECT  TO  SERVICE CHARGES AS PROVIDED IN SECTION FOUR
HUNDRED THREE OR FOUR HUNDRED TWENTY  OF  THIS  ARTICLE  SHALL  ALSO  BE
SUBJECT  TO SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS IMPOSED TO
DEFRAY  THE  COST,  INCLUDING  OPERATION  AND  MAINTENANCE,  OF  SPECIAL
DISTRICT IMPROVEMENTS OR SERVICES OR OF SPECIAL IMPROVEMENTS OR SERVICES
FOR  THE  FOLLOWING PURPOSES: POLICE PROTECTION; FIRE PROTECTION; STREET
AND HIGHWAY CONSTRUCTION,  MAINTENANCE  AND  LIGHTING;  SANITATION;  AND
WATER SUPPLY. ALL IMPROVEMENTS SPECIFIED IN PARAGRAPH (A) OF SUBDIVISION
ONE OF THIS SECTION SHALL BE DEEMED SUCH IMPROVEMENTS.
  S 5.  The real property tax law is amended by adding a new section 496
to read as follows:
  S  496. SERVICE CHARGES. 1. ANY SERVICE CHARGE TO WHICH ANY REAL PROP-
ERTY MAY BE SUBJECT AS PROVIDED IN SECTION FOUR HUNDRED THREE OR SECTION
FOUR HUNDRED TWENTY OF THIS ARTICLE SHALL BE IMPOSED AT A RATE  COMPUTED
AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION.
  2. FOR THE PURPOSES OF THIS SECTION, "CHARGEABLE SERVICES AND IMPROVE-
MENTS"  MEANS  SERVICES,  AND  IMPROVEMENTS  NECESSARY  OR CONVENIENT IN
PROVIDING SUCH SERVICES, FOR THE FOLLOWING PURPOSES: POLICE  PROTECTION;
FIRE PROTECTION; STREET AND HIGHWAY CONSTRUCTION, MAINTENANCE AND LIGHT-
ING;  SANITATION;  AND WATER SUPPLY. ALL IMPROVEMENTS SPECIFIED IN PARA-
GRAPH (A) OF SUBDIVISION ONE OF SECTION  FOUR  HUNDRED  NINETY  OF  THIS
TITLE SHALL BE DEEMED CHARGEABLE IMPROVEMENTS.
  3. THE AMOUNT OF THE SERVICE CHARGE SHALL BE DETERMINED AS FOLLOWS:
  (A) THE SERVICE CHARGE SHALL BE BASED ON THE ASSESSED VALUE OF THE TAX
EXEMPT  REAL  PROPERTY  AND THE AMOUNT WHICH THE COUNTY, CITY OR TOWN OR
VILLAGE EXPENDED, IN THE YEAR PRECEDING THE YEAR IN WHICH SUCH CHARGE IS
ASSESSED, FOR CHARGEABLE SERVICES AND IMPROVEMENTS. ANY AMOUNT  RECEIVED
FROM  FEDERAL  OR  STATE  AID SPECIFICALLY DESIGNATED FOR THE ABOVE-MEN-
TIONED PURPOSES SHALL NOT BE  CONSIDERED  IN  DETERMINING  THE  COST  OF
PROVIDING  SUCH  SERVICES  FOR  THE  REAL PROPERTY. THE EXPENDITURES FOR
SERVICES NOT PROVIDED FOR CERTAIN REAL PROPERTY SHALL NOT BE  CONSIDERED
IN  THE  CALCULATION  OF  THE SERVICE CHARGE FOR SUCH REAL PROPERTY, NOR
SHALL SUCH EXPENDITURES BE CONSIDERED WHEN A SERVICE IS CURRENTLY FUNDED
BY ANOTHER SPECIAL AD VALOREM LEVY OR SPECIAL ASSESSMENT.
  (B) THE SERVICE CHARGE RATE  FOR  THE  TAX-EXEMPT  PROPERTY  SHALL  BE
DETERMINED BY DIVIDING THE EXPENDITURES DETERMINED PURSUANT TO PARAGRAPH
(A)  OF  THIS  SUBDIVISION  BY  THE  ASSESSED VALUE OF ALL REAL PROPERTY
LOCATED WITHIN THE COUNTY, CITY, TOWN OR VILLAGE  IMPOSING  THE  SERVICE
CHARGE, INCLUDING NONTAXABLE PROPERTY.

A. 738                              4

  (C) THE RESULTING RATE SHALL THEN BE APPLIED TO THE ASSESSED VALUATION
OF  THE  TAX EXEMPT PROPERTY SUBJECT TO SERVICE CHARGES TO DETERMINE THE
AMOUNT OF SUCH CHARGES.
  (D)  UNDER  NO  CIRCUMSTANCES  SHALL THE AMOUNT OF SUCH SERVICE CHARGE
EXCEED TEN PERCENT OF THE PROPERTY TAX LIABILITY IF  THE  PROPERTY  WERE
SUBJECT TO TAXATION.
  4.  THE  PROVISIONS OF THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION
OF ANY SERVICE CHARGE, SPECIAL AD VALOREM LEVY OR SPECIAL ASSESSMENT  BY
ANY  MUNICIPAL CORPORATION ON REAL PROPERTY OTHERWISE EXEMPT BY LAW FROM
TAXATION UNLESS THE GOVERNING BOARD OF SUCH MUNICIPAL CORPORATION  SHALL
PREVIOUSLY, AFTER PUBLIC HEARING, HAVE ADOPTED A LOCAL LAW, ORDINANCE OR
RESOLUTION  ELECTING  TO MAKE THE PROVISIONS OF THIS SECTION APPLICABLE.
FOR THE PURPOSES OF THIS SECTION, GOVERNING BOARD, WITH RESPECT  TO  THE
CITY  OF  NEW  YORK, SHALL MEAN THE BOARD OF ESTIMATE OF THE CITY OF NEW
YORK.
  S 6. This act shall take effect on the first of April of the  calendar
year  next  succeeding the date on which it shall have become a law, and
shall apply to all assessments made with reference to a  taxable  status
date which falls on or after such effective date.