NY State Assembly Bill 2009-A9142

Assembly Bill A9142

2009-2010 Legislative Session

Authorizes tax increment bonds payable from real property taxes levied by a school district within a blighted project area

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to local governments
Sep 22, 2009	referred to local governments

2009-A9142 (ACTIVE) - Details

See Senate Version of this Bill:: S6337
Current Committee:: Assembly Local Governments
Law Section:: General Municipal Law
Laws Affected:: Amd §§970-b, 970-c, 970-f, 970-h, 970-m, 970-n, 970-o & 970-p, Gen Muni L
Versions Introduced in 2011-2012 Legislative Session:: A4778, A5296

2009-A9142 (ACTIVE) - Summary

Authorizes tax increment bonds payable from real property taxes levied by a school district within a blighted project area.

2009-A9142 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A9142

TITLE OF BILL:  An act to amend the general municipal law, in relation
to the municipal redevelopment law authorizing tax increment bonds paya-
ble from and secured by real property taxes levied by a school district
within a project area

PURPOSE OR GENERAL IDEA OF BILL:  The purpose of the bill is to include
a school district's real estate taxes in the allocation of taxes avail-
able to pay bonds authorized and issued under the Municipal Redevelop-
ment Law (MRL).

SUMMARY OF SPECIFIC PROVISIONS:

§ 1- Includes findings and determinations that sound development and
redevelopment of blighted areas increases public school enrollment by
providing affordable housing and employment opportunities and the need
for expanded public education facilities and services.

§ 2- Amends subdivisions (b) and (f) of § 970-c of the General Municipal
Law to expand the definition of a "Legislative body" and a "Planning
Agency" to include the board of education of a school district which
consents to participate in TIF and adds a new subdivision (i)to define
the term "school district."

§ 3- Amends subdivision (I) and (n) of § 970-f of the General Municipal

Law in regard to the amount of bonds which may be issued and the plan
for the relocation of families and person who may be temporarily or
permanently displaced from housing facilities in a project area and adds
a new subdivision (o) to provide that each redevelopment plan may
provide for the consent to and approval of the project area and the
redevelopment plan by the board of education of the school district.

§ 4- Amends subdivision (b) and (c) of § 970-h of the General Municipal
Law to provide that public notice of the establishment of a project area
must include a disclosure of whether a one or more school districts have
consented to participate in TIF.

§ 5- Amends § 970-m of the General Municipal Law in regard to the amend-
ment of a redevelopment plan.

§ 6- Amends paragraphs (iii), (iv) and (v) of subdivision (a) of § 970-n
of the General Municipal Law in regard to joint undertakings.

§ 7- Amends paragraphs (ii) and (iii) and subparagraph 1 of paragraph
(v) of subdivision (b) of § 970-n of the General Municipal Law to
include school districts as entities that may be a member of a municipal
redevelopment authority and to stipulate that such school districts
would, by resolution of the board of education, have a say in the
selection of a chairman to such authority.

§ 8- Amends subdivision (a), (b), and (g) and (i) of § 970-o of the
General Municipal to provide that TIP bonds are not the debt of a muni-
cipality or the State of New York and that no entity pledges its faith
and credit to the payment of such debt. This section also clarifies that
a school district is not issuing debt by consenting to an allocation of
taxes and that a school district's participation in TIP is not dependent
on the authorizing of § 6 of Article XVI of the New York State Constitu-
tion.

§ 9- Amends paragraph (i) of subdivision (d) of § 970-o of the General
Municipal Law.

§ 10- Amends § 970-p of the General Municipal Law to provide that refer-
ence to both a municipality and a school district are applicable in
approving an allocation of real property taxes and issuance of TIF
bonds.

§ 11- Effective date.

JUSTIFICATION:  New York's TIF statute, the MRL, has been in effect
since 1973. It was considered such a significant financing mechanism for
economic development when enacted that the state constitution was
amended to allow municipalities to issue TIF bonds payable from allo-
cated real property taxes as an express exception to the constitutional
rule that all real property taxes be available under the full faith and
credit pledge for general obligations authorized by municipalities.
However, the MRL has been used very little even though TIF has become a
popular and successful economic development/infrastructure financing
regime in many states. The principal deficiencies with the MRL which
these amendments address are as follows: (i) unavailability of real
property taxes from the school district levy (usually, the largest
single line on the tax bill) which has prevented issuance of larger TIF
bonds in significant redevelopments; (ii) narrow purposes for which TIF
bonds may be issued, (iii) unavailability of alternative revenue sources
to pay debt services on TIE' bonds, and (iv) uncertainty of future years
assessments while TIF bonds are outstanding to raise adequate amounts of
incremental tax for debt service on TIF bonds. These amendments address
foregoing issues. School districts are not required to participate in
the tax increment financing process. However, they may elect to do so by
resolution of their boards of education.

To participate, a school district must receive all notices and approve
all proceedings (including establishment of the redevelopment plan,
setting the boundaries of the project area, and electing members to an
authority, if used, and allocating taxes and certifying to the
assessor's estimate of future year allocations).

PRIOR LEGISLATIVE HISTORY:  2005-2006: A.10365/S.8192.

FISCAL IMPLICATIONS:  These amendments would stimulate economic develop-
ment infrastructure financing, enhance tax bases, and lead to increased
governmental revenues.

EFFECTIVE DATE:  This act shall take effect immediately.

2009-A9142 (ACTIVE) - Bill Text download pdf

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

                                  9142

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                           September 22, 2009
                               ___________

Introduced  by  M. of A. HOYT -- read once and referred to the Committee
  on Local Governments

AN ACT to amend the general municipal law, in relation to the  municipal
  redevelopment  law  authorizing  tax  increment bonds payable from and
  secured by real property taxes levied by a school  district  within  a
  project area

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

  Section 1. The first undesignated paragraph of section  970-b  of  the
general  municipal  law, as added by chapter 916 of the laws of 1984 and
such section as renumbered by chapter  686  of  the  laws  of  1986,  is
amended  and  a  new  fourth  undesignated paragraph is added to read as
follows:
  It is hereby found and declared that there exists in many  communities
blighted  areas which threaten the economic and social well-being of the
people of the state. Blighted areas are characterized by one or more  of
the  conditions  set  forth  in  subdivision (a) of section nine hundred
[sixty-c] SEVENTY-C of this article.
  IT IS FURTHER FOUND AND DECLARED THAT SOUND DEVELOPMENT AND REDEVELOP-
MENT OF BLIGHTED AREAS INCREASES PUBLIC SCHOOL ENROLLMENT  BY  PROVIDING
AFFORDABLE  HOUSING  AND  EMPLOYMENT  OPPORTUNITIES  AND  THE  NEED  FOR
EXPANDED PUBLIC EDUCATION FACILITIES AND SERVICES.
  S 2. Subdivisions (b) and (f) of section 970-c of the general  munici-
pal law, as added by chapter 916 of the laws of 1984 and such section as
renumbered  by  chapter  686  of the laws of 1986, are amended and a new
subdivision (i) is added to read as follows:
  (b) "Legislative body" means (I) the governing body of a  municipality
empowered  to  adopt  and  amend  local  laws and ordinances[; provided,
however, that in the case of the city of New York, the legislative  body
shall,  for  the purposes of this article be the board of estimate], AND
(II) THE BOARD OF EDUCATION OF A SCHOOL DISTRICT WHICH  CONSENTS  TO  AN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14665-01-9

A. 9142                             2

ALLOCATION OF TAXES PRESCRIBED IN SECTION NINE HUNDRED SEVENTY-P OF THIS
ARTICLE.
  (f)  "Planning agency" means the planning board or commission of [the]
A municipality OR THE PLANNING BOARD OR COMMITTEE OF A SCHOOL DISTRICT.
  (I) "SCHOOL  DISTRICT"  MEANS  ANY  SCHOOL  DISTRICT,  A  CITY  SCHOOL
DISTRICT  OR  A SCHOOL DISTRICT IN A CITY, AS THOSE TERMS ARE DEFINED IN
SECTION 2.00 OF THE LOCAL FINANCE LAW, WHICH APPROVES THE  REDEVELOPMENT
PLAN  AND  CONSENTS TO AN ALLOCATION OF TAXES PRESCRIBED IN SECTION NINE
HUNDRED SEVENTY-P OF THIS ARTICLE.
  S 3. Subdivisions (l) and (n) of section 970-f of the general  munici-
pal law, as added by chapter 916 of the laws of 1984 and such section as
renumbered  by  chapter  686  of the laws of 1986, are amended and a new
subdivision (o) is added to read as follows:
  (l) shall provide a limitation on the amount of  bonds  which  may  be
issued  pursuant  to  section  nine  hundred [sixty-o] SEVENTY-O of this
article for the purpose of carrying out or administering the  redevelop-
ment plan;
  (n) shall provide a plan for the relocation of families and persons to
be  temporarily  or permanently displaced from housing facilities in the
project area, which plan shall include the provision required by section
nine hundred [sixty-j] SEVENTY-J that no person or  family  of  low  and
moderate  income  shall  be displaced unless and until there is suitable
housing available and ready for occupancy by such  displaced  person  or
family  at rents comparable to those paid at the time of their displace-
ment[.];
  (O) MAY PROVIDE FOR THE CONSENT TO AND APPROVAL OF  THE  PROJECT  AREA
AND  THE  REDEVELOPMENT  PLAN  BY  THE  BOARD OF EDUCATION OF THE SCHOOL
DISTRICT.
  S 4. Subdivisions (b) and (c) of section 970-h of the general  munici-
pal law, as added by chapter 916 of the laws of 1984 and such section as
renumbered  by  chapter  686 of the laws of 1986, are amended to read as
follows:
  (b) Notice of the hearing shall be posted in at least  four  prominent
places within the project area for a period of three weeks prior to such
hearing  and  shall  be  published  not  less than once a week for three
successive weeks prior to the hearing in a newspaper of  general  circu-
lation in the municipality involved. The notice of hearing shall include
a  legal  description  of  the boundaries of the PROJECT area [or areas]
designated in the proposed redevelopment plan [and], a general statement
of the scope and objectives of the plan, AND A STATEMENT WHETHER ONE  OR
MORE   SCHOOL  DISTRICTS  HAVE  CONSENTED  TO  AN  ALLOCATION  OF  TAXES
PRESCRIBED IN SECTION NINE HUNDRED SEVENTY-P OF THIS ARTICLE. A copy  of
the  notices  shall  be mailed to the last known owner of each parcel of
land in the area designated in the redevelopment plan.   A copy  of  the
notice  shall  also  be  mailed  to  the legislative body of each of the
taxing jurisdictions which levies taxes upon any real  property  in  the
project area designated in the proposed redevelopment plan.
  (c)  Any and all persons who have any objections to the proposed rede-
velopment plan or who deny the existence of blight as defined by  subdi-
vision  (a) of section nine hundred [sixty-c] SEVENTY-C of this article,
in the proposed project area, or the legality or appropriateness of  any
of the prior proceedings, may appear before the legislative body at such
public  hearing  and  show  cause  why  the  proposed plan should not be
adopted. At any time not later than the hour set for hearing  objections
to  the proposed redevelopment plan, any person may file in writing with

A. 9142                             3

the  clerk  of  the  legislative  body  a  statement  of  such  person's
objections to the proposed plan.
  S  5.  Section 970-m of the general municipal law, as added by chapter
916 of the laws of 1984 and as renumbered by chapter 686 of the laws  of
1986, is amended to read as follows:
  S  970-m.  Amendment  of  redevelopment plan. If at any time after the
adoption of a redevelopment plan for a project area by  the  legislative
body,  it  becomes  necessary or desirable to amend or modify such plan,
the legislative body may by resolution amend such plan. Such  amendments
may  include  a change in the boundaries of the project area to add land
to or, prior to the issuance of indebtedness pursuant  to  section  nine
hundred  [sixty-o]  SEVENTY-O  as  provided  by such redevelopment plan,
exclude land from the project area. An amendment or modification of  the
plan  shall  be  approved  pursuant  to  subdivisions (a) through (g) of
section nine hundred [sixty-h] SEVENTY-H of this article. Upon  adoption
of  the  amended plan by the legislative body the legislative body shall
transmit the amended  plan  as  provided  by  subdivision  (h)  of  such
section.
  S  6.  Paragraphs  (iii),  (iv)  and (v) of subdivision (a) of section
970-n of the general municipal law, as added by chapter 916 of the  laws
of  1984  and  such  section as renumbered by chapter 686 of the laws of
1986, are amended to read as follows:
  (iii) If two or more municipalities jointly exercise the powers grant-
ed under this subdivision and a redevelopment plan as  adopted  provides
for  the  allocation  of  real property tax revenues pursuant to section
nine hundred [sixty-o] SEVENTY-O of this article the real property taxes
of each municipality shall be allocated pursuant to such section.
  (iv) If two or more municipalities jointly exercise the powers granted
under this subdivision and the redevelopment plan  as  adopted  provides
for  the  issuance  of  indebtedness  pursuant  to  section nine hundred
[sixty-o] SEVENTY-O of this article, such indebtedness shall  either  be
issued  jointly by the municipalities and the resolution authorizing the
issuance of such indebtedness must be approved by the  legislative  body
of  each municipality acting separately or shall be issued by resolution
of the [the] designated agent on behalf of the municipality  it  repres-
ents and, by resolution of its legislative body, each municipality shall
irrevocably  pledge  the  revenues  allocated  pursuant  to section nine
hundred [sixty-p] SEVENTY-P of this article to  the  repayment  of  such
indebtedness and any interest thereon.
  (v)  The joint exercise of powers authorized by this subdivision shall
be permitted only for the purpose of redevelopment of  an  area  located
wholly within each municipality AND WITHIN ONE OR MORE SCHOOL DISTRICTS.
  S  7. Paragraphs (ii) and (iii) and subparagraph 1 of paragraph (v) of
subdivision (b) of section 970-n of the general municipal law, as  added
by  chapter  916  of  the laws of 1984 and such section as renumbered by
chapter 686 of the laws of 1986, are amended to read as follows:
  (ii) A municipal redevelopment authority shall be a corporate  govern-
mental  agency  constituting  a  public  benefit  corporation. Except as
otherwise provided by special act of the legislature, an authority shall
consist of not less than five nor more  than  nine  members.  Membership
shall  be apportioned among the municipalities AND SCHOOL DISTRICTS, and
the manner of selection of a chairman determined by an  [intermunicipal]
agreement approved by local law by each such municipality, AND BY RESOL-
UTION  OF THE BOARD OF EDUCATION OF EACH SCHOOL DISTRICT.  Members shall
serve at the pleasure of the appointing authority, and each member shall
continue to hold office until his successor is appointed and has  quali-

A. 9142                             4

fied.  The [governing] LEGISLATIVE body shall file with the secretary of
state a certificate  of  appointment  or  reappointment  of  any  member
appointed  or  reappointed  by it. Members shall receive no compensation
for  their services but shall be entitled to reimbursement of the neces-
sary expenses, including traveling expenses, incurred in  the  discharge
of  their duties. No action shall be taken by an authority except pursu-
ant to the favorable vote of a majority of the members then  in  office.
Any  one or more of the members of an authority may be an official or an
employee of such municipality. In the  event  that  an  official  or  an
employee  of  such  municipality  shall  be appointed as a member of the
agency, acceptance or retention of such appointment shall not be  deemed
a  forfeiture  of  his  municipal  office or employment, or incompatible
therewith or affect his tenure or compensation in any way. The  term  of
office  of a member of an authority who is an official or an employee of
such municipality when appointed as a member thereof by special  act  of
the legislature creating the authority shall terminate at the expiration
of  the term of his municipal office. Upon THE creation of an authority,
from time to time the [governing] LEGISLATIVE body of a municipality  OR
A  SCHOOL  DISTRICT,  may,  by  resolution, appropriate sums of money to
defray the expenses of the authority.
  (iii) Unless otherwise provided by this subdivision or by the  special
act  of the legislature establishing a municipal redevelopment authority
or empowering an existing public corporation to carry out  the  purposes
and  provisions  of  this  article, such authority or public corporation
shall have the powers, duties and  responsibilities  granted  a  munici-
pality AND SCHOOL DISTRICT and its legislative body pursuant to sections
nine  hundred  [sixty-d] SEVENTY-D through nine hundred [sixty-m] SEVEN-
TY-M of this article, as well as the authority to receive the  taxes  of
each  municipality  AND  SCHOOL  DISTRICT allocated and paid pursuant to
section nine hundred [sixty-p] SEVENTY-P of this article. Such authority
or public corporation shall have the power to designate survey areas and
select project areas as provided  by  sections  nine  hundred  [sixty-d]
SEVENTY-D  and  nine  hundred  [sixty-e] SEVENTY-E of this article. Such
authority or public corporation shall obtain the report and  recommenda-
tion  of  the planning agency of each municipality OR SCHOOL DISTRICT on
the redevelopment plan and its conformity to the  master  plan  of  each
municipality  AND  SCHOOL  DISTRICT  before presenting the redevelopment
plan to the legislative body of each municipality  OR  SCHOOL  DISTRICT.
In  order  for  a  preliminary plan to be adopted or for a redevelopment
plan to be adopted or amended approval must be obtained by resolution of
the legislative body of each municipality  AND  SCHOOL  DISTRICT  acting
separately.
  (1)  An  authority  or  public  corporation  shall have the powers and
duties granted municipalities pursuant to section nine hundred [sixty-o]
SEVENTY-O of this article to issue tax increment bonds and tax increment
bond anticipation notes.  Such bonds and notes shall be bonds and  notes
of  the  authority  or  public corporation and neither the state nor any
municipality shall be liable on such bonds and notes and such bonds  and
notes shall not be a debt of the state or of any municipality.
  S 8. Subdivisions (a), (b), (g) and (i) of section 970-o of the gener-
al  municipal  law, as added by chapter 916 of the laws of 1984 and such
section as renumbered by chapter 686 of the laws of 1986, are amended to
read as follows:
  (a) For the purpose of carrying out or administering  a  redevelopment
plan  adopted  by the legislative body, a municipality is hereby author-
ized, without limiting its authority under other provisions of  law,  to

A. 9142                             5

issue  by  resolution of its legislative body tax increment bonds or tax
increment bond anticipation notes of the municipality which are  payable
from  and secured by real property taxes, in whole or in part, allocated
to and paid pursuant to the provisions of section nine hundred [sixty-p]
SEVENTY-P  of this article. The pledge of such real property taxes allo-
cated and paid shall constitute a first lien  on  the  revenues  derived
therefrom  and  tax  increment  bonds or tax increment bond anticipation
notes, the repayment of which is secured by such revenues shall  not  be
subordinate  to  any other indebtedness of the municipality with respect
to the pledge of such revenues. The municipality shall have the power to
issue renewal notes, to issue bonds to pay notes and whenever  it  deems
refunding  expedient,  to refund any bonds by the issuance of new bonds,
whether the bonds to be refunded have or have not matured, and to  issue
bonds  partly  to refund bonds then outstanding and partly for any other
purposes.
  (b) In contracting indebtedness pursuant to subdivision  (a)  of  this
section  NEITHER a municipality NOR A SCHOOL DISTRICT shall [not] pledge
its faith and credit or the faith and credit of the state to the payment
of THE  principal  thereof  and  the  interest  thereon.    INDEBTEDNESS
REFERRED  TO  IN  SECTION  SIX  OF ARTICLE XVI OF THE STATE CONSTITUTION
SHALL NOT APPLY TO A SCHOOL DISTRICT.
  (g) The amount of any indebtedness contracted under this section shall
be excluded in ascertaining the power of the municipality  OR  A  SCHOOL
DISTRICT  to  contract  indebtedness  within the provisions of the state
constitution or the local finance law relating thereto.
  (i) The municipality may [only] contract indebtedness pursuant to this
section for the following objects [and] OR purposes:
  (i) acquisition of land;
  (ii) demolition and removal of buildings, structures and  improvements
and site preparation;
  (iii)  installation,  construction or reconstruction of streets, walk-
ways, docks, drainage, parking  facilities,  flood  control  facilities,
water  and  sewer  systems  and  other public utilities, parks and play-
grounds;
  (iv) other public improvements or services integral to the  redevelop-
ment plan authorized by or for which a period of probable usefulness has
been  established  by  section  11.00  of  the  local finance law. [Such
objects] OBJECTS and purposes REFERRED TO IN THIS SUBDIVISION  shall  be
deemed  to  have  the period of probable usefulness as provided for such
objects and purposes by such section.
  S 9. Paragraph (i) of subdivision (d) of section 970-o of the  general
municipal  law,  as  added  by  chapter 916 of the laws of 1984 and such
section as renumbered by chapter 686 of the laws of 1986, is amended  to
read as follows:
  (i)  pledging all or a part of the taxes allocated pursuant to section
nine hundred [sixty-p] SEVENTY-P of this article or  the  proceeds  from
the  sale  of property acquired with the proceeds of such notes or bonds
to secure the payment of such notes or bonds or of  any  issue  thereof,
subject to such agreements with bondholders or noteholders as may exist;
  S  10. Section 970-p of the general municipal law, as added by chapter
916 of the laws of 1984 and as renumbered by chapter 686 of the laws  of
1986, is amended to read as follows:
  S 970-p. Allocation of taxes. (a) Any redevelopment plan may contain a
provision  that real property taxes levied upon taxable real property in
the project area each year by or for the benefit of the municipality  or
municipalities  AND  SCHOOL  DISTRICTS  after  the effective date of the

A. 9142                             6

resolution  approving  the  redevelopment  plan,  shall  be  divided  as
follows:
  (i)  that  portion  of  the  real  property taxes not in excess of the
amount which would be produced by applying the rate upon which  the  tax
is  levied  each year by or for each municipality AND SCHOOL DISTRICT to
the total sum of the assessed value of the taxable real property in  the
project  area  as shown upon the assessment roll used in connection with
the taxation of such property by such municipality AND SCHOOL  DISTRICT,
last  adopted  prior  to  the effective date of the resolution approving
such plan, shall be allocated to and when collected shall be  paid  into
the  funds of the respective municipalities AND SCHOOL DISTRICTS as real
property taxes collected  by  or  for  said  municipalities  AND  SCHOOL
DISTRICTS adopting the redevelopment plan;
  (ii)  that  portion  of  the  real  property taxes levied each year in
excess of the portion allocated and paid pursuant to  paragraph  (i)  of
this  subdivision shall be allocated to and when collected shall be paid
into the fund or funds established for such purposes to pay the  princi-
pal and interest on indebtedness incurred by such municipality OR SCHOOL
DISTRICT  pursuant  to  section nine hundred [sixty-o] SEVENTY-O of this
article or, if the redevelopment plan so provides, the amount  allocated
and  paid in excess of interest and principal and necessary reserves may
be expended for amounts of money to be paid in lieu of taxes. Unless and
until the total assessed valuation of the taxable property in a  project
area  exceeds  the  total assessed value of the taxable real property in
such project area as shown by the last assessment roll  referred  to  in
paragraph (i) of this subdivision, all of the real property taxes levied
and  collected upon the taxable real property in such project area shall
be paid into the funds  of  the  respective  municipalities  AND  SCHOOL
DISTRICTS.    When  such indebtedness, if any and interest thereon, have
been paid, all moneys thereafter received from real property taxes  upon
the  taxable  real  property in such project area shall be paid into the
funds of the respective municipalities  AND  SCHOOL  DISTRICTS  as  real
property taxes on all other real property are paid;
  (iii)  whenever  the  total  amount  of  real property taxes allocated
pursuant to paragraph (ii) of this subdivision exceeds the amounts allo-
cated and paid for interest and principal and  necessary  reserves,  and
for  amounts  to be paid in lieu of taxes, the amount of taxes in excess
of such amounts shall be paid into the funds of the  respective  munici-
palities as taxes on all other real property are paid;
  (iv) the allocation of taxes authorized by this section shall apply to
taxable  years  beginning  after  the  effective  date of the resolution
approving the redevelopment plan.
  (b) Whenever real property in any redevelopment project has been rede-
veloped and thereafter is leased by the municipality to  any  person  or
persons or whenever the agency leases real property in any redevelopment
project  to  any person or persons for redevelopment, the property shall
be assessed and taxed in the same manner as privately owned real proper-
ty and the lease or contract shall provide that  the  lessee  shall  pay
real  property taxes upon the assessed value of the entire real property
and not merely the assessed value of his or her leasehold interest.
  (c) In any municipality OR SCHOOL DISTRICT subject to  the  allocation
of  revenues pursuant to this section the assessed value of taxable real
property located in a project area shall  be  included  on  the  taxable
portion  of the assessment roll, provided, however, that notwithstanding
any provision of law to the contrary, the assessed value  determined  in
accordance  with paragraph (ii) of subdivision (a) of this section shall

A. 9142                             7

not be included in the taxable value of real property  when  determining
the tax rate for such municipality OR SCHOOL DISTRICT.
  (d)  The  rate  of  tax resulting from the levy of real property taxes
shall be applied to the assessed value of any real property  subject  to
the  allocation  provisions  of  this  section as determined pursuant to
subdivision (a) of this section, however, the amount of tax levied as  a
result  of  the  application of the tax rate to the increase in assessed
value determined in accordance with paragraph (ii) of subdivision (a) of
this section shall not be paid into the fund of the municipality OR  THE
SCHOOL  DISTRICT  as real property taxes but shall be allocated pursuant
to that paragraph.
  (e) The official or officials responsible for the preparation  of  the
assessment  roll  or  rolls specified in subdivision (a) of this section
shall  provide  to  the  municipality  or  municipalities   AND   SCHOOL
DISTRICTS, in addition to the assessment roll or rolls, such information
as  is deemed necessary by the legislative bodies of the municipality or
municipalities AND SCHOOL DISTRICTS to effectuate the  purpose  of  this
section.
  (f)  The  allocation of real property taxes authorized by this section
shall be permitted  only  with  respect  to  municipalities  AND  SCHOOL
DISTRICTS  which  have  adopted  a redevelopment plan providing for such
allocation pursuant to  section  nine  hundred  [sixty-h]  SEVENTY-H  or
section  nine hundred [sixty-n] SEVENTY-N of this article and such allo-
cation shall not apply to special ad valorem levies and special  assess-
ments  as  defined  by  subdivisions fourteen and fifteen of section one
hundred two of the real property tax law.
  (g) If, after adoption of a redevelopment plan, the official or  offi-
cials  responsible  for  the preparation of the assessment roll or rolls
specified in subdivision (a) of this section undertake to  revalue  real
property  for  real  property  tax  purposes by altering the standard of
assessment utilized to establish the value of real property for  assess-
ment  purposes, the assessment of real property within a project area as
provided by paragraph (i) of subdivision (a) of this  section  shall  be
adjusted  in  such manner as if such new standard of assessment had been
utilized in the preparation of the assessment roll last adopted prior to
adoption of the redevelopment plan.
  S 11. This act shall take effect immediately.

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