S T A T E   O F   N E W   Y O R K
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                                   10373
 
                           I N  A S S E M B L Y
 
                                May 4, 2020
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to assessment and
   taxation of lessees and users of certain tax exempt property
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 12 of section 102 of the real property tax  law
 is amended by adding a new paragraph (j) to read as follows:
   (J)  THE  POSSESSORY  INTEREST OF A PRIVATE LESSEE OR CONTRACTOR WHICH
 USES REAL PROPERTY OWNED BY THE UNITED STATES OR THE STATE OF NEW  YORK,
 EXCEPT  REAL  PROPERTY  OWNED  BY PUBLIC AUTHORITIES, WHERE THE PROPERTY
 WOULD BE SUBJECT TO REAL PROPERTY TAXATION IF OWNED BY  SUCH  LESSEE  OR
 CONTRACTOR,  EXCEPT  WHERE  THE  USE  IS BY WAY OF A CONCESSION WHICH IS
 AVAILABLE FOR THE USE OF THE GENERAL PUBLIC AND IS LOCATED IN  OR  ADJA-
 CENT  TO A PUBLIC AIRPORT, PARK, MARKET, FAIRGROUND, ROAD, PIER, MARINA,
 RAILROAD, BUSLINE, SUBWAY OR SIMILAR PROPERTY WHICH IS AVAILABLE FOR THE
 USE OF THE GENERAL PUBLIC.
   § 2. The section heading and subdivision 1 of section 402 of the  real
 property tax law are amended to read as follows:
   United  States  or  state  property  held  under LEASE OR contract [of
 sale].  1.  Whenever the legal title of real property is in  the  United
 States,  or  in  the  state  of  New  York,  but  the use, occupation or
 possession thereof is in a person, partnership,  association  or  corpo-
 ration, OR HIS OR ITS SUCCESSOR IN INTEREST, under a LEASE, contract [of
 sale],  OPTION  or other agreement [whereby a right to acquire the prem-
 ises through an option, a first privilege or a first refusal is granted,
 or whereby upon one or more payments the legal title thereto is to be or
 may be acquired by  such  person,  partnership,  association  or  corpo-
 ration],  SUCH  THAT  THE INTEREST IS A POSSESSORY INTEREST DESCRIBED IN
 PARAGRAPH (J) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO  OF  THIS
 CHAPTER, his or its interest in such real property shall be assessed and
 taxed  [as]  FOR  THE  SAME  AMOUNT AND TO THE SAME EXTENT AS THOUGH THE
 LESSEE, CONTRACTOR OR USER WERE THE OWNER  OF  SUCH  real  property  and
 shall  be  entered  in the assessment roll in the same manner as if such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD04318-01-9

 A. 10373                            2
 
 person, partnership, association or corporation held the legal title  to
 such property, except for the addition to the description OF THE PROPER-
 TY  OF  THE  NAME  OF THE OWNER AND of the words "INTEREST UNDER LEASE",
 "interest under contract", "interest under option", or other appropriate
 words  descriptive  of  the interest in the property so assessed.  [Such
 assessment shall be at the full value of such interest.]
   § 3. Subdivision 2 of section 402 of the  real  property  tax  law  is
 amended to read as follows:
   2.  [The  assessors  shall  add  to  the  assessment roll opposite the
 description of any such interest a notation stating that the real  prop-
 erty itself so owned by the United States, or by the state, is not to be
 taxed.    Every  notice of sale or other process and every conveyance or
 other instrument affecting the title to any  such  property,  consequent
 upon  the  non-payment  of  any such tax, shall contain a statement that
 such legal title is not sold or to be sold or affected] TAXES  SHALL  BE
 ASSESSED  TO THE LESSEES, CONTRACTORS OR USERS OF SUCH REAL PROPERTY AND
 COLLECTED IN THE SAME MANNER AS TAXES ASSESSED TO OWNERS OF REAL PROPER-
 TY, EXCEPT THAT SUCH TAXES SHALL NOT BECOME  A  LIEN  AGAINST  THE  REAL
 PROPERTY  OF  THE  UNITED  STATES OR OF THE STATE OF NEW YORK. WHEN DUE,
 SUCH TAXES SHALL CONSTITUTE A  DEBT  DUE  AND  OWING  FROM  THE  LESSEE,
 CONTRACTOR  OR USER TO THE MUNICIPAL CORPORATION OR SPECIAL DISTRICT FOR
 WHICH THE TAXES WERE LEVIED  AND  SHALL  BE  RECOVERABLE  BY  ACTION  IN
 SUPREME COURT.
   §  4.  Section 402 of the real property tax law is amended by adding a
 new subdivision 4 to read as follows:
   4. POSSESSORY INTERESTS, AS DESCRIBED IN PARAGRAPH (J) OF  SUBDIVISION
 TWELVE OF SECTION ONE HUNDRED TWO OF THIS CHAPTER, SHALL ONLY BE TAXABLE
 AS  PROVIDED  IN  THIS  SECTION  IF  THE GOVERNING BODY OF THE MUNICIPAL
 CORPORATION IN WHICH THE POSSESSORY INTERESTS ARE LOCATED, AFTER  PUBLIC
 HEARING,  ADOPTS  A  LOCAL  LAW,  ORDINANCE  OR RESOLUTION SO PROVIDING,
 PROVIDED, HOWEVER, THE PROVISIONS OF THIS SECTION SHALL NOT BE  APPLICA-
 BLE  WHERE  A  POSSESSORY  INTEREST  IS MAKING PAYMENTS IN LIEU OF TAXES
 WHICH PAYMENT IS EQUAL TO THE TAXES THAT WOULD BE PAID HAD THE  PROPERTY
 BEEN  TAXABLE.  ANY  SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL APPLY
 ALIKE TO ALL POSSESSORY INTERESTS WHICH ARE LOCATED WITHIN THE MUNICIPAL
 CORPORATION. POSSESSORY INTERESTS IN EXISTENCE ON THE EFFECTIVE DATE  OF
 THE  LOCAL  LAW,  ORDINANCE OR RESOLUTION SHALL BE PARTIALLY EXEMPT FROM
 TAXATION FOR THE NEXT SUCCEEDING FOUR  YEARS  IN  ACCORDANCE  WITH  THIS
 SECTION;  PROVIDED,  HOWEVER, THAT (A) IF THE LEASE, CONTRACT, OPTION OR
 OTHER AGREEMENT IS RENEGOTIATED OR RENEWED  AND  SUCH  RENEGOTIATION  OR
 RENEWAL BECOMES EFFECTIVE DURING THOSE FOUR YEARS, THE PARTIAL EXEMPTION
 SHALL  NOT  BE  AVAILABLE  SUBSEQUENT  TO  THE EFFECTIVE DATE OF THE NEW
 AGREEMENT, AND (B) IF THE LEASE, CONTRACT,  OPTION  OR  OTHER  AGREEMENT
 CONTAINS  ANY  PROVISION  ASSIGNING LIABILITY BETWEEN THE PARTIES IN THE
 EVENT THAT REAL PROPERTY TAXES ARE IMPOSED, THE PARTIAL EXEMPTION  SHALL
 NOT  BE  AVAILABLE TO POSSESSORY INTERESTS CREATED THEREUNDER. EXCEPT IN
 THE INSTANCES SET FORTH IN  THIS  SUBDIVISION,  FOR  THE  FIRST  TAXABLE
 STATUS DATE OCCURRING SUBSEQUENT TO THE EFFECTIVE DATE OF THE LOCAL LAW,
 ORDINANCE  OR  RESOLUTION,  TAXABLE POSSESSORY INTERESTS SHALL BE EXEMPT
 FROM TAXATION BY ANY MUNICIPAL  CORPORATION  IN  WHICH  LOCATED  TO  THE
 EXTENT  OF  EIGHTY PERCENT OF THE ASSESSED VALUE; FOR THE SECOND TAXABLE
 STATUS DATE, TO THE EXTENT OF  SIXTY  PERCENT;  FOR  THE  THIRD  TAXABLE
 STATUS  DATE, TO THE EXTENT OF FORTY PERCENT; AND FOR THE FOURTH TAXABLE
 STATUS DATE, TO THE EXTENT OF TWENTY PERCENT. NOTWITHSTANDING ANY  OTHER
 PROVISION  OF LAW IN THIS CHAPTER, POSSESSORY INTERESTS ON PARCELS WHICH
 HAVE BEEN DESIGNATED AS MILITARY LAND SHALL BE FULLY EXEMPT FROM  SCHOOL

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 PROPERTY TAX IF THE SCHOOL DISTRICT WHEREUPON SUCH MILITARY LAND PARCELS
 ARE  SITUATED  RECEIVES  IMPACT  AID  FUNDS  FROM THE FEDERAL GOVERNMENT
 PURSUANT TO 30 CFR PART 222.
   §  5. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.