§ 545. State aid; state-owned lands. 1. Whenever the state or an
agency of the state acquires real property which becomes exempt as a
result of such acquisition and which constitutes two per cent or more of
the total taxable assessed valuation of the latest preceding assessment
roll or there is a reduction in assessments on taxable state lands, the
commissioner shall establish a "transition assessment" which will in
effect prevent any loss of taxable assessed valuation on the assessment
roll for the first year affected by such occurrence or occurrences. For
each succeeding year, the commissioner shall establish a transition
assessment which will in effect limit to two per cent of the total
taxable assessed valuation on the latest preceding assessment roll the
loss in taxable assessed valuation on such roll as a result of such
occurrence or occurrences, and (i) further acquisitions by the state or
an agency of the state, or (ii) further reductions in assessments on
taxable state lands, or (iii) both (i) and (ii).

2. In the first year of such occurrence or occurrences, the
commissioner shall establish a transition assessment.

3. In establishing transition assessments pursuant to this section,
the commissioner shall: a. In determining whether real property acquired
by the state or an agency of the state constitutes two per cent or more
of the total taxable assessed valuation of the latest preceding
assessment roll, the assessed valuation of the property acquired shall
be determined from the second assessment roll preceding the first
assessment roll affected by the acquisition;

b. In making computations and determinations pursuant to this section,
take into account increases or decreases in level of assessment on the
assessment rolls involved;

c. In establishing a transition assessment for a town assessment roll,
indicate the amount of the transition assessment which is applicable to
that portion of the town located outside of any village and also the
amount of the transition assessment upon which state aid shall be paid
for county purposes;

d. Round all transition assessments to the nearest ten dollars.

4. The transition assessments as established and certified by the
commissioner shall be entered by the assessor or other appropriate local
official on the assessment roll and shall be, and shall be treated for
all purposes as, taxable assessed valuation on such roll.

5. The commissioner shall certify to the state comptroller all
transition assessments which it establishes and the state comptroller
shall pay as state aid the amounts, equivalent to the taxes, levied on
such assessments, in the manner prescribed by section five hundred
forty-four of this chapter out of moneys appropriated by the legislature
for the payment of taxes on state-owned lands.

6. In making transition assessments pursuant to this section:

(a) for property acquired by a state public authority or by the state
for the purposes of a state public authority, such transition
assessments shall be reduced to take into account any payments in lieu
of taxes made pursuant to law by such state public authority to the tax
district, so that the total of state aid paid on each transition
assessment and the payment in lieu of taxes received by the tax district
would be in effect equal to the state aid payable on such transition
assessment computed without regard to this subdivision; and

(b) for state lands in which interests have been granted by the state
to others which interests and improvements made to lands in which those
interests have been granted are taxable pursuant to subdivision two of
section five hundred sixty-four of this article, such transition
assessments shall be reduced by the taxable assessed value of those
interests and improvements.

(c) The assessor in each assessing unit for which transition
assessments are made pursuant to this section shall annually report to
the commissioner the total taxable assessed value of interests and
improvements subject to taxation pursuant to subdivision two of section
five hundred sixty-four of this article. This report shall be filed not
later than ten days after the completion and filing of the final
assessment roll each year.

7. Definitions. As used in this section: a. "Agency of the state", in
the case of public authorities, includes state public authorities but
excludes all other public authorities.

b. "Assessment roll", in the case of a city or town, means the entire
city or town assessment roll; in the case of a village, means the entire
village assessment roll, except in the case of a village which has
enacted a local law as provided in subdivision three of section fourteen
hundred two of this chapter, may also mean that part of the assessment
roll of the town or county upon which village taxes were or are to be
levied; in the case of a county, means the entire city or town
assessment roll affected by the occurrence or occurrences described in
subdivision one of this section; in the case of a school district or
special district, means that portion of the city or town assessment roll
used for the levy of school or special district taxes which is affected
by the occurrence.

c. "First year" means a year following a year for which no transition
assessment was established.

d. "Lands" or "state lands" as used in this section, shall include
lands acquired by the state or an agency of the state for highway or
parkway purposes.

e. "Latest preceding assessment roll" means the last preceding
assessment roll finally completed, verified and filed prior to the final
completion of the assessment roll for which the transition assessment is
being established, but shall not mean or include a supplemental
assessment roll completed, verified and filed as provided in section
thirteen hundred thirty-five of this chapter.

f. "Reduction in assessments on state lands" means a loss in taxable
assessed valuation on an assessment roll as a result of the approval by
the commissioner of assessed valuations on state lands which in total
amount to less than the total taxable assessed valuations on such lands
in the preceding year, whether or not such lands were owned by the state
in the preceding year.

g. "State public authority" means a public benefit corporation as
defined in section sixty-six of the general construction law whose
membership is required by law to consist entirely of members who are
appointed by the governor or other state officer or who serve as members
as ex officio state officers.

h. "Tax district" means a county, city, town, village, school district
or special district.