Senator Murphy's Bill Dealing With Taxing Of State-Owned Land Hits Gov's Desk

Albany, NY - In 2017 State Senator Terrence Murphy called for an investigation into New York's disproportionately taxed state land policies.  The Hudson Valley Senator sent a letter to the Office of Real Property Tax Services urging them to take a hard look at the inconsistent, and potentially discriminatory, policies.  Now, a bill he authored which would require New York State to provide answers is sitting on Governor Cuomo's desk.

Senator Murphy authored S5481A, a bill directing the Department of Taxation and Finance to conduct a study and report on the impact of state-owned lands in Westchester, Putnam and Dutchess Counties, and the methods of compensating the counties for losses in real property taxes.
 
Senator Murphy said, "This is an important piece of legislation for Hudson Valley taxpayers and I urge Governor Cuomo to approve it.  For more than a year we have examined the state's piecemeal approach to the taxation of state-owned land.  Capturing current data and the real impact of this unequal treatment of taxation on state-owned land is critical for local taxpayers.  Only with accurate figures can we put forward meaningful solutions to properly rectify this policy."

The most egregious example of New York's policy on state owned land is none other than the Donald J. Trump State Park.  Putnam County and the town of Putnam Valley receive revenue from New York State for the Indian Hill section of the park but neither Westchester County or the Town of Yorktown collect money for the 154 acre French Hill section of the park.  According to a 2016 Journal News report, there is a total of 7,000 acres in Westchster County that New York State does not pay taxes on.
 
Under Murphy's legislation the study would determine the fiscal impact of expanding the statute that currently requires the state to pay real property taxes to certain local governments in order to pay taxes on state lands located throughout the Hudson Valley. Assemblyman Gary Pretlow sponsored a corresponding bill, A7402A, in the New York State Assembly.    
 
The study would focus on lands owned by the state including but not limited to, parklands, forestation lands, forest preserves, and correctional facilities. The Commissioner of Taxation and Finance will be charged with submitting a report of findings, conclusions and recommendations of such study to the Governor and the Senate by December 1, 2018.
 
The bill passed the Senate in 2017 but failed in the Assembly.  This year, the Senate and Assembly approved the measure in June and has been delivered to Governor Cuomo for his signature.