N.Y. General Municipal Law § 967: Division of taxes by governmental bodies

§ 967. Division of taxes by governmental bodies. (a) The governing

board of any city, town, village or county in which an empire zone is

located is hereby authorized and empowered to:

(i) adopt a local law providing that any taxes levied by or on behalf

of such city, town, village or county upon taxable real property in such

zone shall be divided based on the area's original taxable value and its

incremental value as determined in subdivisions (c) and (f) of this

section, provided however, that no city, town, village or county may

adopt a local law providing for such a division of taxes if:

(A) the original taxable value of the zone involved exceeds a figure

equal to twenty percent of the total assessed value of that

municipality, exclusive of any incremental values for such areas; or

(B) the land area of the zone involved exceeds a figure equal to

twenty percent of the total land area of the municipality.

(ii) adopt a local law establishing a special empire zone tax

increment fund and providing for the deposit of moneys into such fund

pursuant to subdivision (g) of this section.

(b) In no event shall the division of taxes pursuant to this section

be construed as relieving property owners within the designated area of

their obligation for paying the taxes, if any, levied upon the assessed

value of their taxable real property.

(c) As soon as possible after any local legislative body has adopted a

local law as provided for in subparagraph (i) of subdivision (a) of this

section, the assessor who prepares the assessment roll used for the levy

of such county, city, town and village taxes shall certify the "original

taxable value" of each lot and parcel of taxable real property in the

area involved. For the purposes of this section, "original taxable

value" shall be the assessed value as of the last taxable status date

before the date on which a local law authorizing the division of taxes

was adopted.

(d) Whenever any property in such an area is owned by the city, town,

village or county involved and is leased to any person or persons, such

property shall be assessed and taxed in the same manner as privately

owned property, and the lease or contract between the city, town,

village or county involved and such person or persons shall provide that

the lessee shall pay taxes upon the assessed value of the entire

property and not merely upon the assessed value of his, her or its

leasehold interest.

(e) In each year subsequent to the determination of the original

taxable value of each lot and parcel of taxable real property in such an

area in accordance with the provisions of subdivision (c) of this

section, the assessor shall compute and certify the net amount by which

the taxable value of all such lots and parcels has increased or

decreased in comparison with the original taxable value of all such lots

and parcels. The net amount of the increase or decrease is referred to

in this section as the "incremental value" or the "lost value" for that

year, as the case may be.

(f) In any year when there is an incremental value, the tax levying

body shall extend the taxes of each city, town, village or county, which

has adopted a local law pursuant to this section, against the

incremental value as well as the original taxable value, and the amount

of taxes received from such extension against the incremental value is

referred to in this section as the tax increment for that year.

(g) The city, town, village or county official responsible for

receiving real property tax payments shall segregate each year all tax

increments from the designated area and transmit such increments to the

city, town, village or county treasurer who shall deposit such monies in

a special empire zone tax increment fund from which the local

legislative body may authorize payments for infrastructure improvements

authorized in such municipality's empire zone development plan for the

area involved.

(h) In the event that any state or local law governing the

classification of real property and thereby determining the percentage

of market value to be assessed for real property taxation purposes is

amended hereafter, the increase or decrease in assessed valuation

resulting therefrom shall be applied proportionately in each year

thereafter to the original taxable value and incremental value of the

area involved.

(i) The local legislative body of the city, town, village or county or

its designated agency may invest any funds in the special empire zone

tax increment fund not required for immediate disbursement, in property

or securities in which public bodies may invest funds subject to their

control.

(j) In any year when there is a lost value, the provisions of this

section shall not apply.