N.Y. General Municipal Law § 970-p: Allocation of taxes

§ 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

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

principal and interest on indebtedness incurred by such municipality

pursuant to section nine hundred 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

allocated 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

municipalities and school districts 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

redeveloped 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 property 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

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 seventy-h or section nine

hundred seventy-n of this article and such allocation shall not apply to

special ad valorem levies and special assessments 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

officials 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

assessment 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.