N.Y. Real Property Tax Law § 543: Assessment of conservation easements

§ 543. Assessment of conservation easements. 1. Upon acquisition of a

conservation easement subject to taxation pursuant to this title and for

common law easements acquired by the state in the Adirondack or Catskill

parks and subject to taxation, the commissioner of environmental

conservation shall determine an allocation factor applicable to each

parcel subject to such conservation easement. The allocation factor

shall be the portion of the value of each parcel which the easement

represents, expressed as a percentage. The commissioner shall forthwith

certify any such allocation factor to the commissioner and to the fee

owner. The commissioner shall supply to the commissioner copies of any

appraisals made in conjunction with the acquisition of the easement for

use by the board pursuant to section five hundred forty-two of this

title.

2. Such allocation factor shall remain in effect for a period of ten

years from the date of acquisition of such easement by the state or, for

previously acquired common law easements, from the date such allocation

factor was first determined. After such ten year period has elapsed,

such allocation factor shall be subject to review and revision by the

commissioner as appropriate, based on significant change in the relative

values of the fee and easement interests.

3. After such ten year period has elapsed and in the first year in

which the commissioner independently computes the portion of the value

of the parcel attributable to a conservation easement or common law

easement, if such portion is different from the allocation factor

previously determined by the commissioner of environmental conservation,

the commissioner shall recompute the allocation factor by averaging the

previous allocation factor and the portion computed by the commissioner.

In any subsequent year, the allocation factor based upon the portion

computed by the commissioner shall supersede any previous allocation

factor.

4. Whenever a conservation easement is acquired and for common law

easements acquired by the state on land within the Adirondack or Cats-

kill parks subject to taxation, the commissioner shall be a person

aggrieved by the assessment of the parcel or parcels burdened by such

easement for purposes of seeking administrative and/or judicial review

of such assessments. Notwithstanding the provisions of section seven

hundred four of this chapter, the commissioner may seek judicial review

within two years of the acquisition of a conservation easement or, for

such state owned common law easements, within two years of the date when

the easement became subject to taxation and need not seek administrative

review prior to seeking such judicial review. Whenever the commissioner

seeks administrative or judicial review of the assessment of such

burdened parcel or parcels, it shall send a copy of the complaint or

petition to the owner of a burdened parcel within ten days of the filing

of a complaint or the service of a petition.

5. Determination and payment of the state's share of municipal real

property taxes which become a lien after vesting but prior to the next

taxable status date shall be made as follows:

(a) The state is responsible for direct payment to the municipality of

its proportionate share, determined by multiplying the amount of the tax

bill by the allocation factor which shall be certified by the

commissioner to the assessor and chief fiscal officers of the

municipalities within which the property is situated and to the state

comptroller.

(b) Upon presentation of a certificate issued pursuant to this

section, a collecting officer is hereby authorized to accept from the

underlying fee owner the taxes due and owing from the fee owner after

deducting those taxes for which the state is liable because of its

acquisition of a conservation easement or common law easement subject to

taxation pursuant to this title. Any official having custody of a final

assessment roll or tax roll is hereby authorized to make such changes on

that roll as may be required by the commissioner to incorporate the tax-

able assessed value attributable to such easement using the allocation

factor as certified pursuant to this section.

(c) The county treasurer shall submit a copy of the certificate issued

pursuant to this section, together with a statement of taxes due, to the

state comptroller for payment pursuant to section five hundred

forty-four of this title.

6. Payment of taxes by the owner of a parcel burdened by a

conservation easement or common law easement made taxable pursuant to

this title based upon the assessment of the parcel without consideration

of that easement shall entitle that owner to a refund pursuant to

section five hundred fifty-six of this article, equal to any taxes paid

by the state upon such easement. Such owner shall present the

certificate issued pursuant to this section and proof of payment to the

tax levying body.

7. (a) Whenever the state acquires a conservation easement or a common

law easement made taxable pursuant to this title which burdens a parcel

containing an improvement, the commissioner shall specify whether the

easement applies to the land, the improvements or both.

(b) Where a conservation easement created pursuant to title three of

article forty-nine of the environmental conservation law or a common law

easement for conservation purposes has been or is hereinafter acquired

by the state:

(i) on a parcel of property which is otherwise fully exempt from

taxation, the assessor shall determine the taxable assessment of the

conservation easement by multiplying the allocation factor by the total

assessed value of the land, the improvement, or the entire parcel, as

appropriate;

(ii) on a parcel of property which is partially exempt from taxation,

the assessor shall determine the taxable assessment of the conservation

easement by multiplying the allocation factor by the total assessed

value of the land, the improvement, or the entire parcel, as

appropriate;

(iii) on a parcel which is partially exempt from taxation, the taxable

assessed value of the burdened parcel shall be calculated through pro

ration of the partial exemption in the same proportions as the

allocation factor. The owner of the burdened parcel shall be entitled to

the pro rated portion of the exemption which is applicable to the

remainder fee interest.

(c) No exemption shall be applied to the total assessed value of the

conservation easement.