NY Gen Mun L § 967 (2021)
2021 New York Laws GMU - General Municipal Article 18-B - New York State Empire Zones 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.