2023 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.