2023 New York Laws › GMU - General Municipal › Article 18-C - Municipal Redevelopment 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.