Bill > A05680

This bill amends the New York Real Property Tax Law to establish a framework for taxing possessory interests of private lessees or contractors using real property owned by the United States or the state of New York. Specifically, the bill allows municipal corporations to impose taxes on private entities using government-owned property for business purposes, with some important exceptions. These exceptions include concessions available to the general public in locations like parks, airports, and other public spaces. The bill requires that any municipal corporation wanting to implement such taxation must first adopt a local law after a public hearing. For existing possessory interests, the bill provides a gradual phase-in of taxation, with an 80% exemption in the first year, reducing to 20% by the fourth year. The bill also includes provisions that these taxes will not become a lien on the government-owned property and will be considered a debt owed by the lessee or contractor. Additionally, the bill stipulates that these taxation provisions will not apply to businesses with fewer than 25 employees, and includes a special provision for military lands that are eligible for federal Impact Aid. The legislation is designed to create a more consistent approach to taxing private use of government-owned properties while providing some protections and gradual implementation for existing interests.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A5680