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Volume 1 - Opinions of Counsel SBEA No. 81

Opinions of Counsel index

Exemption (water system) (municipal corporation) - Real Property Tax Law, § 406(3):

Real property owned by a municipal corporation having a population of less than one hundred thousand and used as a water plant, pumping station, water treatment plant or reservoir can be exempted from county taxation with the written agreement of the county.

Our opinion has been requested as to whether the assessed value of real property owned by a city and used for water system purposes can be removed from the calculation of the county tax rate.

This type of exemption is authorized by subdivision 3 of section 406 of the Real Property Tax Law. Specifically, real property owned by a municipal corporation having a population of less than one hundred thousand and used as a water plant, pumping station, water treatment plant or reservoir, can be exempted from taxation consistent with section 490, provided the governing board of the municipality in which the property is located agrees to this exemption in writing. If such exemption exists, then it would be necessary to deduct the assessed value of the property from the calculation of the county tax rate.

March 7, 1972

Updated: