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Volume 2 - Opinions of Counsel SBEA No. 5

Opinions of Counsel index

State of New York exemption (leased property) - Highway Law, § 30(13-c); Real Property Tax Law, § 404:

Real property appropriated by the State of New York by advance acquisition for highway purposes and rented month-to-month to the private sector is exempt from taxation.

We have received an inquiry as to whether property appropriated by the State of New York by advance acquisition for highway purposes, which is rented month-to-month to the private sector, is taxable.

Under section 404 of the Real Property Tax Law, real property owned by the State, its departments and agencies, is exempt from taxation with certain exceptions not applicable here.

While subdivision 13-c of section 30 of the Highway Law authorizes the State to collect the fair and reasonable value for the holding, use or occupancy by a former owner, tenant or other party of land appropriated for highway purposes, it does not authorize the levy of taxes during the period of such occupancy.

May 4, 1972

Updated: