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Department of Taxation and Finance

Assessor's Manual, Volume 4, Exemption Administration

Exemption Administration Manual - Part 1
Municipal Governments

Section 4.03 - RPTL Section 406(2)

Municipal Corporations (Property outside
corporate limits - parks, airfields, highways,
flood control and soil conservation, or fire protection)

 Exemption code(s)
County-owned property 1323_
City-owned property 1343_
Town-owned property 1357_
Village-owned property 1373_


Year originally enacted:
 Before 1896*

Related statutes: County L §223

Summary: Real property that (1) is owned by a county, city, town, or village, (2) is located outside the municipal corporation's boundaries, and (3) is used for public park, public aviation field, highway, flood control and soil conservation as defined in County L §223, or fire protection purposes is wholly exempt from taxation, but liable for special ad valorem levies and special assessments, if the governing board of the taxing jurisdiction in which the property is located agrees to the exemption in writing.

  1. Eligibility requirements:
    1. Ownership requirements: Property must be owned by a county, city, town, or village.
    2. Property location requirements: Property must be located outside the boundaries of the owning municipal corporation.
    3. Property use requirements: Property must be used for (1) public park, (2) public aviation field, (3) highway, (4) flood control and soil conservation, or (5) fire protection purposes. Flood control and soil conservation projects include: construction of dikes, drains, check-dams, pipes, and new or altered channels; reforestation or the planting of shrubs and plants; and any other improvements necessary for soil erosion control or watershed protection. If the property is used for fire protection purposes, some fire protection must be made available by the owner to the municipal corporation in which the property is located.
    4. Certification by state or local government: None required.
    5. Required construction start date or other time requirement:  None.
  2. Local option: Yes - Each county, city, town, village, and school district in which the property is located may choose whether or not to allow the exemption on a project-by-project basis (for example, it may allow the exemption for one airfield but not for another). The option to exempt must be exercised through a written agreement by the governing board of the taxing jurisdiction.
  3. Limitation on exemption:
     Limitation on exemption
        General Municipal Taxes School District Taxes Special Ad Valorem Tax Special Assessments
    1. Amount No limit No limit No exemption allowed No exemption allowed
    2. Duration No limit No limit No exemption allowed No exemption allowed
    3. Taxing Jurisdiction
    a. County or County Special Districts Ex* NA Tax Tax
    b. City Ex* NA NA Tax
    c. Town or Town Special District Ex* NA Tax Tax
    d. Village Ex* NA NA Tax
    e. School District NA Ex* NA NA
    Ex-Exempt      Tax-Taxable      NA-Not Applicable

    * If the municipal governing board agrees in writing to exempt.

  4. Payments in lieu of taxes: None.
  5. Calculation of exemption:
    1. General municipal and school district taxes: 100% of assessed value.
    2. Special Ad Valorem Levies and special assessments: No exemption allowed. 
  6. Coding of exemption on assessment roll:
     Coding of exemption on assessment roll
    Code Description of Alternative Codes Possible
    1323_ County-owned property
    1343_ City-owned property
    1357_ Town-owned property
    1373_ Village-owned property

    Assessment roll section(s): Exempt (ARLM § 8)

    Note: These codes should not be used to identify aviation fields exempt under RPTL 4 §06(7), property owned by school districts (RPTL §408), or property owned by special districts (RPTL §410 or §410-a), or to identify property that is exempt under any of the statutes listed under Similar Exemptions below. For coding of such property, see the Exemption Profile for the statute that applies.

  7. Filing requirements (owner or occupant of property): None.
  8. Reporting requirements (assessor): None.
  9. Similar exemptions:
     Similar exemptions
    Subject Statute
    Aviation fields, public (municipally owned) RPTL §406(7)
    Drainage improvement districts ECL §15-1909(4)
    River improvement districts ECL §15-2309
    River regulating districts ECL §15-2115
    Volunteer fire companies or departments RPTL §464(2)
    Volunteer fire companies in villages RPTL §466

* 1926 - Provision added for public aviation fields.
1968 - Provision added for flood control and soil conservation.
1987 - Provision added for fire protection.

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