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Assessor's Manual, Volume 4, ExemptionAdministration

Exemption Administration Manual - Part 1
Municipal Governments

Section 4.03 - RPTL Section 406(3)

Municipal Corporations (Property outside
corporate limits - sewer or water facilities)

Exemption Code(s):    County-owned property 1324_
   City-owned property 1344_
   Town-owned property 1359_
   Village-owned property 1374_

Year Originally Enacted: Before 1956

Related Statutes: RPTL § §532, 533

SUMMARY: This exemption applies to two types of property owned by a county, city, town, or village outside its boundaries: (1) a sewage disposal plant or system owned by any municipality and (2) a water plant, pumping station, water treatment plant, watershed, or reservoir owned by (a) a municipality having a population of less than 100,000 or (b) a municipality having a population between 225,000 and 300,000. In both cases, the exemption is allowed only if agreed to in writing by the governing board of the taxing jurisdiction in which the property is located. The exemption may be either a total or a partial exemption from taxation, special ad valorem levies, and special assessments.

  1. ELIGIBILITY REQUIREMENTS:
    1. Ownership Requirements:

      Sewage disposal facilities: the owner must be a county, city, town, or village.

      Water facilities: the owner must be a county, city, town, or village with a population of either (1) less than 100,000 or (2) between 225,000 and 300,000.

    2. Property Location Requirements: Property must be located outside the boundaries of the owning municipal corporation.
       
    3. Property Use Requirements:

      Sewage disposal facilities: property must be used as a sewage disposal plant or system and may include necessary connections and appurtenances.

      Water facilities: property must be used as a water plant, pumping station, water treatment plant, watershed, or reservoir and may include necessary connections and appurtenances.

    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 sewer facility 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:
      General
    Municipal
    Taxes
    School
    District
    Taxes
    Special
    Ad Valorem
    Tax
    Special
    Assessments
    1. Amount Local
    Option
    may limit
    Local
    Option
    may limit
    Local
    Option
    may limit
    Local
    Option
    may limit
    2. Duration No
    limit
    No
    limit
    No
    limit
    No
    limit
    3. Taxing Jurisdiction
    Special Districts
    Ex* NA Ex* Ex*
    b. City Ex* NA NA Ex*
    c. Town or Town
    Special District
    Ex* NA Ex* Ex*
    d. Village Ex* NA NA Ex*
    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 required.

    However, the following conditions apply to any voluntary agreement to make payments in lieu of taxes entered into by the City of Rochester with Livingston County, the Towns of Conesus and Livonia, and the Livonia Central School District effective January 1, 1989 for exempt property that is owned by Rochester and is used as a water plant, pumping station, water treatment plant, watershed, or reservoir. If the property is later acquired by New York State, acting through the Department of Environmental Conservation, and consequently becomes taxable, the provisions of RPTL §532, which governs the taxation of most state-owned lands, do not apply to the lands acquired as long as the PILOT agreement is in effect; instead, the extent of taxation of the lands is governed by the agreement. When the agreement expires, the property becomes subject to the provisions of §532. The same conditions apply if the Department of Environmental Conservation acquires a conservation easement over any lands subject to such an agreement; in this case, the provisions of RPTL §533 do not go into effect until the agreement expires.

  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes: Percentage of assessed valueauthorized in written agreement by taxing jurisdiction.
       
    2. Special Ad Valorem Levies and Special Assessments:

      Special ad valorem levies: Percentage of assessed value authorized in written agreement by taxing jurisdiction.

      Special assessment: Amount specified in written agreement by taxing jurisdiction.

  6. CODING OF EXEMPTION ON ASSESSMENT ROLL:
    Code Description of Alternative Codes Possible
    1324_ County-owned property
    1344_ City-owned property
    1359_ Town-owned property
    1374_ Village-owned property

    Assessment Roll Section(s): Exempt (ARLM Section 8).

    NOTE: These codes should not be used to identify property owned by school districts (RPTL §408) or special districts (RPTL § §410, 410-a, or 410-b), 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:
    Subject Statute
    Emergency water supply pipelines and conduits Gen Muny L §120-u(10)
    Special districts (property outside district
    boundaries - sewage disposal or water facilities)
    RPTL §410-a
    Special water districts (Oswego County) RPTL §410-b

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