Assessor's Manual, Volume 4, Exemption Administration
Section 4.04 - ECL Section 21-0701(14.3)
Delaware River Basin Compact
Exemption code(s): 14540
Year originally enacted: 1961
Related statutes: None
Summary: Real property owned by the Delaware River Basin Commission is exempt from taxation but is liable for special ad valorem levies and special assessments. Payments in lieu of taxes must be made to all affected local taxing jurisdictions for a period of at least ten years. Such payments must equal the taxes levied on the property in the year immediately prior to acquisition by the commission. At the end of the ten-year payment period, and from time to time thereafter, the need for continuing the payments must be reviewed and may be terminated or adjusted to reflect the hardships incurred and benefits received by the tax districts affected.
- Eligibility requirements:
- Ownership requirements: Property must be owned by the Delaware River Basin Commission.
- Property location requirements: Property must be located within the Delaware River Basin, which includes most of the land area in the Counties of Delaware and Sullivan and parts of the Counties of Broome, Chenango, Greene, Orange, Schoharie, and Ulster. The commission may act outside the basin only when necessary to carry out its responsibilities within the basin and only with the approval of the state.
- Property use requirements: Property must be used in accordance with the purposes for which the commission was established, which include planning, construction, operation, and maintenance of dams, reservoirs, and other facilities for:
- Flood damage reduction
- Water quality improvement
- Municipal, industrial, and agricultural water supply
- Recreation and fish and wildlife improvement
- Hydroelectric power generation
- Soil conservation, reforestation, and watershed management
- Certification by state or local government: None required.
- Required construction start date or other time requirement: None.
- Local option: No.
- 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
- Payments in lieu of taxes: Yes. For a period of at least ten years the commission must make payments in lieu of taxes to all affected tax districts in an amount equal to the taxes levied on the property in the year immediately prior to acquisition by the commission. After the first ten-year payment period, and from time to time thereafter, the need for continuing the payments must be reviewed and may be terminated or adjusted to reflect the hardships incurred and benefits received by the tax districts affected.
Since they are not collected by the tax collector, payments in lieu of taxes should not be entered on the tax roll. Such payments are collected in the same manner as are other payments due the municipality under contract.
- Calculation on exemption:
- General municipal and school district taxes: 100% of assessed value.
- Special Ad Valorem Levies and special assessments: No exemption allowed.
- Coding of exemption on assessment roll:
Coding of exemption on assessment roll Code Description of Alternative Codes Possible 14540
Assessment roll section(s): Exempt (ARLM § 8).
Note: This exemption code should not be used 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.
- Filing requirements (owner or occupant of property): None.
- Reporting requirements (assessor):None.
- Similar exemptions:
Similar exemptions Subject Statute Great Lakes Basin Compact ECL §21-0901 (Art.IV) Susquehanna River Basin Compact ECL§21-1301(15.3)
Please send general questions or comments to ORPTS.