§ 52 — Tax exemptions of an authority

New York § 52

• Jurisdiction: New York
• Law PBG: Public Housing
• Art. 3: Municipal Housing Authorities

Text

§ 52. Tax exemptions of an authority. 1. An authority shall be exempt\nfrom the payment of (a) any taxes or fees to the state or any\nsubdivision thereof and (b) any fees to any officer or employee of the\nstate or of any subdivision thereof, except where it is provided by or\npursuant to law that such officer or employee is personally entitled to\nsuch fees as compensation for services rendered or performed by him in\nhis official capacity.\n 2. Bonds, mortgages, notes and other obligations of an authority are\ndeclared to be issued for a public purpose and to be public\ninstrumentalities and together with interest thereon, shall be exempt\nfrom tax.\n 2-a. The state of New York hereby consents to the inclusion, under the\nUnited States internal revenue code of nineteen hundred fifty-four or\nany subsequent internal revenue law of the United States of the interest\npayable on bonds, mortgages, notes or other obligations of an authority\nwhich are hereafter issued and secured (1) by a mortgage which is\ninsured under section two hundred twenty-one (d) (3) of the national\nhousing act (or any successor section under said act or any subsequent\nhousing act) by an authority as mortgagor in connection with the\nfinancing of a project assisted under section eight of the United States\nhousing act of nineteen hundred thirty-seven, or (2) by a pledge of\nhousing assistance payments made or to be made under a contract or\ncontracts between an authority and the United States or any agency or\ninstrumentality thereof, in the gross income of the person who receives\nor is entitled to receive such interest to the same extent and in the\nsame manner that the interest on bills, notes, bonds or other\nobligations of the United States issued subsequent to the effective date\nof section four of the public debt act of nineteen hundred forty-one is\nincludible in the gross income of the holder or holders thereof under\nsaid internal revenue code or any subsequent internal revenue law of the\nUnited States and, notwithstanding any provisions to the contrary\ncontained in this chapter or in any general, special or local law, an\nauthority is authorized and empowered to issue such bonds, mortgages,\nnotes or other obligations and shall include therein such reference to\nor summary of this subdivision as it shall deem proper. The consent\nhereby given by the state of New York shall not be construed to consent\nto the application of any other provision of any other law, federal or\nstate, to an authority or to the elimination or modification in any way\nof any other exemption, privilege, or immunity thereof.\n 3. Except as to state projects, the property of an authority shall be\nexempt from all local and municipal taxes. A federal or municipal\nproject consisting of land and one or more multiple dwellings leased by\nan authority for a term of not less than ten years shall be exempt from\nsuch taxes during the period of such lease. A municipality may (a) fix a\nsum which shall be paid to it annually by the authority in respect of\neach project; or (b) agree that the authority shall not pay or be liable\nto pay any sum whatsoever in respect of a project or projects for any\nyear or years; or (c) agree with an authority or government upon the sum\nto be paid by the authority for any year or years in respect of a\nproject or projects, or accept or agree to accept a fixed sum or other\nconsideration in lieu of such payment; provided, however, that the sum\nfixed, or agreed to be paid by the authority, for any year shall in no\ncase exceed the sum last levied as an annual tax upon the property\nincluded in such project prior to the time of its acquisition by the\nauthority; and provided, further, that the sum fixed, or agreed to be\npaid by the authority, for any year with respect to a federal project\nshall in no case exceed the sum last levied as an annual tax upon the\nproperty included in such project prior to the time of its acquisition\nby the authority or such greater amount as the federal government may\npermit.\n 3-a. With respect to a federal project located within a school\ndistrict, an authority may make payments to such district, and the\nauthority and the district may enter into agreements with respect to\nsuch payments. Such payments shall not exceed the amounts permitted for\nsuch purposes by the federal government. The power granted by this\nsubdivision shall be in addition to any other power granted in this\nsection or any other provision of law.\n 4. (a) So much of the value of the property included in a state\nproject as represents an increase over the assessed valuation of the\nreal property, both land and improvements, on the date of the contract\nfor a state loan, or, in the absence of a contract for a state loan,\nthen on the date of the contract for a state subsidy, shall be exempt\nfrom any and all state, county, city, village, town, school and special\ndistrict taxes, except that the assessed valuation may be increased or\ndecreased to reflect a change in the level of assessment as certified\npursuant to title two of article twelve of the real property tax law. In\nno event may any assessing unit assess the property included in a\nproject at an amount in excess of the actual cost of the project.\n (b) In any assessing unit in which there has been a change in level of\nassessment as provided in title two of article twelve of the real\nproperty tax law, the commissioner of taxation and finance shall certify\nthe change in level of assessment factor in the manner provided in title\ntwo of article twelve of the real property tax law. The term "assessing\nunit" as used in this subdivision means a city, town, village or county\nhaving a county department of assessment with the power to assess real\nproperty.\n 5. The tax exemptions specified in subdivisions three and four of this\nsection shall not operate for a period of more than fifty years,\ncommencing in each instance from the date on which the benefits of such\nexemption first become available and effective, except that in the case\nof a federal project the tax exemption may operate for a period not to\nexceed sixty years, and except that in the case of a project, or part\nthereof, leased from a housing company or in the case of a federal or\nmunicipal project consisting of land and one or more multiple dwellings\nleased by an authority for not less than ten years the tax exemption may\noperate for a period not exceeding the term of such lease.\n 6. Upon the completion of the sixty-year period provided in\nsubdivision five of this section applicable to federal projects, each\nauthority that was eligible for the tax exemption specified in\nsubdivisions three and four of this section shall be exempt from all\nlocal and municipal taxes imposed by state and local governments for\nsixty years after the expiration of the initial exemption period. Upon\nthe completion of the fifty-year period provided in subdivision five of\nthis section applicable to state and municipal projects, each authority\nthat received the tax exemption specified in subdivision three or four\nof this section may, on the expiration of the tax exemption period, be\ngranted an additional tax exemption period of up to fifty years. A\nmunicipality may (a) fix a sum which shall be paid to it annually by the\nauthority in respect of each project; or (b) agree that the authority\nshall not pay or be liable to pay any sum whatsoever in respect of a\nproject or projects for any year or years; or (c) agree with an\nauthority or government upon the sum to be paid by the authority for any\nyear or years in respect of a project or projects, or accept or agree to\naccept a fixed sum or other consideration in lieu of such payment;\nprovided, however, that the sum fixed, or agreed to be paid by the\nauthority, for any year shall in no case exceed the sum last levied as\nan annual tax upon the property included in such project prior to the\ntime of its acquisition by the authority or, in the case of a federal\nproject, such greater amount as the federal government may permit.\n With respect to a federal project located within a school district, an\nauthority may make payments to such district, and the authority and the\ndistrict may enter into agreements with respect to such payments. Such\npayments shall not exceed the amounts permitted for such purposes by the\nfederal government. The power granted by this subdivision shall be in\naddition to any other power granted in this section or any other\nprovision of law.\n