Relates to payments for certain school, fire, fire protection and ambulance districts for lands exempt from real property taxation; Peconic Bay community preservation fund

Summary of provisions

Section 1 subdivision 3 of section 64-e of the town law, as amended by chapter 373 of the laws of 2008 is amended by repealing existing provisions relating to payments to certain school, fire, fire protection, and ambulance districts.

Section 2 allows the town of Southampton to make annual payments from its Community Preservation Fund to certain high-tax school, fire, fire protection, and ambulance districts located either partially or wholly within the central pine barrens. Such payments may be made to mitigate the impact of loss tax revenue from lands made wholly exempt as a result of their acquisition by a government entity; lists the eligible districts as: Riverhead Central School District, Hampton Bays Union Free School District, Eastport-South Manor Central School District, Riverhead Fire District, Flanders Fire District, Flanders-Northampton Ambulance District and the North East Quogue Fire Protection District.

Section 3 states that for determining payments to each district, each eligible parcel shall be assessed in the same manner as state lands; they shall be assessed annually and the town shall apply each eligible district's tax rate to determine the payment for that district.

Section 4 states that not more than ten percent of the fund may be used for these purposes and shall be determined on an annual basis; using the last full twelve months of collected revenue to determine the limitation provided for in this section. The maximum percentage for such purposes may be reduced by proposition approved by the voters.

Section 5 requires the town board to adopt annual plan, after completion of public hearing, which specifies each eligible parcel and provides amount of payment for each eligible parcel.

Section 6 legalizes, validates, ratifies and confirms all Community Preservation Fund PILOT payments made by the Town of Southampton to the Riverhead Central School District, Hampton Bays Union Free School District, Eastport-South Manor Central School District, Riverhead

Fire District, Flanders Fire District, Flanders-Northampton Ambulance District and the North East Quogue Fire Protection District for the years 2008 and 2009, provided that the Town of Southampton repay $664,647 to its Community Preservation Fund from its general or capital fund. Such amount was determined as the aggregate overpayment made to the aforementioned school and special districts for the years 2008 and 2009 by the Office of the State Comptroller in an audit entitled "Town of Southampton, Peconic Bay Community Preservation Fund, Payment in Lieu of Taxes, Period Covered January 1, 2008-June 30, 2009" dated November 2010. This Section further provides that if such repayment is made from the Town of Southampton's capital fund, the period of probable usefulness for such indebtedness shall be 20 years. In the alternative, the town may provide for the dedication of additional lands to the Community Preservation Fund with a fair market value equal to $664,647 or more, said lands shall not have been acquired with monies from the Community Preservation Fund.

Section 7 provides for an immediate effective date, provided that the provisions of sections two, three, four and five of this act shall remain in full force and effect until December 31, 2030 when upon such date the provisions of such sections shall expire and be deemed repealed.

Justification

The New York State Comptroller performed an audit of the Community Preservation Fund PILOT (Payment In Lieu Of Taxes) payments made by the Town of Southampton in the years 2008 and 2009. The findings of this audit revealed that the Town of Southampton cumulatively paid $664,647 more in PILOT payments than the State law permits. The State Comptroller confirmed that such payments were excessive and that appropriate action needs to be taken to correct this matter.

This legislation establishes a plan that will maintain the integrity of the Peconic Bay Community Preservation Fund. It directs the Town to repay the amount of the aggregate overpayments made in the years 2008 and 2009 to the fund as determined by the Comptroller's audit ($664,647). The monies can come from the Town's general fund or its capital fund. The period of probable usefulness for such indebtedness from the capital fund shall be twenty years. Since no improper action was taken by the affected school, ambulance, fire and fire protection districts, their taxpayers would be held harmless by enactment of this measure. It is only right that the level of government that violated the law be held fiscally accountable.

This legislation is necessary to ensure the Town complies with the Comptroller's findings by returning the overpayments determined by the audit and to impose additional financial control over how monies under the PILOT provision of the Peconic Bay Community Preservation Fund are appropriated to the Riverhead School District, Hampton Bays Union Free School District, Eastport-South Manor Central School District, Riverhead Fire District, Flanders Fire District, Flanders-Northampton Ambulance District and the North East Quogue Fire Protection District.

Legislative history

2010: A.7792-C/S.4539-C

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately, provided that the provisions of Sections two, three, four, five and six of this act shall remain in full force and effect until December 31, 2030 when upon such date, the provisions of such sections shall expire and be deemed repealed.