New York 2025-2026 Regular Session

New York Senate Bill S00664

Introduced
1/8/25  
Refer
1/8/25  
Engrossed
5/28/25  
Refer
5/28/25  
Refer
1/7/26  
Engrossed
5/7/26  

Caption

Subjects to taxation the possessory interest of a private individual or corporation which uses real property owned by the United States or the state, except for real property owned by public authorities, for business purposes; excludes private property where the use is for a concession available to the general public located on property, such as parks, available for the use of the general public.

Summary

Bill S00664 amends the real property tax law to subject the possessory interests of private lessees or contractors using real property owned by the United States or the state of New York to taxation. This applies unless the property is owned by public authorities or the use is for a concession available to the general public at locations like parks or airports. The bill establishes that the lessees or contractors will be taxed as if they were the owners of the property, with specific provisions for how these taxes will be assessed and collected.

Impact

The bill significantly alters the taxation framework for private entities using state or federally owned properties, ensuring that they contribute to local tax revenues. It allows municipalities to adopt local laws to impose these taxes, providing a structured approach to taxation while offering partial exemptions for existing possessory interests for a limited time. This could lead to increased revenue for local governments but may also affect businesses that rely on these properties for operations.

Sentiment

The sentiment around Bill S00664 appears to be mixed. During committee discussions and votes, there was a notable level of support, as evidenced by the 41-19 vote in the Senate for final passage. However, the dissenting votes suggest that there are concerns regarding the implications of taxing private interests on public land, particularly for small businesses and the potential impact on public access to these properties.

Contention

Notable points of contention include the potential burden on small businesses, as the bill exempts businesses with fewer than twenty-five employees from these taxes. Some legislators expressed concerns that imposing taxes on lessees could deter businesses from utilizing public properties, while proponents argue that it levels the playing field and ensures fair taxation. The debate reflects broader concerns about the balance between generating revenue and supporting local businesses.

Companion Bills

NY A05680

Same As Subjects to taxation the possessory interest of a private individual or corporation which uses real property owned by the United States or the state, except for real property owned by public authorities, for business purposes; excludes private property where the use is for a concession available to the general public located on property, such as parks, available for the use of the general public.

Previously Filed As

NY S02774

Subjects to taxation the possessory interest of a private individual or corporation which uses real property owned by the United States or the state, except for real property owned by public authorities, for business purposes; excludes private property where the use is for a concession available to the general public located on property, such as parks, available for the use of the general public.

NY A05680

Subjects to taxation the possessory interest of a private individual or corporation which uses real property owned by the United States or the state, except for real property owned by public authorities, for business purposes; excludes private property where the use is for a concession available to the general public located on property, such as parks, available for the use of the general public.

NY S1278

Exempts from property taxation real property privately owned and leased to certain public entities for public purposes.

NY A1063

Exempts from property taxation real property privately owned and leased to certain public entities for public purposes.

NY A3216

Requires taxation as real property of improvements on publicly owned real property used for purpose and protection of public water supply.

NY HB1911

To Amend The Law Concerning The Assessment Of Property For The Purpose Of Property Tax; And To Repeal The Requirement That Personal Property Subject To Taxation Be Listed Or Reported By The Property Owner.

NY S0282

Limitation on the Assessed Value of Property Owned and Used for Commercial Purposes by Small Businesses

NY SB146

To Amend The Definition Of "recreational Purpose" As Used In Relation To The Liability Of A Property Owner Who Makes Land Available To The Public For Recreational Purposes.

NY HB755

Prohibit ownership of private property within state by certain foreign individuals and entities

NY HB2457

Restricting residential homestead property taxes to not more than the established base of property taxes owed for individuals 65 years of age and older and eliminating the property tax exemption for certain commercial properties used for healthcare when in competition with other non-exempt properties.

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