New York Senate Bill S02653

New York 2025-2026 Regular Session

• Introduced: 1/22/25
• Refer: 1/22/25
• Refer: 1/7/26

Caption

Requires the state pay taxes on the assessed value of properties of closed state prisons until such prison is reopened, used by another state agency, or is conveyed to a non-governmental entity.

Summary

This bill would amend New York’s real property tax law to require the state to pay property taxes, based on assessed value, on land and improvements that were formerly used as state prisons once correctional operations at those facilities have ceased. The tax obligation would continue until the property is either put back into use by a state agency or sold to a non-governmental entity. If the former prison is conveyed to a not-for-profit non-governmental entity, that entity would be required to enter into a payment in lieu of taxes agreement with the local municipality where the property is located. In practical terms, the bill creates a new tax treatment for closed state prison sites that are still owned by the state. It is aimed at ensuring local governments receive revenue during the period between prison closure and redevelopment or transfer, rather than leaving those properties exempt from local taxation while they remain idle or under state control.

Impact

The bill would modify the Real Property Tax Law by adding a new subdivision that narrows the state’s tax exemption for former prison properties after correctional use ends. It would affect state-owned prison sites, local municipalities that host those facilities, and any not-for-profit entities that receive such properties, by imposing either direct tax liability on the state or a PILOT requirement on the nonprofit transferee. The measure would likely increase costs to the state and potentially provide fiscal relief to affected local tax bases.

Sentiment

The available record shows the bill was introduced and referred to committee, but there are no recorded committee transcripts or votes in the provided materials. Based on the bill’s structure and sponsor framing, the measure appears to be motivated by local fiscal concerns and the desire to offset the loss of tax revenue when prisons close. Because no debate or voting history is included, there is no documented support or opposition in the supplied context.

Contention

The main point of contention is likely whether the state should be required to pay local property taxes on land it owns after a prison closes, especially while the property remains in state hands and may not be generating revenue. Supporters would likely emphasize fairness to host municipalities and the burden of maintaining services without a tax base, while opponents may argue the proposal shifts costs to the state and could complicate reuse or redevelopment of former prison sites. The bill also raises questions about how to value the property and whether PILOT obligations should apply to nonprofit recipients.