Bethlehem Conservation Easement Property Tax Exemption Discussion on recent passing of NYS Legislature s Bills A.9719/S.7623 amending the NYS Real Property Tax Law Section 491 to allow the Town of Bethlehem to offer conservation easement agreement exemptions.
Background on Authorization Program offers property owners a reduction in property taxes (exemption) in exchange for a commitment to preserving undeveloped land (open space) Conservation Easement Agreement 2009 NYS Legislature s Bills S.3337-A/A.2089-A authorized the exemptions for the towns of Orchard Park and Elma only Added Section 491 to the NYS Real Property Tax Law *2014 - NYS Legislature s Bills S.7623/A.9719 amends the NYS Real Property Tax Law Section 491 Allows the Town of Bethlehem to offer conservation easement agreement exemptions
Definition "OPEN SPACE" or "OPEN AREA : Any space or area characterized by natural scenic beauty or whose existing openness, natural condition or present state of use, if retained, would enhance the present or potential value of abutting or surrounding urban development or would maintain or enhance the conservation of natural or scenic resources. For the purposes of this definition, "natural resources" shall include but not be limited to agricultural lands defined as open lands actually used in bona fide agricultural production.
Exemption Conservation Easement Agreement Commitment Percentage of Exemption (on assessment) 15-29 years 50 30-49 years 75 50-75 years 85 Perpetual 90 *Minimum term commitment is 15 years as authorized by RPTL 491
Application to Taxing Jurisdictions General Municipal Taxes In Bethlehem the exemption would apply following Town Board approval of Local Law: General Fund Tax Highway Tax Water District Sewer District Does not apply to sewer front footage tax Fire District Ambulance/EMS Opt In Required for Other Taxing Jurisdictions County Taxes By County Local Law allowing the exemption School District(s) Taxes By Resolution allowing the exemption
Procedures for obtaining conservation easement agreement *To be established by Town Board Landowner to submit a proposal to the Town Board (in such a manner and form as may be prescribed by the Conservation Board* of such Town). Town Board shall convey the proposal to the Conservation Board. Conservation Board shall investigate the area to determine if the proposal would be of benefit to the people of the Town and may negotiate the terms and conditions of the offer. If the Conservation Board determines it is in the public interest to accept such proposal, it shall recommend to the Town Board that it hold a public hearing for the purpose of determining whether or not the Town should accept such proposal. Upon receipt of recommendation, the Town Board shall hold a public hearing.
Procedures continued Town Board may adopt the proposal or any modification thereof it deems appropriate or may reject it in its entirety. If such proposal is adopted by the Town Board, it shall be executed by the owner in written form and in a form suitable for recording in the County Clerk s office. NYS Office of Real Property Tax Service to provide an application that is to be completed by owner and submitted to Town Assessor. Application shall be filed with the Town Assessor on or before the taxable status date (March 1).
Cancellation Such agreement may not be cancelled by either party. The Owner may petition the Town Board for cancellation upon good cause shown, and such cancellation may be granted only upon payment of penalties.
Penalties If there is a violation of the terms and conditions of the conservation easement agreement, the Owner shall pay to the Town: All taxes abated pursuant to the conservation easement agreement (includes Town, County, School District and Special Districts). Repayment of the abated taxes shall be equal to 5 times the taxes saved in the last year in which the land benefited from a conservation easement agreement exemption, PLUS interest of 6% per year compounded annually for each year in which an exemption was grant, not exceeding 5 years
Next Steps Governor to sign bill into law Town to Draft and Consider Local Law Opt In Decisions by County and School Districts Open Space Technical Advisory Working Group to develop criteria (minimum acreage, land characteristics, development potential, etc.) Town to appoint conservation committee/board to review conservation easement proposals/applications
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