STATE OF NEW YORK
________________________________________________________________________
4203--A
2025-2026 Regular Sessions
IN SENATE
February 3, 2025
___________
Introduced by Sen. COMRIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government -- recom-
mitted to the Committee on Local Government in accordance with Senate
Rule 6, sec. 8 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the general municipal law, in relation to adjusting
value capture mechanisms for New York city and the metropolitan trans-
portation authority, including transparency requirements; and to amend
part PP of chapter 54 of the laws of 2016 amending the general munici-
pal law relating to the New York transit authority and the metropol-
itan transportation authority, in relation to extending such value
capture mechanisms and transparency requirements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph f of subdivision 1 of section 119-r of the gener-
2 al municipal law, as added by section 2 of part PP of chapter 54 of the
3 laws of 2016, is amended to read as follows:
4 f. The making of a contract with the metropolitan transportation
5 authority, by itself or with one or more other municipal corporations to
6 assist the authority in meeting its capital or operating expenses in
7 providing mass transportation services of benefit to all or part of such
8 municipal corporation, including undertaking a mass transportation capi-
9 tal project in or near the municipal corporation. Such a municipal
10 corporation may, according to the terms of the contract with the author-
11 ity, establish, levy and collect taxes, assessments, and/or charges and
12 may conditionally or unconditionally grant or pledge a portion of its
13 revenues allocated according to [subdivision] paragraph e of this
14 [section] subdivision.
15 (i) For any mass transportation capital project located in the city of
16 New York, the municipal corporation or metropolitan transportation
17 authority shall notify in writing the community board or boards, any
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00218-03-6
S. 4203--A 2
1 part of whose district or districts would be contained within a proposed
2 mass transportation capital project district, at least forty-five days
3 prior to conducting the public hearing as required by this section. Upon
4 request from such board or boards the municipal corporation or authority
5 shall, at a date convenient to such board or boards, present information
6 regarding the proposed mass transportation capital project and also
7 allow for public comment. For any proposed mass transportation capital
8 project, the municipal corporation or metropolitan transportation
9 authority shall notify in writing the municipal, state, and congression-
10 al elected representatives, any part of whose district or districts
11 would be contained within a proposed mass transportation capital project
12 district, at least forty-five days prior to conducting the public hear-
13 ing as required by this paragraph. Such municipal corporation may desig-
14 nate mass transportation capital project districts that a municipal
15 corporation finds, after conducting a public hearing, will benefit from
16 an identified mass transportation capital project.
17 (ii) Upon designating [such] a mass transportation capital project
18 district, the municipal corporation may allocate a portion of its reven-
19 ues from the district according to terms it designs or has agreed to by
20 contract. The municipal corporation may, in allocating and collecting
21 revenues from the district, make use of one or more methods to capture
22 the value created by a mass transportation capital project, including,
23 but not limited to:
24 [(i)] (1) tax increment financing, meaning the allocation of an incre-
25 ment of property tax revenues in excess of the amount levied at the time
26 prior to planning of a mass transportation capital project;
27 [(ii)] (2) a special transportation assessment imposed upon benefited
28 real property in proportion to the benefit received by such property
29 from a mass transportation capital project, which shall not constitute a
30 tax;
31 [(iii)] (3) land value taxation, meaning the allocation of an incre-
32 ment of tax revenues gained from levying taxes on the assessed value of
33 taxable land at a higher rate than the improvements, as defined in
34 subdivision twelve of section one hundred two of the real property tax
35 law; and
36 [(iv)] (4) some combination of the above or other methods of gaining
37 revenues that the municipal corporation is empowered to use, provided
38 that the total amount of all taxes, assessments, fees, charges, or rates
39 levied on each parcel or lot under this section shall be limited to a
40 proportionate amount as near as possible to the actual benefit which
41 each lot or parcel will derive from the mass transportation capital
42 project; and
43 [(v)] (5) for purposes of this paragraph the term municipal corpo-
44 ration shall include only those cities, towns, villages and counties
45 described in section twelve hundred sixty-two of the public authorities
46 law.
47 (iii) For any mass transportation capital project in which a municipal
48 corporation would use the methods authorized by this paragraph, at least
49 forty-five days prior to conducting the public hearing as required by
50 this paragraph the municipal corporation shall produce and publish on
51 its website two separate analyses that include, without limitation:
52 (1) revenue projections for the mass transportation capital project
53 district based on factors, including but not limited to, historic prop-
54 erty, sales, mortgage recording tax data, business and income taxes, and
55 analysis that the fair market value of properties and projected sales,
56 business, income, and mortgage recording taxes within such district are
S. 4203--A 3
1 expected to increase as a result of the improvement, by more than would
2 have occurred in the absence of the improvement after accounting for the
3 entire capital cost of the mass transportation capital project being
4 financed, as well as analogous projections for the community board
5 district or districts or city, town, village or county not wholly
6 contained within a city surrounding the proposed mass transportation
7 capital project district;
8 (2) transportation engineering analysis showing how the public would
9 be served by the mass transportation capital project in such district or
10 area;
11 (3) explanation from the relevant assessing body on the amount of the
12 projected special transportation assessment or increased levy on a prop-
13 erty or parcel;
14 (4) projected cost of the mass transportation capital project and
15 proposed funding sources;
16 (5) explanation from the relevant assessing body on how the proposed
17 mass transportation capital project would impact a property or parcel's
18 assessed land value, in addition to how the proposed mass transportation
19 capital project would impact school district and special district tax
20 levies within the county or city not wholly contained within a county
21 where the proposed mass transportation project district would be
22 created; and
23 (6) any incentives or expenditures planned to induce commercial activ-
24 ity in the mass transportation capital project district, including with-
25 out limitation payments in lieu of taxes, payments in lieu of sales
26 taxes, payments in lieu of mortgage recording taxes, state grants,
27 loans, loan guarantees, loan interest subsidies, subsidies, tax credits,
28 tax exemptions, reduced tax rates or other tax incentives which are
29 applied for and preapproved or certified by a state or municipal agency
30 or authority, and industrial development agency or local development
31 corporation assistance. Such analyses shall include accompanying data in
32 a machine-readable, tabular format, and an explanation of the methodol-
33 ogy and specific assumptions used in each analysis. The public shall
34 have the opportunity to submit written comments on the analyses
35 provided, and the municipal corporation and/or the metropolitan trans-
36 portation authority shall respond to public comments received in writing
37 and/or at such public hearing in a report that is posted on the public
38 facing portion of such municipal corporation's website no later than one
39 month after such hearing.
40 § 2. Section 3 of part PP of chapter 54 of the laws of 2016 amending
41 the general municipal law relating to the New York transit authority and
42 the metropolitan transportation authority, as amended by section 1 of
43 part I of chapter 58 of the laws of 2025, is amended to read as follows:
44 § 3. This act shall take effect immediately; provided that the amend-
45 ments to subdivision 1 of section 119-r of the general municipal law
46 made by section two of this act shall expire and be deemed repealed
47 April 1, [2026] 2031, and provided further that such repeal shall not
48 affect the validity or duration of any contract entered into before that
49 date pursuant to paragraph f of such subdivision.
50 § 3. This act shall take effect immediately and shall be deemed to
51 have been in full force and effect on and after April 1, 2026; provided,
52 however, that the amendments to paragraph f of subdivision 1 of section
53 119-r of the general municipal law made by section one of this act shall
54 not affect the expiration of such subdivision and shall expire there-
55 with.
