NY S01891

Grants the City of Newburgh a partial exemption from real property taxes imposed by the town of New Windsor, the Newburgh Enlarged City School District, and the Cornwall Central School District for the amount of assessment increase attributable to the construction of a granular activated carbon (GAC) treatment system.

The GAC system was constructed to remove Per- and Polyfluoroalkyl Substances (PFAS) contamination from Lake Washington, the City's primary drinking water source, after contamination was detected in 2014 at levels exceeding EPA limits.

Property tax on the water filtration plant increased substantially following the town of New Windsor's reassessment in light of the GAC system improvements, with school district taxes alone rising from $49,604.25 in 2016-2017 to $303,046.59 in 2018-2019.

As a condition of the exemption, the City must withdraw and discontinue all tax certiorari proceedings against the town of New Windsor, and the town and school districts must refund overpaid taxes and cancel any remaining unpaid taxes, fines, penalties, interest, or tax liens.

Takes effect immediately upon enactment.