CARMEL – The Carmel Town Board and the City of New York have agreed on a settlement involving property tax assessments on city-owned lands in the greater Carmel-Mahopac area.
The lawsuits centered on challenges to assess properties owned by the Big Apple as part of its watershed system, which supplies drinking water to millions of residents in Putnam, northern Westchester and New York City.
The Town of Carmel lies within the Croton watershed, part of New York City’s water supply system. The watershed includes portions of five Putnam County towns: Carmel, Kent, Patterson, Putnam Valley and Southeast.
Carmel has many city-owned watershed properties, including land associated with reservoirs and other water-supply infrastructure. State law requires these properties to pay local property taxes.
Lawsuits were filed in Putnam County State Supreme Court challenging assessments established by the town for multiple tax years and properties.
The agreement has resulted in revised assessments being established for the affected properties.
The Carmel Town Board has approved a resolution authorizing the settlement and permitting the town’s legal counsel to execute the necessary documents.
The amount of the settlement was not disclosed; however, it is likely taxpayers will be impacted by the lost revenue in 2027-28 tax bills.
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