N.Y. RPT Law § 566

§ 566. Dams and reservoirs. 1. Dam sites, dams, reservoirs and\nflowage lands, including the right or privilege in connection therewith\nand the capacity thereof to impound, store or provide water for power\npurposes, shall be assessed in the assessing unit in which they are\nsituated. If the legal title to lands occupied or submerged by or in\nconnection with a dam or reservoir for the storage of water for power\npurposes, or adapted for such purposes because of the existence of a dam\nsite or otherwise, is held by the state or a person other than the owner\nof the dam, reservoir or dam site and appurtenant rights, but the use,\noccupation or possession of such lands, or the right to use, occupy and\npossess the same, is in such owner under an easement, right or lease for\na term of fifty years or more or in perpetuity, then the interest of\nsuch owner shall be assessed as real property in the same manner as if\nsuch owner held legal title to such lands, except that explanatory\nnotations showing the nature of the interest assessed shall be added to\nthe description of such lands.\n 2. The classification of any interest enumerated in subdivision one\nhereof as real property shall not be affected (a) by any provision of\nthe agreement under which the same is created or held or by reason of\nthe fact that the water which is or may be impounded is used in another\nassessing unit for the development of power or (b) because of nonuse of\nthe dam site.\n 3. This section shall not apply to the water supply system of any\nmunicipal corporation.\n