A00278 Summary:

BILL NOA00278
 
SAME ASNo Same As
 
SPONSORGunther
 
COSPNSRCook, Lawler
 
MLTSPNSR
 
Amd 420-a, RPT L
 
Sets a 7-year limit to the real property tax exemption for unimproved property of mandatory class nonprofit organizations.
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A00278 Actions:

BILL NOA00278
 
01/06/2021referred to real property taxation
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A00278 Committee Votes:

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A00278 Floor Votes:

There are no votes for this bill in this legislative session.
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A00278 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A278
 
SPONSOR: Gunther
  TITLE OF BILL: An act to amend the real property tax law, in relation to the duration of the exemption for property of mandatory class nonprofit organizations by reason of the absence of suitable buildings or improvements thereon if construction of such buildings or improvements is in progress or is in good faith contemplated   PURPOSE: To establish stricter standards for non-profit organizations that purchase land and file an application for municipal real property exemption. The purpose of this bill is to ensure that properties exempt from real property taxes are being used in a manner that supports the specific exemption granted.   SUMMARY OF PROVISIONS: Section 1: Amends Real Property Law section 420-a (3) to permit nonpro- fit organizations that purchase real property that is on the tax rolls to obtain a real property exemption if such organization within 7 years after such property is acquired constructs buildings or other capital improvements or is in good faith contemplating such construction to further its charitable purposes. Exempts children's overnight camps and summer day camps   EXISTING LAW: Under current law, if a non-profit organization purchases property that is on the tax rolls, such organization can obtain an exemption from real property taxes if the construction of buildings or other improvements are in progress or are in "good faith" contemplated. This bill tightens qualifications for obtaining tax exempt status by requiring that build- ings or improvements must be constructed to further the organization's charitable purpose within 7 years of purchasing such property.   JUSTIFICATION: Under current law, non-profit charitable organizations can purchase land as an investment vehicle and then obtain the real property's tax exempt status (to the detriment of the local taxing-authority) without realis- tically contemplating the satisfaction of the requirement that the prop- erty is used in the furtherance of the organizations' charitable mission. This bill amends the law so that only properties that are truly acquired to further an organization's charitable purpose are granted tax exempt status. If 7 years after the acquisition of the parcel, the char- itable organization has not commenced activities to further the charita- ble purpose, then such land will be placed back on the tax rolls.   LEGISLATIVE HISTORY: 2019-20: A3692B Referred to Real Property Taxation 2017-18: A270 Referred to Real Property Taxation/53298 Referred to Local Government 2015-2016: A855 Referred to Real Property Taxation 2013-2014: A1711A Referred to Real Property Taxation/53993A Referred to Local Government 2011-2012: A499 Held in Real Property Taxation 2009-2010: A981 Referred to Real Property Taxation/S670 Referred to Local Government 2007-2006: A1259 Referred to Real Property Taxation/S529 Referred to Local Government 2005-2006: A9C20 Referred to Real Property Taxation/S4714 Referred to Local Government   FISCAL IMPLICATIONS: None.   LOCAL FISCAL IMPLICATIONS: Would place certain parcels back on the tax rolls that were in fact not used for a bona fide exempt use.   EFFECTIVE DATE: January 1st of the year next succeeding the date on which it shall have become law.
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A00278 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           278
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 6, 2021
                                       ___________
 
        Introduced  by  M.  of A. GUNTHER, COOK -- read once and referred to the
          Committee on Real Property Taxation
 
        AN ACT to amend the real property tax law, in relation to  the  duration
          of  the  exemption for property of mandatory class nonprofit organiza-
          tions by reason of the absence of suitable buildings  or  improvements
          thereon  if  construction  of  such  buildings  or  improvements is in
          progress or is in good faith contemplated
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision  3  of section 420-a of the real property tax
     2  law, such section as renumbered by chapter 919 of the laws of  1981,  is
     3  amended and a new subdivision 17 is added to read as follows:
     4    3. Such real property from which no revenue is derived shall be exempt
     5  though  not  in actual use therefor by reason of the absence of suitable
     6  buildings or other physical improvements thereon if:
     7    (a) the construction of such buildings or other physical  improvements
     8  is  in  progress or is in good faith contemplated by such corporation or
     9  association within seven years after such property has been acquired  by
    10  such  corporation  or  association; for the purposes of calculating such
    11  seven years' period, with respect to property acquired before the effec-
    12  tive date of the chapter of the laws of two  thousand  twenty-one  which
    13  amended  this  subdivision,  such  seven years' period shall commence on
    14  such effective date, and with respect to property acquired on  or  after
    15  such effective date, such seven years' period shall commence on the date
    16  of acquisition; or
    17    (b) such real property is held by such corporation or association upon
    18  condition  that  the title thereto shall revert in case any building not
    19  intended and suitable for one or more such  purposes  shall  be  erected
    20  upon such premises or some part thereof.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02660-01-1

        A. 278                              2
 
     1    17.  Notwithstanding  any  provision  of this section to the contrary,
     2  real property used for the purpose of a  children's  overnight  camp  or
     3  summer  day  camp, as such terms are defined in section thirteen hundred
     4  ninety-two of the public health law, shall be exempt from the provisions
     5  of this section.
     6    §  2. This act shall take effect on the first of January next succeed-
     7  ing the date on which it shall have become a law.
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A00278 LFIN:

 NO LFIN
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A00278 Chamber Video/Transcript:

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