A01288 Summary:

BILL NOA01288
 
SAME ASNo Same As
 
SPONSORWilliams
 
COSPNSROtis, Miller
 
MLTSPNSR
 
Amd §§420-a & 420-b, RPT L
 
Relates to property tax exemptions for nonprofit organizations; allows for nonprofit organizations to file an application for an exemption with the assessor no later than the taxable status date applicable to the following year's assessment roll where such nonprofit organization has purchased property after the taxable status date but prior to the levy of taxes.
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A01288 Actions:

BILL NOA01288
 
01/17/2023referred to real property taxation
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A01288 Committee Votes:

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A01288 Floor Votes:

There are no votes for this bill in this legislative session.
 
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A01288 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1288
 
SPONSOR: Williams
  TITLE OF BILL: An act to amend the real property tax law, in relation to property tax exemptions for nonprofit organizations   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to allow assessors to accept applica- tions for exemption pursuant to sections 420-a and 420-b of the Real Property Tax Law, without the need for a local law, when non-profit organizations purchase the subject property after the applicable taxable status date.   SUMMARY OF SPECIFIC PROVISIONS: Section 1. Subdivision 16 of section 420-a of the Real Property Tax law is amended to allow local assessors to accept applications for exemption pursuant to this section for the 2017, 2018, 2019, 2020, 2021assessment rolls and every assessment roll thereafter where the organization could not apply prior to the applicable taxable status date because the subject property was purchased subsequent to such taxable status date. Section 2. Subdivision 8 of section 420-b of the Real Property Tax Law is amended to allow local assessors to accept applications for exemption pursuant to this section for the 2017, 2018, 2019, 2020, 2021assessment rolls and every assessment roll thereafter where the organization could not apply prior to the applicable taxable status date because the subject property was purchased subsequent to such taxable status date. Section 3. Establishes the effective date.   JUSTIFICATION  : IN MOST MUNICIPALITIES, THE DEADLINE FOR SUBMITTING PROPERTY TAX EXEMPTION APPLICATIONS IS THE TAXABLE STATUS DATE. CURRENTLY, NON-PROFIT ORGANIZATIONS THAT ARE ELIGIBLE FOR A NON-PROFIT REAL PROPERTY TAX EXEMPTION PURSUANT TO REAL PROPERTY TAX LAW SECTIONS 420-A AND 420-B ARE NOT ABLE TO IMMEDIATELY APPLY FOR AND RECEIVE THE EXEMPTION IF THEY PURCHASED THE PROPERTY AFTER THE TAXABLE STATUS DATE. THEY MUST PAY THE FULL AMOUNT OF TAXES PURSUANT TO THE CURRENT ASSESSMENT ROLL AND THEN APPLY FOR EXEMPTION ON THE FOLLOWING YEAR'S ASSESSMENT ROLL. SINCE NEW YORK STATE HAS DEEMED IT PROPER TO IMMEDIATELY TAX PROPERTY SOLD BY SOMEONE RECEIVING A REAL PROPERTY TAX EXEMPTION TO A PURCHASER NOT ENTI- TIED TO AN EXEMPTION, IT IS EQUALLY PROPER TO ALLOW NON-PROFIT ORGAN- IZATIONS TO IMMEDIATELY APPLY FOR EXEMPT STATUS ON PROPERTY PURCHASED AFTER THE CURRENT YEAR'S TAXABLE STATUS DATE.   PRIOR LEGISLATIVE HISTORY: A.7583 of 2021/2022   FISCAL IMPLICATION: None to the State.   EFFECTIVE DATE: Immediately.
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A01288 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1288
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 17, 2023
                                       ___________
 
        Introduced  by M. of A. WILLIAMS, OTIS, MILLER -- read once and referred
          to the Committee on Real Property Taxation
 
        AN ACT to amend the real property tax law, in relation to  property  tax
          exemptions for nonprofit organizations
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 16 of section 420-a of the  real  property  tax
     2  law,  as added by chapter 358 of the laws of 2018, is amended to read as
     3  follows:
     4    16. (a) (i) For the purposes of this  subdivision,  "municipal  corpo-
     5  ration"  shall  mean  a  county,  city, town, village or school district
     6  [which, after public hearing, adopts a local law,  ordinance  or  resol-
     7  ution,  providing that this subdivision shall be applicable to nonprofit
     8  organizations within its jurisdiction.  Such  local  law,  ordinance  or
     9  resolution  shall  apply to property transfers occurring on or after the
    10  effective date of such local law, ordinance or resolution.   A  copy  of
    11  such  local law, ordinance or resolution shall be filed with the commis-
    12  sioner].
    13    (ii) Where a nonprofit organization that meets the requirements for an
    14  exemption pursuant to this section, purchases property after the levy of
    15  taxes but prior to the taxable status date applicable to  the  following
    16  year's  assessment  roll, such nonprofit organization may[, if permitted
    17  by a local law, ordinance or resolution of the municipal corporation  in
    18  which  the  nonprofit  organization is located,] file an application for
    19  exemption with the assessor no later than the [time  specified  in  such
    20  local  law,  ordinance  or resolution] taxable status date applicable to
    21  the following year's assessment roll; provided that  where  a  nonprofit
    22  organization  that  meets  the requirements for an exemption pursuant to
    23  this section purchased property after the levy of taxes but prior to the
    24  taxable status date applicable to the following year's  assessment  roll
    25  in  the  years  two thousand nineteen, two thousand twenty, two thousand
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05600-01-3

        A. 1288                             2
 
     1  twenty-one, two thousand twenty-two or two thousand  twenty-three,  such
     2  nonprofit  organization  may  file an application for exemption with the
     3  assessor no later than the next taxable status date following the effec-
     4  tive  date of the chapter of the laws of two thousand twenty-three which
     5  amended this subdivision.  The assessor shall make  a  determination  of
     6  whether  the  parcel would have qualified for exempt status on the [tax]
     7  assessment roll on which the taxes were levied, had title to the  parcel
     8  been  in the name of the applicant on the taxable status date applicable
     9  to the [tax] assessment  roll.  The  application  shall  be  on  a  form
    10  prescribed by the commissioner.  The assessor, no later than thirty days
    11  after  receipt  of such application, shall notify both the applicant and
    12  the board of assessment review, by  first  class  mail,  of  the  exempt
    13  amount,  if  any,  and  the right of the owner to a review of the exempt
    14  amount upon the filing of a written complaint. Such complaint  shall  be
    15  on  a  form  prescribed  by the commissioner and shall be filed with the
    16  board of assessment review within twenty days of  the  mailing  of  such
    17  notice.  If  no  complaint  is  received, the board of assessment review
    18  shall so notify the assessor and the exempt  amount  determined  by  the
    19  assessor  shall  be final. If the applicant files a complaint, the board
    20  of assessment review shall schedule a time and place for a hearing  with
    21  respect  thereto  no  later  than  thirty  days after the mailing of the
    22  notice by the assessor. The board of assessment review  shall  meet  and
    23  determine  the  exempt amount, and shall immediately notify the assessor
    24  and the applicant, by first class mail, of its determination. The amount
    25  of exemption determined pursuant to this paragraph shall be  subject  to
    26  review  as  provided in article seven of this chapter. Such a proceeding
    27  shall be commenced within thirty days of the mailing of  the  notice  of
    28  the  board  of  assessment  review  to the new owner as provided in this
    29  paragraph.
    30    (iii) Upon receipt of a determination of the exempt amount as provided
    31  in subparagraph (ii) of this paragraph, the assessor shall determine the
    32  pro rata exemption to be credited toward such  property  by  multiplying
    33  the  tax  rate  or tax rates for each municipal corporation which levied
    34  taxes, or for which taxes were levied, on the appropriate [tax]  assess-
    35  ment  roll  used  for the fiscal year or years during which the transfer
    36  occurred times the exempt amount, as determined in subparagraph (ii)  of
    37  this  paragraph, times the fraction of each fiscal year or years remain-
    38  ing subsequent to the transfer of title. The assessor shall  immediately
    39  transmit a statement of the pro rata exemption credit due to each munic-
    40  ipal  corporation  which  levied taxes or for which taxes were levied on
    41  the [tax] assessment roll used for the fiscal year or years during which
    42  the transfer occurred and to the applicant.
    43    (iv) Each municipal corporation which  receives  notice  of  pro  rata
    44  exemption  credits  pursuant to this subdivision shall include an appro-
    45  priation in its budget for the next fiscal year equal to  the  aggregate
    46  amount  of  such  credits  to  be applied in that fiscal year.   Where a
    47  parcel, the owner of which is entitled to a pro rata  exemption  credit,
    48  is subject to taxation in said next fiscal year, the receiver or collec-
    49  tor  shall  apply  the credit to reduce the amount of taxes owed for the
    50  parcel in such fiscal year. Pro rata exemption credits in excess of  the
    51  amount of taxes, if any, owed for the parcel shall be paid by the treas-
    52  urer of a municipal corporation which levies such taxes for or on behalf
    53  of  the municipal corporation to all owners of property entitled to such
    54  credits within thirty days of the expiration of the warrant  to  collect
    55  taxes in said next fiscal year. Notwithstanding the foregoing, where the
    56  municipal  corporation  has  been reimbursed by another municipal corpo-

        A. 1288                             3
 
     1  ration for the tax credit to be paid  to  the  owner  pursuant  to  this
     2  subdivision,  such  credit  shall  be paid to such municipal corporation
     3  instead of such owner.
     4    (b)  (i)  Notwithstanding  the  provisions  of  this  section, where a
     5  nonprofit organization that meets  the  requirements  for  an  exemption
     6  pursuant  to  this  section, purchases property after the taxable status
     7  date but prior to the levy of taxes, such nonprofit  organization  may[,
     8  if  permitted  by  a local law, ordinance or resolution of the municipal
     9  corporation in which the nonprofit organization  is  located,]  file  an
    10  application  for  an  exemption with the assessor [within thirty days of
    11  the transfer of title to such nonprofit organization] no later than  the
    12  taxable  status date applicable to the following year's assessment roll;
    13  provided that where a nonprofit organization that meets the requirements
    14  for an exemption pursuant to this section purchased property  after  the
    15  taxable  status  date  but  prior  to the levy of taxes in the years two
    16  thousand nineteen, two thousand twenty,  two  thousand  twenty-one,  two
    17  thousand  twenty-two or two thousand twenty-three, such nonprofit organ-
    18  ization may file an application for exemption with the assessor no later
    19  than the next taxable status date following the effective  date  of  the
    20  chapter  of  the  laws  of  two thousand twenty-three which amended this
    21  subdivision. The assessor shall make a determination within thirty  days
    22  after receipt of such application of whether the applicant would qualify
    23  for  an  exemption  pursuant  to  this section on the assessment roll if
    24  title had been in the name of the applicant on the taxable  status  date
    25  applicable  to  such assessment roll. The application shall be made on a
    26  form prescribed by the commissioner.
    27    (ii) If the assessor's determination is made prior to  the  filing  of
    28  the  tentative  assessment  roll,  the  assessor  shall enter the exempt
    29  amount, if any, on the tentative assessment roll and,  within  ten  days
    30  after  filing  such roll, notify the applicant of the approval or denial
    31  of such exemption, the exempt amount, if any, and the applicant's  right
    32  to review by the board of assessment review.
    33    (iii)  If the assessor's determination is made after the filing of the
    34  tentative assessment roll, the assessor  shall  petition  the  board  of
    35  assessment  review  to correct the tentative or final assessment roll in
    36  the manner provided in title three of article five of this chapter, with
    37  respect to unlawful entries, in the case of wholly exempt  parcels,  and
    38  with  respect  of  clerical  errors,  in  the  case  of partially exempt
    39  parcels, if the assessor determines that an exemption should be  granted
    40  and,  within  ten  days  of  petitioning the board of assessment review,
    41  notify the applicant of the approval or denial of  such  exemption,  the
    42  amount  of such exemption, if any, and the applicant's right to adminis-
    43  trative or judicial review of such  determination  pursuant  to  article
    44  five or seven of this chapter, respectively.
    45    (c)  If, for any reason, a determination to exempt property from taxa-
    46  tion as provided in paragraph (b) of this subdivision is not entered  on
    47  the  final  assessment  roll,  the  assessor shall petition the board of
    48  assessment review to correct the final assessment roll.
    49    (d) If, for any reason, the pro rata tax credit as provided  in  para-
    50  graph  (a) of this subdivision is not extended against the [tax] assess-
    51  ment roll immediately succeeding the fiscal year during which the trans-
    52  fer occurred,  the  assessor  shall  immediately  notify  the  municipal
    53  corporation  which  levied the tax or for which the taxes were levied of
    54  the amount of pro rata exemption credits for  the  year  in  which  such
    55  transfer  occurred. Such municipal corporation shall proceed as provided
    56  in subparagraph (iv) of paragraph (a) of this subdivision.

        A. 1288                             4
 
     1    (e) If, for any reason, a determination to exempt property from  taxa-
     2  tion  as provided in paragraph (b) of this subdivision is not entered on
     3  the [tax] assessment roll for the year immediately succeeding the fiscal
     4  year during which the transfer occurred, the  assessor  shall  determine
     5  the  pro  rata  tax  exemption  credit for such [tax] assessment roll by
     6  multiplying the tax rate or tax rates  for  each  municipal  corporation
     7  which  levied  taxes  or  for  which  taxes were levied times the exempt
     8  amount and shall immediately notify such municipal corporation or corpo-
     9  rations of the pro rata exemption  credits  for  such  [tax]  assessment
    10  roll. Such municipal corporation shall add such pro rata exemption cred-
    11  its  for such property to any outstanding pro rata exemption amounts and
    12  proceed as provided in subparagraph (iv) of paragraph (a) of this subdi-
    13  vision.
    14    § 2. Subdivision 8 of section 420-b of the real property tax  law,  as
    15  added by chapter 358 of the laws of 2018, is amended to read as follows:
    16    8.  (a)  (i)  For  the purposes of this subdivision, "municipal corpo-
    17  ration" shall mean a county, city,  town,  village  or  school  district
    18  [which,  after  public  hearing, adopts a local law, ordinance or resol-
    19  ution, providing that this subdivision shall be applicable to  nonprofit
    20  organizations  within  its  jurisdiction.  Such  local law, ordinance or
    21  resolution shall apply to property transfers occurring on or  after  the
    22  effective  date  of  such local law, ordinance or resolution.  A copy of
    23  such local law, ordinance or resolution shall be filed with the  commis-
    24  sioner].
    25    (ii) Where a nonprofit organization that meets the requirements for an
    26  exemption pursuant to this section, purchases property after the levy of
    27  taxes  but  prior to the taxable status date applicable to the following
    28  year's assessment  roll,  such  nonprofit  organization  may  file[,  if
    29  permitted  by  a  local  law,  ordinance  or resolution of the municipal
    30  corporation in which the nonprofit organization is located,] an applica-
    31  tion for exemption with the assessor no later than the  [time  specified
    32  in such local law, ordinance or resolution] taxable status date applica-
    33  ble  to  the  following  year's  assessment  roll; provided that where a
    34  nonprofit organization that meets  the  requirements  for  an  exemption
    35  pursuant  to this section purchased property after the levy of taxes but
    36  prior to the taxable status date  applicable  to  the  following  year's
    37  assessment roll in the years two thousand nineteen, two thousand twenty,
    38  two  thousand  twenty-one, two thousand twenty-two or two thousand twen-
    39  ty-three, such  nonprofit  organization  may  file  an  application  for
    40  exemption  with  the assessor no later than the next taxable status date
    41  following the effective date of the chapter of the laws of two  thousand
    42  twenty-three  which amended this subdivision.  The assessor shall make a
    43  determination of whether the parcel  would  have  qualified  for  exempt
    44  status  on the [tax] assessment roll on which the taxes were levied, had
    45  title to the parcel been in the name of the  applicant  on  the  taxable
    46  status  date  applicable  to  the [tax] assessment roll. The application
    47  shall be on a form prescribed by  the  commissioner.  The  assessor,  no
    48  later  than  thirty days after receipt of such application, shall notify
    49  both the applicant and the board of assessment review,  by  first  class
    50  mail,  of  the  exempt  amount,  if any, and the right of the owner to a
    51  review of the exempt amount upon the filing of a written complaint. Such
    52  complaint shall be on a form prescribed by the commissioner and shall be
    53  filed with the board of assessment review  within  twenty  days  of  the
    54  mailing  of  such  notice.  If  no  complaint  is received, the board of
    55  assessment review shall so notify the assessor  and  the  exempt  amount
    56  determined  by  the  assessor  shall  be final. If the applicant files a

        A. 1288                             5
 
     1  complaint, the board of assessment review  shall  schedule  a  time  and
     2  place for a hearing with respect thereto no later than thirty days after
     3  the  mailing  of  the  notice  by  the assessor. The board of assessment
     4  review shall meet and determine the exempt amount, and shall immediately
     5  notify  the  assessor  and  the  applicant,  by first class mail, of its
     6  determination. The amount of exemption determined pursuant to this para-
     7  graph shall be subject to review as provided in article  seven  of  this
     8  chapter.  Such a proceeding shall be commenced within thirty days of the
     9  mailing of the notice of the board of assessment review to the new owner
    10  as provided in this paragraph.
    11    (iii) Upon receipt of a determination of the exempt amount as provided
    12  in subparagraph (ii) of this paragraph, the assessor shall determine the
    13  pro rata exemption to be credited toward such  property  by  multiplying
    14  the  tax  rate  or tax rates for each municipal corporation which levied
    15  taxes, or for which taxes were levied, on the appropriate [tax]  assess-
    16  ment  roll  used  for the fiscal year or years during which the transfer
    17  occurred times the exempt amount, as determined in subparagraph (ii)  of
    18  this  paragraph, times the fraction of each fiscal year or years remain-
    19  ing subsequent to the transfer of title. The assessor shall  immediately
    20  transmit a statement of the pro rata exemption credit due to each munic-
    21  ipal  corporation  which  levied taxes or for which taxes were levied on
    22  the [tax] assessment roll used for the fiscal year or years during which
    23  the transfer occurred and to the applicant.
    24    (iv) Each municipal corporation which  receives  notice  of  pro  rata
    25  exemption  credits  pursuant to this subdivision shall include an appro-
    26  priation in its budget for the next fiscal year equal to  the  aggregate
    27  amount  of  such  credits  to  be applied in that fiscal year.   Where a
    28  parcel, the owner of which is entitled to a pro rata  exemption  credit,
    29  is subject to taxation in said next fiscal year, the receiver or collec-
    30  tor  shall  apply  the credit to reduce the amount of taxes owed for the
    31  parcel in such fiscal year. Pro rata exemption credits in excess of  the
    32  amount of taxes, if any, owed for the parcel shall be paid by the treas-
    33  urer of a municipal corporation which levies such taxes for or on behalf
    34  of  the municipal corporation to all owners of property entitled to such
    35  credits within thirty days of the expiration of the warrant  to  collect
    36  taxes in said next fiscal year. Notwithstanding the foregoing, where the
    37  municipal  corporation  has  been reimbursed by another municipal corpo-
    38  ration for the tax credit to be paid  to  the  owner  pursuant  to  this
    39  subdivision,  such  credit  shall  be paid to such municipal corporation
    40  instead of such owner.
    41    (b) (i) Notwithstanding  the  provisions  of  this  section,  where  a
    42  nonprofit  organization  that  meets  the  requirements for an exemption
    43  pursuant to this section, purchases property after  the  taxable  status
    44  date  but  prior to the levy of taxes, such nonprofit organization may[,
    45  if permitted by a local law, ordinance or resolution  of  the  municipal
    46  corporation  in  which  the  nonprofit organization is located,] file an
    47  application for an exemption with the assessor [within  thirty  days  of
    48  the  transfer of title to such nonprofit organization] no later than the
    49  taxable status date applicable to the following year's assessment  roll;
    50  provided that where a nonprofit organization that meets the requirements
    51  for  an  exemption pursuant to this section purchased property after the
    52  taxable status date but prior to the levy of  taxes  in  the  years  two
    53  thousand  nineteen,  two  thousand  twenty, two thousand twenty-one, two
    54  thousand twenty-two or two thousand twenty-three, such nonprofit  organ-
    55  ization may file an application for exemption with the assessor no later
    56  than  the  next  taxable status date following the effective date of the

        A. 1288                             6
 
     1  chapter of the laws of two  thousand  twenty-three  which  amended  this
     2  subdivision.  The assessor shall make a determination within thirty days
     3  after receipt of such application of whether the applicant would qualify
     4  for  an  exemption  pursuant  to  this section on the assessment roll if
     5  title had been in the name of the applicant on the taxable  status  date
     6  applicable  to  such assessment roll. The application shall be made on a
     7  form prescribed by the commissioner.
     8    (ii) If the assessor's determination is made prior to  the  filing  of
     9  the  tentative  assessment  roll,  the  assessor  shall enter the exempt
    10  amount, if any, on the tentative assessment roll and,  within  ten  days
    11  after  filing  such roll, notify the applicant of the approval or denial
    12  of such exemption, the exempt amount, if any, and the applicant's  right
    13  to review by the board of assessment review.
    14    (iii)  If the assessor's determination is made after the filing of the
    15  tentative assessment roll, the assessor  shall  petition  the  board  of
    16  assessment  review  to correct the tentative or final assessment roll in
    17  the manner provided in title three of article five of this chapter, with
    18  respect to unlawful entries, in the case of wholly exempt  parcels,  and
    19  with  respect  of  clerical  errors,  in  the  case  of partially exempt
    20  parcels, if the assessor determines that an exemption should be  granted
    21  and,  within  ten  days  of  petitioning the board of assessment review,
    22  notify the applicant of the approval or denial of  such  exemption,  the
    23  amount  of such exemption, if any, and the applicant's right to adminis-
    24  trative or judicial review of such  determination  pursuant  to  article
    25  five or seven of this chapter, respectively.
    26    (c)  If, for any reason, a determination to exempt property from taxa-
    27  tion as provided in paragraph (b) of this subdivision is not entered  on
    28  the  final  assessment  roll,  the  assessor shall petition the board of
    29  assessment review to correct the final assessment roll.
    30    (d) If, for any reason, the pro rata tax credit as provided  in  para-
    31  graph  (a) of this subdivision is not extended against the [tax] assess-
    32  ment roll immediately succeeding the fiscal year during which the trans-
    33  fer occurred,  the  assessor  shall  immediately  notify  the  municipal
    34  corporation  which  levied the tax or for which the taxes were levied of
    35  the amount of pro rata exemption credits for  the  year  in  which  such
    36  transfer  occurred. Such municipal corporation shall proceed as provided
    37  in subparagraph (iv) of paragraph (a) of this subdivision.
    38    (e) If, for any reason, a determination to exempt property from  taxa-
    39  tion  as provided in paragraph (b) of this subdivision is not entered on
    40  the [tax] assessment roll for the year immediately succeeding the fiscal
    41  year during which the transfer occurred, the  assessor  shall  determine
    42  the  pro  rata  tax  exemption  credit for such [tax] assessment roll by
    43  multiplying the tax rate or tax rates  for  each  municipal  corporation
    44  which  levied  taxes  or  for  which  taxes were levied times the exempt
    45  amount and shall immediately notify such municipal corporation or corpo-
    46  rations of the pro rata exemption  credits  for  such  [tax]  assessment
    47  roll. Such municipal corporation shall add such pro rata exemption cred-
    48  its  for such property to any outstanding pro rata exemption amounts and
    49  proceed as provided in subparagraph (iv) of paragraph (a) of this subdi-
    50  vision.
    51    § 3. This act shall take effect immediately.
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