A01288 Summary:

BILL NOA01288A
 
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 NOA01288A
 
01/17/2023referred to real property taxation
01/03/2024referred to real property taxation
02/27/2024reported referred to ways and means
02/28/2024amend and recommit to ways and means
02/28/2024print number 1288a
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A01288 Committee Votes:

REAL PROPERTY TAXATION Chair:Williams DATE:02/27/2024AYE/NAY:9/0 Action: Favorable refer to committee Ways and Means
WilliamsAyeMillerAye
DickensExcusedTagueAye
EichensteinAyeSlaterAye
MamdaniAye
AlvarezAye
ShimskyAye
BergerAye

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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: A1288A
 
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 retroactive applications for exemption pursuant to this section, where the property was purchased after the taxable status date, if the application is submitted prior to the taxable status date applicable to the assessment roll three years subsequent to the purchase. Section 2. Subdivision 8 of section 420-b of the Real Property Tax Law is amended to allow local assessors to accept retroactive applications for exemption pursuant to this section, where the property was purchased after the taxable status date, if the application is submitted prior to the taxable status date applicable to the assessment roll three years subsequent to the purchase. 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- tled to an exemption, it is equally proper to allow nonprofit organiza- tions 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--A
 
                               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  --  recommitted  to  the
          Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
          -- reported and referred to the Committee on Ways and Means -- commit-
          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee
 
        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 assessment roll three years subsequent to the purchase of such prop-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05600-02-4

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

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

        A. 1288--A                          4
 
     1    §  2.  Subdivision 8 of section 420-b of the real property tax law, as
     2  added by chapter 358 of the laws of 2018, is amended to read as follows:
     3    8.  (a)  (i)  For  the purposes of this subdivision, "municipal corpo-
     4  ration" shall mean a county, city,  town,  village  or  school  district
     5  [which,  after  public  hearing, adopts a local law, ordinance or resol-
     6  ution, providing that this subdivision shall be applicable to  nonprofit
     7  organizations  within  its  jurisdiction.  Such  local law, ordinance or
     8  resolution shall apply to property transfers occurring on or  after  the
     9  effective  date  of  such local law, ordinance or resolution.  A copy of
    10  such local law, ordinance or resolution shall be filed with the  commis-
    11  sioner].
    12    (ii) Where a nonprofit organization that meets the requirements for an
    13  exemption pursuant to this section, purchases property after the levy of
    14  taxes  but  prior to the taxable status date applicable to the following
    15  year's assessment  roll,  such  nonprofit  organization  may  file[,  if
    16  permitted  by  a  local  law,  ordinance  or resolution of the municipal
    17  corporation in which the nonprofit organization is located,] an applica-
    18  tion for exemption with the assessor no later than the  [time  specified
    19  in such local law, ordinance or resolution] taxable status date applica-
    20  ble  to  the  assessment  roll three years subsequent to the purchase of
    21  such property. The assessor shall make a determination  of  whether  the
    22  parcel  would  have  qualified for exempt status on the [tax] assessment
    23  roll on which the taxes were levied, had title to the parcel been in the
    24  name of the applicant on the taxable status date applicable to the [tax]
    25  assessment roll. The application shall be on a form  prescribed  by  the
    26  commissioner.  The  assessor, no later than thirty days after receipt of
    27  such application, shall notify both  the  applicant  and  the  board  of
    28  assessment  review,  by  first class mail, of the exempt amount, if any,
    29  and the right of the owner to a review of the  exempt  amount  upon  the
    30  filing  of  a  written  complaint.  Such  complaint  shall  be on a form
    31  prescribed by the commissioner and shall be  filed  with  the  board  of
    32  assessment  review  within twenty days of the mailing of such notice. If
    33  no complaint is received, the board of assessment review shall so notify
    34  the assessor and the exempt amount determined by the assessor  shall  be
    35  final.  If  the  applicant  files  a  complaint, the board of assessment
    36  review shall schedule a time and place for a hearing with respect there-
    37  to no later than thirty days after the mailing  of  the  notice  by  the
    38  assessor.  The  board  of assessment review shall meet and determine the
    39  exempt amount, and shall immediately notify the assessor and the  appli-
    40  cant, by first class mail, of its determination. The amount of exemption
    41  determined  pursuant  to  this  paragraph  shall be subject to review as
    42  provided in article seven of this chapter. Such a  proceeding  shall  be
    43  commenced  within  thirty days of the mailing of the notice of the board
    44  of assessment review to the new owner as provided in this paragraph.
    45    (iii) Upon receipt of a determination of the exempt amount as provided
    46  in subparagraph (ii) of this paragraph, the assessor shall determine the
    47  pro rata exemption to be credited toward such  property  by  multiplying
    48  the  tax  rate  or tax rates for each municipal corporation which levied
    49  taxes, or for which taxes were levied, on the appropriate [tax]  assess-
    50  ment  roll  used  for the fiscal year or years during which the transfer
    51  occurred times the exempt amount, as determined in subparagraph (ii)  of
    52  this  paragraph, times the fraction of each fiscal year or years remain-
    53  ing subsequent to the transfer of title. The assessor shall  immediately
    54  transmit a statement of the pro rata exemption credit due to each munic-
    55  ipal  corporation  which  levied taxes or for which taxes were levied on

        A. 1288--A                          5
 
     1  the [tax] assessment roll used for the fiscal year or years during which
     2  the transfer occurred and to the applicant.
     3    (iv)  Each  municipal  corporation  which  receives notice of pro rata
     4  exemption credits pursuant to this subdivision shall include  an  appro-
     5  priation  in  its budget for the next fiscal year equal to the aggregate
     6  amount of such credits to be applied in  that  fiscal  year.    Where  a
     7  parcel,  the  owner of which is entitled to a pro rata exemption credit,
     8  is subject to taxation in said next fiscal year, the receiver or collec-
     9  tor shall apply the credit to reduce the amount of taxes  owed  for  the
    10  parcel  in such fiscal year. Pro rata exemption credits in excess of the
    11  amount of taxes, if any, owed for the parcel shall be paid by the treas-
    12  urer of a municipal corporation which levies such taxes for or on behalf
    13  of the municipal corporation to all owners of property entitled to  such
    14  credits  within  thirty days of the expiration of the warrant to collect
    15  taxes in said next fiscal year. Notwithstanding the foregoing, where the
    16  municipal corporation has been reimbursed by  another  municipal  corpo-
    17  ration  for  the  tax  credit  to  be paid to the owner pursuant to this
    18  subdivision, such credit shall be paid  to  such  municipal  corporation
    19  instead of such owner.
    20    (b)  (i)  Notwithstanding  the  provisions  of  this  section, where a
    21  nonprofit organization that meets  the  requirements  for  an  exemption
    22  pursuant  to  this  section, purchases property after the taxable status
    23  date but prior to the levy of taxes, such nonprofit  organization  may[,
    24  if  permitted  by  a local law, ordinance or resolution of the municipal
    25  corporation in which the nonprofit organization  is  located,]  file  an
    26  application  for  an  exemption with the assessor [within thirty days of
    27  the transfer of title to such nonprofit organization] no later than  the
    28  taxable status date applicable to the assessment roll three years subse-
    29  quent to the purchase of such property. The assessor shall make a deter-
    30  mination within thirty days after receipt of such application of whether
    31  the applicant would qualify for an exemption pursuant to this section on
    32  the  assessment  roll  if title had been in the name of the applicant on
    33  the taxable status date applicable to such assessment roll. The applica-
    34  tion shall be made on a form prescribed by the commissioner.
    35    (ii) If the assessor's determination is made prior to  the  filing  of
    36  the  tentative  assessment  roll,  the  assessor  shall enter the exempt
    37  amount, if any, on the tentative assessment roll and,  within  ten  days
    38  after  filing  such roll, notify the applicant of the approval or denial
    39  of such exemption, the exempt amount, if any, and the applicant's  right
    40  to review by the board of assessment review.
    41    (iii)  If the assessor's determination is made after the filing of the
    42  tentative assessment roll, the assessor  shall  petition  the  board  of
    43  assessment  review  to correct the tentative or final assessment roll in
    44  the manner provided in title three of article five of this chapter, with
    45  respect to unlawful entries, in the case of wholly exempt  parcels,  and
    46  with  respect  of  clerical  errors,  in  the  case  of partially exempt
    47  parcels, if the assessor determines that an exemption should be  granted
    48  and,  within  ten  days  of  petitioning the board of assessment review,
    49  notify the applicant of the approval or denial of  such  exemption,  the
    50  amount  of such exemption, if any, and the applicant's right to adminis-
    51  trative or judicial review of such  determination  pursuant  to  article
    52  five or seven of this chapter, respectively.
    53    (c)  If, for any reason, a determination to exempt property from taxa-
    54  tion as provided in paragraph (b) of this subdivision is not entered  on
    55  the  final  assessment  roll,  the  assessor shall petition the board of
    56  assessment review to correct the final assessment roll.

        A. 1288--A                          6
 
     1    (d) If, for any reason, the pro rata tax credit as provided  in  para-
     2  graph  (a) of this subdivision is not extended against the [tax] assess-
     3  ment roll immediately succeeding the fiscal year during which the trans-
     4  fer occurred,  the  assessor  shall  immediately  notify  the  municipal
     5  corporation  which  levied the tax or for which the taxes were levied of
     6  the amount of pro rata exemption credits for  the  year  in  which  such
     7  transfer  occurred. Such municipal corporation shall proceed as provided
     8  in subparagraph (iv) of paragraph (a) of this subdivision.
     9    (e) If, for any reason, a determination to exempt property from  taxa-
    10  tion  as provided in paragraph (b) of this subdivision is not entered on
    11  the [tax] assessment roll for the year immediately succeeding the fiscal
    12  year during which the transfer occurred, the  assessor  shall  determine
    13  the  pro  rata  tax  exemption  credit for such [tax] assessment roll by
    14  multiplying the tax rate or tax rates  for  each  municipal  corporation
    15  which  levied  taxes  or  for  which  taxes were levied times the exempt
    16  amount and shall immediately notify such municipal corporation or corpo-
    17  rations of the pro rata exemption  credits  for  such  [tax]  assessment
    18  roll. Such municipal corporation shall add such pro rata exemption cred-
    19  its  for such property to any outstanding pro rata exemption amounts and
    20  proceed as provided in subparagraph (iv) of paragraph (a) of this subdi-
    21  vision.
    22    § 3. This act shall take effect immediately.
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