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A01343 Summary:

COSPNSRSmullen, Kelles, Sayegh, Gallahan
Amd §420-a, RPT L
Requires the burden of annually establishing that the requirements of the mandatory class non-profit real property tax exemptions have been satisfied to fall upon the owner of the property and must be proven by clear and convincing evidence.
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A01343 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Gunther
  TITLE OF BILL: An act to amend the real property tax law, in relation to the exemption from taxation for non-profit organizations   PURPOSE: To place the responsibility of annually establishing that a not for profit corporation or association is entitled to real property tax exemptions with such corporation or association.   SUMMARY OF PROVISIONS: Amends section 420-a of the real property tax law by adding a new subdivision 15 to provide that the burden of annual- ly establishing that the requirements of section 420-a, have been satis- fied shall be upon the owner and must be proven by clear and convincing evidence.   EXISTING LAW: While not for profit corporations or associations must initially seek the granting of an exemption under Section 420-a, they are not required to do so on an annual basis, nor are they regularly compelled to provide convincing evidence that such exemption should apply.   JUSTIFICATION: This proposed measure is one of a series of bills aimed at restructuring the framework for granting real property tax exemptions across the state. Based on year 2000 assessment rolls, there are over five million parcels of property in New York State (valued at a total of 1.3 trillion dollars). Of this number, some three million parcels enjoy at least 1 real property tax exemption. From a taxable status standpoint, about 1/3 of the total value of property in New York State (441 billion dollars) is either wholly or partially exempt from real property taxation. The lion's share of real property tax exemptions (around 68%) are state mandated, and while the state has provided some reimbursement to relieve local taxing jurisdictions (i.e. through the STAR program), high levels of tax exemptions can present a serious burden to other property owners who must support the cost of school district, municipal and special district operations. The State must help provide tools which promote greater accountability from those seeking real property exemptions in order to balance public needs and benefits. This specific legislation offers such a tool by seeking to ensure that organizations which seek tax exemption truly meet those public purposes, and that lands receiving relief from real property taxation are being fully used in support of such purposes.   LEGISLATIVE HISTORY: 2021-2022: A145 referred to Real Property Taxation/S1954 referred to Local Government 2019-2020: A3655 referred to Real Property Taxation/S2606 referred to Local Government 2017-2018: A539 referred to Real Property Taxation/5996 referred to Local Government 2015-2016: A1826 referred to Real Property Taxation/51372 referred to Local Government 2013-2014: A1271 referred to Real Property Taxation/S878 referred to Local Government 2011-2012: A417A referred to Real Property Taxation/S2545A referred to Local Government 2009-2010: A908 reported to Ways & Means/S874 referred to Rules 2007-2008: A1246 reported to Ways & Means/S478 committed to Rules 2005-2006: A391 held in Real Property Taxation/S3926 committed to Rules 2003-2004: A9516 referred to Real Property Taxation/S1123A referred to Local Government   FISCAL IMPLICATIONS: None to the state.   LOCAL FISCAL IMPLICATIONS: Undetermined, however, it is anticipated the bill will offer improved local oversight of exemptions, with a salutary effect on school, munici- pal and special district (i.e. fire protection) tax rolls.   EFFECTIVE DATE: This act would take effect on the first of January next succeeding the date on which it shall have become a law and would apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.
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