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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1343
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.
