NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2011
TITLE OF BILL:
An act to amend the real property tax law, in relation to nonprofit
organizations mandatory class
PURPOSE OF THE BILL:
The bill will prohibit properties which are in violation of a local
government's zoning laws from receiving a property tax exemption.
SUMMARY OF PROVISIONS:
Section one of the bill amends section 420-a of the real property tax
law as it relates to prohibiting properties which are in violation of a
local government's zoning laws from receiving a property tax exemption.
Section two of the bill relates to the effective date.
There has been several court cases related to the issue of whether
zoning violations should prohibit a property owner from receiving a
property tax exemption. The most recent ruling, Community Humanitarian
Assn, Inc v. Town of Ramapo, stated that a violation of the local zoning
law should not result in the revocation or denial of a tax exemption.
Since the law is not explicit on the issue, this bill will clarify that
violation of applicable local zoning laws will be grounds to deny a
property tax exemption.
In order to receive a tax exemption benefit, a property should be in
compliance with local zoning laws. The recent court decision narrowly
focused on the use of the property and ignored the fact that the proper-
ty was in clear violation of zoning law.
This bill will remove confusion among the courts and provide assessors
with the tools to ensure that property tax exemptions are appropriately
PRIOR LEGISLATIVE HISTORY:
A1976 of 2019-20
A3927A of 2017-18
FISCAL IMPLICATIONS FOR STATE:
This act shall take effect immediately.
STATE OF NEW YORK
2021-2022 Regular Sessions
January 14, 2021
Introduced by M. of A. ZEBROWSKI, PEOPLES-STOKES, BRAUNSTEIN, GALEF,
COLTON, GLICK, THIELE -- read once and referred to the Committee on
Real Property Taxation
AN ACT to amend the real property tax law, in relation to nonprofit
organizations mandatory class
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 1 of section 420-a of the real
2 property tax law, as amended by chapter 919 of the laws of 1981, is
3 amended to read as follows:
4 (b) Real property such as specified in paragraph (a) of this subdivi-
5 sion shall not be exempt if any officer, member or employee of the
6 owning corporation or association shall receive or may be lawfully enti-
7 tled to receive any pecuniary profit from the operations thereof, except
8 reasonable compensation for services in effecting one or more of such
9 purposes, or as proper beneficiaries of its strictly charitable
10 purposes; or if the organization thereof for any such avowed purposes be
11 a guise or pretense for directly or indirectly making any other pecuni-
12 ary profit for such corporation or association or for any of its members
13 or employees; or if it be not in good faith organized or conducted
14 exclusively for one or more of such purposes; or if such purpose in
15 which the real property is being used is in violation of applicable
16 local zoning laws.
17 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.