§ 420-A — Nonprofit organizations; mandatory class

New York § 420-A

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2: Private Property
• Art. 4: Exemptions

Text

§ 420-a. Nonprofit organizations; mandatory class. 1. (a) Real\nproperty owned by a corporation or association organized or conducted\nexclusively for religious, charitable, hospital, educational, or moral\nor mental improvement of men, women or children purposes, or for two or\nmore such purposes, and used exclusively for carrying out thereupon one\nor more of such purposes either by the owning corporation or association\nor by another such corporation or association as hereinafter provided\nshall be exempt from taxation as provided in this section.\n (b) Real property such as specified in paragraph (a) of this\nsubdivision shall not be exempt if any officer, member or employee of\nthe owning corporation or association shall receive or may be lawfully\nentitled to receive any pecuniary profit from the operations thereof,\nexcept reasonable compensation for services in effecting one or more of\nsuch purposes, or as proper beneficiaries of its strictly charitable\npurposes; or if the organization thereof for any such avowed purposes be\na guise or pretense for directly or indirectly making any other\npecuniary profit for such corporation or association or for any of its\nmembers or employees; or if it be not in good faith organized or\nconducted exclusively for one or more of such purposes.\n 2. If any portion of such real property is not so used exclusively to\ncarry out thereupon one or more of such purposes but is leased or\notherwise used for other purposes, such portion shall be subject to\ntaxation and the remaining portion only shall be exempt; provided,\nhowever, that such real property shall be fully exempt from taxation\nalthough it or a portion thereof is used (a) for purposes which are\nexempt pursuant to this section or sections four hundred twenty-b, four\nhundred twenty-two, four hundred twenty-four, four hundred twenty-six,\nfour hundred twenty-eight, four hundred thirty or four hundred fifty of\nthis chapter by another corporation which owns real property exempt from\ntaxation pursuant to such sections or whose real property if it owned\nany would be exempt from taxation pursuant to such sections, (b) for\npurposes which are exempt pursuant to section four hundred six or\nsection four hundred eight of this chapter by a corporation which owns\nreal property exempt from taxation pursuant to such section or if it\nowned any would be exempt from taxation pursuant to such section, (c)\nfor purposes which are exempt pursuant to section four hundred sixteen\nof this chapter by an organization which owns real property exempt from\ntaxation pursuant to such section or whose real property if it owned any\nwould be exempt from taxation pursuant to such section, (d) for purposes\nrelating to civil defense pursuant to the New York state defense\nemergency act, including but not limited to activities in preparation\nfor anticipated attack, during attack, or following attack or false\nwarning thereof, or in connection with drill or test ordered or directed\nby civil defense authorities, or (e) for purposes of a tax-free NY area\nthat has been approved pursuant to article twenty-one of the economic\ndevelopment law, subject to the conditions that the real property must\nhave been owned by the corporation or association organized exclusively\nfor educational purposes and exempt pursuant to this section on June\nfirst, two thousand thirteen, and that the exemption shall apply only to\nthe portion of such real property that is used for purposes of the\nSTART-UP NY program; and provided further that such real property shall\nbe exempt from taxation only so long as it or a portion thereof, as the\ncase may be, is devoted to such exempt purposes and so long as any\nmoneys paid for such use do not exceed the amount of the carrying,\nmaintenance and depreciation charges of the property or portion thereof,\nas the case may be.\n 3. Such real property from which no revenue is derived shall be exempt\nthough not in actual use therefor by reason of the absence of suitable\nbuildings or improvements thereon if (a) the construction of such\nbuildings or improvements is in progress or is in good faith\ncontemplated by such corporation or association or (b) such real\nproperty is held by such corporation or association upon condition that\nthe title thereto shall revert in case any building not intended and\nsuitable for one or more such purposes shall be erected upon such\npremises or some part thereof.\n 4. Such real property shall be so exempt although it is used as a\npolling place upon days of registration and election.\n 5. Such real property owned and actually used for hospital purposes by\na free public hospital which depends for maintenance and support upon\nvoluntary charity, shall be so exempt from taxation although a portion\nthereof is leased or otherwise used for the purposes of income, if such\nincome is necessary for and is actually applied to the maintenance and\nsupport of such hospital.\n 6. Such real property outside a city owned by a free public library or\nheld in trust by an educational corporation for free library purposes\nshall be so exempt from taxation although a portion thereof is leased or\notherwise used for purposes of income, if such income is necessary for\nand is actually applied to the maintenance and support of such library.\n 7. Real property which was, on the first day of January, nineteen\nhundred eighty-three owned for more than one hundred years by a\ncorporation organized exclusively for purposes specified in subdivision\none of this section under a grant or devise and a special charter\ngranted by the legislature of the state of New York subject to\nconditions which raise doubt as to the power of such corporation to\nconvey fee title to the property shall, if the property is used\nexclusively for educational purposes by an educational corporation which\nowns real property exempt from taxation, or whose real property if it\nowned any would be exempt from taxation, as lessee for a term of not\nless than twenty-five years and if such lease were in effect on the\nfirst day of January, nineteen hundred eighty-three and requires the\nlessee to pay all taxes levied against the property, be exempt from\ntaxation to the same extent and subject to the same conditions and\nexceptions as property owned and used for educational purposes by a\ncorporation organized exclusively for educational purposes, regardless\nof whether the moneys paid to the lessor by the lessee are limited to\nthe amount of the carrying, maintenance and depreciation charges of the\nproperty.\n 8. Real property exempt from taxation pursuant to this section shall\nalso be exempt from special ad valorem levies and special assessments to\nthe extent provided in section four hundred ninety of this chapter.\n 9. In addition to the exemption provided in this section, any stadium\nfacility owned by a corporation organized exclusively for educational\npurposes which is constructed in whole or in substantial part with state\nfunds shall be exempt from taxation notwithstanding its use by the\nstate, by a municipal corporation for a public use, or by or for\nnot-for-profit organizations.\n 10. Real property, which on the first day of January, nineteen hundred\nninety was exempt from real property taxation pursuant to this section\nby reason of the ownership and use of such property by a corporation\norganized exclusively for educational purposes, and which the fee title\nto such property is conveyed prior to June thirtieth, nineteen hundred\nninety-one to a governmental entity, shall be exempt from taxation;\nprovided that (a) as a condition of such conveyance such property is\nleased, for a term or terms exceeding one hundred years, to an\neducational corporation whose real property, when used for educational\npurposes, is exempt from taxation, and (b) such property shall continue\nto be used by such corporation exclusively for educational purposes\nsubject to the same conditions and exceptions as property owned and used\nfor educational purposes by a corporation organized exclusively for such\npurposes.\n 11. An exemption may be granted pursuant to this section upon\napplication by the owner on a form prescribed by the commissioner or any\ncomparable form, which application may be filed with the assessor of the\nappropriate county, city, town or village on or before the applicable\ntaxable status date. Where the assessor receives no such application,\nthe assessor may nevertheless grant the exemption provided the assessor\npersonally inspects the property and certifies in writing that it\nsatisfies all of the requirements for exemption set forth in this\nsection. Where property is not granted an exemption pursuant to this\nsection, the owner may seek judicial review pursuant to article seven of\nthis chapter or article seventy-eight of the civil practice law and\nrules.\n 12. Notwithstanding any provision of this chapter or any other law to\nthe contrary, real property, the fee title to which was acquired on\nMarch twenty-third, nineteen hundred ninety-four pursuant to a mortgage\nforeclosure sale conducted by the federal deposit insurance corporation,\nby a corporation or association organized exclusively for educational\npurposes, and which was used exclusively by such corporation or\nassociation for carrying out thereupon educational purposes during the\nperiod beginning on the date the fee title was acquired by such\ncorporation or association and ending on June thirtieth, nineteen\nhundred ninety-five, shall be exempt from taxation for such period as\nprovided in this section. The city of New York may negotiate and execute\nwith the owner of real property in the city of New York qualifying for\nexemption under this subdivision, an agreement for the payment of unpaid\nreal property taxes and interest thereon that accrued on such property\nprior to the date on which the fee title to such property was acquired\nby such owner. Notwithstanding any provision of this chapter or the\nadministrative code of the city of New York or any other law to the\ncontrary, such agreement may require that payment of such taxes and\ninterest thereon be made in quarterly installments over a period not to\nexceed thirty years.\n 13. Notwithstanding any provision of this chapter or any other law to\nthe contrary, real property, the fee title to which was acquired on\nMarch twenty-third, nineteen hundred ninety-four pursuant to a mortgage\nforeclosure sale conducted by the federal deposit insurance corporation\nby a corporation or association organized exclusively for educational\npurposes, and which has been used exclusively by such corporation or\nassociation for carrying out thereupon educational purposes since the\ndate on which the fee title was acquired by such corporation or\nassociation, and is currently being used for such purposes, shall be\nexempt from taxation as provided in this section and the city of New\nYork may cancel and annul any unpaid real property taxes that accrued on\nsuch real property prior to the date on which the fee title to such\nproperty was acquired by such owner together with any interest accruing\non such unpaid real property taxes.\n 14. Notwithstanding any provision of this chapter or any other law to\nthe contrary, real property in block 1175 in the county of Kings leased\nto the unified court system for the establishment and operation of a\ncourt officer academy authorized pursuant to section two hundred\nnineteen-b of the judiciary law shall be exempt from taxation for the\nduration of such lease provided that such property shall be used for\nsuch purpose and provided that title to such property shall not be\nconveyed to another owner at any time during the duration of such lease.\n 15. Notwithstanding any provision of this chapter or any other law to\nthe contrary, real property in block 1272 in the borough of Brooklyn,\nthe fee title to which was acquired in 1997 or 1998 in order to\nestablish a museum and center for children by a not-for-profit\ncorporation or association organized exclusively for charitable\npurposes, and which has been used exclusively by such corporation or\nassociation for carrying out thereupon charitable purposes since the\ndate on which the fee title was acquired by such corporation or\nassociation, shall be exempt from taxation as provided in this section\nand the city of New York may cancel and annul any unpaid real property\ntaxes that accrued on such real property prior to the date on which the\nfee title to such property was acquired by such owner together with any\ninterest accruing such unpaid real property taxes.\n 16. (a) (i) For the purposes of this subdivision, "municipal\ncorporation" shall mean a county, city, town, village or school district\nwhich, after public hearing, adopts a local law, ordinance or\nresolution, providing that this subdivision shall be applicable to\nnonprofit organizations within its jurisdiction. Such local law,\nordinance or resolution shall apply to property transfers occurring on\nor after the effective date of such local law, ordinance or resolution.\nA copy of such local law, ordinance or resolution shall be filed with\nthe commissioner.\n (ii) Where a nonprofit organization that meets the requirements for an\nexemption pursuant to this section, purchases property after the levy of\ntaxes, such nonprofit organization may, if permitted by a local law,\nordinance or resolution of the municipal corporation in which the\nnonprofit organization is located, file an application for exemption\nwith the assessor no later than the time specified in such local law,\nordinance or resolution. The assessor shall make a determination of\nwhether the parcel would have qualified for exempt status on the tax\nroll on which the taxes were levied, had title to the parcel been in the\nname of the applicant on the taxable status date applicable to the tax\nroll. The application shall be on a form prescribed by the commissioner.\nThe assessor, no later than thirty days after receipt of such\napplication, shall notify both the applicant and the board of assessment\nreview, by first class mail, of the exempt amount, if any, and the right\nof the owner to a review of the exempt amount upon the filing of a\nwritten complaint. Such complaint shall be on a form prescribed by the\ncommissioner and shall be filed with the board of assessment review\nwithin twenty days of the mailing of such notice. If no complaint is\nreceived, the board of assessment review shall so notify the assessor\nand the exempt amount determined by the assessor shall be final. If the\napplicant files a complaint, the board of assessment review shall\nschedule a time and place for a hearing with respect thereto no later\nthan thirty days after the mailing of the notice by the assessor. The\nboard of assessment review shall meet and determine the exempt amount,\nand shall immediately notify the assessor and the applicant, by first\nclass mail, of its determination. The amount of exemption determined\npursuant to this paragraph shall be subject to review as provided in\narticle seven of this chapter. Such a proceeding shall be commenced\nwithin thirty days of the mailing of the notice of the board of\nassessment review to the new owner as provided in this paragraph.\n (iii) Upon receipt of a determination of the exempt amount as provided\nin subparagraph (ii) of this paragraph, the assessor shall determine the\npro rata exemption to be credited toward such property by multiplying\nthe tax rate or tax rates for each municipal corporation which levied\ntaxes, or for which taxes were levied, on the appropriate tax roll used\nfor the fiscal year or years during which the transfer occurred times\nthe exempt amount, as determined in subparagraph (ii) of this paragraph,\ntimes the fraction of each fiscal year or years remaining subsequent to\nthe transfer of title. The assessor shall immediately transmit a\nstatement of the pro rata exemption credit due to each municipal\ncorporation which levied taxes or for which taxes were levied on the tax\nroll used for the fiscal year or years during which the transfer\noccurred and to the applicant.\n (iv) Each municipal corporation which receives notice of pro rata\nexemption credits pursuant to this subdivision shall include an\nappropriation in its budget for the next fiscal year equal to the\naggregate amount of such credits to be applied in that fiscal year.\nWhere a parcel, the owner of which is entitled to a pro rata exemption\ncredit, is subject to taxation in said next fiscal year, the receiver or\ncollector shall apply the credit to reduce the amount of taxes owed for\nthe parcel in such fiscal year. Pro rata exemption credits in excess of\nthe amount of taxes, if any, owed for the parcel shall be paid by the\ntreasurer of a municipal corporation which levies such taxes for or on\nbehalf of the municipal corporation to all owners of property entitled\nto such credits within thirty days of the expiration of the warrant to\ncollect taxes in said next fiscal year. Notwithstanding the foregoing,\nwhere the municipal corporation has been reimbursed by another municipal\ncorporation for the tax credit to be paid to the owner pursuant to this\nsubdivision, such credit shall be paid to such municipal corporation\ninstead of such owner.\n (b) (i) Notwithstanding the provisions of this section, where a\nnonprofit organization that meets the requirements for an exemption\npursuant to this section, purchases property after the taxable status\ndate but prior to the levy of taxes, such nonprofit organization may, if\npermitted by a local law, ordinance or resolution of the municipal\ncorporation in which the nonprofit organization is located, file an\napplication for an exemption with the assessor within thirty days of the\ntransfer of title to such nonprofit organization. The assessor shall\nmake a determination within thirty days after receipt of such\napplication of whether the applicant would qualify for an exemption\npursuant to this section on the assessment roll if title had been in the\nname of the applicant on the taxable status date applicable to such\nassessment roll. The application shall be made on a form prescribed by\nthe commissioner.\n (ii) If the assessor's determination is made prior to the filing of\nthe tentative assessment roll, the assessor shall enter the exempt\namount, if any, on the tentative assessment roll and, within ten days\nafter filing such roll, notify the applicant of the approval or denial\nof such exemption, the exempt amount, if any, and the applicant's right\nto review by the board of assessment review.\n (iii) If the assessor's determination is made after the filing of the\ntentative assessment roll, the assessor shall petition the board of\nassessment review to correct the tentative or final assessment roll in\nthe manner provided in title three of article five of this chapter, with\nrespect to unlawful entries, in the case of wholly exempt parcels, and\nwith respect of clerical errors, in the case of partially exempt\nparcels, if the assessor determines that an exemption should be granted\nand, within ten days of petitioning the board of assessment review,\nnotify the applicant of the approval or denial of such exemption, the\namount of such exemption, if any, and the applicant's right to\nadministrative or judicial review of such determination pursuant to\narticle five or seven of this chapter, respectively.\n (c) If, for any reason, a determination to exempt property from\ntaxation as provided in paragraph (b) of this subdivision is not entered\non the final assessment roll, the assessor shall petition the board of\nassessment review to correct the final assessment roll.\n (d) If, for any reason, the pro rata tax credit as provided in\nparagraph (a) of this subdivision is not extended against the tax roll\nimmediately succeeding the fiscal year during which the transfer\noccurred, the assessor shall immediately notify the municipal\ncorporation which levied the tax or for which the taxes were levied of\nthe amount of pro rata exemption credits for the year in which such\ntransfer occurred. Such municipal corporation shall proceed as provided\nin subparagraph (iv) of paragraph (a) of this subdivision.\n (e) If, for any reason, a determination to exempt property from\ntaxation as provided in paragraph (b) of this subdivision is not entered\non the tax roll for the year immediately succeeding the fiscal year\nduring which the transfer occurred, the assessor shall determine the pro\nrata tax exemption credit for such tax roll by multiplying the tax rate\nor tax rates for each municipal corporation which levied taxes or for\nwhich taxes were levied times the exempt amount and shall immediately\nnotify such municipal corporation or corporations of the pro rata\nexemption credits for such tax roll. Such municipal corporation shall\nadd such pro rata exemption credits for such property to any outstanding\npro rata exemption amounts and proceed as provided in subparagraph (iv)\nof paragraph (a) of this subdivision.\n