§ 420-B — Nonprofit organizations; permissive class

New York § 420-B

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

Text

§ 420-b. Nonprofit organizations; permissive class. 1. (a) Real\nproperty owned by a corporation or association which is organized\nexclusively for bible, tract, benevolent, missionary, infirmary, public\nplayground, scientific, literary, bar association, medical society,\nlibrary, patriotic or historical purposes, for the development of good\nsportsmanship for persons under the age of eighteen years through the\nconduct of supervised athletic games, for the enforcement of laws\nrelating to children or animals, or for two or more such purposes, and\nused exclusively for carrying out thereupon one or more of such purposes\neither by the owning corporation or association, or by another such\ncorporation or association as hereinafter provided, shall be exempt from\ntaxation; provided, however, that such property shall be taxable by any\nmunicipal corporation within which it is located if the governing board\nof such municipal corporation, after public hearing, adopts a local law,\nordinance or resolution so providing. None of the following subdivisions\nof this section providing that certain properties shall be exempt under\ncircumstances or conditions set forth in such subdivisions shall exempt\nsuch property from taxation by a municipal corporation whose governing\nboard has adopted a local law, ordinance or resolution providing that\nsuch property shall be taxable pursuant to this subdivision.\n (b) No local law, ordinance or resolution adopted pursuant to this\nsubdivision shall provide for the taxation of any particular property or\nowner. Any such local law, ordinance or resolution shall apply alike to\nall property owned by any corporation or association organized for one\nor more of the purposes specified in such local law, ordinance or\nresolution, and used for carrying out thereupon one or more of such\npurposes. Any purpose so specified in the local law, ordinance or\nresolution must be one of the purposes listed in paragraph (a) of this\nsubdivision, but the purposes so specified in the local law, ordinance\nor resolution need not include all the purposes listed in said\nparagraph. Any local law, ordinance or resolution adopted pursuant to\nthis subdivision may be amended or repealed.\n (c) Real property such as specified in paragraph (a) of this\nsubdivision shall not be exempt if any officer, member or employee of\nthe owning corporation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 any pecuniary profit\nfrom the operations thereof, except reasonable compensation for services\nin effecting one or more of such purposes, or as proper beneficiaries of\nits strictly charitable purposes; or if the organization thereof for any\nsuch avowed purposes be a guise or pretense for directly or indirectly\nmaking any other pecuniary profit for such corporation or association or\nfor any of its members or employees; or if it be not in good faith\norganized 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 the purposes listed in subdivision\none of this section, but is (a) leased or (b) otherwise used for other\npurposes, such portion shall be subject to taxation and the remaining\nportion only shall be exempt; provided, however, that such real property\nshall be fully exempt from taxation although it or a portion thereof is\nused (a) for purposes which are exempt pursuant to this section or\nsections four hundred twenty-a, four hundred twenty-two, four hundred\ntwenty-four, four hundred twenty-six, four hundred twenty-eight, four\nhundred thirty or four hundred fifty of this article by another\ncorporation which owns real property exempt from taxation pursuant to\nsuch sections or whose real property if it owned any would be exempt\nfrom taxation pursuant to such sections, (b) for purposes which are\nexempt pursuant to section four hundred six or section four hundred\neight of this chapter by a corporation which owns real property exempt\nfrom taxation pursuant to such section, (c) for purposes which are\nexempt pursuant to section four hundred sixteen of this chapter by an\norganization which owns real property exempt from taxation pursuant to\nsuch section or whose real property if it owned any would be exempt from\ntaxation pursuant to such section or (d) for purposes relating to civil\ndefense pursuant to the New York state defense emergency act, including\nbut not limited to activities in preparation for anticipated attack,\nduring attack, or following attack or false warning thereof, or in\nconnection with drill or test ordered or directed by civil defense\nauthorities; and provided further that such real property shall be\nexempt 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 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 of 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 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 6. Real property exempt pursuant to this section from taxation by all\nmunicipal corporations within which it is located shall also be exempt\nfrom special ad valorem levies and special assessments to the extent\nprovided in section four hundred ninety of this chapter. Real property\nwhich is taxable by one or more, but not all, of the municipal\ncorporations within which it is located, pursuant to subdivision one of\nthis section shall also be exempt from such levies and assessments to\nthe same extent except that:\n such real property taxable by a town shall be subject to any such\nlevies and assessments which are imposed to defray the costs of\nimprovements or services furnished by the town or by a special district\nestablished pursuant to the town law;\n such real property taxable by a county shall be subject to any such\nlevies and assessments which are imposed to defray the costs of\nimprovements or services furnished by the county or by a special\ndistrict established pursuant to the county law; and\n such real property taxable by a city shall be subject to any such\nlevies and assessments which are imposed to defray the cost of\nimprovements or service furnished by the city.\n 7. An exemption may be granted pursuant to this section only upon\napplication made by the owner of the property on a form prescribed by\nthe commissioner. The application shall be filed with the assessor of\nthe appropriate county, city, town or village on or before the taxable\nstatus date of such county, city, town or village.\n 8. (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 file, if permitted by a local\nlaw, ordinance or resolution of the municipal corporation in which the\nnonprofit organization is located, an application for exemption with the\nassessor no later than the time specified in such local law, ordinance\nor resolution. The assessor shall make a determination of whether the\nparcel would have qualified for exempt status on the tax roll on which\nthe taxes were levied, had title to the parcel been in the name of the\napplicant on the taxable status date applicable to the tax roll. The\napplication shall be on a form prescribed by the commissioner. The\nassessor, no later than thirty days after receipt of such application,\nshall notify both the applicant and the board of assessment review, by\nfirst class mail, of the exempt amount, if any, and the right of the\nowner to a review of the exempt amount upon the filing of a written\ncomplaint. 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