NY State Senate Bill 2021-S1638

Senate Bill S1638

2021-2022 Legislative Session

Sets a 7 year limit to the real property tax exemption for unimproved property of mandatory class nonprofit organizations

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to local government
Jan 14, 2021	referred to local government

co-Sponsors

2021-S1638 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §420-a, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S3993
2015-2016: S2258
2017-2018: S3298
2019-2020: S1662
2023-2024: S1158

2021-S1638 (ACTIVE) - Summary

Sets a 7-year limit to the real property tax exemption for unimproved property of mandatory class nonprofit organizations.

2021-S1638 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1638

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the duration
of the exemption for property of mandatory class nonprofit organizations
by reason of the absence of suitable buildings or improvements thereon
if construction of such buildings or improvements is in progress or is
in good faith contemplated

 
PURPOSE:

To establish stricter standards for non-profit organizations that
purchase land and file an application for municipal real property
exemption. The purpose of this bill is to ensure that properties exempt
from real property taxes are being used in a manner that supports the
specific exemption granted.

 
SUMMARY OF PROVISIONS:

Section 1: Amends Real Property Law section 420-a (3) to permit nonpro-
fit organizations that purchase real property that is on the tax rolls
to obtain and maintain a real property exemption only if such organiza-
tion within 7 years after such property is acquired constructs buildings
or other capital improvements or is in good faith contemplating such
construction to further its charitable purposes. Exempts children's
overnight camps and summer day camps and real property owned by not-for-
profit conservation organizations from the provision of this section.

Section 2: Effective Date

 
JUSTIFICATION:

Under current law, if a non-profit organization purchases property that
is on the tax rolls, such organization can obtain an exemption from real
property taxes if the construction of buildings or other improvements
are in progress or are in "good faith" contemplated. This bill tightens
qualifications for obtaining tax exempt status by requiring that build-
ings or improvements must be constructed to further the organization's
charitable purpose within 7 years of purchasing such property.

 
LEGISLATIVE HISTORY:

2015-2016: S.2258-A Referred to Local Governments
Senate
2017 - Referred to Local Government
2018 - Referred to Local Government Assembly
2017 - Referred to Real Property Taxation
2018 - Referred to Real Property Taxation
2020 - S1662C Referred to Local Government / No Assembly Same-as

 
FISCAL IMPLICATIONS:

None to the state. For local governments, would place certain parcels
back on the tax rolls that were in fact not used for a bona fide exempt
use.

 
EFFECTIVE DATE:
January 1st of the year next succeeding the date on which it shall have
become law.

2021-S1638 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1638
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 14, 2021
                                ___________
 
 Introduced  by Sens. SKOUFIS, BIAGGI, GOUNARDES, KRUEGER, SAVINO -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Local Government
 
 AN  ACT  to amend the real property tax law, in relation to the duration
   of the exemption for property of mandatory class  nonprofit  organiza-
   tions  by  reason of the absence of suitable buildings or improvements
   thereon if construction  of  such  buildings  or  improvements  is  in
   progress or is in good faith contemplated
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 420-a of  the  real  property  tax
 law,  such  section as renumbered by chapter 919 of the laws of 1981, is
 amended and a new subdivision 17 is added to read as follows:
   3. Such real property from which no revenue is derived shall be exempt
 though not in actual use therefor by reason of the absence  of  suitable
 buildings or OTHER PHYSICAL improvements thereon if:
   (a)  the construction of such buildings or OTHER PHYSICAL improvements
 is in progress or is in good faith contemplated by such  corporation  or
 association  WITHIN SEVEN YEARS AFTER SUCH PROPERTY HAS BEEN ACQUIRED BY
 SUCH CORPORATION OR ASSOCIATION; FOR THE PURPOSES  OF  CALCULATING  SUCH
 SEVEN YEARS' PERIOD, WITH RESPECT TO PROPERTY ACQUIRED BEFORE THE EFFEC-
 TIVE  DATE  OF  THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE WHICH
 AMENDED THIS SUBDIVISION, SUCH SEVEN YEARS'  PERIOD  SHALL  COMMENCE  ON
 SUCH  EFFECTIVE  DATE, AND WITH RESPECT TO PROPERTY ACQUIRED ON OR AFTER
 SUCH EFFECTIVE DATE, SUCH SEVEN YEARS' PERIOD SHALL COMMENCE ON THE DATE
 OF ACQUISITION; or
   (b) such real property is held by such corporation or association upon
 condition that the title thereto shall revert in case any  building  not
 intended  and  suitable  for  one or more such purposes shall be erected
 upon such premises or some part thereof.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02660-02-1

 S. 1638                             2
 
   17. NOTWITHSTANDING ANY PROVISION OF THIS  SECTION  TO  THE  CONTRARY,
 REAL  PROPERTY  USED  FOR  THE PURPOSE OF A CHILDREN'S OVERNIGHT CAMP OR
 SUMMER DAY CAMP, AS SUCH TERMS ARE DEFINED IN SECTION  THIRTEEN  HUNDRED
 NINETY-TWO  OF  THE PUBLIC HEALTH LAW, AND REAL PROPERTY OWNED BY A NOT-
 FOR-PROFIT  CONSERVATION  ORGANIZATION  AS DEFINED IN SUBDIVISION TWO OF
 SECTION 49-0303 OF THE ENVIRONMENTAL CONSERVATION LAW  SHALL  BE  EXEMPT
 FROM THE PROVISIONS OF THIS SECTION.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.

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Senate Bill S1638

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Sponsored By

James Skoufis

Archive: Last Bill Status - In Senate Committee Local Government Committee

co-Sponsors

Alessandra Biaggi

Andrew Gounardes

Liz Krueger

Diane J. Savino

2021-S1638 (ACTIVE) - Details

2021-S1638 (ACTIVE) - Summary

2021-S1638 (ACTIVE) - Sponsor Memo

2021-S1638 (ACTIVE) - Bill Text download pdf

Comments