BILL NUMBER:S8474

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 14 to provide that the burden of
annually establishing that the requirements of section 420-a have
been satisfied shall be upon the owner and must be proven by clear
and convincing evidence. Provides that the State Office of Real
Property Services shall develop, in consultation with not-for-profit
organizations and assessors guidance documents which shall be used by
assessors to determine whether that standard has been met.

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 reconstructing 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 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 met those public purposes, and that lands receiving relief from
real property taxation are being fully used in support of such
purposes.

LEGISLATIVE HISTORY:
2007-08: S.498 - Committed to Rules
2005-06: S.3926 - Committed to Rules
2003: S.1123 Died on Third Reading
2004: S.1123A 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,
municipal 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 law and would apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after such date.