BILL NUMBER:  S670

 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 organization that
purchases 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 a
non-profit organization that purchases real property that is on the
tax rolls to obtain a real property exemption if such organization
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.

 EXISTING LAW :

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 buildings or improvements must be constructed to
further the organization's charitable purpose within 7 years of
purchasing such property.

 JUSTIFICATION :

Under current law, non-profit charitable organizations can purchase
land as an investment vehicle and then obtain the real property's tax
exempt status (to the detriment of the local taxing authority) without
realistically contemplating the satisfaction of the requirement that
the property is used in the furtherance of the organization's
charitable mission. This bill amends the law so that only properties
that are truly acquired to further an organization's charitable
purpose are granted tax exempt status.  If 7 years after the
acquisition of the parcel, the charitable organization has not
commenced activities to further the charitable purpose, then such land
will be placed back on the tax rolls.

 LEGISLATIVE HISTORY :

S.4714 of 2005-2006, S.529 of 2007/2008

 FISCAL IMPLICATIONS :

None.

 LOCAL FISCAL IMPLICATIONS :

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.