BILL NUMBER: S8128

SPONSOR: KAVANAGH
 
TITLE OF BILL:  An act to repeal section 429 of the real property tax
law relating to real property used for professional major league sports

 
PURPOSE:

To require payment of taxes by the owners of Madison Square Garden.

 
SUMMARY OF SPECIFIC PROVISIONS:

The bill repeals section 429 of the real property tax law, "real proper-
ty used for professional major league sports," to require that the
owners of Madison Square Garden pay real property taxes. The Garden
currently enjoys a curiously worded exemption from taxes, based on the
fact that it meets the following criteria, which are applicable to no
other property in New York:

1. It is located in a city with a population of one million or more, and
used by both a professional major league hockey team which is a member
              

of the National Hockey League and a professional major league basketball
team which is a member of the National Basketball Association to play
their home games.

2. It is exempt from taxation to the extent that the taxes are the obli-
gation by lease or otherwise of the owners of franchises for such teams,
provided that such owners enter into a written agreement with the chief
executive officer of the municipality in which such property is located
to play their home games within such municipality for a period of at
least ten consecutive years.

3. The tax exemption is granted on the date the agreement is executed
and applies to taxes which become due and payable after the agreement is
executed. The Exemption continues as long as both of the professional
teams play their home games there and no longer.

4. The exemption also applies to improvements used for the provision of
facilities or services related to sports, entertainment, expositions,
conventions or trade shows.

5. If one or both of said teams ceases to play their home games at the
property at any time, the tax exemption ceases immediately. The amend-
ment adds new language to the section, to make it clear that the proper-
ty is still subject to taxation, and that the full amount of such taxes
are and shall be the obligations of the owners of such property, and may
not be made obligations by lease or otherwise of the owners of the teams
referred to hereinabove. The amendment also makes it clear that any
provision in a lease, agreement, or any other written instrument requir-
ing that any such taxes or their equivalent in the form of any charges
of any kind whatsoever, imposed by whatever name, be made obligations of
the owners of such teams shall he void on and after the effective date
of this act as against state policy.

 
JUSTIFICATION:

No exemption is granted in perpetuity. The purpose of this bill is to
eliminate the exemption, but to insure that fans are not penalized by

the owners of the facility, in the form of passing onto them any charges
or other costs as a proxy for the taxes the owners must pay.

 
LEGISLATIVE HISTORY:

A3421 Weprin, 2016: referred to real property taxation
A3421 Weprin, 2015: referred to real property taxation
A6597-A Weprin, 2014: reported referred to ways and means
S7494 Savino, 2014: referred to local government
A6597-A Weprin, 2013: referred to real property taxation

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect 90 days after it has become law.