NY State Senate Bill 2017-S993

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to local government
Jan 06, 2017	referred to local government

co-Sponsors

2017-S993 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Rpl §420-a sub 3, amd §420-a, RPT L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2608
2021-2022: S1952

2017-S993 (ACTIVE) - Summary

Ensures that exempt properties are being used in a manner which supports the specific exemption granted.

2017-S993 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S993

 TITLE OF BILL :

An act to amend the real property tax law, in relation to the
exemption from taxation for non-profit organizations and to repeal
certain provisions of such law relating thereto

 PURPOSE :

To ensure that exempt properties are being used in a manner which
supports the specific exemption granted.

 SUMMARY OF PROVISIONS :

Section 1: Amends section 420-a of the Real Property Tax Law by
repealing subdivision 3 and replacing it with a new subdivision 3
which provides that vacant or otherwise unimproved land shall only be
deemed tax exempt if there are definite plans for utilizing and
adapting the property for exempt purposes to commence within five
years and the full execution of such plans within seven years. If no
part of the physical improvements to the land are commenced within
five years and completed within seven years of taking title to the
property, the property owner who received the benefit of the exemption
shall pay all property taxes that would have been owed.

Section 2: Effective date.

 EXISTING LAW :

Existing law does not provide a date certain by which real property
not in actual use for its exempt purpose(s) must be developed or
otherwise improved to facilitate such activity.

 JUSTIFICATION :

Land-banking occurs when tax exempt organizations purchase land for
contemplated use. The problem is that often times contemplated use
does not occur or takes years to occur. While that land is tied up,
taxes are not being paid, and the land is not being put to productive
use. This diminishes the overall tax base of a locality. When the tax
base of a locality is diminished, the remaining taxpayers burden
increases. This makes home ownership less affordable as property taxes
grow.

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 2012 assessment rolls, there are over
5.7 million parcels of property in New York State (valued at a total
of over $2.5 trillion). Of this number, some 3.5 million parcels enjoy
at least 1 real property tax exemption. From a taxable status
standpoint, over 32.4% of the total value of property in New York
State ($826 billion) is either wholly or partially exempt from real
property taxation.

The lion's share of real property tax exemptions 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 :

S.1679 of 2016: Died in Senate Local Government, Died in Assembly Real
Property Taxation
S.1679 of 2015: Died in Senate Local Government, Died in Assembly Real
Property Taxation
S.879 of 2014: Died in Senate Local Government S.879 of 2013: Died in
Senate Local Government
S.2544-A of 2012: Died in Senate Local Government, Died in Assembly
Real Property Taxation
S.2544 of 2011: Passed Senate, Died in Assembly Real Property Taxation
S.6838 of 2010: Died in Senate Local Government
S.1126-A of 2004: Died in Senate Local Government, Died in Assembly
Real Property Taxation
S.1126-A of 2003: Died on Senate Floor Calendar

 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 shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after such date and shall apply to property irrespective of the date
of the transfer of title.

2017-S993 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    993
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sens.  BONACIC, LARKIN, LITTLE -- 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 exemption
   from taxation for  non-profit  organizations  and  to  repeal  certain
   provisions of such law relating thereto

   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 is REPEALED and a new subdivision 3 is added to read as follows:
   3.  (A)  SUCH REAL PROPERTY WHICH IS NOT ACTUALLY AND EXCLUSIVELY USED
 FOR EXEMPT PURPOSES SHALL, IF OWNED BY  AN  ORGANIZATION  EXEMPTED  FROM
 TAXATION  PURSUANT TO THE INTERNAL REVENUE CODE, BE EXEMPT THOUGH NOT IN
 ACTUAL USE THEREFOR BY REASON OF THE ABSENCE OF  SUITABLE  BUILDINGS  OR
 IMPROVEMENTS  THEREON  IF THE CONSTRUCTION OF SUCH BUILDINGS OR IMPROVE-
 MENTS IS IN PROGRESS OR IS IN GOOD FAITH CONTEMPLATED BY SUCH  ORGANIZA-
 TION.  AS  USED  IN THIS SUBDIVISION, "IN GOOD FAITH CONTEMPLATED" MEANS
 DEFINITE PLANS FOR  UTILIZING  AND  ADAPTING  THE  PROPERTY  FOR  EXEMPT
 PURPOSES  WITHIN  FIVE YEARS AND THE FULL EXECUTION OF SUCH PLANS WITHIN
 SEVEN YEARS. THE PLANS MUST BE PROVEN AND MUST BE IN WRITTEN  FORM.  THE
 DEPARTMENT  SHALL  DEVELOP  GUIDELINES TO BE UTILIZED BY PROPERTY OWNERS
 AND ASSESSORS TO DETERMINE WHETHER  SUCH  EVIDENCE  EXISTS  IN  ADEQUATE
 FORM.
   (B)  IF NO PART OF THE PHYSICAL IMPROVEMENTS TO THE LAND ARE COMMENCED
 WITHIN FIVE YEARS AND COMPLETED WITHIN SEVEN YEARS OF  TAKING  TITLE  TO
 THE  PROPERTY, OR IF THE ORGANIZATION DOES NOT MEET THE STANDARDS OTHER-
 WISE SET FORTH IN THIS SUBDIVISION, THE PROPERTY OWNER WHO RECEIVED  THE
 BENEFIT  OF  THE  EXEMPTION SHALL PAY ALL PROPERTY TAXES THAT WOULD HAVE
 BEEN OWED; PROVIDED, HOWEVER, THAT FAILURE TO PAY DOES  NOT  CREATE  ANY
 RIGHT  BY  ANY  GOVERNMENTAL UNIT TO COMMENCE A PROCEEDING TO EFFECTUATE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02948-01-7

 S. 993                              2
 
 THE TAKING OF THE PROPERTY BUT DOES CREATE A CAUSE OF ACTION IN CONTRACT
 BY ANY GOVERNMENTAL UNIT NEGATIVELY AFFECTED.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a  law  and  shall  apply  to
 assessment rolls prepared on the basis of taxable status dates occurring
 on  or  after  such date and shall apply to property irrespective of the
 date of the transfer of title.

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Senate Bill S993

Sponsored By

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

co-Sponsors

2017-S993 (ACTIVE) - Details

2017-S993 (ACTIVE) - Summary

2017-S993 (ACTIVE) - Sponsor Memo

2017-S993 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S993

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Sponsored By

John J. Bonacic

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

co-Sponsors

William Larkin

Betty Little

2017-S993 (ACTIVE) - Details

2017-S993 (ACTIVE) - Summary

2017-S993 (ACTIVE) - Sponsor Memo

2017-S993 (ACTIVE) - Bill Text download pdf

Comments