BILL NUMBER: S2606

SPONSOR: AKSHAR
 
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-pro-
fit corporation or association is entitled to real property tax
exemptions upon such corporation or association.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 420-a of the Real Property Tax Law by adding a
new subdivision 15 to require that the owner of a property which is tax
exempt pursuant to section 420-a of the Real Property Tax Law, prove
annually, by clear and convincing evidence, that the requirements of
section 420-a have been satisfied. Further, this new subdivision
              

provides that the New York State Department of Taxation and Finance
shall develop, in consultation with not-for-profit organizations and
assessors, guidance documents which shall be used by assessors to deter-
mine whether the standard of proof has been met.

Section 2: Effective date.

 
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 continue to apply.

 
JUSTIFICATION:

This proposed measure is one of a series of bills aimed at reconstruct-
ing 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 proper-
ty taxation are being fully used in support of such purposes.
 
LEGISLATIVE HISTORY:

S.996 of 2018: Died in Senate Local Government

S.1372 of 2016: Died in Senate Local Government, Died in Assembly Real
Property Taxation

S.1372 of 2015: Died in Senate Local Government, Died in Assembly Real
Property Taxation

S.878 of 2014: Died in Senate Local Government, Died in Assembly Real
Property Taxation

S.878 of 2013: Died in Senate Local Government, Died in Assembly Real
Property Taxation

S.2545-A of 2012: Died in Senate Local Government, Died in Assembly Real
Property Taxation


S.2545 of 2011: Died in Senate Local Government, Died in Assembly Ways
and Means

S.8474 of 2010: Died in Senate Rules

S.478 of 2008: Died on Senate Floor Calendar, Died in Assembly Ways and
Means

S.478 of 2007: Died in Senate Local Government, Died in Assembly Real
Property Taxation

S.3926 of 2006: Died on Senate Floor Calendar, Died in Assembly Real
Property Taxation

S.3926 of 2005: Died on Senate Floor Calendar, Died in Assembly Real
Property Taxation

S.1123-A of 2004: Died in Senate Local Government, Died in Assembly Real
Property Taxation

S.1123-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, munici-
pal 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 law and shall apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after such date.