S T A T E O F N E W Y O R K
________________________________________________________________________
1288
2023-2024 Regular Sessions
I N A S S E M B L Y
January 17, 2023
___________
Introduced by M. of A. WILLIAMS, OTIS, MILLER -- read once and referred
to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to property tax
exemptions for nonprofit organizations
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 16 of section 420-a of the real property tax
law, as added by chapter 358 of the laws of 2018, is amended to read as
follows:
16. (a) (i) For the purposes of this subdivision, "municipal corpo-
ration" shall mean a county, city, town, village or school district
[which, after public hearing, adopts a local law, ordinance or resol-
ution, providing that this subdivision shall be applicable to nonprofit
organizations within its jurisdiction. Such local law, ordinance or
resolution shall apply to property transfers occurring on or after the
effective date of such local law, ordinance or resolution. A copy of
such local law, ordinance or resolution shall be filed with the commis-
sioner].
(ii) Where a nonprofit organization that meets the requirements for an
exemption pursuant to this section, purchases property after the levy of
taxes BUT PRIOR TO THE TAXABLE STATUS DATE APPLICABLE TO THE FOLLOWING
YEAR'S ASSESSMENT ROLL, such nonprofit organization may[, if permitted
by a local law, ordinance or resolution of the municipal corporation in
which the nonprofit organization is located,] file an application for
exemption with the assessor no later than the [time specified in such
local law, ordinance or resolution] TAXABLE STATUS DATE APPLICABLE TO
THE FOLLOWING YEAR'S ASSESSMENT ROLL; PROVIDED THAT WHERE A NONPROFIT
ORGANIZATION THAT MEETS THE REQUIREMENTS FOR AN EXEMPTION PURSUANT TO
THIS SECTION PURCHASED PROPERTY AFTER THE LEVY OF TAXES BUT PRIOR TO THE
TAXABLE STATUS DATE APPLICABLE TO THE FOLLOWING YEAR'S ASSESSMENT ROLL
IN THE YEARS TWO THOUSAND NINETEEN, TWO THOUSAND TWENTY, TWO THOUSAND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05600-01-3
A. 1288 2
TWENTY-ONE, TWO THOUSAND TWENTY-TWO OR TWO THOUSAND TWENTY-THREE, SUCH
NONPROFIT ORGANIZATION MAY FILE AN APPLICATION FOR EXEMPTION WITH THE
ASSESSOR NO LATER THAN THE NEXT TAXABLE STATUS DATE FOLLOWING THE EFFEC-
TIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE WHICH
AMENDED THIS SUBDIVISION. The assessor shall make a determination of
whether the parcel would have qualified for exempt status on the [tax]
ASSESSMENT roll on which the taxes were levied, had title to the parcel
been in the name of the applicant on the taxable status date applicable
to the [tax] ASSESSMENT roll. The application shall be on a form
prescribed by the commissioner. The assessor, no later than thirty days
after receipt of such application, shall notify both the applicant and
the board of assessment review, by first class mail, of the exempt
amount, if any, and the right of the owner to a review of the exempt
amount upon the filing of a written complaint. Such complaint shall be
on a form prescribed by the commissioner and shall be filed with the
board of assessment review within twenty days of the mailing of such
notice. If no complaint is received, the board of assessment review
shall so notify the assessor and the exempt amount determined by the
assessor shall be final. If the applicant files a complaint, the board
of assessment review shall schedule a time and place for a hearing with
respect thereto no later than thirty days after the mailing of the
notice by the assessor. The board of assessment review shall meet and
determine the exempt amount, and shall immediately notify the assessor
and the applicant, by first class mail, of its determination. The amount
of exemption determined pursuant to this paragraph shall be subject to
review as provided in article seven of this chapter. Such a proceeding
shall be commenced within thirty days of the mailing of the notice of
the board of assessment review to the new owner as provided in this
paragraph.
(iii) Upon receipt of a determination of the exempt amount as provided
in subparagraph (ii) of this paragraph, the assessor shall determine the
pro rata exemption to be credited toward such property by multiplying
the tax rate or tax rates for each municipal corporation which levied
taxes, or for which taxes were levied, on the appropriate [tax] ASSESS-
MENT roll used for the fiscal year or years during which the transfer
occurred times the exempt amount, as determined in subparagraph (ii) of
this paragraph, times the fraction of each fiscal year or years remain-
ing subsequent to the transfer of title. The assessor shall immediately
transmit a statement of the pro rata exemption credit due to each munic-
ipal corporation which levied taxes or for which taxes were levied on
the [tax] ASSESSMENT roll used for the fiscal year or years during which
the transfer occurred and to the applicant.
(iv) Each municipal corporation which receives notice of pro rata
exemption credits pursuant to this subdivision shall include an appro-
priation in its budget for the next fiscal year equal to the aggregate
amount of such credits to be applied in that fiscal year. Where a
parcel, the owner of which is entitled to a pro rata exemption credit,
is subject to taxation in said next fiscal year, the receiver or collec-
tor shall apply the credit to reduce the amount of taxes owed for the
parcel in such fiscal year. Pro rata exemption credits in excess of the
amount of taxes, if any, owed for the parcel shall be paid by the treas-
urer of a municipal corporation which levies such taxes for or on behalf
of the municipal corporation to all owners of property entitled to such
credits within thirty days of the expiration of the warrant to collect
taxes in said next fiscal year. Notwithstanding the foregoing, where the
municipal corporation has been reimbursed by another municipal corpo-
A. 1288 3
ration for the tax credit to be paid to the owner pursuant to this
subdivision, such credit shall be paid to such municipal corporation
instead of such owner.
(b) (i) Notwithstanding the provisions of this section, where a
nonprofit organization that meets the requirements for an exemption
pursuant to this section, purchases property after the taxable status
date but prior to the levy of taxes, such nonprofit organization may[,
if permitted by a local law, ordinance or resolution of the municipal
corporation in which the nonprofit organization is located,] file an
application for an exemption with the assessor [within thirty days of
the transfer of title to such nonprofit organization] NO LATER THAN THE
TAXABLE STATUS DATE APPLICABLE TO THE FOLLOWING YEAR'S ASSESSMENT ROLL;
PROVIDED THAT WHERE A NONPROFIT ORGANIZATION THAT MEETS THE REQUIREMENTS
FOR AN EXEMPTION PURSUANT TO THIS SECTION PURCHASED PROPERTY AFTER THE
TAXABLE STATUS DATE BUT PRIOR TO THE LEVY OF TAXES IN THE YEARS TWO
THOUSAND NINETEEN, TWO THOUSAND TWENTY, TWO THOUSAND TWENTY-ONE, TWO
THOUSAND TWENTY-TWO OR TWO THOUSAND TWENTY-THREE, SUCH NONPROFIT ORGAN-
IZATION MAY FILE AN APPLICATION FOR EXEMPTION WITH THE ASSESSOR NO LATER
THAN THE NEXT TAXABLE STATUS DATE FOLLOWING THE EFFECTIVE DATE OF THE
CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE WHICH AMENDED THIS
SUBDIVISION. The assessor shall make a determination within thirty days
after receipt of such application of whether the applicant would qualify
for an exemption pursuant to this section on the assessment roll if
title had been in the name of the applicant on the taxable status date
applicable to such assessment roll. The application shall be made on a
form prescribed by the commissioner.
(ii) If the assessor's determination is made prior to the filing of
the tentative assessment roll, the assessor shall enter the exempt
amount, if any, on the tentative assessment roll and, within ten days
after filing such roll, notify the applicant of the approval or denial
of such exemption, the exempt amount, if any, and the applicant's right
to review by the board of assessment review.
(iii) If the assessor's determination is made after the filing of the
tentative assessment roll, the assessor shall petition the board of
assessment review to correct the tentative or final assessment roll in
the manner provided in title three of article five of this chapter, with
respect to unlawful entries, in the case of wholly exempt parcels, and
with respect of clerical errors, in the case of partially exempt
parcels, if the assessor determines that an exemption should be granted
and, within ten days of petitioning the board of assessment review,
notify the applicant of the approval or denial of such exemption, the
amount of such exemption, if any, and the applicant's right to adminis-
trative or judicial review of such determination pursuant to article
five or seven of this chapter, respectively.
(c) If, for any reason, a determination to exempt property from taxa-
tion as provided in paragraph (b) of this subdivision is not entered on
the final assessment roll, the assessor shall petition the board of
assessment review to correct the final assessment roll.
(d) If, for any reason, the pro rata tax credit as provided in para-
graph (a) of this subdivision is not extended against the [tax] ASSESS-
MENT roll immediately succeeding the fiscal year during which the trans-
fer occurred, the assessor shall immediately notify the municipal
corporation which levied the tax or for which the taxes were levied of
the amount of pro rata exemption credits for the year in which such
transfer occurred. Such municipal corporation shall proceed as provided
in subparagraph (iv) of paragraph (a) of this subdivision.
A. 1288 4
(e) If, for any reason, a determination to exempt property from taxa-
tion as provided in paragraph (b) of this subdivision is not entered on
the [tax] ASSESSMENT roll for the year immediately succeeding the fiscal
year during which the transfer occurred, the assessor shall determine
the pro rata tax exemption credit for such [tax] ASSESSMENT roll by
multiplying the tax rate or tax rates for each municipal corporation
which levied taxes or for which taxes were levied times the exempt
amount and shall immediately notify such municipal corporation or corpo-
rations of the pro rata exemption credits for such [tax] ASSESSMENT
roll. Such municipal corporation shall add such pro rata exemption cred-
its for such property to any outstanding pro rata exemption amounts and
proceed as provided in subparagraph (iv) of paragraph (a) of this subdi-
vision.
§ 2. Subdivision 8 of section 420-b of the real property tax law, as
added by chapter 358 of the laws of 2018, is amended to read as follows:
8. (a) (i) For the purposes of this subdivision, "municipal corpo-
ration" shall mean a county, city, town, village or school district
[which, after public hearing, adopts a local law, ordinance or resol-
ution, providing that this subdivision shall be applicable to nonprofit
organizations within its jurisdiction. Such local law, ordinance or
resolution shall apply to property transfers occurring on or after the
effective date of such local law, ordinance or resolution. A copy of
such local law, ordinance or resolution shall be filed with the commis-
sioner].
(ii) Where a nonprofit organization that meets the requirements for an
exemption pursuant to this section, purchases property after the levy of
taxes BUT PRIOR TO THE TAXABLE STATUS DATE APPLICABLE TO THE FOLLOWING
YEAR'S ASSESSMENT ROLL, such nonprofit organization may file[, if
permitted by a local law, ordinance or resolution of the municipal
corporation in which the nonprofit organization is located,] an applica-
tion for exemption with the assessor no later than the [time specified
in such local law, ordinance or resolution] TAXABLE STATUS DATE APPLICA-
BLE TO THE FOLLOWING YEAR'S ASSESSMENT ROLL; PROVIDED THAT WHERE A
NONPROFIT ORGANIZATION THAT MEETS THE REQUIREMENTS FOR AN EXEMPTION
PURSUANT TO THIS SECTION PURCHASED PROPERTY AFTER THE LEVY OF TAXES BUT
PRIOR TO THE TAXABLE STATUS DATE APPLICABLE TO THE FOLLOWING YEAR'S
ASSESSMENT ROLL IN THE YEARS TWO THOUSAND NINETEEN, TWO THOUSAND TWENTY,
TWO THOUSAND TWENTY-ONE, TWO THOUSAND TWENTY-TWO OR TWO THOUSAND TWEN-
TY-THREE, SUCH NONPROFIT ORGANIZATION MAY FILE AN APPLICATION FOR
EXEMPTION WITH THE ASSESSOR NO LATER THAN THE NEXT TAXABLE STATUS DATE
FOLLOWING THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
TWENTY-THREE WHICH AMENDED THIS SUBDIVISION. The assessor shall make a
determination of whether the parcel would have qualified for exempt
status on the [tax] ASSESSMENT roll on which the taxes were levied, had
title to the parcel been in the name of the applicant on the taxable
status date applicable to the [tax] ASSESSMENT roll. The application
shall be on a form prescribed by the commissioner. The assessor, no
later than thirty days after receipt of such application, shall notify
both the applicant and the board of assessment review, by first class
mail, of the exempt amount, if any, and the right of the owner to a
review of the exempt amount upon the filing of a written complaint. Such
complaint shall be on a form prescribed by the commissioner and shall be
filed with the board of assessment review within twenty days of the
mailing of such notice. If no complaint is received, the board of
assessment review shall so notify the assessor and the exempt amount
determined by the assessor shall be final. If the applicant files a
A. 1288 5
complaint, the board of assessment review shall schedule a time and
place for a hearing with respect thereto no later than thirty days after
the mailing of the notice by the assessor. The board of assessment
review shall meet and determine the exempt amount, and shall immediately
notify the assessor and the applicant, by first class mail, of its
determination. The amount of exemption determined pursuant to this para-
graph shall be subject to review as provided in article seven of this
chapter. Such a proceeding shall be commenced within thirty days of the
mailing of the notice of the board of assessment review to the new owner
as provided in this paragraph.
(iii) Upon receipt of a determination of the exempt amount as provided
in subparagraph (ii) of this paragraph, the assessor shall determine the
pro rata exemption to be credited toward such property by multiplying
the tax rate or tax rates for each municipal corporation which levied
taxes, or for which taxes were levied, on the appropriate [tax] ASSESS-
MENT roll used for the fiscal year or years during which the transfer
occurred times the exempt amount, as determined in subparagraph (ii) of
this paragraph, times the fraction of each fiscal year or years remain-
ing subsequent to the transfer of title. The assessor shall immediately
transmit a statement of the pro rata exemption credit due to each munic-
ipal corporation which levied taxes or for which taxes were levied on
the [tax] ASSESSMENT roll used for the fiscal year or years during which
the transfer occurred and to the applicant.
(iv) Each municipal corporation which receives notice of pro rata
exemption credits pursuant to this subdivision shall include an appro-
priation in its budget for the next fiscal year equal to the aggregate
amount of such credits to be applied in that fiscal year. Where a
parcel, the owner of which is entitled to a pro rata exemption credit,
is subject to taxation in said next fiscal year, the receiver or collec-
tor shall apply the credit to reduce the amount of taxes owed for the
parcel in such fiscal year. Pro rata exemption credits in excess of the
amount of taxes, if any, owed for the parcel shall be paid by the treas-
urer of a municipal corporation which levies such taxes for or on behalf
of the municipal corporation to all owners of property entitled to such
credits within thirty days of the expiration of the warrant to collect
taxes in said next fiscal year. Notwithstanding the foregoing, where the
municipal corporation has been reimbursed by another municipal corpo-
ration for the tax credit to be paid to the owner pursuant to this
subdivision, such credit shall be paid to such municipal corporation
instead of such owner.
(b) (i) Notwithstanding the provisions of this section, where a
nonprofit organization that meets the requirements for an exemption
pursuant to this section, purchases property after the taxable status
date but prior to the levy of taxes, such nonprofit organization may[,
if permitted by a local law, ordinance or resolution of the municipal
corporation in which the nonprofit organization is located,] file an
application for an exemption with the assessor [within thirty days of
the transfer of title to such nonprofit organization] NO LATER THAN THE
TAXABLE STATUS DATE APPLICABLE TO THE FOLLOWING YEAR'S ASSESSMENT ROLL;
PROVIDED THAT WHERE A NONPROFIT ORGANIZATION THAT MEETS THE REQUIREMENTS
FOR AN EXEMPTION PURSUANT TO THIS SECTION PURCHASED PROPERTY AFTER THE
TAXABLE STATUS DATE BUT PRIOR TO THE LEVY OF TAXES IN THE YEARS TWO
THOUSAND NINETEEN, TWO THOUSAND TWENTY, TWO THOUSAND TWENTY-ONE, TWO
THOUSAND TWENTY-TWO OR TWO THOUSAND TWENTY-THREE, SUCH NONPROFIT ORGAN-
IZATION MAY FILE AN APPLICATION FOR EXEMPTION WITH THE ASSESSOR NO LATER
THAN THE NEXT TAXABLE STATUS DATE FOLLOWING THE EFFECTIVE DATE OF THE
A. 1288 6
CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-THREE WHICH AMENDED THIS
SUBDIVISION. The assessor shall make a determination within thirty days
after receipt of such application of whether the applicant would qualify
for an exemption pursuant to this section on the assessment roll if
title had been in the name of the applicant on the taxable status date
applicable to such assessment roll. The application shall be made on a
form prescribed by the commissioner.
(ii) If the assessor's determination is made prior to the filing of
the tentative assessment roll, the assessor shall enter the exempt
amount, if any, on the tentative assessment roll and, within ten days
after filing such roll, notify the applicant of the approval or denial
of such exemption, the exempt amount, if any, and the applicant's right
to review by the board of assessment review.
(iii) If the assessor's determination is made after the filing of the
tentative assessment roll, the assessor shall petition the board of
assessment review to correct the tentative or final assessment roll in
the manner provided in title three of article five of this chapter, with
respect to unlawful entries, in the case of wholly exempt parcels, and
with respect of clerical errors, in the case of partially exempt
parcels, if the assessor determines that an exemption should be granted
and, within ten days of petitioning the board of assessment review,
notify the applicant of the approval or denial of such exemption, the
amount of such exemption, if any, and the applicant's right to adminis-
trative or judicial review of such determination pursuant to article
five or seven of this chapter, respectively.
(c) If, for any reason, a determination to exempt property from taxa-
tion as provided in paragraph (b) of this subdivision is not entered on
the final assessment roll, the assessor shall petition the board of
assessment review to correct the final assessment roll.
(d) If, for any reason, the pro rata tax credit as provided in para-
graph (a) of this subdivision is not extended against the [tax] ASSESS-
MENT roll immediately succeeding the fiscal year during which the trans-
fer occurred, the assessor shall immediately notify the municipal
corporation which levied the tax or for which the taxes were levied of
the amount of pro rata exemption credits for the year in which such
transfer occurred. Such municipal corporation shall proceed as provided
in subparagraph (iv) of paragraph (a) of this subdivision.
(e) If, for any reason, a determination to exempt property from taxa-
tion as provided in paragraph (b) of this subdivision is not entered on
the [tax] ASSESSMENT roll for the year immediately succeeding the fiscal
year during which the transfer occurred, the assessor shall determine
the pro rata tax exemption credit for such [tax] ASSESSMENT roll by
multiplying the tax rate or tax rates for each municipal corporation
which levied taxes or for which taxes were levied times the exempt
amount and shall immediately notify such municipal corporation or corpo-
rations of the pro rata exemption credits for such [tax] ASSESSMENT
roll. Such municipal corporation shall add such pro rata exemption cred-
its for such property to any outstanding pro rata exemption amounts and
proceed as provided in subparagraph (iv) of paragraph (a) of this subdi-
vision.
§ 3. This act shall take effect immediately.