NY State Senate Bill 2025-S957

Senate Bill S957

2025-2026 Legislative Session

Discontinues certain real property tax exemptions for real property used for major league sports teams

download bill text pdf

Current 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to local government

co-Sponsors

View additional co-sponsors

2025-S957 (ACTIVE) - Details

See Assembly Version of this Bill:: A1520
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §429, add §429-a, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A6597
2015-2016: A3421
2017-2018: S8128, A5500
2019-2020: S2897, A4206
2021-2022: S3122, A9209
2023-2024: S1632, A846

2025-S957 (ACTIVE) - Summary

Discontinues the real property tax exemption for certain real property that is used for home games for certain professional sports teams in New York city beginning with the 2026 assessment roll.

2025-S957 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S957

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to discontinuing
the real property tax exemption for certain real property used for
professional major league sports

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill amends 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.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill states the Legislative intent behind the repeal.

Section 2 of the bill amends Section 429 of the real property tax law to
end the tax exemption after the 2023 assessment roll.

Section 3 of the bill adds a new section 429-a to the real property tax
law which directs all revenue collected from the ending of this tax
exemption towards the MTA finance fund.

Section 4 of the bill sets forth the effective date.

 
JUSTIFICATION:

Madison Square Garden has been a New York institution for nearly 150
years. Across three centuries, the four venues that have held this name
have showcased the very best of sports and entertainment to the people
of this state, and to millions of visitors and viewers from around the
world.

However, for the last forty years, New Yorkers have not only been
supporting the privately-owned MSG at the Box Office, they've been
subsidizing The Garden's near $50 million annual property tax bill, as
well.

This tax exemption was given to the arena in 1982 after former owners
Gulf & Western Industries had threatened to move the Knicks and Rangers
to New Jersey-as the New Jersey Nets, Devils, and New York Giants had
recently done. Gulf & Western lobbied NYC Mayor Ed Koch for a full prop-
erty tax exemption which he recommended to the state legislature. At
that time, the exemption cost the state around $5 million annually;
money that was used by Gulf & Western to build the stadium's first luxu-
ry skyboxes. Mayor Koch told the NY Times in 2002 that he believed the
exemption would sunset after ten years, but no such provision existed in
the law.

In the thirty-eight years since the legislature granted this exemption,
the state of New York has lost over $550 million in revenue, according
to the NYC Independent Budget Office (180).  Further, if current proper-
ty value trends continue, MSG's total tax break could clear $1 billion
by,2031). Meanwhile, the Knicks' market value in 2020 is now $4.6
billion, nearly seven times its 2011 value; while the Rangers' value has
more tripled over the same period to $1.65 billion, according to Forbes.
In his 2014 testimony regarding this proposed repeal, MO Deputy Director
George Sweeting noted that "the Garden is now, by all accounts, a highly
profitable enterprise," due to its "cable television network, more
intensive use of the facility to generate advertising revenue, and
construction of new luxury boxes and club seating areas with higher
ticket prices."  Deputy Director Sweeting stated that " the Garden's
exemption is the only significant property tax exemption in state law
that benefits a single private for-profit firm in the city."

The conditions and fears that may have made this exemption necessary in
1982 have long subsided, and no exemption is granted in perpetuity. It
is long past time to end one of our state's most blatant examples of
corporate welfare.

 
PRIOR LEGISLATIVE HISTORY:

2024: S1632A (Kavanagh) - REFERRED TO LOCAL GOVERNMENT:

2023: S1632A (Kavanagh) - REFERRED TO LOCAL GOVERNMENT:

2022: S3122 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT: /A9209 (Weprin)
referred to real property taxation

2021: S3122 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT:

2020: S2897 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT: /A4206 (Weprin) -
referred to real property taxation

2019: S2897 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT: /A4206 (Weprin)
referred to real property taxation

2018: S8128 (Kavanagh) - REFERRED TO LOCAL GOVERNMENT: /A5500 (Weprin)
referred to real property taxation

2017: A5500 (Weprin) - referred to real property taxation

2016: A3421 - referred to real property taxation

2015: A3421 - referred to real property taxation

 
EFFECTIVE DATE:
This act shall take effect immediately; provided however, that the
provisions of this act shall apply to assessment rolls beginning with
the 2024 assessment roll.

2025-S957 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    957
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sens.  KAVANAGH,  BRISPORT, CLEARE, GONZALEZ, GOUNARDES,
   HOYLMAN-SIGAL, JACKSON, KRUEGER, RAMOS, RIVERA, SALAZAR -- 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 discontinuing
   the real property tax exemption for certain  real  property  used  for
   professional major league sports
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative intent. The legislature  hereby  declares  that
 any  provision  in  a  lease,  agreement or any other written instrument
 requiring that any taxes or their equivalent, set forth in such  instru-
 ment  in  the form of any charges of any kind whatsoever, imposed by any
 taxing authority, shall be made  the  obligation  of  any  person,  sole
 proprietorship, partnership, firm, corporation, limited liability compa-
 ny,  association,  franchise,  team, or any other entity, other than the
 owner or owners of such property, shall be deemed void as against public
 policy.
   § 2. Section 429 of the real property tax law, as added by chapter 459
 of the laws of 1982, is amended to read as follows:
   § 429. Real property used for professional major league  sports.  Real
 property  within a city having a population of one million or more, 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 shall be exempt from taxation to the extent  said  taxes  are
 the  obligation  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 prop-
 erty  is located to play their home games within such municipality for a

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02342-01-5
 S. 957                              2
 
 period of at least ten consecutive years; PROVIDED HOWEVER, THAT  IN  NO
 CASE SHALL THE EXEMPTION GRANTED BY THIS SECTION APPLY TO ANY ASSESSMENT
 ROLL  ISSUED AFTER THE TWO THOUSAND TWENTY-FIVE ASSESSMENT ROLL. The tax
 exemption  provided herein shall be granted to real property being used,
 in whole or in part, for the aforesaid purposes on the date such  agree-
 ment  is  executed and shall apply to taxes which become due and payable
 after the aforestated agreement is  executed  and  shall  continue  with
 respect  to  such property as long as both of said teams play their home
 games therein and no longer. Such exemption shall not apply with respect
 to any improvement to such property made after the date  such  agreement
 is  executed  which improvement is not used for the provision of facili-
 ties  or  services  related  to  sports,   entertainment,   expositions,
 conventions  or trade shows. If one or both of said teams shall cease to
 play their home games in said property at any time,  the  tax  exemption
 provided  herein  shall  cease immediately and such property shall imme-
 diately be restored to the tax rolls and  thereupon  become  subject  to
 taxation  and  shall  be taxed pro rata for the unexpired portion of the
 taxable year.
   § 3. The real property tax law is amended  by  adding  a  new  section
 429-a to read as follows:
   § 429-A. EXPIRATION OF MAJOR LEAGUE SPORTS EXEMPTION. THE REAL PROPER-
 TY  TAX EXEMPTION UNDER SECTION FOUR HUNDRED TWENTY-NINE OF THIS ARTICLE
 SHALL EXPIRE UPON THE EFFECTIVE DATE OF THIS SECTION; PROVIDED  HOWEVER,
 THAT THE REVENUE AND PENALTIES COLLECTED BY THE NEW YORK CITY DEPARTMENT
 OF  FINANCE  FOR SUCH REAL PROPERTY SHALL BE REMITTED BY THE CITY OF NEW
 YORK TO THE METROPOLITAN TRANSPORTATION AUTHORITY ON A SEMIANNUAL BASIS,
 TO BE DEPOSITED INTO THE METROPOLITAN TRANSPORTATION  AUTHORITY  FINANCE
 FUND ESTABLISHED UNDER SECTION ONE THOUSAND TWO HUNDRED SEVENTY-H OF THE
 PUBLIC AUTHORITIES LAW.
   §  4.  This  act shall take effect immediately; provided however, that
 the provisions of this act shall apply  to  assessment  rolls  beginning
 with the 2026 assessment roll.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.