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History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to sales of real property by not-for-profit corporations
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Matthew Titone
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the not-for-profit corporation law, in relation to the sale of real property
Purpose
Relates to sales of real property by not-for-profit corporations.
Summary of provisions
This legislation amends §509 of the Not-For-Profit Corporation Law by adding a new subdivision 2 to provide that any corporation that has received capital funding, grants or financing within 10 years preceding a sale of real property to any entity other than the state of New York or another not-for-profit shall reimburse the state and/or municipality for such funding.
Additionally, such property shall not be exempt from the payment of real property transfer tax and shall reimburse any real property tax abatements.
Justification
The State of New York supports many not-for-profit and charitable institutions that purchase real property to carry out their charitable, or educational purposes. The State, recognizing the good work that is done by these agencies, has given State grants, financing and tax abatement to facilitate the mission of the institution.
However, the value of these properties have caused some of these institutions to look at the real estate not as the State does, as a resource for the community, but rather as a potential source of revenue. They are selling the real property and making substantial amounts of money on the transactions.
While the purpose of this sale may be to raise money to further benefit the work done by the institution, the State and local governments still have a vested interest in the sale of the real property. The governments have invested in this real property by forgoing real property taxes, transfer taxes or providing capital assistance that has often increased the value of the property to facilitate the development of the institution, and to maintain the facility in the community.
If an institution is selling real property to an entity (other than the State or another not-for-profit corporation) for the purpose of making money, the taxpayers, through the State or municipality, should recoup the public capital money and unpaid taxes that made it so valuable to the institution in the first place.
This bill would require the not-for-profit corporation, or charitable entity to reimburse the state or municipality from the proceeds of the sale of the real property for those benefits bestowed upon the institution for the 10 years prior to the sale.
Legislative history
2008: S.5604 - Third Reading Calendar/A.8489 - Referred to Corporations 2007: S.5604 - Reported to Rules/A.8489 - Referred to Corporations 2006: S.4064 - Referred to Corporations, Authorities & Commissions
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.