Relates to the discretion of localities in granting exemptions for certain organizations; repealer

1 Co-sponsor

• William J. Larkin Jr.

BILL NUMBER:S2815

Title of bill

An act to amend the real property tax law and the administrative code of the city of New York, in relation to the discretion of localities in granting exemptions for certain organizations and to repeal certain provisions of the real property tax law relating thereto

Purpose or general idea of bill

To remove the unfunded mandate of required real property tax exemptions for organizations which do not serve a critical human need or who perform their functions in a manner which is not clearly exempt under the State Constitution.

Summary of specific provisions

Defines the phrase "moral or mental improvement of men, women, or children" and makes the land owned by organizations dedicated to such cause tax exempt unless a local law is passed subjecting the same to real property taxation. That phrase is broken down into sub-categories giving localities the ability to tax the various causes based on local priorities.

Effects of present law which this bill would alter

Currently, property owned for the advancement of the "moral or mental improvement of men, women, and children" is exempt from real property taxes. However, that term is not defined in statute. This legislation seeks to give (a) a clear definition of the many types of entities that could reasonably meet that definition and (b) the flexibility to localities as to which types of these groups they wish to exempt from the obligation of paying property taxes.

Justification

The Courts have had to define who qualifies for tax exemption under the "moral improvement of men, women and children" clause without Legislative direction. The Legislature should make the laws not leave it to the Court to interpret wide open clauses.

Legislative history

S.4868 of 2009: Referred to Local Government

Fiscal implications

None to the State.

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 on and after such date.