Relates to the real property exemption for certain portions of property owned by veterans' organizations

BILL NUMBER:S7675

Title of bill

An act to amend the real property tax law, in relation to the real property exemption for certain portions of property owned by veterans' organizations

Purpose

Property owned by veteran organizations such as veteran post buildings are exempt from property taxes. Many of these veteran organizations rent space in their buildings to community, charitable, educational, and other organizations. However, sometimes the renting organization is not a tax exempt entity. Therefore the rental portion is subject to local property taxes. This legislation will permit municipalities to exempt veteran organizations from local property taxes including the rental portion.

Summary of provisions

Section 1: Amends 452(2) of the Real Property Tax Law to allow governing bodies of municipalities to grant tax exemptions to entities who rent or use buildings owned by property tax exempt veteran groups.

Section 2: Effective date.

Justification

Veteran posts are integral to our communities. Many community, charitable, educational, and other organizations, use these posts for important functions which benefit the community as a whole. Furthermore, increasing property taxes are threatening the financial viability of many of our veteran, organizations that open their buildings up to the communities.

This legislation allows local governments to retain the necessary authority by giving them the option to exempt these veteran organizations from property taxes occasioned by renting their facilities.

Prior legislative history

New Legislation.

Fiscal implications

None to the state.

Effective date

This act shall take effect on the second day of January next succeeding the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.