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

Summary of specific provisions

Section 1: Amends paragraph (a) of subdivision 1 of section 420-a of the Real Property Tax Law to remove the exemption contained for "moral or mental improvement of men, women or children purposes" from the mandato- ry class of real property tax exemptions.

Section 2: Amends paragraph (a) of subdivision 1 of section 420-b of the Real Property Tax Law to include an exemption for "purposes related to the moral or mental improvement of men, women, or children" to the permissive class of real property tax exemptions. Further, it adds a subparagraph (ii) to paragraph (a) which provides that if a property is exempted pursuant to a local permissive exemption, so long as the prop- erty continues to be used exclusively for the purposes of exempt activ- ities, the property will be exempt from taxation for up to thirty (30) years even if the local government enacts a local law, ordinance, or resolution providing for the taxation of all properties in the sub-cate- gory that the particular property is in. However, such exemption shall be lost after it has been enjoyed for thirty (30) years if such a local law is passed. Finally, subparagraph (ii) also authorizes local govern- ments to specify a minimum number of days each acre must actually be used in order to qualify for a local permissive exemption, provided, however, the minimum number of days shall not be greater than ninety (90).

Section 3: Amends subdivision 1 of section 420-b of the Real Property Tax Law by adding a new paragraph (d) to define the term "purposes related to the moral or mental improvement of men, women, or children."

Section 4: Repeals section 430 of die Real Property Tax Law which relates to the tax exemption for interdenominational centers, these centers are included in the definition of the term "purposes related to the moral or mental improvement of men, women, or children" as defined in section 3 of the bill and thus included in the permissive class of real property tax exemptions pursuant to section 2 of the bill.

Section 5: Amends subdivision 2 of section 420-a of the Real Property Tax Law to reflect the repeal of section 430 of the Real Property Tax Law contained in section 4 of the bill.

Section 6: Amends subdivision 2 of section 420-b of the Real Property Tax Law to reflect the repeal of section 430 of the Real Property Tax Law contained in section 4 of the bill.

Section 7: Amends subdivision 2 of section 432 of the Real Property Tax Law to reflect the repeal of section 430 of the Real Property Tax Law contained in section 4 of the bill.

Section 8: Amends section 490 of the Real Property Tax Law to reflect the repeal of section 430 of the Real Property Tax Law contained in section 4 of the bill.

Section 9: Amends section 492 of the Real Property Tax Law to reflect the repeal of section 430 of the Real Property Tax Law contained in section 4 of the bill.

Section 10: Amends the opening paragraph of paragraph 2 of subdivision a of section 25-309 of the Administrative Code of the City of New York to reflect the repeal of section 430 of the Real Property Tax Law contained in section 4 of the bill.

Section 11: Effective date.

Justification

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 and thus the Courts have had to define who qualifies for tax exemption under the "moral improvement of men, women and children" clause without Legis- lative direction. This legislation 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. By doing so, this legislation gives localities: (a) a clear definition of the many types of entities that could reasonably meet that definition; and (b) the flexibility to determine which types of these groups they wish to exempt from the obli- gation of paying property taxes.

Legislative history

S.2815 of 2012: Died in Senate Local Government S.2815 of 2011: Died in Senate Local Government S.4868 of 2010: Died in Senate Local Government, Died in Assembly Real Property Taxation S.4868 of 2009: Died in Senate Local Government, Died in Assembly Real Property Taxation S.467-A of 2008: Died on Senate Floor Calendar, Died in Assem- bly Real Property Taxation S.467 of 2007: Died in Senate Local Govern- ment S.5141 of 2006: Died on Senate Floor Calendar S.5141 of 2005: Died on Senate Floor Calendar S.5630 of 2004: Died in Senate Local Government S.5630 of 2003: Died in Senate Rules

Fiscal implications

None to the State.

Local fiscal implications

Undetermined, however, it is anticipated the bill will offer improved local oversight of exemptions with a salutary effect on school, municipal and special district (i.e. fire protection) tax rolls.

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.