Provides nonprofit organizations real property exemption, at local option, for those promptly applying that purchase after municipality's taxable status date

1 Co-sponsor

• Tony Avella

BILL NUMBER:S2939

Title of bill

An act to amend the real property tax law, in relation to granting a real property tax exemption to nonprofit organizations that purchase real property after the taxable status date

Purpose

To authorize local municipal corporations (after local law adopted) to accept and administer nonprofit tax exemption applications after the taxable status date under certain circumstances.

Summary of provisions

Sections one and two of this bill amend Real Property Tax Law §§ 420-a and 420-b, respectively, to allow, at the option of the locality, that when a not-for-profit organization purchases property after the taxable status date, it will be permitted to submit an application for a real property tax exemption to the assessor. They also establish a procedure to change the assessment roll and allows for the exemption benefits granted upon purchase of property after the taxable status date to be applied against the eligible individual's tax levy of the subsequent year. If the municipal corporation has received reimbursement for the tax credit owed to the not-for-profit organization, the tax credit shall be paid to the municipal corporation making the tax payment.

Section three provides that the act shall take effect 90 days after its enactment.

Justification

Currently, nonprofit organizations that are eligible for a real property tax exemption do not receive it immediately, after the purchase of property. They must pay the full amount of taxes, in some cases up to almost two years after purchasing the property and seek state approval to file for the exemption retroactively. Since the state has deemed it proper to immediately tax property sold by someone receiv- ing a real property tax exemption to a purchaser not entitled to an exemption, it is equally proper to grant immediate exempt status to property purchased by a not-for-profit organization eligible for real property tax exemption.

Legislative history

2011/12: S.1465-a Passed Senate 2007/08: S.3313A - Local Government 2005/06: S.4245 - Local Government 2003/04: S.447 - Local Government 2001/02: A.7589 - Passed Assembly 1999/00: A.2714 - Passed Assembly 1997/98: A. 3982 - Passed Assembly 1995-96: A.9080 - Reported to Ways & Means

Fiscal implications

None to the state.

Effective date

Ninetieth day succeeding enactment.