What's happening
The bill expands property tax exemptions for non-profits to include organizations acquiring real property for future economic, business, commercial, or industrial development purposes.
Why it matters
Encourages non-profits to participate in local economic growth. by allowing property tax exemptions for land held specifically for future business, commercial, or industrial development. This could make it more attractive for non-profits to acquire and hold land intended for such purposes.
Could lead to increased land banking by non-profits. , potentially affecting local real estate markets and municipal tax bases, as more properties may be held off the tax rolls for longer periods while awaiting development.
Shifts some control to local governments. by maintaining their authority to override these exemptions through local laws or ordinances after a public hearing. This gives communities the ability to balance economic development goals with the need for tax revenue.
Broadens the traditional understanding of charitable property use. expanding tax-exempt status beyond direct charitable, religious, or educational uses to include economic development, which may provoke debate about the primary mission and public benefit of non-profit organizations.
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Who cares
Nonprofit economic development organizations
The bill would make property owned and used exclusively for promoting future economic development through acquiring land for business, commercial or industrial development eligible for a property tax exemption.
Municipal governing boards
They would retain the authority to tax otherwise exempt property by adopting a local law, ordinance or resolution after a public hearing.
Local property tax assessors
They would apply the expanded exemption to assessment rolls based on taxable status dates on or after the January 1 following the bill becoming law.
Headline styles
Tax Break for Development Nonprofits
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
2 Multi-sponsors
History
- Held for consideration in real property taxation
- Referred to real property taxation
- Referred to real property taxation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2233
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. CROUCH -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to the exemption for non-profit organizations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 1 of section 420-b of the real property tax law, as added by chapter 919 of the laws of 1981, is amended to read as follows:
(a) Real property owned by a corporation or association which is organized exclusively for bible, tract, benevolent, missionary, infirmary, public playground, scientific, literary, bar association, medical society, library, patriotic or historical purposes, for the development of good sportsmanship for persons under the age of eighteen years through the conduct of supervised athletic games, for the purpose of promoting future economic development by means of the acquisition of real property for business, commercial, or industrial development purposes, for the enforcement of laws relating to children or animals, or for two or more such purposes, and used exclusively for carrying out thereupon one or more of such purposes either by the owning corporation or association, or by another such corporation or association as hereinafter provided, shall be exempt from taxation; provided, however, that such property shall be taxable by any municipal corporation within which it is located if the governing board of such municipal corporation, after public hearing, adopts a local law, ordinance or resolution so providing. None of the following subdivisions of this section providing that certain properties shall be exempt under circumstances or conditions set forth in such subdivisions shall exempt such property from taxation by a municipal corporation whose governing board has adopted a local law, ordinance or resolution providing that such property shall be taxable pursuant to this subdivision.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04481-01-7
A. 2233 2
§ 2. 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 prepared on the basis of taxable status dates occurring on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.