What's happening
This bill limits the property tax exemption for nonprofit-owned vacant land to seven years from the date of acquisition.
Why it matters
Prevents indefinite tax-free land banking. By capping the exemption at seven years, the bill discourages nonprofit organizations from holding large tracts of vacant land without developing them, which can tie up valuable property that could otherwise contribute to the local tax base or be put to productive use.
Incentivizes prompt development for community benefit. Nonprofits must now either begin construction or demonstrate good faith plans to build within a set period, encouraging timely development of land for charitable, educational, or other qualifying purposes, potentially accelerating community improvements.
Applies retroactively and prospectively. For properties acquired before the law takes effect, the seven-year clock starts on the law’s effective date, not the original acquisition date, giving those nonprofits a fresh but finite window to act; for new acquisitions, the countdown begins immediately upon purchase.
May impact nonprofit planning and real estate strategy. Organizations will need to be more strategic in acquiring land, ensuring they have realistic timelines and resources for development, or risk losing valuable tax exemptions, which could alter how nonprofits approach real estate investments and project planning.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Limit Nonprofit Tax Exemptions
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
1 Multi-sponsor
History
- Referred to real property taxation
- Referred to real property taxation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Tax Breaks for Nonprofits
In Senate Committee · Local Government · Sponsor William J. Larkin Jr.
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
270
2017-2018 Regular Sessions
IN ASSEMBLY
January 5, 2017
Introduced by M. of A. GUNTHER, COOK -- Multi-Sponsored by -- M. of A. STEC -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to the duration of the exemption for property of mandatory class nonprofit organizations by reason of the absence of suitable buildings or improvements thereon if construction of such buildings or improvements is in progress or is in good faith contemplated
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 3 of section 420-a of the real property tax law, such section as renumbered by chapter 919 of the laws of 1981, is amended to read as follows:
3. Such real property from which no revenue is derived shall be exempt though not in actual use therefor by reason of the absence of suitable buildings or other physical improvements thereon if:
(a) the construction of such buildings or other physical improvements is in progress or is in good faith contemplated by such corporation or association within seven years after such property has been acquired by such corporation or association; for the purposes of calculating such seven years' period, with respect to property acquired before the effective date of the chapter of the laws of two thousand seventeen which amended this subdivision, such seven years' period shall commence on such effective date, and with respect to property acquired on or after such effective date, such seven years' period shall commence on the date of acquisition; or
(b) such real property is held by such corporation or association upon condition that the title thereto shall revert in case any building not intended and suitable for one or more such purposes shall be erected upon such premises or some part thereof.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02699-01-7
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.