What's happening
This bill amends real property tax law to deny nonprofit property tax exemptions if the property's use violates local zoning laws.
Why it matters
Restricts tax-exempt status for nonprofits. Nonprofits that use property in violation of local zoning laws would lose their property tax exemption, making compliance with local zoning a prerequisite for maintaining this financial benefit.
Empowers local governments. By linking tax exemption eligibility to zoning compliance, municipalities gain a tool to enforce local land use regulations, potentially addressing unauthorized or controversial uses of nonprofit-owned property.
May affect nonprofit operations and costs. Nonprofits operating in areas with complex zoning rules could face increased administrative burdens and costs, as violations—intentional or accidental—could result in significant new tax liabilities.
Aligns nonprofit benefits with community standards. This change ensures that the tax advantages given to nonprofits reflect local community standards and priorities, potentially sparking debate over how zoning and nonprofit missions intersect.
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Who cares
Headline styles
End Tax Breaks for Violators
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to ways and means
- Reported referred to ways and means
- Print number 3927a
- Amend and recommit 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.
End Tax Breaks for Violators
In Senate Committee · Local Government · Sponsor Betty Little
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3927--A
2017-2018 Regular Sessions
IN ASSEMBLY
January 30, 2017
Introduced by M. of A. ZEBROWSKI, PEOPLES-STOKES, BRAUNSTEIN, GALEF, COLTON, GLICK -- read once and referred to the Committee on Real Property Taxation -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to nonprofit organizations mandatory class
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (b) of subdivision 1 of section 420-a of the real property tax law, as amended by chapter 919 of the laws of 1981, is amended to read as follows:
(b) Real property such as specified in paragraph (a) of this subdivision shall not be exempt if any officer, member or employee of the owning corporation or association shall receive or may be lawfully entitled to receive any pecuniary profit from the operations thereof, except reasonable compensation for services in effecting one or more of such purposes, or as proper beneficiaries of its strictly charitable purposes; or if the organization thereof for any such avowed purposes be a guise or pretense for directly or indirectly making any other pecuniary profit for such corporation or association or for any of its members or employees; or if it be not in good faith organized or conducted exclusively for one or more of such purposes; or if such purpose in which the real property is being used is in violation of applicable local zoning laws.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07810-02-7
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.