What's happening
The bill amends tax law so not-for-profit properties used for commercial purposes affecting community character lose their tax exemption.
Why it matters
Targets not-for-profit organizations that lease property for commercial, for-profit purposes. if these activities are found to significantly impact local population patterns or community character, the entire property loses its tax-exempt status.
Empowers local governments. to determine, through a public hearing, whether a not-for-profit’s commercial use of property negatively affects the character or growth patterns of a neighborhood or community.
Raises the stakes for not-for-profits considering commercial leases. , as even partial commercial use could jeopardize the tax exemption for the entire parcel, potentially increasing operational costs and affecting funding for their primary mission.
Aims to prevent not-for-profits from indirectly facilitating commercial development. that might alter community dynamics while still benefiting from tax exemptions meant to support charitable, educational, or religious activities.
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
Tax Not-For-Profit Leases
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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
4751
2017-2018 Regular Sessions
IN ASSEMBLY
February 3, 2017
Introduced by M. of A. O'DONNELL -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to not-for-profit lease of real property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 420-a of the real property tax law, as amended by section 17 of part A of chapter 68 of the laws of 2013, is amended to read as follows:
2. If any portion of such real property is not so used exclusively to carry out thereupon one or more of such purposes but is leased or otherwise used for other purposes, such portion shall be subject to taxation and the remaining portion only shall be exempt; provided, however, that such real property shall be fully exempt from taxation although it or a portion thereof is used (a) for purposes which are exempt pursuant to this section or sections four hundred twenty-b, four hundred twenty-two, four hundred twenty-four, four hundred twenty-six, four hundred twentyeight, four hundred thirty or four hundred fifty of this chapter by another corporation which owns real property exempt from taxation pursuant to such sections or whose real property if it owned any would be exempt from taxation pursuant to such sections, (b) for purposes which are exempt pursuant to section four hundred six or section four hundred eight of this chapter by a corporation which owns real property exempt from taxation pursuant to such section or if it owned any would be exempt from taxation pursuant to such section, (c) for purposes which are exempt pursuant to section four hundred sixteen of this chapter by an organization which owns real property exempt from taxation pursuant to such section or whose real property if it owned any would be exempt from taxation pursuant to such section, (d) for purposes relating to civil defense pursuant to the New York state defense emergency act, including but not limited to activities in preparation for anticipated
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09389-01-7
A. 4751 2
attack, during attack, or following attack or false warning thereof, or in connection with drill or test ordered or directed by civil defense authorities, or (e) for purposes of a tax-free NY area that has been approved pursuant to article twenty-one of the economic development law, subject to the conditions that the real property must have been owned by the corporation or association organized exclusively for educational purposes and exempt pursuant to this section on June first, two thousand thirteen, and that the exemption shall apply only to the portion of such real property that is used for purposes of the START-UP NY program; and provided further that such real property shall be exempt from taxation only so long as it or a portion thereof, as the case may be, is devoted to such exempt purposes and so long as any moneys paid for such use do not exceed the amount of the carrying, maintenance and depreciation charges of the property or portion thereof, as the case may be[.]; and provided further that if the portion of such real property not used exclusively to carry out thereupon one or more of such purposes is leased or otherwise used for commercial for-profit purposes and will have a significant effect on existing patterns of population concentration, distribution or growth, or on the existing community or neighborhood character, as determined by the local governing body after a public hearing, then the entire parcel of such real property shall be subject to taxation and no portion shall be exempt.
§ 2. This act shall take effect immediately.
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.