What's happening
This bill requires nonprofit property owners to annually prove tax exemption eligibility with clear and convincing evidence, using state-provided guidance.
Why it matters
Raises the standard of proof required. Nonprofit property owners must now provide "clear and convincing evidence"—a higher legal threshold than before—to prove they qualify for tax exemption each year, making it harder to retain exempt status without thorough documentation.
Annual re-evaluation. Instead of a one-time or infrequent review, nonprofits will need to actively demonstrate eligibility every year, increasing administrative work for both property owners and local assessors, and potentially leading to loss of exemptions for those unable to meet the new standard.
State-mandated guidance for consistency. The law requires the state to create standardized guidance (with input from nonprofits and assessors), aiming to ensure fair and uniform application of the exemption rules across municipalities—reducing ambiguity but possibly imposing stricter criteria statewide.
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
Tighten Nonprofit Tax Exemptions
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
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.
Tighten Nonprofit Tax Exemptions
In Senate Committee · Local Government · Sponsor John J. Bonacic
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
539
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. GUNTHER, GALEF, MONTESANO -- Multi-Sponsored by -- M. of A. RIVERA -- 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 from taxation for non-profit organizations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 420-a of the real property tax law is amended by adding a new subdivision 15 to read as follows:
15. In all instances, the burden of annually establishing that the requirements of this section have been satisfied shall be upon the owner of the property and must be proven by clear and convincing evidence. The department shall develop, in consultation with not-for-profit organizations and assessors, guidance documents to be used by assessors in determining whether the standard of proof established by this subdivision has been met.
§ 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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03189-01-7
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.