What's happening
This bill amends the law to deny property tax exemptions to nonprofits if their property use violates local zoning laws.
Why it matters
Directly ties nonprofit tax exemption to compliance with local zoning laws. , meaning nonprofits can lose property tax benefits if they use their property in ways that break these rules—even if their work is otherwise charitable.
Strengthens local authority over nonprofit land use. , giving municipalities more leverage to enforce zoning laws against nonprofit organizations that might previously have bypassed certain local restrictions due to their tax-exempt status.
Could affect the finances and operations of nonprofits. , especially those that rely on tax exemptions and operate in areas where zoning laws are strict or ambiguous, potentially leading to increased scrutiny or litigation over property use.
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Who cares
Headline styles
End Tax Breaks for Violators
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 45
No co-sponsors yet.
History
- Referred to local government
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 Assembly Committee · Ways And Means · Sponsor Kenneth Zebrowski
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8133
IN SENATE
April 6, 2018
Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
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.
LBD07810-03-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to nonprofit organizations mandatory class
Purpose
The bill will prohibit properties which are in violation of a local government's zoning laws from receiving a property tax exemption.
Summary of provisions
Section one of the bill amends section 420-a of the real property tax law as it relates to prohibiting properties which are in violation of a local government's zoning laws from receiving a property tax exemption.
Section two of the bill relates to the effective date.
Justification
There has been several court cases related to the issue of whether zoning violations should prohibit a property owner from receiving a property tax exemption. The most recent ruling, Community Humanitarian Assn, Inc v. Town of Ramapo, stated that a violation of the local zoning law should not result in the revocation or denial of a tax exemption. Since the law is not explicit on the issue, this bill will clarify that violation of applicable local zoning laws will be grounds to deny a property tax exemption.
In order to receive a tax exemption benefit, a property should be in compliance with local zoning laws. The recent court decision narrowly focused on the use of the property and ignored the fact that the proper- ty was in clear violation of zoning law.
This bill will remove confusion among the courts and provide assessors with the tools to ensure that property tax exemptions are appropriately given.
Legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.