Let Towns Tax Nonprofits

Section 1. Paragraph (a) of subdivision 1 of section 420-a of the real property tax law, as amended by chapter 920 of the laws of 1981, is amended to read as follows:

(a) Real property owned by a corporation or association organized or conducted exclusively for religious, charitable, hospital, educational, [or moral or mental improvement of men, women or children purposes,] or for two or more such purposes, and used exclusively for carrying out thereupon one or more of such purposes either by the owning corporation or association or by another such corporation or association as hereinafter provided shall be exempt from taxation as provided in this section.

§ 2. Paragraph (a) of subdivision 1 of section 420-b of the real property tax law, as added by chapter 919 of the laws of 1981, is amended to read as follows:

(a) (i) Real property owned by a corporation or association which is organized exclusively for purposes related to the moral or mental improvement of men, women, or children, or for bible, tract, benevolent, missionary, infirmary, public playground, scientific, literary, bar association, medical society, library, patriotic or historical purposes, for the development of good sportsmanship for persons under the age of eighteen years through the conduct of supervised athletic games, for the enforcement of laws relating to children or animals, or for two or more such purposes, and used exclusively for carrying out thereupon one or

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD04899-01-7

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more of such purposes either by the owning corporation or association, or by another such corporation or association as hereinafter provided, shall be exempt from taxation; provided, however, that such property shall be taxable by any municipal corporation within which it is located if the governing board of such municipal corporation, after public hearing, adopts a local law, ordinance or resolution so providing. None of the following subdivisions of this section providing that certain properties shall be exempt under circumstances or conditions set forth in such subdivisions shall exempt such property from taxation by a municipal corporation whose governing board has adopted a local law, ordinance or resolution providing that such property shall be taxable pursuant to this subdivision.

(ii) Notwithstanding the provisions of paragraph (b) of this subdivision, once a property is exempted from taxation pursuant to local law, ordinance, or resolution, such property, so long as it continues to be used exclusively for purposes of exempt activities, shall continue to be exempt from taxation for no more than thirty years, unless such property is sold or leased; provided, however, that such exemption shall be lost after it has been enjoyed for thirty years if a local law, ordinance or resolution has been enacted providing for the taxation of all properties in the sub-category that the particular property is in, except any other which is enjoying an exemption for thirty years pursuant to this paragraph. Such local law may specify a minimum number of days each acre must actually be used in order to qualify for the exemption authorized in this section, provided, however, the number of days shall not be greater than ninety.

§ 3. Subdivision 1 of section 420-b of the real property tax law is amended by adding a new paragraph (d) to read as follows:

(d) Property organized exclusively for purposes related to the moral or mental improvement of men, women, or children shall include each of the following categories of real property. Such property shall be owned by a corporation classified as tax exempt or not-for-profit under the federal internal revenue code. Any such category may be subject to taxation provided a local law, ordinance, or resolution is passed consistent with this section:

(i) Arts. Real property primarily used to facilitate or enhance the arts;

(ii) Sciences. Real property primarily used in the study of sciences, biology, and horticulture;

(iii) Benefit of animals. Real property primarily used for the benefit of non-human animals;

(iv) Open Space. Real property which is open to the public, is primarily unimproved, and is kept open for hiking, walking, or forms of exercise which do not commonly use mechanized devices except by those persons who are disabled or otherwise unable to walk without mechanized assistance. Such open space may be open to the public upon the payment of a fee which is directly related to the costs of maintaining and improving the property. Open space shall not include any property or portion of property from which the public is excluded except for exclusions solely for public health purposes as determined by a governmental agency or for public safety as determined by the property owner, with such determination to be reviewable in any court of equity jurisdiction; provided, however a presumption shall attach that the property owner's determination is reasonable. Attorneys fees may be awarded, at the discretion of the court, for any prevailing party who commences or

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defines a civil action based on the public safety exclusions permissible by this subparagraph;

(v) Land Trust. Real property which is primarily unimproved and is owned by a not-for-profit corporation and all of the following criteria are met: (1) the not-for-profit corporation enters into a contract with the assessing unit providing that the land in the land trust may not be sold or encumbered except by mortgage or conservation easement, unless the not-for-profit corporation, within thirty days of such sale or encumbrance, enters into a valid contract to purchase land in New York state of at least an equal value to be placed in a land trust, and the not-for-profit corporation does so purchase such land within one year of entering into such purchase and sale contract; (2) the real property is included as part of a lawfully enacted comprehensive plan by the county, city, town, or village in which such real property is in; or is identified in an official open space or natural resources protection plan duly adopted by a federal, state, or local government or agency thereof. Unless the governing board of the county, city, town or village in which the property is situated passes a resolution to the contrary, if the purchase, referred to in clause one of this subparagraph does not occur within the time limitations thereunder, the land trust shall be liable for all tax payments which it would have paid on the property it sold for the period of time which it would have owed such tax payments to all lawful taxing jurisdictions, unless the title to the equally valued land under contract for purchase and sale was deemed unmarketable, or the seller of such property withdrew the offer to sell, in which case the land trust shall have an additional three hundred sixty-five days to purchase and close title on another property in New York state pursuant to the provisions of clause one of this subparagraph;

(vi) Non-scholastic educational. Real property owned by an organization which is tax exempt under the federal internal revenue code and which is primarily used to improve the intellectual capabilities of persons, and which does not qualify for tax exemption pursuant to section four hundred twenty-a of this title; provided, however, that notwithstanding the preceding portion of this subparagraph, a property shall continue to be exempt from taxation pursuant to section four hundred twenty-a of this title when such property is owned by a tax exempt entity and is: (1) used for educational purposes in that it is used at least one hundred twenty days a year in a manner which satisfies the compulsory education requirements of the education law; or (2) is used for educational purposes by a tax exempt organization which holds a certificate of registration from the board of regents; or (3) each acre of which is used at least one hundred twenty days a year to increase knowledge of persons and such property is owned by an institution of higher learning or a school of medicine, dentistry or osteopathy created by law or otherwise authorized by the board of regents of the state university of New York to confer degrees and which meets standards of educational quality comparable to those as may be established from time to time by the board of regents of the state university of New York; such terms shall also include property owned by an organization claiming an exemption from taxation for educational purposes which is used to house individuals who are actively engaged at least one hundred twenty days per year in seeking to satisfy the compulsory education requirements of the education law or who are seeking a degree, certificate, or diploma, through a property owner which holds a certificate of registration issued by the board of regents or holds a charter granted by the New York state education department; or (4) is used actively and exclu-

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sively at least sixty days per year by persons under the age of twentyone who are learning skills related to nature, the outdoors and/or personal and civic responsibilities, provided, however, that the property may also be used for community meetings or other exempt purposes when no more than the actual expenses of utilizing the facility are charged to the organization or individual; or (5) is used for the carrying out of educational purposes, including property necessary for transportation facilities, athletic facilities, parking facilities, or administrative offices if owned by an organization which qualifies as exempt for educational purposes under section four hundred twenty-a of this title.

(vii) Recreational. Real property owned by an organization which is tax exempt under the federal internal revenue code and which provides recreational opportunity for persons regardless of ability to pay. Recreational opportunities may be either indoors or outdoors and may include overnight opportunities primarily for persons under the age of twenty-one;

(viii) Medical purposes. Real property owned by an organization which is tax exempt under the federal internal revenue code and which is not a hospital as defined by section four hundred twenty-a of this title, but which qualifies as a hospital as defined in article twenty-eight of the public health law;

(ix) Home care services. Real property owned by an organization which is tax exempt under the federal internal revenue code and is a home care services agency as defined in article thirty-six of the public health law;

(x) Residential health care facility. Real property owned by an organization which is tax exempt as a residential health care facility as defined in article twenty-eight of the public health law;

(xi) Other medical purposes. Real property which is owned by an organization which is tax exempt under the federal internal revenue code and is used to provide medical services to persons with limited economic means; provided, however, that notwithstanding the preceding portion of this subparagraph, a property shall continue to be exempt from taxation pursuant to section four hundred twenty-a of this title when such property is owned by a tax exempt entity and is a hospice facility as defined in article forty of the public health law as well as a hospital facility or institution engaged principally in providing services by or under the supervision of a physician for the prevention, diagnosis, or treatment of human disease, pain, injury, deformity or physical condition and which is certified or licensed pursuant to article twenty-eight of the public health law, and which on an ongoing and constant basis provides or offers overnight accommodations to those in need of such medical services. It shall also include facilities owned by a hospital facility or corporation related thereto which provides medical care, even if not on a constant basis. It shall also include related parking facilities which are owned by the hospital facility or hospice facility or a corporation related thereto which is exempt from taxation and generally used on an ongoing basis primarily by hospital facility or hospice facility employees, patients, and visitors. It shall not include living accommodation for hospital personnel or their families;

(xii) Interdenominational centers. (1) Real property owned by a corporation organized for the purposes of establishing an interdenominational center to assist in the work of, and to promote cooperation among, various religious denominations, and to acquire or erect a building or buildings for such center, and to lease a portion or portions for use by religious, educational, missionary and charitable corporations or asso-

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ciations; or real property leased to corporations organized for such purposes by a corporation organized for purposes which are exempt under this section, or section four hundred twenty-a, four hundred twenty-two, four hundred twenty-four, four hundred twenty-six or four hundred twenty-eight of this title, shall be exempt from taxation and exempt from special ad valorem levies and special assessments to the extent provided in section four hundred ninety of this article, to the same extent and subject to the same conditions and exceptions as property of a corporation organized exclusively for religious, educational, missionary or charitable purposes.