What's happening
This bill repeals the law regarding real property tax treatment for properties used by professional major league sports teams.
Why it matters
Ends Special Tax Treatment. By repealing Section 429, the bill removes special real property tax exemptions previously granted to properties used by professional major league sports teams, meaning these properties would now be taxed like other commercial properties.
Shifts Tax Responsibility. The new legislative intent explicitly voids lease or agreement clauses that pass the property tax burden from the property owner to a tenant (such as a sports team), ensuring the legal responsibility for taxes stays with the property owner.
Potential Local Revenue Impact. Local governments could see increased property tax revenue from stadiums and arenas that were previously exempt, which could affect local budgets, public services, or tax rates for other residents and businesses.
Alters Negotiation Dynamics. The change could impact future lease negotiations between sports teams and municipalities or private owners, possibly influencing decisions about stadium locations, renovations, or public-private partnerships for sports facilities.
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Who cares
Professional major league sports teams
The bill would repeal the real property tax exemption for property used for professional major league sports.
Owners of affected sports properties
The bill would remove the exemption and declares that lease or agreement provisions shifting taxes or equivalent charges to anyone other than property owners are void against public policy.
Tenants and other nonowner parties to property agreements
The bill’s declaration against shifting property tax obligations to nonowners could affect charges assigned to them under leases or other written agreements.
Local taxing authorities
Repealing the exemption would change the tax treatment of affected professional major league sports properties.
Headline styles
End Pro Sports Tax Breaks
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 26
2 Co-sponsors
History
- Referred to local government
- 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 Stadium Tax Exemptions
In Assembly Committee · Real Property Taxation · Sponsor David Weprin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2897
2019-2020 Regular Sessions
IN SENATE
January 30, 2019
Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to repeal section 429 of the real property tax law relating to real property used for professional major league sports
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative intent. The legislature hereby declares that any provision in a lease, agreement or any other written instrument requiring that any taxes or their equivalent, set forth in such instrument in the form of any charges of any kind whatsoever, imposed by any taxing authority, shall be made the obligation of any person, sole proprietorship, partnership, firm, corporation, limited liability company, association, franchise, team, or any other entity, other than the owner or owners of such property, shall be deemed void as against public policy.
§ 2. Section 429 of the real property tax law is REPEALED.
§ 3. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02456-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to repeal section 429 of the real property tax law relating to real property used for professional major league sports
Purpose
To require payment of taxes by the owners of Madison Square Garden.
Summary of specific provisions
The bill repeals section 429 of the real property tax law, "real proper- ty used for professional major league sports," to require that the owners of Madison Square Garden pay real property taxes. The Garden currently enjoys a curiously worded exemption from taxes, based on the fact that it meets the following criteria, which are applicable to no other property in New York:
1. It is located in a city with a population of one million or more and used by both a professional major league hockey team which is a member of the National Hockey League and a professional major league basketball team which is a member of the National Basketball Association to play their home games.
2. It is exempt from taxation to the extent that the taxes are the obli- gation by lease or otherwise of the owners of franchises for such teams, provided that such owners enter into a written agreement with the chief executive officer of the municipality in which such property is located to play their home games within such municipality for a period of at least ten consecutive years.
3. The tax exemption is granted on the date the agreement is executed and applies to taxes which become due and payable after the agreement is executed. The Exemption continues as long as both of the professional teams play their home games there and no longer.
4. The exemption also applies to improvements used for the provision of facilities or services related to sports, entertainment, expositions, conventions or trade shows.
5. If one or both of said teams ceases to play their home games at the property at any time, the tax exemption ceases immediately. The amend- ment adds new language to the section, to make it clear that the proper- ty is still subject to taxation, and that the full amount of such taxes are and shall be the obligations of the owners of such property, and may not be made obligations by lease or otherwise of the owners of the teams referred to hereinabove. The amendment also makes it clear that any provision in a lease, agreement, or any other written instrument requir- ing that any such taxes or their equivalent in the form of any charges of any kind whatsoever, imposed by whatever name, be made obligations of the owners of such teams shall he void on and after the effective date of this act as against state policy.
Justification
No exemption is granted in perpetuity. The purpose of this bill is to eliminate the exemption, but to insure that fans are not penalized by the owners of the facility, in the form of passing onto them any charges or other costs as a proxy for the taxes the owners must pay.
Legislative history
2018: S8128/A5500 - REFERRED TO LOCAL GOVERNMENT:/ referred to real property taxation 2017: A5500 - referred to real property taxation 2016: A3421 - referred to real property taxation 2015: A3421 - referred to real property taxation
Fiscal implications
None.
Effective date
This act shall take effect 90 days after it has become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.