What's happening
This bill repeals the section of law exempting real property used for professional major league sports from property taxes.
Why it matters
Ending the tax exemption for major league sports facilities could result in significant new property tax revenue for local governments and school districts. , which could help fund public services or reduce the tax burden on other property owners.
Sports franchises and stadium owners would now be required to pay property taxes like other businesses. , potentially increasing their operating costs and affecting negotiations for public subsidies or new stadium deals.
The bill proactively prevents lease or contract clauses that try to shift the newly-imposed tax burden from stadium owners to tenants or other parties. , ensuring that the intended entities (property owners) are responsible for the taxes, not the public or unrelated businesses.
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Who cares
Headline styles
End Sports Stadium Tax Loophole
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Referred to local government
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3034
2019-2020 Regular Sessions
IN SENATE
February 1, 2019
Introduced by Sen. SANDERS -- 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 Section 429 of the real property tax law is REPEALED.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 immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09201-01-9
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 property taxes by the owners of Madison Square Garden.
Summary of 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 be 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 a property tax exemption for a multi-billion corporation.
Legislative history
New bill.
Fiscal implications
No impact on New York State. Estimated to add $50 million annually in property tax revenue to the City of New York.
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.