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
Nonprofits could lose valuable property tax exemptions. if they use their property in ways that violate local zoning laws, which could significantly increase their operating costs and financial burdens.
Local governments would gain more control over land use. by tying tax exemptions to compliance with zoning, potentially making it easier to enforce community standards and zoning rules against nonprofits.
Nonprofits may have to more carefully assess where and how they operate. , possibly limiting their ability to provide services or expand if local zoning is restrictive or not aligned with their missions.
The law could lead to increased disputes or legal challenges. between nonprofits and municipalities regarding what constitutes a zoning violation and how strictly those rules are interpreted and enforced.
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Who cares
Nonprofit property owners
The bill would deny the mandatory real property tax exemption under section 420-a when a property's use violates applicable local zoning laws.
Local property tax assessors
They would need to account for zoning violations involving a property's use when determining eligibility for this exemption.
Municipal zoning officials
Violations of the local zoning laws they enforce would become grounds for denying this nonprofit property tax exemption.
Headline styles
End Tax Breaks for Violators
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
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 Tax Breaks for Violators
In Assembly Committee · Real Property Taxation · Sponsor Kenneth Zebrowski
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4115
2019-2020 Regular Sessions
IN SENATE
February 28, 2019
Introduced by Sen. CARLUCCI -- 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.
LBD06286-01-9
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
OF THE BILL:
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.
Prior legislative history
A3927A of 2017-18
Fiscal implications for state
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.