senate Bill S2545A

Relates to the exemption from taxation for non-profit organizations

download pdf

Sponsor

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 25 / Jan / 2011
    • REFERRED TO LOCAL GOVERNMENT
  • 04 / Jan / 2012
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / May / 2012
    • AMEND AND RECOMMIT TO LOCAL GOVERNMENT
  • 08 / May / 2012
    • PRINT NUMBER 2545A

Summary

Requires the burden of annually establishing that the requirements of the mandatory class non-profit real property tax exemptions have been satisfied to fall upon the owner of the property and must be proven by clear and convincing evidence.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A417A
Versions:
S2545
S2545A
Legislative Cycle:
2011-2012
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยง420-a, RPT L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S8474, A908
2007-2008: A1246, S478, S479, A1246

Sponsor Memo

BILL NUMBER:S2545A

TITLE OF BILL:
An act
to amend the real property tax law, in relation to the exemption from
taxation for non-profit organizations

PURPOSE:
To place the responsibility of annually establishing that a
not-for-profit corporation or association is entitled to real
property tax exemptions with such corporation or association.

SUMMARY OF PROVISIONS:
Amends section 420-a of the real property tax law by adding a new
subdivision 15 to provide that the burden of annually establishing
that the requirements of section 420-a have been satisfied shall be
upon the owner and must be proven by clear and convincing evidence.
Provides that the New York State Department of Taxation and Finance
shall develop, in consultation with not-for-profit organizations and
assessors, guidance documents which shall be used by assessors to
determine whether that standard has been met.

EXISTING LAW:
While not-for-profit corporations or associations must initially seek
the granting of an exemption under Section 420-a. they are not
required to do so on an annual basis, nor are they regularly
compelled to provide convincing evidence that such exemption should
apply.

JUSTIFICATION:
This proposed measure is one of a series of bills aimed at
reconstructing the framework for granting real property tax
exemptions across the state. Based on year 2000 assessment rolls,
there are over five million parcels of property in New York State
(valued at a total of 1.3 trillion dollars). Of this number, some
three million parcels enjoy at least I real property tax exemption.
From a taxable status standpoint, about 1/3 of the total value of
property in New York State (441 billion dollars) is either wholly or
partially exempt from real taxation.

The lion's share of real property tax exemptions (around 68%) are
state mandated, and while the state has provided some reimbursement
to relieve local taxing jurisdictions (i.e. through the STAR
program), high levels of tax exemptions can present a serious burden
to other property owners who must support the cost of school
district, municipal and special district operations.

The State must help provide tools which promote greater accountability
from those seeking real property exemptions in order to balance
public needs and benefits. This specific legislation offers such a
tool by seeking to ensure that organizations which seek tax exemption
truly met those public purposes, and that lands receiving relief from

real property taxation are being fully used in support of such
purposes.

LEGISLATIVE HISTORY:
S.8474 of 2010: Referred to Rules
S.498 of 2007: Referred to Rules
S.3926 of 2005: Referred to Rules
S.1123 of 2003: Died on Third Reading Calendar

FISCAL IMPLICATIONS:
None to the state.

LOCAL FISCAL IMPLICATIONS:
Undetermined, however, it is anticipated the bill will offer improved
local oversight of exemptions, with a salutary effect on school,
municipal and special district (i.e. fire protection) tax rolls.

EFFECTIVE DATE:
This act would take effect on the first of January next succeeding the
date on which it shall have become law and would apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after such date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2545--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 25, 2011
                               ___________

Introduced  by  Sens. BONACIC, LARKIN -- read twice and ordered printed,
  and when printed to be committed to the Committee on Local  Government
  -- recommitted to the Committee on Local Government in accordance with
  Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the real property tax law, in relation to the  exemption
  from taxation for non-profit organizations

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Section 420-a of the real property tax law is  amended  by
adding a new subdivision 15 to read as follows:
  15.  IN  ALL  INSTANCES,  THE BURDEN OF ANNUALLY ESTABLISHING THAT THE
REQUIREMENTS OF THIS SECTION HAVE BEEN SATISFIED SHALL BE UPON THE OWNER
OF THE PROPERTY AND MUST BE PROVEN BY CLEAR AND CONVINCING EVIDENCE. THE
DEPARTMENT SHALL DEVELOP, IN CONSULTATION WITH NOT-FOR-PROFIT  ORGANIZA-
TIONS  AND  ASSESSORS,  GUIDANCE  DOCUMENTS  TO  BE USED BY ASSESSORS IN
DETERMINING WHETHER THE STANDARD OF PROOF ESTABLISHED BY  THIS  SUBDIVI-
SION HAS BEEN MET.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a  law  and  shall  apply  to
assessment rolls prepared on the basis of taxable status dates occurring
on or after such date.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01897-02-2

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.