senate Bill S2552

Provides that certain real property tax exemptions shall only be granted where such property is actually used for certain enumerated purposes;appropriation

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 25 / Jan / 2011
    • REFERRED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO FINANCE

Summary

Provides that real property tax exemptions granted to real property owned by corporations or associations organized or conducted exclusively for hospital or moral or mental improvement of men, women, or children purposes and used exclusively for carrying out such purposes shall only be granted if the property owner can prove by clear and convincing evidence that each acre is actually used for such purpose at least 120 days a year; appropriates $10,000,000 therefor.

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Bill Details

Versions:
S2552
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Appropriations
Laws Affected:
Amd §§420-a & 420-b, add §420-d, RPT L
Versions Introduced in 2009-2010 Legislative Cycle:
S6836

Sponsor Memo

BILL NUMBER:S2552

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

PURPOSE:
To provide for stricter standards in defining the terms used
for nonprofit organizations, and for ensuring that exempt properties
are being used in the manner which supports the specific exemption
granted.

SUMMARY OF PROVISIONS:
Amends subdivision 1 of section 420-a of the
real property tax law by adding a new paragraph (c) to define the
following phrases as related to nonprofit organizations: "organized
or conducted exclusively", "used exclusively", "religious purposes",
"charitable purpose", "hospital purpose" , "educational purpose", and
"moral or mental improvement of men, women, or children purpose."

Similarly, amends section 420-b of the real property tax law by adding
a new paragraph (d) to incorporate the aforementioned definitions of:
"organized exclusively", and "used exclusively".

Adds a new section 420-d to the real property tax law, authorizing
state aid payments to local taxing districts as a reimbursement for
revenues lost to such districts as a result of tax exemptions granted
to real property parcels actively and exclusively used at least 60
days per year by persons under the age of 21 who are learning skills
related to nature, the outdoors and/or personal & civic
responsibilities. Provides for a $10 million state appropriation to
support the state reimbursement program.

EXISTING LAW:
Article XVI of the New York State Constitution provides
that property used exclusively (emphasis added) for religious,
educational, or charitable purposes shall be exempt from taxation.
The Constitution, however, leaves to the State Legislature the power
of defining the terms "religious", "educational" and "charitable."

Title 2 of Article 4 of the Real Property Tax Law (Section 420-a in
particular) speaks of various types of exempt properties, including
"religious", "educational" and "charitable". That Section of law
exempts those types of properties (as well as others) provided the
property is "used exclusively" for carrying out one or more of the
exempt purposes. However, for the purposes of the Real Property Tax
Law those terms have not been defined. Since the Legislature has not
defined those terms, the Courts have defined them, thus creating
existing law which provides for a myriad of exempt properties - even

when not "used exclusively" for religious", "educational", or
"charitable" purposes.

JUSTIFICATION:
Court-developed broadening of what qualifies as an exempt purpose
has diminished the real property "used exclusively" for exempt
purposes can qualify for an exemption. Courts have, for example,
ruled that "used exclusively" actually means the "principal" or
"primary" use of a property. Mohonk Trust v. Board of Assesors of
Town of Gardiner 46 NY2d 476, 483 (1979). Courts have also authorized
commercial timbering on property - clearly not a tax exempt use but
but still allowed a tax exemption. In the Matter of Nassau
County Council Boy Scouts of America v. Board of Assessors of the
Town of Rockland 444 N.Y.S. 2d 755(1981). That same case said that
even if the property is in a state of non-use for much of the year, it
is still entitled to the tax exemption. In addition, the Courts have
authorized religious exemptions even in cases where the property
owner "does not maintain a church, has no clergy and does not conduct
religious services." re is "no church, no clergy, and no religious
services". In the matter of Foundation for "A Course in Miracles",
Inc. v. Theadore, as Chairman of the Town of Fremont Board of
Assessors. 568 N.Y.S. 2d 666 (1991).

LEGISLATIVE HISTORY:
S.6836 of 2010: Referred to Finance
S.1127-A of 2003: Referred to Committee on Local Government

FISCAL IMPLICATIONS:
The sum of $10 million, or so much thereof as
may be necessary, would be appropriated out of the State General Fund
to support reimbursement to local taxing jurisdictions.

LOCAL FISCAL IMPLICATIONS:
Undetermined, however, in addition to the
grant of state reimbursement for certain exempt properties, 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 a 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
________________________________________________________________________

                                  2552

                       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 Finance

AN ACT to amend the real property tax law, in relation to the  exemption
  from  taxation  for  non-profit organizations; and making an appropri-
  ation therefor

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

  Section 1. Subdivision 1 of section 420-a of the real property tax law
is amended by adding a new paragraph (c) to read as follows:
  (C) WHEN USED IN THIS SECTION:
  (I)  "ORGANIZED  OR CONDUCTED EXCLUSIVELY" SHALL REQUIRE THAT A CORPO-
RATION'S OR ASSOCIATION'S ORGANIZATIONAL DOCUMENTS LIMIT THE PURPOSES OF
SUCH CORPORATION OR ASSOCIATION TO ONE OR MORE EXEMPT PURPOSES,  AS  SET
OUT IN PARAGRAPH (A) OF THIS SUBDIVISION;
  (II)  "USED  EXCLUSIVELY"  SHALL REQUIRE THAT A CORPORATION OR ASSOCI-
ATION USE ITS PROPERTY ONLY FOR EXEMPT PURPOSES. USES WHICH MAY BE HELP-
FUL TO THE EXEMPT ORGANIZATION BUT WOULD NOT, IF DONE ON LAND  OWNED  BY
AN OTHERWISE TAXABLE ENTITY, QUALIFY FOR TAX EXEMPTION SHALL SUBJECT THE
PORTION  OF  THE PROPERTY SO USED TO REAL PROPERTY TAXATION. SUCH PHRASE
SHALL BE STRICTLY CONSTRUED AND SHALL BE INTENDED TO LIMIT EXEMPTIONS TO
PROPERTY AND IMPROVEMENTS UTILIZED SOLELY FOR EXEMPT PURPOSES. WHERE  AN
EXEMPT  ORGANIZATION UTILIZES ITS LAND FOR OTHER PURPOSES, INCLUDING BUT
NOT LIMITED TO, THE SALE OF PRODUCTS MADE ON THE  LAND  COMMERCIALLY  OR
THE  SALE  OF  TIMBER,  OR  OTHERWISE  LEASES  THE  LAND  FOR COMMERCIAL
PURPOSES, OR ALLOWS THE PLACEMENT OR CONSTRUCTION OF IMPROVEMENTS ON THE
LAND FOR COMMERCIAL PURPOSES, THAT PORTION  OF  SUCH  PROPERTY  AND  ANY
IMPROVEMENTS  THEREON  IF  SUCH IMPROVEMENTS ARE NOT UTILIZED FOR WHOLLY
EXEMPT PURPOSES SHALL BE SUBJECT TO REAL PROPERTY TAXATION;
  (III) "RELIGIOUS PURPOSES" SHALL MEAN AN ACTIVITY THAT IS FUNDAMENTAL,
NECESSARY AND INTRINSIC TO THE PRACTICE OF A RELIGION.    MEDITATION  OR
THE  MAINTENANCE OF OPEN SPACE OR PROPERTY UTILIZED PRIMARILY FOR HIKING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02381-02-1

S. 2552                             2

SHALL NOT BE CONSIDERED A FUNDAMENTAL OR INTRINSIC RELIGIOUS PURPOSE.  A
CORPORATION  OR  ASSOCIATION  ORGANIZED  OR  CONDUCTED EXCLUSIVELY FOR A
RELIGIOUS PURPOSE SHALL HAVE ITS OWN BELIEFS, FORM OF WORSHIP  AND  FORM
OF  ORGANIZATION. NO EXEMPTION MAY BE CLAIMED FOR RELIGIOUS PURPOSES FOR
BUILDINGS WHICH ARE ON A PARCEL WHERE PERSONS LIVE IF SUCH PERSONS  WORK
IN  INCOME  PRODUCING VENTURES WHERE THE INCOME EITHER GOES TO THE INDI-
VIDUAL OR TO ANOTHER CLAIMING THE EXEMPTION OR TO AN ORGANIZATION  WHICH
IS  LEGALLY  ASSOCIATED OR AFFILIATED WITH THE INCOME PRODUCING VENTURE,
UNLESS SUCH GOODS OR SERVICES ARE EXCLUSIVELY AND WITHOUT EXCEPTION SOLD
TO OR PROVIDED TO INDIVIDUALS OF THE SAME RELIGION. FOR THE PURPOSES  OF
THIS  PARAGRAPH, THE TERM "INCOME" NEED NOT INCLUDE PAYMENT OF MONEY BUT
MAY INCLUDE THE RECEIPT BY AN INDIVIDUAL WHO HAS PROVIDED WORK OR HIS OR
HER FAMILY OF FOOD, OR CLOTHING OR SHELTER. THE  FACT  THAT  INDIVIDUALS
LIVE IN A CLASSLESS SOCIETY SHALL NOT BE A FACTOR IN GRANTING OR DENYING
AN EXEMPTION BASED ON RELIGIOUS PURPOSES. THE PROVISIONS OF THIS SUBPAR-
AGRAPH   SHALL  NOT  AFFECT  THE  PROVISIONS  OF  SECTION  FOUR  HUNDRED
THIRTY-SIX, FOUR HUNDRED SIXTY OR FOUR HUNDRED SIXTY-TWO OF THIS TITLE;
  (IV) "EDUCATIONAL PURPOSE" SHALL MEAN EITHER:
  (A) AN ACTIVITY WHICH SHALL BE UNDERTAKEN IN A MANNER WHICH  SATISFIES
THE  COMPULSORY EDUCATION REQUIREMENTS OF THE EDUCATION LAW OR AN ACTIV-
ITY WHICH IS DONE UNDER THE SUPERVISION OF AN ENTITY WHICH IS TAX EXEMPT
PURSUANT TO THE NOT-FOR-PROFIT CORPORATION LAW OR THE  INTERNAL  REVENUE
CODE  AND  THE ENTITY WHICH CONDUCTS SUCH ACTIVITIES CAN ISSUE A DIPLOMA
AND ALSO HOLDS A CERTIFICATE OF REGISTRATION  ISSUED  BY  THE  BOARD  OF
REGENTS.  SUCH  TERM SHALL ALSO MEAN PURPOSES WHICH ARE EXCLUSIVELY USED
TO INCREASE THE KNOWLEDGE OF INDIVIDUALS  AND  WHICH  ARE  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
MEET 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 TERM SHALL ALSO INCLUDE PROPERTY  OWNED  BY
ONE  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 EDUCA-
TION  REQUIREMENTS  OF  THE  EDUCATION  LAW OR WHO ARE SEEKING A DEGREE,
CERTIFICATE, OR DIPLOMA, THROUGH A PROPERTY OWNER OR LESSEE WHICH  HOLDS
A  CERTIFICATE  OF  REGISTRATION  ISSUED  BY THE BOARD OF REGENTS OR WHO
HOLDS A CHARTER GRANTED BY THE NEW YORK STATE EDUCATION  DEPARTMENT.  AN
ENTITY  CLAIMING  EXEMPTION  FOR EDUCATIONAL PURPOSES SHALL UTILIZE EACH
ACRE AT LEAST ONE HUNDRED TWENTY DAYS A YEAR EXCLUSIVELY FOR EDUCATIONAL
PURPOSES IN ORDER TO MAINTAIN AN EXEMPTION FROM PROPERTY TAXATION PURSU-
ANT TO THIS SUBPARAGRAPH; OR
  (B) PROPERTY OWNED BY AN ORGANIZATION WHICH IS A NOT-FOR-PROFIT CORPO-
RATION OR IS OTHERWISE TAX EXEMPT PURSUANT TO THE INTERNAL REVENUE CODE,
EACH EXEMPT ACRE OF WHICH IS ACTIVELY  AND  EXCLUSIVELY  USED  AT  LEAST
SIXTY  DAYS  PER  YEAR  BY  PERSONS  UNDER THE AGE OF TWENTY-ONE WHO ARE
LEARNING SKILLS RELATED TO NATURE,  THE  OUTDOORS  AND/OR  PERSONAL  AND
CIVIC  RESPONSIBILITIES.    THE PROVISIONS OF THIS SUBPARAGRAPH SHALL BE
STRICTLY INTERPRETED.  NOTWITHSTANDING ANY OTHER PORTION OF THIS SUBPAR-
AGRAPH, THE PROPERTY MAY ALSO BE UTILIZED BY ORGANIZATIONS  OR  INDIVID-
UALS  FOR COMMUNITY MEETINGS OR COMMUNITY CLASSES OR EVENTS WHEN NO MORE
THAN THE ACTUAL EXPENSES OF UTILIZING THE FACILITY ARE  CHARGED  TO  THE
ORGANIZATION  OR  INDIVIDUAL;  PROVIDED  NO  ACTIVITY  DESCRIBED IN THIS
SUBPARAGRAPH SHALL COUNT AS  PART  OF  THE  DAY  REQUIREMENTS  OTHERWISE
PROVIDED  FOR IN THIS SUBPARAGRAPH.  PROPERTY NECESSARY FOR THE CARRYING

S. 2552                             3

OUT OF EDUCATIONAL PURPOSES, INCLUDING PROPERTY NECESSARY FOR  TRANSPOR-
TATION  FACILITIES, ATHLETIC FACILITIES, PARKING FACILITIES, OR ADMINIS-
TRATIVE OFFICES SHALL BE CONSIDERED AN EDUCATIONAL PURPOSE IF  OWNED  BY
AN  ORGANIZATION  WHICH  OTHERWISE  QUALIFIES  AS EXEMPT FOR EDUCATIONAL
PURPOSES;
  (V) "CHARITABLE PURPOSES" SHALL MEAN AN ACTIVITY DONE  WITHOUT  PROFIT
WHICH ACTUALLY AND EXCLUSIVELY EITHER:
  (A)  UNDERTAKES  SIGNIFICANT  BLOOD  DONATION  INITIATIVES, AS WELL AS
OTHER HEALTH RELATED INITIATIVES, INCLUDING,  BUT  NOT  LIMITED  TO  THE
TEACHING OF CLASSES, AND ALSO RESPONDS TO DISASTERS; OR
  (B) WHICH ACTIVELY AND EXCLUSIVELY ALLEVIATES THE CONDITION OF POOR OR
PHYSICALLY OR MENTALLY DISABLED HUMANS. THE INTENDED BENEFICIARIES SHALL
NOT  BE  SPECIFIED INDIVIDUALS AND THE SERVICES PROVIDED BY AN ORGANIZA-
TION CLAIMING CHARITABLE EXEMPTION SHALL BE OPEN TO THE PUBLIC BASED  ON
ECONOMIC OR PHYSICAL CRITERIA. AN ENTITY CLAIMING EXEMPTION FOR CHARITA-
BLE  PURPOSES SHALL UTILIZE EACH ACRE AT LEAST ONE HUNDRED TWENTY DAYS A
YEAR EXCLUSIVELY  FOR  CHARITABLE  PURPOSES  IN  ORDER  TO  MAINTAIN  AN
EXEMPTION FROM PROPERTY TAXATION PURSUANT TO THIS SUBPARAGRAPH.  FOR THE
PURPOSES  OF  THIS  SECTION  AND  SECTION  FOUR HUNDRED TWENTY-B OF THIS
TITLE, NO PERSON WHO RECEIVES FOOD, CLOTHING, OR HOUSING FROM AN  EDUCA-
TIONAL,  CHARITABLE,  RELIGIOUS,  MORAL  OR  MENTAL  IMPROVEMENT OF MEN,
WOMEN, AND CHILDREN ENTITY SHALL BE DETERMINED TO BE POOR  BECAUSE  SUCH
PERSON OR HIS OR HER FAMILY GIVES AS MUCH OR MORE OF THEIR INCOME TO THE
CHARITABLE  ENTITY OR ANOTHER ENTITY WHICH IS TAX EXEMPT PURSUANT TO THE
INTERNAL REVENUE CODE OR EXEMPT FROM REAL PROPERTY TAXATION  UNDER  THIS
SECTION, OR BOTH, AS WOULD BE REQUIRED TO MAKE A DETERMINATION THAT THAT
PERSON OR HIS OR HER SPOUSE OR CHILD IS POOR;
  (VI)  "HOSPITAL  PURPOSES" SHALL MEAN 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 OVER-
NIGHT ACCOMMODATIONS TO THOSE IN NEED OF 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 EXCLUSIVELY SERVE
THE HOSPITAL AS WELL AS RELATED  GROUNDS  WHICH  ARE  USED  BY  HOSPITAL
PATIENTS;  AND SHALL ALSO INCLUDE AN EMERGENCY ROOM, WHICH IS DEFINED TO
MEAN A CENTER OPEN ON A CONTINUOUS BASIS WHICH PROVIDES  EMERGENCY  CARE
FOR  THOSE IN NEED OF MEDICAL SERVICES AND WHICH IS IN THE SAME BUILDING
AS A HOSPITAL. IT SHALL NOT INCLUDE LIVING ACCOMMODATIONS  FOR  HOSPITAL
PERSONNEL OR THEIR FAMILIES;
  (VII)  "MORAL  OR MENTAL IMPROVEMENT OF MEN, WOMEN, OR CHILDREN" SHALL
INCLUDE EACH OF THE FOLLOWING CATEGORIES OF REAL PROPERTY  DESCRIBED  IN
THIS  SUBPARAGRAPH. IN ORDER TO BE EXEMPT FROM TAXATION, EACH ACRE SHALL
HAVE TO BE ACTIVELY AND ACTUALLY UTILIZED FOR AN EXEMPT PURPOSE AT LEAST
ONE HUNDRED TWENTY DAYS IN ANY YEAR  AN  EXEMPTION  IS  CLAIMED  FOR  OR
SOUGHT. IN ADDITION, THE PROPERTY, IN ADDITION TO ANY OTHER REQUIREMENT,
SHALL  BE  CLASSIFIED AS NOT-FOR-PROFIT OR TAX EXEMPT UNDER THE INTERNAL
REVENUE CODE.
  (A) REAL PROPERTY PRIMARILY USED TO FACILITATE OR ENHANCE THE ARTS;
  (B) REAL PROPERTY PRIMARILY USED IN THE STUDY  OF  SCIENCES,  BIOLOGY,
AND HORTICULTURE;
  (C) REAL PROPERTY PRIMARILY USED FOR THE BENEFIT OF NON-HUMAN ANIMALS;

S. 2552                             4

  (D)  REAL  PROPERTY WHICH IS OPEN TO THE PUBLIC AND IS PRIMARILY UNIM-
PROVED 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 THE PROPERTY, INCLUDING THE
IMPROVEMENTS THEREON. OPEN SPACE  SHALL  NOT  INCLUDE  ANY  PROPERTY  OR
PORTION THEREFOR FROM WHICH THE PUBLIC IS EXCLUDED EXCEPT FOR EXCLUSIONS
BASED  EXCLUSIVELY ON PUBLIC HEALTH PURPOSES, AS DETERMINED BY A GOVERN-
MENTAL AGENCY, OR FOR PUBLIC SAFETY  REASONING,  AS  DETERMINED  BY  THE
PROPERTY  OWNER, SUCH DETERMINATION TO BE REVIEWABLE IN ANY COURT HAVING
EQUITY JURISDICTION AND A PRESUMPTION SHALL BE ATTACHED THERETO THAT THE
PROPERTY OWNER'S DETERMINATION IS  REASONABLE.  ATTORNEYS  FEES  MAY  BE
AWARDED,  AT  THE  DISCRETION OF THE COURT, FOR ANY PRIMARILY PREVAILING
PARTY WHO COMMENCES OR DEFENDS A CIVIL ACTION BASED ON THE PUBLIC SAFETY
ASPECTS OF THIS SUBPARAGRAPH;
  (E) "LAND TRUST" SHALL MEAN REAL PROPERTY  WHICH  IS  PRIMARILY  UNIM-
PROVED. NO OWNER SHALL BE ENTITLED TO A PROPERTY TAX EXEMPTION AS A LAND
TRUST  UNLESS  THAT  PROPERTY OWNER MEETS ALL OF THE FOLLOWING CRITERIA:
(1) ENTERS INTO A CONTRACT WITH THE ASSESSING UNIT WHICH  PROVIDES  THAT
THE  LAND  IN  THE  LAND  TRUST MAY NOT BE SOLD OR ENCUMBERED, EXCEPT BY
MORTGAGE OR CONSERVATION EASEMENT, WITHOUT THE  PROPERTY  OWNER,  WITHIN
THIRTY  DAYS OF SUCH SALE OR ENCUMBRANCE, ENTERING INTO A VALID CONTRACT
TO PURCHASE LAND OF AT LEAST AN EQUAL VALUE IN THE STATE OF NEW YORK  TO
BE  PLACED IN A LAND TRUST AND ACTUALLY SO PURCHASING WITHIN ONE YEAR OF
ENTERING INTO SUCH CONTRACT; (2) IS  INCLUDED  AS  PART  OF  A  LAWFULLY
ENACTED  COMPREHENSIVE  PLAN BY THE COUNTY, CITY, TOWN, OR VILLAGE WHICH
SUCH 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;  (3)  EXISTS  AS  A  LAND  TRUST  TO
PROTECT ECOLOGICAL RESOURCES WHICH ARE CONSIDERED VALUABLE IN A LAWFULLY
ENACTED  COMPREHENSIVE  PLAN  PROVIDED THAT PUBLIC ACCESS SHALL NOT BE A
CRITERIA  IN  DETERRING  AN  EXEMPTION  FROM  TAXATION  FOR  LAND  TRUST
PURPOSES;  AND  (4)  UNLESS  THE  GOVERNING  BOARD OF THE TOWN, CITY, OR
VILLAGE WHERE THE PROPERTY  IS  SITUATED  PASSES  A  RESOLUTION  TO  THE
CONTRARY,  IF  THE PURCHASE, REFERRED TO IN ITEM (A) OF THIS CLAUSE DOES
NOT OCCUR WITHIN THE TIME LIMITATIONS PROVIDED IN SUCH  ITEM,  THE  LAND
TRUST  SHALL  BE LIABLE FOR ALL TAX PAYMENTS WHICH SUCH LAND TRUST WOULD
HAVE PAID ON THE PROPERTY SUCH LAND TRUST SOLD FOR THE  PERIOD  OF  TIME
WHICH SUCH LAND TRUST WOULD HAVE OWED TO ALL LAWFUL TAXING JURISDICTIONS
UNLESS  THE TITLE TO THE LAND SUCH LAND TRUST ENTERED INTO A CONTRACT TO
PURCHASE WAS UNMARKETABLE OR THE SELLER OF SUCH  PROPERTY  WITHDREW  THE
OFFER  TO  SELL  IN  WHICH CASE SUCH LAND TRUST SHALL HAVE AN ADDITIONAL
THREE HUNDRED SIXTY-FIVE DAY PERIOD TO PURCHASE AND CLOSE TITLE ON PROP-
ERTY IN THE STATE OF NEW YORK, THE VALUE OF WHICH IS AT LEAST  EQUAL  TO
THE  VALUE  OF  THE  PROPERTY  SUCH  LAND  TRUST SOLD WHICH REQUIRED THE
PURCHASE OF THE PROPERTY WHOSE TITLE WAS UNMARKETABLE OR WHOSE OFFER  TO
SELL WAS WITHDRAWN;
  (F)  "PERSONAL  IMPROVEMENT"  SHALL MEAN REAL PROPERTY OTHER THAN THAT
PROVIDED FOR IN CLAUSE (B) OF SUBPARAGRAPH (IV) OF THIS PARAGRAPH, WHICH
IS USED PRIMARILY BY PERSONS UNDER THE AGE OF TWENTY-ONE WHO ARE  LEARN-
ING  SKILLS  RELATED  TO  NATURE, THE OUTDOORS AND/OR PERSONAL AND CIVIC
RESPONSIBILITIES. SUCH PROPERTY SHALL BE OWNED BY ORGANIZATIONS OR ASSO-
CIATIONS WHICH ARE TAX EXEMPT UNDER THE INTERNAL REVENUE CODE.  NOTWITH-
STANDING  ANY  PART  OF  THIS  SUBDIVISION TO THE CONTRARY, EACH ACRE OF

S. 2552                             5

PROPERTY EXEMPTED AS PERSONAL IMPROVEMENT PROPERTY NEED ONLY BE UTILIZED
NINETY DAYS PER YEAR IN ORDER TO MAINTAIN SUCH PROPERTY'S EXEMPTION;
  (G)  "NON-SCHOLASTIC EDUCATIONAL" SHALL MEAN REAL PROPERTY OWNED BY AN
ORGANIZATION WHICH IS TAX EXEMPT UNDER THE  INTERNAL  REVENUE  CODE  AND
WHICH  IS  PRIMARILY  USED  TO  IMPROVE THE INTELLECTUAL CAPABILITIES OF
HUMAN BEINGS WHICH DO NOT OTHERWISE QUALIFY FOR TAX  EXEMPTION  PURSUANT
TO THIS SECTION;
  (H)  "RECREATIONAL"  SHALL MEAN REAL PROPERTY OWNED BY AN ORGANIZATION
WHICH IS TAX EXEMPT UNDER THE INTERNAL REVENUE CODE AND  WHICH  PROVIDES
RECREATIONAL  OPPORTUNITY  FOR INDIVIDUALS REGARDLESS OF ABILITY TO PAY.
RECREATIONAL OPPORTUNITIES CAN BE EITHER INDOORS  OR  OUTDOORS  AND  MAY
INCLUDE  OVERNIGHT  OPPORTUNITIES PRIMARILY FOR PERSONS UNDER THE AGE OF
TWENTY-ONE YEARS;
  (I) "MEDICAL PURPOSES" SHALL MEAN REAL PROPERTY OTHERWISE OWNED BY  AN
ORGANIZATION  WHICH  IS  TAX  EXEMPT UNDER THE INTERNAL REVENUE CODE AND
WHICH IS NOT A HOSPITAL AS DEFINED BY THIS SECTION BUT  WHICH  QUALIFIES
AS  A  HOSPITAL  AS DEFINED IN ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH
LAW. NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION TO THE  CONTRARY,
PROPERTY  EXEMPTED  FOR MEDICAL PURPOSES NEED NOT MEET ANY MINIMUM USAGE
REQUIREMENT IN TERMS OF THE NUMBER OF DAYS EACH  ACRE  IS  ACTIVELY  AND
ACTUALLY USED;
  (J)  "HOME  CARE SERVICES" SHALL MEAN REAL PROPERTY OTHERWISE OWNED BY
AN ORGANIZATION WHICH IS TAX EXEMPT UNDER THE INTERNAL REVENUE CODE  AND
IS  A  HOME CARE SERVICES AGENCY AS DEFINED IN ARTICLE THIRTY-SIX OF THE
PUBLIC HEALTH LAW, NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION  TO
THE CONTRARY, PROPERTY EXEMPTED FOR HOME CARE SERVICES PURPOSES NEED NOT
MEET  ANY  MINIMUM USAGE REQUIREMENT IN TERMS OF THE NUMBER OF DAYS EACH
ACRE IS ACTIVELY AND ACTUALLY USED;
  (K) "RESIDENTIAL HEALTH CARE FACILITY" SHALL MEAN REAL PROPERTY OTHER-
WISE 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.  NOTWITHSTANDING ANY PROVISION OF THIS  SUBDIVISION  TO  THE
CONTRARY,   PROPERTY  EXEMPTED  FOR  RESIDENTIAL  HEALTH  CARE  FACILITY
PURPOSES NEED NOT MEET ANY MINIMUM USAGE REQUIREMENT  IN  TERMS  OF  THE
NUMBER OF DAYS EACH ACRE IS ACTIVELY AND ACTUALLY USED;
  (L)  "OTHER MEDICAL PURPOSES" SHALL MEAN REAL PROPERTY WHICH OTHERWISE
IS OWNED BY AN ORGANIZATION WHICH  IS  TAX  EXEMPT  UNDER  THE  INTERNAL
REVENUE  CODE  AND IS USED TO PROVIDE MEDICAL SERVICES TO THOSE IN NEED.
NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION TO THE CONTRARY, PROP-
ERTY EXEMPTED FOR OTHER MEDICAL PURPOSES NEED NOT MEET ANY MINIMUM USAGE
REQUIREMENT IN TERMS OF THE NUMBER OF DAYS EACH  ACRE  IS  ACTIVELY  AND
ACTUALLY USED;
  (M)  "PRIMARILY  CHARITABLE  PURPOSES"  SHALL MEAN AN ACTIVITY DONE ON
REAL PROPERTY OWNED BY AN ORGANIZATION WHICH IS  TAX  EXEMPT  UNDER  THE
INTERNAL  REVENUE  CODE  AND WHICH ACTUALLY AND PRIMARILY ALLEVIATES THE
CONDITION OF  POOR  OR  PHYSICALLY  OR  MENTALLY  DISABLED  HUMANS.  THE
INTENDED  BENEFICIARIES  SHALL  NOT  BE  SPECIFIED  INDIVIDUALS  AND THE
SERVICES PROVIDED BY AN ORGANIZATION CLAIMING CHARITABLE EXEMPTION SHALL
BE OPEN TO THE PUBLIC BASED ON ECONOMIC OR PHYSICAL CRITERIA; AND
  (N) "OTHER MORAL OR MENTAL IMPROVEMENT" SHALL MEAN REAL PROPERTY OWNED
BY AN ORGANIZATION WHICH IS TAX EXEMPT UNDER THE INTERNAL  REVENUE  CODE
AND  WHICH IS DEDICATED IN A MANNER OTHER THAN AS PROVIDED IN THIS PARA-
GRAPH TO THE MORAL OR MENTAL IMPROVEMENT OF MEN, WOMEN, OR CHILDREN.
  S 2. 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) WHEN USED IN THIS SECTION:

S. 2552                             6

  (I)  "ORGANIZED  EXCLUSIVELY"  SHALL  REQUIRE  THAT A CORPORATION'S OR
ASSOCIATION'S ORGANIZATIONAL DOCUMENTS LIMIT THE PURPOSE OF SUCH  CORPO-
RATION  OR  ASSOCIATION  TO  ONE  OR MORE EXEMPT PURPOSES, AS SET OUT IN
PARAGRAPH (A) OF THIS SUBDIVISION. FURTHERMORE, THE CORPORATION OR ASSO-
CIATION  SHALL  NOT  BE EMPOWERED TO ENGAGE IN ACTIVITIES WHICH IN THEM-
SELVES ARE NOT IN FURTHERANCE OF ONE OR MORE SUCH PURPOSES; AND
  (II) "USED EXCLUSIVELY" SHALL REQUIRE THAT A  CORPORATION  OR  ASSOCI-
ATION USE ITS PROPERTY ONLY FOR EXEMPT PURPOSES. USES WHICH MAY BE HELP-
FUL  TO  THE EXEMPT ORGANIZATION BUT WOULD NOT, IF DONE ON LAND OWNED BY
AN OTHERWISE TAXABLE ENTITY, QUALIFY FOR TAX EXEMPTION SHALL SUBJECT THE
PORTION OF THE PROPERTY SO USED TO REAL PROPERTY TAXATION.  SUCH  PHRASE
SHALL BE STRICTLY CONSTRUED AND SHALL BE INTENDED TO LIMIT EXEMPTIONS TO
PROPERTY  AND IMPROVEMENTS UTILIZED SOLELY FOR EXEMPT PURPOSES. WHERE AN
EXEMPT ORGANIZATION UTILIZES ITS LAND FOR OTHER PURPOSES, INCLUDING  BUT
NOT  LIMITED  TO,  THE SALE OF PRODUCTS MADE ON THE LAND COMMERCIALLY OR
THE SALE  OF  TIMBER,  OR  OTHERWISE  LEASES  THE  LAND  FOR  COMMERCIAL
PURPOSES, OR ALLOWS THE PLACEMENT OR CONSTRUCTION OF IMPROVEMENTS ON THE
LAND  FOR  COMMERCIAL  PURPOSES,  THAT  PORTION OF SUCH PROPERTY AND ANY
IMPROVEMENTS THEREON IF SUCH IMPROVEMENTS ARE NOT  UTILIZED  FOR  WHOLLY
EXEMPT PURPOSES SHALL BE SUBJECT TO REAL PROPERTY TAXATION.
  S  3.  The  real  property  tax law is amended by adding a new section
420-d to read as follows:
  S 420-D. STATE AID PAYMENTS FOR PROPERTIES EXEMPTED FROM TAXATION.  1.
DEFINITIONS.  (A)  FOR  THE  PURPOSE OF THIS SECTION, THE PHRASE "TAXING
DISTRICT" SHALL INCLUDE SCHOOLS, COUNTIES, CITIES, TOWNS,  VILLAGES,  AS
WELL AS LAWFULLY FORMED DISTRICTS WHICH PROVIDE SERVICES, INCLUDING, BUT
NOT  LIMITED  TO FIRE PROTECTION DISTRICTS, AMBULANCE DISTRICTS, AS WELL
AS OTHER LAWFULLY FORMED DISTRICTS WHICH DO NOT RECEIVE PAYMENTS FROM AN
AFFECTED PROPERTY OWNER.
  (B) FOR THE PURPOSES OF THIS SECTION, THE  PHRASE  "AFFECTED  PROPERTY
OWNER" SHALL MEAN AN ORGANIZATION WHICH IS EXEMPT FROM TAXATION PURSUANT
TO THE INTERNAL REVENUE CODE AND WHICH OWNS PROPERTY DESCRIBED IN CLAUSE
(B)  OF SUBPARAGRAPH (IV) OF PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION
FOUR HUNDRED TWENTY-A OF THIS TITLE.
  2. STATE AID PAYMENTS. A TAXING DISTRICT IN WHICH PROPERTY IS SITUATED
WHICH PROPERTY IS OWNED BY AN AFFECTED PROPERTY OWNER SHALL, SUBJECT  TO
THE PROVISIONS OF THIS SECTION, BE ENTITLED TO RECEIVE UP TO ONE HUNDRED
PERCENT  OF  THE  TAXES  WHICH WOULD HAVE BEEN PAID ON SUCH PROPERTY HAD
SUCH PROPERTY NOT BEEN OWNED BY AN AFFECTED PROPERTY OWNER.
  3. APPLICATION. (A) THE CHIEF EXECUTIVE OFFICER OF A  TAXING  DISTRICT
IN  WHICH THERE IS PROPERTY OWNED BY AN AFFECTED PROPERTY OWNER MAY MAKE
APPLICATION FOR STATE ASSISTANCE PURSUANT TO THIS SECTION. SUCH APPLICA-
TION SHALL BE ON A FORM DEVELOPED BY THE COMMISSIONER.  UPON RECEIPT  OF
THE  APPLICATION  FOR STATE ASSISTANCE, SUCH PROPERTY SHALL BE VALUED BY
THE COMMISSIONER AND THE CUMULATIVE VALUE OF ALL  SUCH  LANDS  SHALL  BE
EQUALIZED BY APPLYING THERETO THE APPROPRIATE STATE EQUALIZATION RATE OR
SPECIAL  EQUALIZATION  RATE  ESTABLISHED IN ACCORDANCE WITH THE RULES OF
THE COMMISSIONER.
  (B) SUBJECT TO  AN  ACCEPTABLE  APPLICATION,  THE  COMMISSIONER  SHALL
COMPUTE  THE AMOUNT OF STATE ASSISTANCE PAYABLE TO OR FOR THE BENEFIT OF
EACH TAXING DISTRICT BY MULTIPLYING THE VALUE OF THE  ASSESSED  PROPERTY
BY THE TAX RATE PER THOUSAND FOR EACH TAXING DISTRICT WHO MAKES APPLICA-
TION  PURSUANT  TO THE PROVISIONS HEREIN. SUCH AMOUNT SHALL THEN BE PAID
TO THE TAXING DISTRICT UPON THE AUDIT AND WARRANT  OF  THE  STATE  COMP-
TROLLER OUT OF MONEYS APPROPRIATED BY THE LEGISLATURE. IN THE EVENT THAT
THE  TOTAL  MONEYS  PAYABLE  PURSUANT  TO  THIS SECTION SHALL EXCEED TEN

S. 2552                             7

MILLION DOLLARS IN  ANY  STATE  FISCAL  YEAR,  THE  PAYMENTS  TO  TAXING
DISTRICT SHALL BE REDUCED PROPORTIONATELY FOR EACH TAXING DISTRICT WHICH
HAS TIMELY MADE APPLICATION PURSUANT TO THIS SECTION.
  4.  RULES.  THE  COMMISSIONER IS AUTHORIZED TO DEVELOP RULES AND REGU-
LATIONS OR GUIDELINES FOR THE IMPLEMENTATION OF THIS SECTION.
  S 4. The sum of ten million dollars ($10,000,000) or so  much  thereof
as may be necessary, is hereby appropriated to the commissioner of taxa-
tion  and  finance  from any moneys in the state treasury in the general
fund to the credit of the state purposes account not otherwise appropri-
ated for services and expenses  of  the  commissioner  of  taxation  and
finance  for  the  purposes  of carrying out the provisions of this act.
Such sum shall be payable on the audit and warrant of  the  state  comp-
troller  on  vouchers certified or approved by the commissioner of taxa-
tion and finance, or his or her duly designated  representative  in  the
manner provided by law. No expenditure shall be made from this appropri-
ation  until  a  certificate of approval of availability shall have been
issued by the director of the budget and  filed  with  the  state  comp-
troller  and a copy filed with the chair of the senate finance committee
and the chair of the assembly ways and means committee. Such certificate
may be amended from time to time by the director of  the  budget  and  a
copy  of  each such amendment shall be filed with the state comptroller,
the chair of the senate finance committee and the chair of the  assembly
ways and means committee.
  S  5. 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.

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