senate Bill S4609

Repeals provisions of law granting real property tax exemption to certain entities

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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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actions

  • 15 / Apr / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Repeals provisions of law granting real property tax exemption to certain entities.

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Bill Details

Versions:
S4609
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Rpld ยง429, RPT L

Sponsor Memo

BILL NUMBER:S4609

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
property 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
obligation 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 amendment adds new language to the section, to make it clear that
the property 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 requiring 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 $4.4 billion corporation.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

No impact on New York State. Will add $16 million in revenue to New
York City.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  4609

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 15, 2013
                               ___________

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 ASSEM-
BLY, 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  instru-
ment  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 compa-
ny,  association,  franchise,  team, or any other entity, other than the
owner or owners of such property, shall be deemed void as against public
policy.
  S 2. Section 429 of the real property tax law is REPEALED.
  S 3. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08357-01-3

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