senate Bill S7362

2009-2010 Legislative Session

Provides that real property tax exemption for professional basketball and hockey franchises in a city of one million or more shall be subject to local law

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Archive: Last Bill Status - STRICKEN


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 07, 2010 recommit, enacting clause stricken
Mar 31, 2010 referred to cities

S7362 - Bill Details

Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยง429, RPT L

S7362 - Bill Texts

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Provides that the real property tax exemption for professional basketball and hockey franchises in a city of one million or more shall be subject to enactment of a local law by the legislative body of such city.

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BILL NUMBER: S7362

TITLE OF BILL :
An act to amend the real property tax law, in relation to authorizing
the local legislative body of a city having a population of one
million or more the authority to grant an exemption for real property
used for professional major league sports


PURPOSE :
Provides that real property tax exemption for professional basketball
and hockey franchises in a city of one million or more shall be
subject to local law.

SUMMARY OF PROVISIONS :
The bill amends 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 the exemption/ but to insure that fans are not penalized by
the owners of the facility, in the form of passing onto them any
charges or other costs as a proxy for the taxes the owners must pay.

LEGISLATIVE HISTORY :
New bill.
FISCAL IMPLICATIONS :
None.

EFFECTIVE DATE :
This act shall take effect on the thirtieth day after it shall have
become a law.
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7362

                            I N  S E N A T E

                             March 31, 2010
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to amend the real property tax law, in  relation  to  authorizing
  the  local  legislative  body  of  a  city  having a population of one
  million or more the authority to grant an exemption for 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. Section 429 of the real property tax law, as added by chap-
ter 459 of the laws of 1982, is amended to read as follows:
  S 429. Real property used for professional major league  sports.  Real
property  within a city having a population of one million or more, 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 [shall] MAY be exempt from taxation to the extent said  taxes
are the obligation by lease or otherwise of the owners of franchises for
such  teams,  provided  THAT  THE LEGISLATIVE BODY OF SUCH CITY ADOPTS A
LOCAL LAW PROVIDING FOR SUCH EXEMPTION AND 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.  The  tax
exemption  provided herein shall be granted to real property being used,
in whole or in part, for the aforesaid purposes on the date such  agree-
ment  is  executed and shall apply to taxes which become due and payable
after the aforestated agreement is  executed  and  shall  continue  with
respect  to  such property as long as both of said teams play their home
games therein and no longer. Such exemption shall not apply with respect
to any improvement to such property made after the date  such  agreement
is  executed  which improvement is not used for the provision of facili-
ties  or  services  related  to  sports,   entertainment,   expositions,
conventions  or trade shows. If one or both of said teams shall cease to
play their home games in said property at any time,  the  tax  exemption
provided  herein  shall  cease immediately and such property shall imme-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09975-07-0

S. 7362                             2

diately be restored to the tax rolls and  thereupon  become  subject  to
taxation  and  shall  be taxed pro rata for the unexpired portion of the
taxable year.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.

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