Senate Bill S3315

                                 BILL NUMBER:  S3315

 TITLE OF BILL :

An act to amend the real property tax law, in relation to requiring
notice of intention to sell exempt real property


 PURPOSE :

The goal of this legislation is to give county and local governments,
school districts and other public entities timely notice of the
intention to sell tax exempt real property. Such notice will allow
local governments to compete with other potential buyers for
acquisition of the property, if they are interested.  Compliance,
rather than monetary fines, is emphasized in this legislation.
Non-compliance or late compliance would be considered a barrier to or
delay the sale.

 SUMMARY OF PROVISIONS :

Amends the Real Property Tax Law by adding a new section four hundred
ninety-six to provide for notification of intention to sell private
property exempt from real property taxation to those local
jurisdictions providing such real property tax exemption.

              

This legislation includes private property exempt from real property
taxation because of the not-for-profit status of the property owner
(Section 420a-nonprofit organizations; mandatory class and Section
420b-nonprofit organizations; permissive class). Also included are
governmental entities not subject to real property tax payment

(Section 404-State of New York, Section 406-Municipal corporations,
Section 408- School districts and boards of cooperative educational
services, Section 41 O-Special districts, Section 410a-Special
districts, Section 410b-Special water districts, Section 412- Public
authorities, Section 412a- Industrial development agencies, Section
412b-Industrial development agency railroad property, Section
414-Public housing; publicly assisted housing and limited-profit
nursing homes).

These exempt property owners must notify, by certified mail, each
public entity from whose taxation the owner is exempt of the intention
to sell such property. The notification must be received by the public
entity at least thirty (30) days before the exempt property is
advertised for sale, or, if the property is not advertised for sale,
at least thirty (30) days before the contract of sale is signed.

 JUSTIFICATION :

Currently, the value of tax exempt property in New York State exceeds
$165 billion. The burden of exemptions is usually carried by the
nonexempt taxpayers and local governments providing the exemption.
The transfer of tax exempt property often involves issues of local
land use policy, environmental, development and public planning
concerns.  This legislation merely provides local governments with
notice of intention to sell, so that they have the ability to compete
for the acquisition of tax exempt property, if it serves their
interests. No special treatment is accorded these governments and no
burden is placed on the owners of the property as to sale.

The loss of revenues provided by real property tax exemptions should
justify notice to local governments of the ability to bargain for tax
exempt properties. Notice gives them this opportunity.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :  This act shall take effect on the sixtieth day
after it shall become a law.