BILL NUMBER:  S6838

 TITLE OF BILL :
An act to amend the real property tax law, in relation to the
exemption from taxation for non-profit organizations and to repeal
certain provisions of such law relating thereto


 PURPOSE :
To ensure that exempt properties are being used in the manner which
supports the specific exemption granted.

 SUMMARY OF PROVISIONS :
Repeals subdivision 3 of section 420-a of the real property tax law to
add a new subdivision 3 to provide that vacant or otherwise unimproved
land shall only be deemed tax exempt if concrete and definite plans
for utilizing and adapting the property for exempt purposes within two
years are proven by clear and convincing evidence.

 EXISTING LAW :
Existing law does not provide a date certain by which real property
not in actual use for its exempt purpose(s) must be developed or
otherwise improved to facilitate such activity.

 JUSTIFICATION :
Landbanking occurs when tax exempt organizations purchase land for
              

contemplated use. The problem is that often times contemplated use
does not occur or takes years to occur. While that land is tied up,
taxes are not being paid, and the land is not being put to productive
use. This diminishes the overall tax base of a locality. When the tax
base of a locality is diminished, the remaining taxpayers burden
increases. This makes home ownership less affordable as property taxes
grow.

This proposed measure is one of a series of bills aimed at
restructuring 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 1 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
property 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.

It is imperative that the State address and limit exemptions to those
organizations and purposes which most broadly benefit the public.
This specific legislation promotes this thrust by ensuring that
organizations seeking tax exemptions truly meet those public purposes,
and that lands receiving relief from real property taxation are being
fully used in support of such purposes.

 LEGISLATIVE HISTORY :
S.1126-A of 2003: Referred to Committee on Local Government

 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 a law and would apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after such date.