senate Bill S2544A

2011-2012 Legislative Session

Relates to the exemption from taxation for non-profit organizations; repealer

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Archive: Last Bill Status - In Committee


  • 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
May 08, 2012 print number 2544a
amend and recommit to local government
Jan 04, 2012 referred to local government
returned to senate
died in assembly
Jun 16, 2011 referred to real property taxation
delivered to assembly
passed senate
Jun 14, 2011 ordered to third reading cal.1207
Jun 13, 2011 committee discharged and committed to rules
Jan 25, 2011 referred to local government

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S2544 - Bill Details

See Assembly Version of this Bill:
A6057A
Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Rpld & add §420-a sub 3, RPT L
Versions Introduced in Previous Legislative Sessions:
2009-2010: S6838
2011-2012: S2544A

S2544 - Bill Texts

view summary

Relates to the exemption from taxation for non-profit organizations.

view sponsor memo
BILL NUMBER:S2544 REVISED 01/12/12

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 there are definite
plans for utilizing and adapting the property for exempt purposes
within five years and the full execution of such plans within seven
years.

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:
Land-banking 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.6838 of 2010: Referred to Local Government
S.1126A of 2003: Referred to 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.


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

                                  2544

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 25, 2011
                               ___________

Introduced  by  Sens.  BONACIC,  DeFRANCISCO,  LARKIN  -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Local Government

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

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

  Section 1.  Subdivision 3 of section 420-a of the  real  property  tax
law is REPEALED and a new subdivision 3 is added to read as follows:
  3.  (A)  SUCH REAL PROPERTY WHICH IS NOT ACTUALLY AND EXCLUSIVELY USED
FOR EXEMPT PURPOSES SHALL, IF OWNED BY  AN  ORGANIZATION  EXEMPTED  FROM
TAXATION  PURSUANT TO THE INTERNAL REVENUE CODE, BE EXEMPT THOUGH NOT IN
ACTUAL USE THEREFOR BY REASON OF THE ABSENCE OF  SUITABLE  BUILDINGS  OR
IMPROVEMENTS  THEREON  IF THE CONSTRUCTION OF SUCH BUILDINGS OR IMPROVE-
MENTS IS IN PROGRESS OR IS IN GOOD FAITH CONTEMPLATED BY SUCH  ORGANIZA-
TION.  AS  USED  IN THIS SUBDIVISION, "IN GOOD FAITH CONTEMPLATED" MEANS
DEFINITE PLANS FOR  UTILIZING  AND  ADAPTING  THE  PROPERTY  FOR  EXEMPT
PURPOSES  WITHIN  FIVE YEARS AND THE FULL EXECUTION OF SUCH PLANS WITHIN
SEVEN YEARS. THE PLANS MUST BE PROVEN BY CLEAR AND  CONVINCING  EVIDENCE
AND  MUST BE IN WRITTEN FORM. THE OFFICE OF REAL PROPERTY SERVICES SHALL
DEVELOP GUIDELINES TO BE UTILIZED BY PROPERTY OWNERS  AND  ASSESSORS  TO
DETERMINE WHETHER SUCH EVIDENCE EXISTS IN ADEQUATE FORM.
  (B)  IF NO PART OF THE PHYSICAL IMPROVEMENTS TO THE LAND ARE COMMENCED
WITHIN FIVE YEARS AND COMPLETED WITHIN SEVEN YEARS OF  TAKING  TITLE  TO
THE  PROPERTY, OR IF THE ORGANIZATION DOES NOT MEET THE STANDARDS OTHER-
WISE SET FORTH IN THIS SUBDIVISION, THE PROPERTY OWNER WHO RECEIVED  THE
BENEFIT  OF  THE  EXEMPTION SHALL PAY ALL PROPERTY TAXES THAT WOULD HAVE
BEEN OWED; PROVIDED, HOWEVER, THAT FAILURE TO PAY DOES  NOT  CREATE  ANY
RIGHT  BY  ANY  GOVERNMENTAL UNIT TO COMMENCE A PROCEEDING TO EFFECTUATE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01899-01-1

S. 2544                             2

THE TAKING OF THE PROPERTY BUT DOES CREATE A CAUSE OF ACTION IN CONTRACT
BY ANY GOVERNMENTAL UNIT NEGATIVELY AFFECTED.
  S  2. 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 and shall apply to property irrespective of the
date of the transfer of title.

Co-Sponsors

S2544A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6057A
Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Rpld & add §420-a sub 3, RPT L
Versions Introduced in Previous Legislative Sessions:
2009-2010: S6838
2011-2012: S2544A

S2544A (ACTIVE) - Bill Texts

view summary

Relates to the exemption from taxation for non-profit organizations.

view sponsor memo
BILL NUMBER:S2544A

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 there are definite
plans for utilizing and adapting the property for exempt purposes
within five years and the full execution of such plans within seven
years.

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:
Land-banking 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.6838 of 2010: Referred to Local Government
S.1126A of 2003: Referred to Local Government

FISCAL IMPLICATIONS:
None to the state.

LOCAL FISCAL IMPLICATIONS:
None to the state.

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 is 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 full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2544--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 25, 2011
                               ___________

Introduced  by  Sens. BONACIC, DeFRANCISCO, LARKIN, LITTLE -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Local Government -- recommitted to the Committee on  Local  Govern-
  ment in accordance with Senate Rule 6, sec. 8 -- committee discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

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

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

  Section  1.    Subdivision 3 of section 420-a of the real property tax
law is REPEALED and a new subdivision 3 is added to read as follows:
  3. (A) SUCH REAL PROPERTY WHICH IS NOT ACTUALLY AND  EXCLUSIVELY  USED
FOR  EXEMPT  PURPOSES  SHALL,  IF OWNED BY AN ORGANIZATION EXEMPTED FROM
TAXATION PURSUANT TO THE INTERNAL REVENUE CODE, BE EXEMPT THOUGH NOT  IN
ACTUAL  USE  THEREFOR  BY REASON OF THE ABSENCE OF SUITABLE BUILDINGS OR
IMPROVEMENTS THEREON IF THE CONSTRUCTION OF SUCH BUILDINGS  OR  IMPROVE-
MENTS  IS IN PROGRESS OR IS IN GOOD FAITH CONTEMPLATED BY SUCH ORGANIZA-
TION. AS USED IN THIS SUBDIVISION, "IN GOOD  FAITH  CONTEMPLATED"  MEANS
DEFINITE  PLANS  FOR  UTILIZING  AND  ADAPTING  THE  PROPERTY FOR EXEMPT
PURPOSES WITHIN FIVE YEARS AND THE FULL EXECUTION OF SUCH  PLANS  WITHIN
SEVEN  YEARS.  THE PLANS MUST BE PROVEN BY CLEAR AND CONVINCING EVIDENCE
AND MUST BE IN WRITTEN FORM. THE DEPARTMENT SHALL DEVELOP GUIDELINES  TO
BE  UTILIZED  BY PROPERTY OWNERS AND ASSESSORS TO DETERMINE WHETHER SUCH
EVIDENCE EXISTS IN ADEQUATE FORM.
  (B) IF NO PART OF THE PHYSICAL IMPROVEMENTS TO THE LAND ARE  COMMENCED
WITHIN  FIVE  YEARS  AND COMPLETED WITHIN SEVEN YEARS OF TAKING TITLE TO
THE PROPERTY, OR IF THE ORGANIZATION DOES NOT MEET THE STANDARDS  OTHER-
WISE  SET FORTH IN THIS SUBDIVISION, THE PROPERTY OWNER WHO RECEIVED THE
BENEFIT OF THE EXEMPTION SHALL PAY ALL PROPERTY TAXES  THAT  WOULD  HAVE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01899-02-2

S. 2544--A                          2

BEEN  OWED;  PROVIDED,  HOWEVER, THAT FAILURE TO PAY DOES NOT CREATE ANY
RIGHT BY ANY GOVERNMENTAL UNIT TO COMMENCE A  PROCEEDING  TO  EFFECTUATE
THE TAKING OF THE PROPERTY BUT DOES CREATE A CAUSE OF ACTION IN CONTRACT
BY ANY GOVERNMENTAL UNIT NEGATIVELY AFFECTED.
  S  2. 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 and shall apply to property irrespective of the
date of the transfer of title.

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