Assembly Bill A9794

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

                                  9794

                          I N  A S S E M B L Y

                              May 22, 2014
                               ___________

Introduced  by  M.  of  A.  O'DONNELL  --  read once and referred to the
  Committee on Real Property Taxation

AN ACT to amend the real property tax law, in relation to not-for-profit
  lease of real property

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

  Section  1.  Subdivision  2  of section 420-a of the real property tax
law, as amended by section 17 of part A of chapter 68  of  the  laws  of
2013, is amended to read as follows:
  2.  If any portion of such real property is not so used exclusively to
carry out thereupon one or more of such purposes but is leased or other-
wise used for other purposes, such portion shall be subject to  taxation
and  the remaining portion only shall be exempt; provided, however, that
such real property shall be fully exempt from taxation although it or  a
portion  thereof  is  used (a) for purposes which are exempt pursuant to
this section or sections four hundred twenty-b, four hundred twenty-two,
four hundred twenty-four, four hundred twenty-six, four hundred  twenty-
eight,  four  hundred  thirty  or  four hundred fifty of this chapter by
another corporation which owns real property exempt from taxation pursu-
ant to such sections or whose real property if it  owned  any  would  be
exempt  from  taxation pursuant to such sections, (b) for purposes which
are exempt pursuant to section four hundred six or section four  hundred
eight  of  this chapter by a corporation which owns real property exempt
from taxation pursuant to such section or  if  it  owned  any  would  be
exempt  from  taxation  pursuant to such section, (c) for purposes which
are exempt pursuant to section four hundred sixteen of this  chapter  by
an  organization  which owns real property exempt from taxation pursuant
to such section or whose real property if it owned any would  be  exempt
from  taxation  pursuant  to  such section, (d) for purposes relating to
civil defense pursuant to the New  York  state  defense  emergency  act,
including  but  not limited to activities in preparation for anticipated
attack, during attack, or following attack or false warning thereof,  or
in  connection  with  drill or test ordered or directed by civil defense
authorities, or (e) for purposes of a tax-free NY  area  that  has  been

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

                                                           LBD15150-01-4

A. 9794                             2

approved pursuant to article twenty-one of the economic development law,
subject to the conditions that the real property must have been owned by
the  corporation  or  association  organized exclusively for educational
purposes and exempt pursuant to this section on June first, two thousand
thirteen, and that the exemption shall apply only to the portion of such
real  property that is used for purposes of the START-UP NY program; and
provided further that such real property shall be exempt  from  taxation
only  so long as it or a portion thereof, as the case may be, is devoted
to such exempt purposes and so long as any moneys paid for such  use  do
not  exceed  the  amount  of  the carrying, maintenance and depreciation
charges of the property or portion thereof, as the case may  be[.];  AND
PROVIDED  FURTHER  THAT  IF  THE  PORTION OF SUCH REAL PROPERTY NOT USED
EXCLUSIVELY TO CARRY OUT THEREUPON ONE  OR  MORE  OF  SUCH  PURPOSES  IS
LEASED  OR  OTHERWISE  USED  FOR COMMERCIAL FOR-PROFIT PURPOSES AND WILL
HAVE A SIGNIFICANT EFFECT ON EXISTING  PATTERNS  OF  POPULATION  CONCEN-
TRATION,  DISTRIBUTION OR GROWTH, OR ON THE EXISTING COMMUNITY OR NEIGH-
BORHOOD CHARACTER, AS DETERMINED BY THE LOCAL  GOVERNING  BODY  AFTER  A
PUBLIC  HEARING,  THEN  THE ENTIRE PARCEL OF SUCH REAL PROPERTY SHALL BE
SUBJECT TO TAXATION AND NO PORTION SHALL BE EXEMPT.
  S 2. This act shall take effect immediately.