senate Bill S3993A

2013-2014 Legislative Session

Sets a 7 year limit to the real property tax exemption for unimproved property of mandatory class nonprofit organizations

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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
Jan 29, 2014 print number 3993a
amend and recommit to local government
Jan 08, 2014 referred to local government
Mar 04, 2013 referred to local government

Bill Amendments

Original
A (Active)
Original
A (Active)

S3993 - Bill Details

See Assembly Version of this Bill:
A1711A
Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Amd §420-a, RPT L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A499
2009-2010: A981

S3993 - Bill Texts

view summary

Sets a 7-year limit to the real property tax exemption for unimproved property of mandatory class nonprofit organizations.

view sponsor memo
BILL NUMBER:S3993

TITLE OF BILL: An act to amend the real property tax law, in relation
to the duration of the exemption for property of mandatory class
nonprofit organizations by reason of the absence of suitable buildings
or improvements thereon if construction of such buildings or
improvements is in progress or is in good faith contemplated

PURPOSE:

To establish stricter standards for non-profit organizations that
purchase land and file an application for municipal real property
exemption. The purpose of this bill is to ensure that properties
exempt from real property taxes are being used in a manner that
supports the specific exemption granted.

SUMMARY OF PROVISIONS:

Section 1: Amends Real Property Law section 420-a (3) to permit a
non-profit organizations that purchase real property that is on the
tax rolls to obtain a real property exemption if such organization
within 7 years after such property is acquired constructs buildings or
other capital improvements or is in good faith contemplating such
construction to further its charitable purposes.

EXISTING LAW:

Under current law, if a non-profit organization purchases property
that is on the tax rolls, such organization can obtain an exemption
from real property taxes if the construction of buildings or other
improvements are in progress or are in "good faith" contemplated.
This bill tightens qualifications for obtaining tax exempt status by
requiring that buildings or improvements must be constructed to
further the organization's charitable purpose within 7 years of
purchasing such Property.

JUSTIFICATION:

Under current law, non-profit charitable organizations can purchase
land as an investment vehicle and then obtain the real property's tax
exempt status (to the detriment of the local taxing authority) without
realistically contemplating the satisfaction of the requirement that
the property is used in the furtherance of the organizations'
charitable mission. This bill amends the law so that only properties
that are truly acquired to further an organization's charitable
purpose are granted tax exempt status. If 7 years after the
acquisition of the parcel, the charitable organization has not
commenced activities to further the charitable purpose, then such land
will be placed back on the tax rolls.

LEGISLATIVE HISTORY:

2011-2012: A499 Held in Real Property Taxation
2009-2010: A981 Referred to Real Property Taxation/S670 Referred to
Local Government
2007-2008: Al259 Referred to Real Property Taxation/S529 Referred to
Local Government


200--2006: A9020 Referred to Real Property Taxation/S4714 Referred to
Local Government

FISCAL IMPLICATIONS:

None.

LOCAL FISCAL IMPLICATIONS:

Would place certain parcels back on the tax rolls that were in fact
not used for a bona fide exempt use.

EFFECTIVE DATE:

January 1st of the year next succeeding the date on which it shall
have become law.

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

                                  3993

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 4, 2013
                               ___________

Introduced  by  Sen.  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  duration
  of  the  exemption for property of mandatory class nonprofit organiza-
  tions by reason of the absence of suitable buildings  or  improvements
  thereon  if  construction  of  such  buildings  or  improvements is in
  progress or is in good faith contemplated

  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, such section as renumbered by chapter 919 of the laws of  1981,  is
amended to read as follows:
  3. Such real property from which no revenue is derived shall be exempt
though  not  in actual use therefor by reason of the absence of suitable
buildings or OTHER PHYSICAL improvements thereon if:
  (a) the construction of such buildings or OTHER PHYSICAL  improvements
is  in  progress or is in good faith contemplated by such corporation or
association WITHIN SEVEN YEARS AFTER SUCH PROPERTY HAS BEEN ACQUIRED  BY
SUCH  CORPORATION  OR  ASSOCIATION; FOR THE PURPOSES OF CALCULATING SUCH
SEVEN YEARS' PERIOD, WITH RESPECT TO PROPERTY ACQUIRED BEFORE THE EFFEC-
TIVE DATE OF THE CHAPTER OF THE LAWS  OF  TWO  THOUSAND  THIRTEEN  WHICH
AMENDED  THIS  SUBDIVISION,  SUCH  SEVEN YEARS' PERIOD SHALL COMMENCE ON
SUCH EFFECTIVE DATE, AND WITH RESPECT TO PROPERTY ACQUIRED ON  OR  AFTER
SUCH EFFECTIVE DATE, SUCH SEVEN YEARS' PERIOD SHALL COMMENCE ON THE DATE
OF ACQUISITION; or
  (b) such real property is held by such corporation or association upon
condition  that  the title thereto shall revert in case any building not
intended and suitable for one or more such  purposes  shall  be  erected
upon such premises or some part thereof.
  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02408-01-3

Co-Sponsors

S3993A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A1711A
Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Amd §420-a, RPT L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A499
2009-2010: A981

S3993A (ACTIVE) - Bill Texts

view summary

Sets a 7-year limit to the real property tax exemption for unimproved property of mandatory class nonprofit organizations.

view sponsor memo
BILL NUMBER:S3993A

TITLE OF BILL: An act to amend the real property tax law, in relation
to the duration of the exemption for property of mandatory class
nonprofit organizations by reason of the absence of suitable buildings
or improvements thereon if construction of such buildings or
improvements is in progress or is in good faith contemplated

PURPOSE:

To establish stricter standards for non-profit organizations that
purchase land and file an application for municipal real property
exemption. The purpose of this bill is to ensure that properties
exempt from real property taxes are being used in a manner that
supports the specific exemption granted.

SUMMARY OF PROVISIONS:

Section I: Amends Real Property Law section 420-a (3) to permit a
non-profit organizations that purchase real property that is on the
tax rolls to obtain a real property exemption if such organization
within 7 years after such property is acquired constructs buildings or
other capital improvements or is in good faith contemplating such
construction to further its charitable purposes.

EXISTING LAW:

Under current law, if a non-profit organization purchases property
that is on the tax rolls, such organization can obtain an exemption
from real property taxes if the construction of buildings or other
improvements are in progress or are in "good faith" contemplated.
This bill tightens qualifications for obtaining tax exempt status by
requiring that buildings or improvements must be constructed to
further the organization's charitable purpose within 7 years of
purchasing such Property.

JUSTIFICATION:

Under current law, non-profit charitable organizations can purchase
land as an investment vehicle and then obtain the real property's tax
exempt status (to the detriment of the local taxing authority) without
realistically contemplating the satisfaction of the requirement that
the property is used in the furtherance of the organizations'
charitable mission. This bill amends the law so that only properties
that are truly acquired to further an organization's charitable
purpose are granted tax exempt status. If 7 years after the
acquisition of the parcel, the charitable organization has not
commenced activities to further the charitable purpose, then such land
will be placed back on the tax rolls.

LEGISLATIVE HISTORY:

2011-2012: A499 Held in Real Property Taxation
2009-2010: A981 Referred to Real Property Taxation/S670 Referred to
Local Government
2007-2008: A1259 Referred to Real Property Taxation/S529 Referred to
Local Government


200--2006: A9020 Referred to Real Property Taxation/S4714 Referred to
Local Government

FISCAL IMPLICATIONS:

None

LOCAL FISCAL IMPLICATIONS:

Would place certain parcels back on the tax rolls that were in fact
not used for a bona fide exempt use.

EFFECTIVE DATE:

January 1st of the year next succeeding the date on which it shall
have become law.

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

                                 3993--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 4, 2013
                               ___________

Introduced  by  Sen.  LARKIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government -- recom-
  mitted to the Committee on Local Government 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  duration
  of  the  exemption for property of mandatory class nonprofit organiza-
  tions by reason of the absence of suitable buildings  or  improvements
  thereon  if  construction  of  such  buildings  or  improvements is in
  progress or is in good faith contemplated

  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, such section as renumbered by chapter 919 of the laws of  1981,  is
amended to read as follows:
  3. Such real property from which no revenue is derived shall be exempt
though  not  in actual use therefor by reason of the absence of suitable
buildings or OTHER PHYSICAL improvements thereon if:
  (a) the construction of such buildings or OTHER PHYSICAL  improvements
is  in  progress or is in good faith contemplated by such corporation or
association WITHIN SEVEN YEARS AFTER SUCH PROPERTY HAS BEEN ACQUIRED  BY
SUCH  CORPORATION  OR  ASSOCIATION; FOR THE PURPOSES OF CALCULATING SUCH
SEVEN YEARS' PERIOD, WITH RESPECT TO PROPERTY ACQUIRED BEFORE THE EFFEC-
TIVE DATE OF THE CHAPTER OF THE LAWS  OF  TWO  THOUSAND  FOURTEEN  WHICH
AMENDED  THIS  SUBDIVISION,  SUCH  SEVEN YEARS' PERIOD SHALL COMMENCE ON
SUCH EFFECTIVE DATE, AND WITH RESPECT TO PROPERTY ACQUIRED ON  OR  AFTER
SUCH EFFECTIVE DATE, SUCH SEVEN YEARS' PERIOD SHALL COMMENCE ON THE DATE
OF ACQUISITION; or
  (b) such real property is held by such corporation or association upon
condition  that  the title thereto shall revert in case any building not

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02408-02-4

S. 3993--A                          2

intended and suitable for one or more such  purposes  shall  be  erected
upon such premises or some part thereof.
  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.

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