senate Bill S881

2013-2014 Legislative Session

Provides that certain real property tax exemptions shall only be granted where such property is actually used for certain enumerated purposes; appropriation

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to finance
Jan 09, 2013 referred to finance

Co-Sponsors

S881 - Bill Details

Current Committee:
Senate Finance
Law Section:
Appropriations
Laws Affected:
Amd §§420-a & 420-b, add §420-d, RPT L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2552
2009-2010: S6836

S881 - Bill Texts

view summary

Provides that real property tax exemptions granted to real property owned by corporations or associations organized or conducted exclusively for hospital or moral or mental improvement of men, women, or children purposes and used exclusively for carrying out such purposes shall only be granted if the property owner can prove by clear and convincing evidence that each acre is actually used for such purpose at least 120 days a year; appropriates $10,000,000 therefor.

view sponsor memo
BILL NUMBER:S881

TITLE OF BILL:
An act
to amend the real property tax law, in relation to the exemption from
taxation for non-profit organizations; and making an appropriation
therefor

PURPOSE:
To provide for stricter standards in defining the terms used for
non-profit organizations, and for ensuring that exempt properties are
being used in the manner which supports the specific exemption granted.

SUMMARY OF PROVISIONS:

Section 1: Amends subdivision 1 of section 420-a of the Real Property
Tax Law by adding a new paragraph (c) to define the following phrases
as related to nonprofit organizations: "organized or conducted
exclusively": "used exclusively"; "religious purposes"; "charitable
purposes"; "hospital purposes"; "educational purpose"; and "moral or
mental improvement of men, women, or children."

Section 2: Amends section 420-b of the Real Property Tax Law by adding
a new paragraph (d) to incorporate the aforementioned definitions of:
"organized exclusively" and "used exclusively."

Section 3: Adds a new section 420-d to the Real Property Tax Law,
authorizing state aid payments to local taxing districts as a
reimbursement for revenues lost to such districts as a result of tax
exemptions granted to real property parcels actively and exclusively
used at least 60 days per year by persons under the age of 21 who are
learning skills related to nature, the outdoors and/or personal &
civic responsibilities.

Section 4: Appropriates the sum of $10,000,000 or so much thereof as
may be necessary, to the Commissioner of Taxation and Finance from
the State General Fund to carry out the provisions of this act.

Section 5: Effective date.

EXISTING LAW:
Article XVI of the New York State Constitution provides that property
used exclusively (emphasis added) for religious, educational, or
charitable purposes shall be exempt from taxation. The Constitution,
however, leaves to the State Legislature the power of defining the
terms "religious", "educational" and "charitable."

Title 2 of Article 4 of the Real Property Tax Law (Section 420-a in
particular) speaks of various types of exempt properties, including
"religious", "educational" and "charitable." That section of law
exempts
those types of properties (as well as others) provided the property is
"used exclusively" for carrying out one or more of the exempt
purposes. However, for the purposes of the Real Property Tax Law
those terms have
not been defined. Since the Legislature has not defined those terms,
the Courts have defined them, thus creating existing law which


provides for a myriad of exempt properties - even when not "used
exclusively" for religious", "educational" or "charitable" purposes.

JUSTIFICATION:
Court-developed broadening of what qualifies as an exempt purpose has
diminished the strength of the Constitutional provision that real
property "used exclusively" for exempt purposes can qualify for an
exemption. Courts have, for example, ruled that "used exclusively"
actually means the "principal" or "primary" use of a property (Mohonk
Trust v. Board of Assessors of Town of Gardiner 46 NY2d 476, 483
(1979)). Courts have also authorized commercial timbering on property
- clearly not a tax exempt use but still allowed a tax exemption (In
the Matter of Nassau County Council Boy Scouts of America v. Board of
Assessors of the Town of Rockland 444 N.Y.S. 2d 755(1981)). That same
case said that even if the property is in a state of non-use for much
of the year, it is still entitled to the tax exemption. In addition,
the Courts have authorized religious exemptions even in cases where
the property owner "does not maintain a church, has no clergy and
does not conduct religious services" (In the matter of Foundation for
"A Course in Miracles", Inc. v. Theadore, as Chairman of the Town of
Fremont Board of Assessors. 568 N.Y.S. 2d 666 (1991)).

LEGISLATIVE HISTORY:

S.2552 of 2012: Died in Senate Finance
S.2552 of 2011: Died in Senate Finance
S.6836 of 2010: Died in Senate Finance
S.1127-A of 2004: Died in Senate Local Government, Died in Assembly
Real Property Taxation
S.1127-A of 2003: Died on Senate Floor Calendar

FISCAL IMPLICATIONS:
The sum of §10 million, or so much thereof as may be necessary, would
be appropriated out of the State General Fund to support
reimbursement to local taxing jurisdictions.

LOCAL FISCAL IMPLICATIONS:
Undetermined, however, in addition to the grant of state reimbursement
for certain exempt properties, 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 shall take effect on the first of January next succeeding 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.

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

                                   881

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN ACT to amend the real property tax law, in relation to the  exemption
  from  taxation  for  non-profit organizations; and making an appropri-
  ation therefor

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

  Section 1. Subdivision 1 of section 420-a of the real property tax law
is amended by adding a new paragraph (c) to read as follows:
  (C) WHEN USED IN THIS SECTION:
  (I)  "ORGANIZED  OR CONDUCTED EXCLUSIVELY" SHALL REQUIRE THAT A CORPO-
RATION'S OR ASSOCIATION'S ORGANIZATIONAL DOCUMENTS LIMIT THE PURPOSES OF
SUCH CORPORATION OR ASSOCIATION TO ONE OR MORE EXEMPT PURPOSES,  AS  SET
OUT IN PARAGRAPH (A) OF THIS SUBDIVISION;
  (II)  "USED  EXCLUSIVELY"  SHALL REQUIRE THAT A CORPORATION OR ASSOCI-
ATION USE ITS PROPERTY ONLY FOR EXEMPT PURPOSES. USES WHICH MAY BE HELP-
FUL TO THE EXEMPT ORGANIZATION BUT WOULD NOT, IF DONE ON LAND  OWNED  BY
AN OTHERWISE TAXABLE ENTITY, QUALIFY FOR TAX EXEMPTION SHALL SUBJECT THE
PORTION  OF  THE PROPERTY SO USED TO REAL PROPERTY TAXATION. SUCH PHRASE
SHALL BE STRICTLY CONSTRUED AND SHALL BE INTENDED TO LIMIT EXEMPTIONS TO
PROPERTY AND IMPROVEMENTS UTILIZED SOLELY FOR EXEMPT PURPOSES. WHERE  AN
EXEMPT  ORGANIZATION UTILIZES ITS LAND FOR OTHER PURPOSES, INCLUDING BUT
NOT LIMITED TO, THE SALE OF PRODUCTS MADE ON THE  LAND  COMMERCIALLY  OR
THE  SALE  OF  TIMBER,  OR  OTHERWISE  LEASES  THE  LAND  FOR COMMERCIAL
PURPOSES, OR ALLOWS THE PLACEMENT OR CONSTRUCTION OF IMPROVEMENTS ON THE
LAND FOR COMMERCIAL PURPOSES, THAT PORTION  OF  SUCH  PROPERTY  AND  ANY
IMPROVEMENTS  THEREON  IF  SUCH IMPROVEMENTS ARE NOT UTILIZED FOR WHOLLY
EXEMPT PURPOSES SHALL BE SUBJECT TO REAL PROPERTY TAXATION;
  (III) "RELIGIOUS PURPOSES" SHALL MEAN AN ACTIVITY THAT IS FUNDAMENTAL,
NECESSARY AND INTRINSIC TO THE PRACTICE OF A RELIGION.    MEDITATION  OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03220-01-3

S. 881                              2

THE  MAINTENANCE OF OPEN SPACE OR PROPERTY UTILIZED PRIMARILY FOR HIKING
SHALL NOT BE CONSIDERED A FUNDAMENTAL OR INTRINSIC RELIGIOUS PURPOSE.  A
CORPORATION  OR  ASSOCIATION  ORGANIZED  OR  CONDUCTED EXCLUSIVELY FOR A
RELIGIOUS  PURPOSE  SHALL HAVE ITS OWN BELIEFS, FORM OF WORSHIP AND FORM
OF ORGANIZATION. NO EXEMPTION MAY BE CLAIMED FOR RELIGIOUS PURPOSES  FOR
BUILDINGS  WHICH ARE ON A PARCEL WHERE PERSONS LIVE IF SUCH PERSONS WORK
IN INCOME PRODUCING VENTURES WHERE THE INCOME EITHER GOES TO  THE  INDI-
VIDUAL  OR TO ANOTHER CLAIMING THE EXEMPTION OR TO AN ORGANIZATION WHICH
IS LEGALLY ASSOCIATED OR AFFILIATED WITH THE INCOME  PRODUCING  VENTURE,
UNLESS SUCH GOODS OR SERVICES ARE EXCLUSIVELY AND WITHOUT EXCEPTION SOLD
TO  OR PROVIDED TO INDIVIDUALS OF THE SAME RELIGION. FOR THE PURPOSES OF
THIS PARAGRAPH, THE TERM "INCOME" NEED NOT INCLUDE PAYMENT OF MONEY  BUT
MAY INCLUDE THE RECEIPT BY AN INDIVIDUAL WHO HAS PROVIDED WORK OR HIS OR
HER  FAMILY  OF  FOOD, OR CLOTHING OR SHELTER. THE FACT THAT INDIVIDUALS
LIVE IN A CLASSLESS SOCIETY SHALL NOT BE A FACTOR IN GRANTING OR DENYING
AN EXEMPTION BASED ON RELIGIOUS PURPOSES. THE PROVISIONS OF THIS SUBPAR-
AGRAPH  SHALL  NOT  AFFECT  THE  PROVISIONS  OF  SECTION  FOUR   HUNDRED
THIRTY-SIX, FOUR HUNDRED SIXTY OR FOUR HUNDRED SIXTY-TWO OF THIS TITLE;
  (IV) "EDUCATIONAL PURPOSE" SHALL MEAN EITHER:
  (A)  AN ACTIVITY WHICH SHALL BE UNDERTAKEN IN A MANNER WHICH SATISFIES
THE COMPULSORY EDUCATION REQUIREMENTS OF THE EDUCATION LAW OR AN  ACTIV-
ITY WHICH IS DONE UNDER THE SUPERVISION OF AN ENTITY WHICH IS TAX EXEMPT
PURSUANT  TO  THE NOT-FOR-PROFIT CORPORATION LAW OR THE INTERNAL REVENUE
CODE AND THE ENTITY WHICH CONDUCTS SUCH ACTIVITIES CAN ISSUE  A  DIPLOMA
AND  ALSO  HOLDS  A  CERTIFICATE  OF REGISTRATION ISSUED BY THE BOARD OF
REGENTS. SUCH TERM SHALL ALSO MEAN PURPOSES WHICH ARE  EXCLUSIVELY  USED
TO  INCREASE  THE  KNOWLEDGE  OF  INDIVIDUALS  AND WHICH ARE OWNED BY AN
INSTITUTION OF HIGHER LEARNING OR A SCHOOL  OF  MEDICINE,  DENTISTRY  OR
OSTEOPATHY  CREATED  BY  LAW  OR  OTHERWISE  AUTHORIZED  BY THE BOARD OF
REGENTS OF THE STATE UNIVERSITY OF NEW YORK TO CONFER DEGREES AND  WHICH
MEET  STANDARDS  OF  EDUCATIONAL  QUALITY  COMPARABLE TO THOSE AS MAY BE
ESTABLISHED FROM TIME TO TIME BY THE  BOARD  OF  REGENTS  OF  THE  STATE
UNIVERSITY  OF  NEW YORK; SUCH TERM SHALL ALSO INCLUDE PROPERTY OWNED BY
ONE CLAIMING AN EXEMPTION FROM TAXATION FOR EDUCATIONAL  PURPOSES  WHICH
IS  USED  TO  HOUSE  INDIVIDUALS  WHO  ARE ACTIVELY ENGAGED AT LEAST ONE
HUNDRED TWENTY DAYS PER YEAR IN SEEKING TO SATISFY THE COMPULSORY EDUCA-
TION REQUIREMENTS OF THE EDUCATION LAW OR  WHO  ARE  SEEKING  A  DEGREE,
CERTIFICATE,  OR DIPLOMA, THROUGH A PROPERTY OWNER OR LESSEE WHICH HOLDS
A CERTIFICATE OF REGISTRATION ISSUED BY THE  BOARD  OF  REGENTS  OR  WHO
HOLDS  A  CHARTER GRANTED BY THE NEW YORK STATE EDUCATION DEPARTMENT. AN
ENTITY CLAIMING EXEMPTION FOR EDUCATIONAL PURPOSES  SHALL  UTILIZE  EACH
ACRE AT LEAST ONE HUNDRED TWENTY DAYS A YEAR EXCLUSIVELY FOR EDUCATIONAL
PURPOSES IN ORDER TO MAINTAIN AN EXEMPTION FROM PROPERTY TAXATION PURSU-
ANT TO THIS SUBPARAGRAPH; OR
  (B) PROPERTY OWNED BY AN ORGANIZATION WHICH IS A NOT-FOR-PROFIT CORPO-
RATION OR IS OTHERWISE TAX EXEMPT PURSUANT TO THE INTERNAL REVENUE CODE,
EACH  EXEMPT  ACRE  OF  WHICH  IS ACTIVELY AND EXCLUSIVELY USED AT LEAST
SIXTY DAYS PER YEAR BY PERSONS UNDER  THE  AGE  OF  TWENTY-ONE  WHO  ARE
LEARNING  SKILLS  RELATED  TO  NATURE,  THE OUTDOORS AND/OR PERSONAL AND
CIVIC RESPONSIBILITIES.  THE PROVISIONS OF THIS  SUBPARAGRAPH  SHALL  BE
STRICTLY INTERPRETED.  NOTWITHSTANDING ANY OTHER PORTION OF THIS SUBPAR-
AGRAPH,  THE  PROPERTY MAY ALSO BE UTILIZED BY ORGANIZATIONS OR INDIVID-
UALS FOR COMMUNITY MEETINGS OR COMMUNITY CLASSES OR EVENTS WHEN NO  MORE
THAN  THE  ACTUAL  EXPENSES OF UTILIZING THE FACILITY ARE CHARGED TO THE
ORGANIZATION OR INDIVIDUAL;  PROVIDED  NO  ACTIVITY  DESCRIBED  IN  THIS
SUBPARAGRAPH  SHALL  COUNT  AS  PART  OF  THE DAY REQUIREMENTS OTHERWISE

S. 881                              3

PROVIDED FOR IN THIS SUBPARAGRAPH.  PROPERTY NECESSARY FOR THE  CARRYING
OUT  OF EDUCATIONAL PURPOSES, INCLUDING PROPERTY NECESSARY FOR TRANSPOR-
TATION FACILITIES, ATHLETIC FACILITIES, PARKING FACILITIES, OR  ADMINIS-
TRATIVE  OFFICES  SHALL BE CONSIDERED AN EDUCATIONAL PURPOSE IF OWNED BY
AN ORGANIZATION WHICH OTHERWISE  QUALIFIES  AS  EXEMPT  FOR  EDUCATIONAL
PURPOSES;
  (V)  "CHARITABLE  PURPOSES" SHALL MEAN AN ACTIVITY DONE WITHOUT PROFIT
WHICH ACTUALLY AND EXCLUSIVELY EITHER:
  (A) UNDERTAKES SIGNIFICANT BLOOD  DONATION  INITIATIVES,  AS  WELL  AS
OTHER  HEALTH  RELATED  INITIATIVES,  INCLUDING,  BUT NOT LIMITED TO THE
TEACHING OF CLASSES, AND ALSO RESPONDS TO DISASTERS; OR
  (B) WHICH ACTIVELY AND EXCLUSIVELY ALLEVIATES THE CONDITION OF POOR OR
PHYSICALLY OR MENTALLY DISABLED HUMANS. THE INTENDED BENEFICIARIES SHALL
NOT BE SPECIFIED INDIVIDUALS AND THE SERVICES PROVIDED BY  AN  ORGANIZA-
TION  CLAIMING CHARITABLE EXEMPTION SHALL BE OPEN TO THE PUBLIC BASED ON
ECONOMIC OR PHYSICAL CRITERIA. AN ENTITY CLAIMING EXEMPTION FOR CHARITA-
BLE PURPOSES SHALL UTILIZE EACH ACRE AT LEAST ONE HUNDRED TWENTY DAYS  A
YEAR  EXCLUSIVELY  FOR  CHARITABLE  PURPOSES  IN  ORDER  TO  MAINTAIN AN
EXEMPTION FROM PROPERTY TAXATION PURSUANT TO THIS SUBPARAGRAPH.  FOR THE
PURPOSES OF THIS SECTION AND  SECTION  FOUR  HUNDRED  TWENTY-B  OF  THIS
TITLE,  NO PERSON WHO RECEIVES FOOD, CLOTHING, OR HOUSING FROM AN EDUCA-
TIONAL, CHARITABLE, RELIGIOUS,  MORAL  OR  MENTAL  IMPROVEMENT  OF  MEN,
WOMEN,  AND  CHILDREN ENTITY SHALL BE DETERMINED TO BE POOR BECAUSE SUCH
PERSON OR HIS OR HER FAMILY GIVES AS MUCH OR MORE OF THEIR INCOME TO THE
CHARITABLE ENTITY OR ANOTHER ENTITY WHICH IS TAX EXEMPT PURSUANT TO  THE
INTERNAL  REVENUE  CODE OR EXEMPT FROM REAL PROPERTY TAXATION UNDER THIS
SECTION, OR BOTH, AS WOULD BE REQUIRED TO MAKE A DETERMINATION THAT THAT
PERSON OR HIS OR HER SPOUSE OR CHILD IS POOR;
  (VI) "HOSPITAL PURPOSES" SHALL MEAN A HOSPICE FACILITY AS  DEFINED  IN
ARTICLE FORTY OF THE PUBLIC HEALTH LAW AS WELL AS A HOSPITAL FACILITY OR
INSTITUTION  ENGAGED  PRINCIPALLY  IN PROVIDING SERVICES BY OR UNDER THE
SUPERVISION OF A PHYSICIAN FOR THE PREVENTION, DIAGNOSIS OR TREATMENT OF
HUMAN DISEASE, PAIN, INJURY, DEFORMITY OR PHYSICAL CONDITION  AND  WHICH
IS  CERTIFIED OR LICENSED PURSUANT TO ARTICLE TWENTY-EIGHT OF THE PUBLIC
HEALTH LAW, AND WHICH ON AN ONGOING AND CONSTANT  BASIS  PROVIDES  OVER-
NIGHT ACCOMMODATIONS TO THOSE IN NEED OF MEDICAL SERVICES. IT SHALL ALSO
INCLUDE  FACILITIES  OWNED BY A HOSPITAL FACILITY OR CORPORATION RELATED
THERETO WHICH PROVIDES MEDICAL CARE, EVEN IF NOT ON A CONSTANT BASIS. IT
SHALL ALSO INCLUDE RELATED PARKING FACILITIES  WHICH  EXCLUSIVELY  SERVE
THE  HOSPITAL  AS  WELL  AS  RELATED  GROUNDS WHICH ARE USED BY HOSPITAL
PATIENTS; AND SHALL ALSO INCLUDE AN EMERGENCY ROOM, WHICH IS DEFINED  TO
MEAN  A  CENTER OPEN ON A CONTINUOUS BASIS WHICH PROVIDES EMERGENCY CARE
FOR THOSE IN NEED OF MEDICAL SERVICES AND WHICH IS IN THE SAME  BUILDING
AS  A  HOSPITAL. IT SHALL NOT INCLUDE LIVING ACCOMMODATIONS FOR HOSPITAL
PERSONNEL OR THEIR FAMILIES;
  (VII) "MORAL OR MENTAL IMPROVEMENT OF MEN, WOMEN, OR  CHILDREN"  SHALL
INCLUDE  EACH  OF THE FOLLOWING CATEGORIES OF REAL PROPERTY DESCRIBED IN
THIS SUBPARAGRAPH. IN ORDER TO BE EXEMPT FROM TAXATION, EACH ACRE  SHALL
HAVE TO BE ACTIVELY AND ACTUALLY UTILIZED FOR AN EXEMPT PURPOSE AT LEAST
ONE  HUNDRED  TWENTY  DAYS  IN  ANY  YEAR AN EXEMPTION IS CLAIMED FOR OR
SOUGHT. IN ADDITION, THE PROPERTY, IN ADDITION TO ANY OTHER REQUIREMENT,
SHALL BE CLASSIFIED AS NOT-FOR-PROFIT OR TAX EXEMPT UNDER  THE  INTERNAL
REVENUE CODE.
  (A) REAL PROPERTY PRIMARILY USED TO FACILITATE OR ENHANCE THE ARTS;
  (B)  REAL  PROPERTY  PRIMARILY USED IN THE STUDY OF SCIENCES, BIOLOGY,
AND HORTICULTURE;

S. 881                              4

  (C) REAL PROPERTY PRIMARILY USED FOR THE BENEFIT OF NON-HUMAN ANIMALS;
  (D)  REAL  PROPERTY WHICH IS OPEN TO THE PUBLIC AND IS PRIMARILY UNIM-
PROVED AND IS KEPT OPEN FOR HIKING, WALKING, OR FORMS OF EXERCISE  WHICH
DO  NOT  COMMONLY USE MECHANIZED DEVICES EXCEPT BY THOSE PERSONS WHO ARE
DISABLED OR OTHERWISE UNABLE TO WALK WITHOUT MECHANIZED ASSISTANCE. SUCH
OPEN SPACE MAY BE OPEN TO THE PUBLIC UPON THE PAYMENT OF A FEE WHICH  IS
DIRECTLY RELATED TO THE COSTS OF MAINTAINING THE PROPERTY, INCLUDING THE
IMPROVEMENTS  THEREON.  OPEN  SPACE  SHALL  NOT  INCLUDE ANY PROPERTY OR
PORTION THEREFOR FROM WHICH THE PUBLIC IS EXCLUDED EXCEPT FOR EXCLUSIONS
BASED EXCLUSIVELY ON PUBLIC HEALTH PURPOSES, AS DETERMINED BY A  GOVERN-
MENTAL  AGENCY,  OR  FOR  PUBLIC  SAFETY REASONING, AS DETERMINED BY THE
PROPERTY OWNER, SUCH DETERMINATION TO BE REVIEWABLE IN ANY COURT  HAVING
EQUITY JURISDICTION AND A PRESUMPTION SHALL BE ATTACHED THERETO THAT THE
PROPERTY  OWNER'S  DETERMINATION  IS  REASONABLE.  ATTORNEYS FEES MAY BE
AWARDED, AT THE DISCRETION OF THE COURT, FOR  ANY  PRIMARILY  PREVAILING
PARTY WHO COMMENCES OR DEFENDS A CIVIL ACTION BASED ON THE PUBLIC SAFETY
ASPECTS OF THIS SUBPARAGRAPH;
  (E)  "LAND  TRUST"  SHALL  MEAN REAL PROPERTY WHICH IS PRIMARILY UNIM-
PROVED. NO OWNER SHALL BE ENTITLED TO A PROPERTY TAX EXEMPTION AS A LAND
TRUST UNLESS THAT PROPERTY OWNER MEETS ALL OF  THE  FOLLOWING  CRITERIA:
(1)  ENTERS  INTO A CONTRACT WITH THE ASSESSING UNIT WHICH PROVIDES THAT
THE LAND IN THE LAND TRUST MAY NOT BE  SOLD  OR  ENCUMBERED,  EXCEPT  BY
MORTGAGE  OR  CONSERVATION  EASEMENT, WITHOUT THE PROPERTY OWNER, WITHIN
THIRTY DAYS OF SUCH SALE OR ENCUMBRANCE, ENTERING INTO A VALID  CONTRACT
TO  PURCHASE LAND OF AT LEAST AN EQUAL VALUE IN THE STATE OF NEW YORK TO
BE PLACED IN A LAND TRUST AND ACTUALLY SO PURCHASING WITHIN ONE YEAR  OF
ENTERING  INTO  SUCH  CONTRACT;  (2)  IS  INCLUDED AS PART OF A LAWFULLY
ENACTED COMPREHENSIVE PLAN BY THE COUNTY, CITY, TOWN, OR  VILLAGE  WHICH
SUCH  PROPERTY  IS  IN  OR  IS  IDENTIFIED  IN AN OFFICIAL OPEN SPACE OR
NATURAL RESOURCES PROTECTION PLAN DULY ADOPTED BY A  FEDERAL,  STATE  OR
LOCAL  GOVERNMENT  OR  AGENCY  THEREOF;  (3)  EXISTS  AS A LAND TRUST TO
PROTECT ECOLOGICAL RESOURCES WHICH ARE CONSIDERED VALUABLE IN A LAWFULLY
ENACTED COMPREHENSIVE PLAN PROVIDED THAT PUBLIC ACCESS SHALL  NOT  BE  A
CRITERIA  IN  DETERRING  AN  EXEMPTION  FROM  TAXATION  FOR  LAND  TRUST
PURPOSES; AND (4) UNLESS THE GOVERNING  BOARD  OF  THE  TOWN,  CITY,  OR
VILLAGE  WHERE  THE  PROPERTY  IS  SITUATED  PASSES  A RESOLUTION TO THE
CONTRARY, IF THE PURCHASE, REFERRED TO IN ITEM (A) OF THIS  CLAUSE  DOES
NOT  OCCUR  WITHIN  THE TIME LIMITATIONS PROVIDED IN SUCH ITEM, THE LAND
TRUST SHALL BE LIABLE FOR ALL TAX PAYMENTS WHICH SUCH LAND  TRUST  WOULD
HAVE  PAID  ON  THE PROPERTY SUCH LAND TRUST SOLD FOR THE PERIOD OF TIME
WHICH SUCH LAND TRUST WOULD HAVE OWED TO ALL LAWFUL TAXING JURISDICTIONS
UNLESS THE TITLE TO THE LAND SUCH LAND TRUST ENTERED INTO A CONTRACT  TO
PURCHASE  WAS  UNMARKETABLE  OR THE SELLER OF SUCH PROPERTY WITHDREW THE
OFFER TO SELL IN WHICH CASE SUCH LAND TRUST  SHALL  HAVE  AN  ADDITIONAL
THREE HUNDRED SIXTY-FIVE DAY PERIOD TO PURCHASE AND CLOSE TITLE ON PROP-
ERTY  IN  THE STATE OF NEW YORK, THE VALUE OF WHICH IS AT LEAST EQUAL TO
THE VALUE OF THE PROPERTY  SUCH  LAND  TRUST  SOLD  WHICH  REQUIRED  THE
PURCHASE  OF THE PROPERTY WHOSE TITLE WAS UNMARKETABLE OR WHOSE OFFER TO
SELL WAS WITHDRAWN;
  (F) "PERSONAL IMPROVEMENT" SHALL MEAN REAL PROPERTY  OTHER  THAN  THAT
PROVIDED FOR IN CLAUSE (B) OF SUBPARAGRAPH (IV) OF THIS PARAGRAPH, WHICH
IS  USED PRIMARILY BY PERSONS UNDER THE AGE OF TWENTY-ONE WHO ARE LEARN-
ING SKILLS RELATED TO NATURE, THE OUTDOORS  AND/OR  PERSONAL  AND  CIVIC
RESPONSIBILITIES. SUCH PROPERTY SHALL BE OWNED BY ORGANIZATIONS OR ASSO-
CIATIONS  WHICH ARE TAX EXEMPT UNDER THE INTERNAL REVENUE CODE. NOTWITH-
STANDING ANY PART OF THIS SUBDIVISION TO  THE  CONTRARY,  EACH  ACRE  OF

S. 881                              5

PROPERTY EXEMPTED AS PERSONAL IMPROVEMENT PROPERTY NEED ONLY BE UTILIZED
NINETY DAYS PER YEAR IN ORDER TO MAINTAIN SUCH PROPERTY'S EXEMPTION;
  (G)  "NON-SCHOLASTIC EDUCATIONAL" SHALL MEAN REAL PROPERTY OWNED BY AN
ORGANIZATION WHICH IS TAX EXEMPT UNDER THE  INTERNAL  REVENUE  CODE  AND
WHICH  IS  PRIMARILY  USED  TO  IMPROVE THE INTELLECTUAL CAPABILITIES OF
HUMAN BEINGS WHICH DO NOT OTHERWISE QUALIFY FOR TAX  EXEMPTION  PURSUANT
TO THIS SECTION;
  (H)  "RECREATIONAL"  SHALL MEAN REAL PROPERTY OWNED BY AN ORGANIZATION
WHICH IS TAX EXEMPT UNDER THE INTERNAL REVENUE CODE AND  WHICH  PROVIDES
RECREATIONAL  OPPORTUNITY  FOR INDIVIDUALS REGARDLESS OF ABILITY TO PAY.
RECREATIONAL OPPORTUNITIES CAN BE EITHER INDOORS  OR  OUTDOORS  AND  MAY
INCLUDE  OVERNIGHT  OPPORTUNITIES PRIMARILY FOR PERSONS UNDER THE AGE OF
TWENTY-ONE YEARS;
  (I) "MEDICAL PURPOSES" SHALL MEAN REAL PROPERTY OTHERWISE OWNED BY  AN
ORGANIZATION  WHICH  IS  TAX  EXEMPT UNDER THE INTERNAL REVENUE CODE AND
WHICH IS NOT A HOSPITAL AS DEFINED BY THIS SECTION BUT  WHICH  QUALIFIES
AS  A  HOSPITAL  AS DEFINED IN ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH
LAW. NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION TO THE  CONTRARY,
PROPERTY  EXEMPTED  FOR MEDICAL PURPOSES NEED NOT MEET ANY MINIMUM USAGE
REQUIREMENT IN TERMS OF THE NUMBER OF DAYS EACH  ACRE  IS  ACTIVELY  AND
ACTUALLY USED;
  (J)  "HOME  CARE SERVICES" SHALL MEAN REAL PROPERTY OTHERWISE OWNED BY
AN ORGANIZATION WHICH IS TAX EXEMPT UNDER THE INTERNAL REVENUE CODE  AND
IS  A  HOME CARE SERVICES AGENCY AS DEFINED IN ARTICLE THIRTY-SIX OF THE
PUBLIC HEALTH LAW, NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION  TO
THE CONTRARY, PROPERTY EXEMPTED FOR HOME CARE SERVICES PURPOSES NEED NOT
MEET  ANY  MINIMUM USAGE REQUIREMENT IN TERMS OF THE NUMBER OF DAYS EACH
ACRE IS ACTIVELY AND ACTUALLY USED;
  (K) "RESIDENTIAL HEALTH CARE FACILITY" SHALL MEAN REAL PROPERTY OTHER-
WISE OWNED BY AN ORGANIZATION WHICH  IS  TAX  EXEMPT  AS  A  RESIDENTIAL
HEALTH  CARE  FACILITY  AS DEFINED IN ARTICLE TWENTY-EIGHT OF THE PUBLIC
HEALTH LAW.  NOTWITHSTANDING ANY PROVISION OF THIS  SUBDIVISION  TO  THE
CONTRARY,   PROPERTY  EXEMPTED  FOR  RESIDENTIAL  HEALTH  CARE  FACILITY
PURPOSES NEED NOT MEET ANY MINIMUM USAGE REQUIREMENT  IN  TERMS  OF  THE
NUMBER OF DAYS EACH ACRE IS ACTIVELY AND ACTUALLY USED;
  (L)  "OTHER MEDICAL PURPOSES" SHALL MEAN REAL PROPERTY WHICH OTHERWISE
IS OWNED BY AN ORGANIZATION WHICH  IS  TAX  EXEMPT  UNDER  THE  INTERNAL
REVENUE  CODE  AND IS USED TO PROVIDE MEDICAL SERVICES TO THOSE IN NEED.
NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION TO THE CONTRARY, PROP-
ERTY EXEMPTED FOR OTHER MEDICAL PURPOSES NEED NOT MEET ANY MINIMUM USAGE
REQUIREMENT IN TERMS OF THE NUMBER OF DAYS EACH  ACRE  IS  ACTIVELY  AND
ACTUALLY USED;
  (M)  "PRIMARILY  CHARITABLE  PURPOSES"  SHALL MEAN AN ACTIVITY DONE ON
REAL PROPERTY OWNED BY AN ORGANIZATION WHICH IS  TAX  EXEMPT  UNDER  THE
INTERNAL  REVENUE  CODE  AND WHICH ACTUALLY AND PRIMARILY ALLEVIATES THE
CONDITION OF  POOR  OR  PHYSICALLY  OR  MENTALLY  DISABLED  HUMANS.  THE
INTENDED  BENEFICIARIES  SHALL  NOT  BE  SPECIFIED  INDIVIDUALS  AND THE
SERVICES PROVIDED BY AN ORGANIZATION CLAIMING CHARITABLE EXEMPTION SHALL
BE OPEN TO THE PUBLIC BASED ON ECONOMIC OR PHYSICAL CRITERIA; AND
  (N) "OTHER MORAL OR MENTAL IMPROVEMENT" SHALL MEAN REAL PROPERTY OWNED
BY AN ORGANIZATION WHICH IS TAX EXEMPT UNDER THE INTERNAL  REVENUE  CODE
AND  WHICH IS DEDICATED IN A MANNER OTHER THAN AS PROVIDED IN THIS PARA-
GRAPH TO THE MORAL OR MENTAL IMPROVEMENT OF MEN, WOMEN, OR CHILDREN.
  S 2. Subdivision 1 of section 420-b of the real property  tax  law  is
amended by adding a new paragraph (d) to read as follows:
  (D) WHEN USED IN THIS SECTION:

S. 881                              6

  (I)  "ORGANIZED  EXCLUSIVELY"  SHALL  REQUIRE  THAT A CORPORATION'S OR
ASSOCIATION'S ORGANIZATIONAL DOCUMENTS LIMIT THE PURPOSE OF SUCH  CORPO-
RATION  OR  ASSOCIATION  TO  ONE  OR MORE EXEMPT PURPOSES, AS SET OUT IN
PARAGRAPH (A) OF THIS SUBDIVISION. FURTHERMORE, THE CORPORATION OR ASSO-
CIATION  SHALL  NOT  BE EMPOWERED TO ENGAGE IN ACTIVITIES WHICH IN THEM-
SELVES ARE NOT IN FURTHERANCE OF ONE OR MORE SUCH PURPOSES; AND
  (II) "USED EXCLUSIVELY" SHALL REQUIRE THAT A  CORPORATION  OR  ASSOCI-
ATION USE ITS PROPERTY ONLY FOR EXEMPT PURPOSES. USES WHICH MAY BE HELP-
FUL  TO  THE EXEMPT ORGANIZATION BUT WOULD NOT, IF DONE ON LAND OWNED BY
AN OTHERWISE TAXABLE ENTITY, QUALIFY FOR TAX EXEMPTION SHALL SUBJECT THE
PORTION OF THE PROPERTY SO USED TO REAL PROPERTY TAXATION.  SUCH  PHRASE
SHALL BE STRICTLY CONSTRUED AND SHALL BE INTENDED TO LIMIT EXEMPTIONS TO
PROPERTY  AND IMPROVEMENTS UTILIZED SOLELY FOR EXEMPT PURPOSES. WHERE AN
EXEMPT ORGANIZATION UTILIZES ITS LAND FOR OTHER PURPOSES, INCLUDING  BUT
NOT  LIMITED  TO,  THE SALE OF PRODUCTS MADE ON THE LAND COMMERCIALLY OR
THE SALE  OF  TIMBER,  OR  OTHERWISE  LEASES  THE  LAND  FOR  COMMERCIAL
PURPOSES, OR ALLOWS THE PLACEMENT OR CONSTRUCTION OF IMPROVEMENTS ON THE
LAND  FOR  COMMERCIAL  PURPOSES,  THAT  PORTION OF SUCH PROPERTY AND ANY
IMPROVEMENTS THEREON IF SUCH IMPROVEMENTS ARE NOT  UTILIZED  FOR  WHOLLY
EXEMPT PURPOSES SHALL BE SUBJECT TO REAL PROPERTY TAXATION.
  S  3.  The  real  property  tax law is amended by adding a new section
420-d to read as follows:
  S 420-D. STATE AID PAYMENTS FOR PROPERTIES EXEMPTED FROM TAXATION.  1.
DEFINITIONS.  (A)  FOR  THE  PURPOSE OF THIS SECTION, THE PHRASE "TAXING
DISTRICT" SHALL INCLUDE SCHOOLS, COUNTIES, CITIES, TOWNS,  VILLAGES,  AS
WELL AS LAWFULLY FORMED DISTRICTS WHICH PROVIDE SERVICES, INCLUDING, BUT
NOT  LIMITED  TO FIRE PROTECTION DISTRICTS, AMBULANCE DISTRICTS, AS WELL
AS OTHER LAWFULLY FORMED DISTRICTS WHICH DO NOT RECEIVE PAYMENTS FROM AN
AFFECTED PROPERTY OWNER.
  (B) FOR THE PURPOSES OF THIS SECTION, THE  PHRASE  "AFFECTED  PROPERTY
OWNER" SHALL MEAN AN ORGANIZATION WHICH IS EXEMPT FROM TAXATION PURSUANT
TO THE INTERNAL REVENUE CODE AND WHICH OWNS PROPERTY DESCRIBED IN CLAUSE
(B)  OF SUBPARAGRAPH (IV) OF PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION
FOUR HUNDRED TWENTY-A OF THIS TITLE.
  2. STATE AID PAYMENTS. A TAXING DISTRICT IN WHICH PROPERTY IS SITUATED
WHICH PROPERTY IS OWNED BY AN AFFECTED PROPERTY OWNER SHALL, SUBJECT  TO
THE PROVISIONS OF THIS SECTION, BE ENTITLED TO RECEIVE UP TO ONE HUNDRED
PERCENT  OF  THE  TAXES  WHICH WOULD HAVE BEEN PAID ON SUCH PROPERTY HAD
SUCH PROPERTY NOT BEEN OWNED BY AN AFFECTED PROPERTY OWNER.
  3. APPLICATION. (A) THE CHIEF EXECUTIVE OFFICER OF A  TAXING  DISTRICT
IN  WHICH THERE IS PROPERTY OWNED BY AN AFFECTED PROPERTY OWNER MAY MAKE
APPLICATION FOR STATE ASSISTANCE PURSUANT TO THIS SECTION. SUCH APPLICA-
TION SHALL BE ON A FORM DEVELOPED BY THE COMMISSIONER.  UPON RECEIPT  OF
THE  APPLICATION  FOR STATE ASSISTANCE, SUCH PROPERTY SHALL BE VALUED BY
THE COMMISSIONER AND THE CUMULATIVE VALUE OF ALL  SUCH  LANDS  SHALL  BE
EQUALIZED BY APPLYING THERETO THE APPROPRIATE STATE EQUALIZATION RATE OR
SPECIAL  EQUALIZATION  RATE  ESTABLISHED IN ACCORDANCE WITH THE RULES OF
THE COMMISSIONER.
  (B) SUBJECT TO  AN  ACCEPTABLE  APPLICATION,  THE  COMMISSIONER  SHALL
COMPUTE  THE AMOUNT OF STATE ASSISTANCE PAYABLE TO OR FOR THE BENEFIT OF
EACH TAXING DISTRICT BY MULTIPLYING THE VALUE OF THE  ASSESSED  PROPERTY
BY THE TAX RATE PER THOUSAND FOR EACH TAXING DISTRICT WHO MAKES APPLICA-
TION  PURSUANT  TO THE PROVISIONS HEREIN. SUCH AMOUNT SHALL THEN BE PAID
TO THE TAXING DISTRICT UPON THE AUDIT AND WARRANT  OF  THE  STATE  COMP-
TROLLER OUT OF MONEYS APPROPRIATED BY THE LEGISLATURE. IN THE EVENT THAT
THE  TOTAL  MONEYS  PAYABLE  PURSUANT  TO  THIS SECTION SHALL EXCEED TEN

S. 881                              7

MILLION DOLLARS IN  ANY  STATE  FISCAL  YEAR,  THE  PAYMENTS  TO  TAXING
DISTRICT SHALL BE REDUCED PROPORTIONATELY FOR EACH TAXING DISTRICT WHICH
HAS TIMELY MADE APPLICATION PURSUANT TO THIS SECTION.
  4.  RULES.  THE  COMMISSIONER IS AUTHORIZED TO DEVELOP RULES AND REGU-
LATIONS OR GUIDELINES FOR THE IMPLEMENTATION OF THIS SECTION.
  S 4. The sum of ten million dollars ($10,000,000) or so  much  thereof
as may be necessary, is hereby appropriated to the commissioner of taxa-
tion  and  finance  from any moneys in the state treasury in the general
fund to the credit of the state purposes account not otherwise appropri-
ated for services and expenses  of  the  commissioner  of  taxation  and
finance  for  the  purposes  of carrying out the provisions of this act.
Such sum shall be payable on the audit and warrant of  the  state  comp-
troller  on  vouchers certified or approved by the commissioner of taxa-
tion and finance, or his or her duly designated  representative  in  the
manner provided by law. No expenditure shall be made from this appropri-
ation  until  a  certificate of approval of availability shall have been
issued by the director of the budget and  filed  with  the  state  comp-
troller  and a copy filed with the chair of the senate finance committee
and the chair of the assembly ways and means committee. Such certificate
may be amended from time to time by the director of  the  budget  and  a
copy  of  each such amendment shall be filed with the state comptroller,
the chair of the senate finance committee and the chair of the  assembly
ways and means committee.
  S  5. 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.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.