S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2345
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 25, 2023
                                ___________
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03412-01-3
              

 A. 2345                             2
 
 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
 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.
   § 2. This act shall take effect immediately.