S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3853
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2025
                                ___________
 
 Introduced by M. of A. WILLIAMS -- read once and referred to the Commit-
   tee on Real Property Taxation
 
 AN  ACT  to amend the real property tax law, in relation to property tax
   exemptions for nonprofit organizations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision  16 of section 420-a of the real property tax
 law, as added by chapter 358 of the laws of 2018, is amended to read  as
 follows:
   16.  (a)  (i)  For the purposes of this subdivision, "municipal corpo-
 ration" shall mean a county, city,  town,  village  or  school  district
 [which,  after  public  hearing, adopts a local law, ordinance or resol-
 ution, providing that this subdivision shall be applicable to  nonprofit
 organizations  within  its  jurisdiction.  Such  local law, ordinance or
 resolution shall apply to property transfers occurring on or  after  the
 effective  date  of  such local law, ordinance or resolution.  A copy of
 such local law, ordinance or resolution shall be filed with the  commis-
 sioner].
   (ii) Where a nonprofit organization that meets the requirements for an
 exemption pursuant to this section, purchases property after the levy of
 taxes  BUT  PRIOR TO THE TAXABLE STATUS DATE APPLICABLE TO THE FOLLOWING
 YEAR'S ASSESSMENT ROLL, such nonprofit organization may[,  if  permitted
 by  a local law, ordinance or resolution of the municipal corporation in
 which the nonprofit organization is located,] file  an  application  for
 exemption  with  the  assessor no later than the [time specified in such
 local law, ordinance or resolution] TAXABLE STATUS  DATE  APPLICABLE  TO
 THE ASSESSMENT ROLL THREE YEARS SUBSEQUENT TO THE PURCHASE OF SUCH PROP-
 ERTY.  The  assessor  shall  make  a determination of whether the parcel
 would have qualified for exempt status on the [tax] ASSESSMENT  roll  on
 which the taxes were levied, had title to the parcel been in the name of
 the applicant on the taxable status date applicable to the [tax] ASSESS-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07293-01-5
              

 A. 3853                             2
 
 MENT  roll. The application shall be on a form prescribed by the commis-
 sioner.  The assessor, no later than thirty days after receipt  of  such
 application, shall notify both the applicant and the board of assessment
 review, by first class mail, of the exempt amount, if any, and the right
 of the owner to a review of the exempt amount upon the filing of a writ-
 ten  complaint.  Such  complaint  shall  be  on a form prescribed by the
 commissioner and shall be filed with  the  board  of  assessment  review
 within  twenty  days  of  the mailing of such notice. If no complaint is
 received, the board of assessment review shall so  notify  the  assessor
 and  the exempt amount determined by the assessor shall be final. If the
 applicant files a complaint, the board of assessment review shall sched-
 ule a time and place for a hearing with respect thereto  no  later  than
 thirty  days  after the mailing of the notice by the assessor. The board
 of assessment review shall meet and determine  the  exempt  amount,  and
 shall  immediately notify the assessor and the applicant, by first class
 mail, of its determination. The amount of exemption determined  pursuant
 to  this  paragraph  shall  be  subject to review as provided in article
 seven of this chapter. Such a proceeding shall be commenced within thir-
 ty days of the mailing of the notice of the board of  assessment  review
 to the new owner as provided in this paragraph.
   (iii) Upon receipt of a determination of the exempt amount as provided
 in subparagraph (ii) of this paragraph, the assessor shall determine the
 pro  rata  exemption  to be credited toward such property by multiplying
 the tax rate or tax rates for each municipal  corporation  which  levied
 taxes,  or for which taxes were levied, on the appropriate [tax] ASSESS-
 MENT roll used for the fiscal year or years during  which  the  transfer
 occurred  times the exempt amount, as determined in subparagraph (ii) of
 this paragraph, times the fraction of each fiscal year or years  remain-
 ing  subsequent to the transfer of title. The assessor shall immediately
 transmit a statement of the pro rata exemption credit due to each munic-
 ipal corporation which levied taxes or for which taxes  were  levied  on
 the [tax] ASSESSMENT roll used for the fiscal year or years during which
 the transfer occurred and to the applicant.
   (iv)  Each  municipal  corporation  which  receives notice of pro rata
 exemption credits pursuant to this subdivision shall include  an  appro-
 priation  in  its budget for the next fiscal year equal to the aggregate
 amount of such credits to be applied in  that  fiscal  year.    Where  a
 parcel,  the  owner of which is entitled to a pro rata exemption credit,
 is subject to taxation in said next fiscal year, the receiver or collec-
 tor shall apply the credit to reduce the amount of taxes  owed  for  the
 parcel  in such fiscal year. Pro rata exemption credits in excess of the
 amount of taxes, if any, owed for the parcel shall be paid by the treas-
 urer of a municipal corporation which levies such taxes for or on behalf
 of the municipal corporation to all owners of property entitled to  such
 credits  within  thirty days of the expiration of the warrant to collect
 taxes in said next fiscal year. Notwithstanding the foregoing, where the
 municipal corporation has been reimbursed by  another  municipal  corpo-
 ration  for  the  tax  credit  to  be paid to the owner pursuant to this
 subdivision, such credit shall be paid  to  such  municipal  corporation
 instead of such owner.
   (b)  (i)  Notwithstanding  the  provisions  of  this  section, where a
 nonprofit organization that meets  the  requirements  for  an  exemption
 pursuant  to  this  section, purchases property after the taxable status
 date but prior to the levy of taxes, such nonprofit  organization  may[,
 if  permitted  by  a local law, ordinance or resolution of the municipal
 corporation in which the nonprofit organization  is  located,]  file  an
 A. 3853                             3
 
 application  for  an  exemption with the assessor [within thirty days of
 the transfer of title to such nonprofit organization] NO LATER THAN  THE
 TAXABLE STATUS DATE APPLICABLE TO THE ASSESSMENT ROLL THREE YEARS SUBSE-
 QUENT TO THE PURCHASE OF SUCH PROPERTY. The assessor shall make a deter-
 mination within thirty days after receipt of such application of whether
 the applicant would qualify for an exemption pursuant to this section on
 the  assessment  roll  if title had been in the name of the applicant on
 the taxable status date applicable to such assessment roll. The applica-
 tion shall be made on a form prescribed by the commissioner.
   (ii) If the assessor's determination is made prior to  the  filing  of
 the  tentative  assessment  roll,  the  assessor  shall enter the exempt
 amount, if any, on the tentative assessment roll and,  within  ten  days
 after  filing  such roll, notify the applicant of the approval or denial
 of such exemption, the exempt amount, if any, and the applicant's  right
 to review by the board of assessment review.
   (iii)  If the assessor's determination is made after the filing of the
 tentative assessment roll, the assessor  shall  petition  the  board  of
 assessment  review  to correct the tentative or final assessment roll in
 the manner provided in title three of article five of this chapter, with
 respect to unlawful entries, in the case of wholly exempt  parcels,  and
 with  respect  of  clerical  errors,  in  the  case  of partially exempt
 parcels, if the assessor determines that an exemption should be  granted
 and,  within  ten  days  of  petitioning the board of assessment review,
 notify the applicant of the approval or denial of  such  exemption,  the
 amount  of such exemption, if any, and the applicant's right to adminis-
 trative or judicial review of such  determination  pursuant  to  article
 five or seven of this chapter, respectively.
   (c)  If, for any reason, a determination to exempt property from taxa-
 tion as provided in paragraph (b) of this subdivision is not entered  on
 the  final  assessment  roll,  the  assessor shall petition the board of
 assessment review to correct the final assessment roll.
   (d) If, for any reason, the pro rata tax credit as provided  in  para-
 graph  (a) of this subdivision is not extended against the [tax] ASSESS-
 MENT roll immediately succeeding the fiscal year during which the trans-
 fer occurred,  the  assessor  shall  immediately  notify  the  municipal
 corporation  which  levied the tax or for which the taxes were levied of
 the amount of pro rata exemption credits for  the  year  in  which  such
 transfer  occurred. Such municipal corporation shall proceed as provided
 in subparagraph (iv) of paragraph (a) of this subdivision.
   (e) If, for any reason, a determination to exempt property from  taxa-
 tion  as provided in paragraph (b) of this subdivision is not entered on
 the [tax] ASSESSMENT roll for the year immediately succeeding the fiscal
 year during which the transfer occurred, the  assessor  shall  determine
 the  pro  rata  tax  exemption  credit for such [tax] ASSESSMENT roll by
 multiplying the tax rate or tax rates  for  each  municipal  corporation
 which  levied  taxes  or  for  which  taxes were levied times the exempt
 amount and shall immediately notify such municipal corporation or corpo-
 rations of the pro rata exemption  credits  for  such  [tax]  ASSESSMENT
 roll. Such municipal corporation shall add such pro rata exemption cred-
 its  for such property to any outstanding pro rata exemption amounts and
 proceed as provided in subparagraph (iv) of paragraph (a) of this subdi-
 vision.
   § 2. Subdivision 8 of section 420-b of the real property tax  law,  as
 added by chapter 358 of the laws of 2018, is amended to read as follows:
   8.  (a)  (i)  For  the purposes of this subdivision, "municipal corpo-
 ration" shall mean a county, city,  town,  village  or  school  district
 A. 3853                             4
 
 [which,  after  public  hearing, adopts a local law, ordinance or resol-
 ution, providing that this subdivision shall be applicable to  nonprofit
 organizations  within  its  jurisdiction.  Such  local law, ordinance or
 resolution  shall  apply to property transfers occurring on or after the
 effective date of such local law, ordinance or resolution.   A  copy  of
 such  local law, ordinance or resolution shall be filed with the commis-
 sioner].
   (ii) Where a nonprofit organization that meets the requirements for an
 exemption pursuant to this section, purchases property after the levy of
 taxes BUT PRIOR TO THE TAXABLE STATUS DATE APPLICABLE TO  THE  FOLLOWING
 YEAR'S  ASSESSMENT  ROLL,  such  nonprofit  organization  may  file[, if
 permitted by a local law,  ordinance  or  resolution  of  the  municipal
 corporation in which the nonprofit organization is located,] an applica-
 tion  for  exemption with the assessor no later than the [time specified
 in such local law, ordinance or resolution] TAXABLE STATUS DATE APPLICA-
 BLE TO THE ASSESSMENT ROLL THREE YEARS SUBSEQUENT  TO  THE  PURCHASE  OF
 SUCH  PROPERTY.  The  assessor shall make a determination of whether the
 parcel would have qualified for exempt status on  the  [tax]  ASSESSMENT
 roll on which the taxes were levied, had title to the parcel been in the
 name of the applicant on the taxable status date applicable to the [tax]
 ASSESSMENT  roll.  The  application shall be on a form prescribed by the
 commissioner. The assessor, no later than thirty days after  receipt  of
 such  application,  shall  notify  both  the  applicant and the board of
 assessment review, by first class mail, of the exempt  amount,  if  any,
 and  the  right  of  the owner to a review of the exempt amount upon the
 filing of a written  complaint.  Such  complaint  shall  be  on  a  form
 prescribed  by  the  commissioner  and  shall be filed with the board of
 assessment review within twenty days of the mailing of such  notice.  If
 no complaint is received, the board of assessment review shall so notify
 the  assessor  and the exempt amount determined by the assessor shall be
 final. If the applicant files  a  complaint,  the  board  of  assessment
 review shall schedule a time and place for a hearing with respect there-
 to  no  later  than  thirty  days after the mailing of the notice by the
 assessor. The board of assessment review shall meet  and  determine  the
 exempt  amount, and shall immediately notify the assessor and the appli-
 cant, by first class mail, of its determination. The amount of exemption
 determined pursuant to this paragraph shall  be  subject  to  review  as
 provided  in  article  seven of this chapter. Such a proceeding shall be
 commenced within thirty days of the mailing of the notice of  the  board
 of assessment review to the new owner as provided in this paragraph.
   (iii) Upon receipt of a determination of the exempt amount as provided
 in subparagraph (ii) of this paragraph, the assessor shall determine the
 pro  rata  exemption  to be credited toward such property by multiplying
 the tax rate or tax rates for each municipal  corporation  which  levied
 taxes,  or for which taxes were levied, on the appropriate [tax] ASSESS-
 MENT roll used for the fiscal year or years during  which  the  transfer
 occurred  times the exempt amount, as determined in subparagraph (ii) of
 this paragraph, times the fraction of each fiscal year or years  remain-
 ing  subsequent to the transfer of title. The assessor shall immediately
 transmit a statement of the pro rata exemption credit due to each munic-
 ipal corporation which levied taxes or for which taxes  were  levied  on
 the [tax] ASSESSMENT roll used for the fiscal year or years during which
 the transfer occurred and to the applicant.
   (iv)  Each  municipal  corporation  which  receives notice of pro rata
 exemption credits pursuant to this subdivision shall include  an  appro-
 priation  in  its budget for the next fiscal year equal to the aggregate
 A. 3853                             5
 
 amount of such credits to be applied in  that  fiscal  year.    Where  a
 parcel,  the  owner of which is entitled to a pro rata exemption credit,
 is subject to taxation in said next fiscal year, the receiver or collec-
 tor  shall  apply  the credit to reduce the amount of taxes owed for the
 parcel in such fiscal year. Pro rata exemption credits in excess of  the
 amount of taxes, if any, owed for the parcel shall be paid by the treas-
 urer of a municipal corporation which levies such taxes for or on behalf
 of  the municipal corporation to all owners of property entitled to such
 credits within thirty days of the expiration of the warrant  to  collect
 taxes in said next fiscal year. Notwithstanding the foregoing, where the
 municipal  corporation  has  been reimbursed by another municipal corpo-
 ration for the tax credit to be paid  to  the  owner  pursuant  to  this
 subdivision,  such  credit  shall  be paid to such municipal corporation
 instead of such owner.
   (b) (i) Notwithstanding  the  provisions  of  this  section,  where  a
 nonprofit  organization  that  meets  the  requirements for an exemption
 pursuant to this section, purchases property after  the  taxable  status
 date  but  prior to the levy of taxes, such nonprofit organization may[,
 if permitted by a local law, ordinance or resolution  of  the  municipal
 corporation  in  which  the  nonprofit organization is located,] file an
 application for an exemption with the assessor [within  thirty  days  of
 the  transfer of title to such nonprofit organization] NO LATER THAN THE
 TAXABLE STATUS DATE APPLICABLE TO THE ASSESSMENT ROLL THREE YEARS SUBSE-
 QUENT TO THE PURCHASE OF SUCH PROPERTY. The assessor shall make a deter-
 mination within thirty days after receipt of such application of whether
 the applicant would qualify for an exemption pursuant to this section on
 the assessment roll if title had been in the name of  the  applicant  on
 the taxable status date applicable to such assessment roll. The applica-
 tion shall be made on a form prescribed by the commissioner.
   (ii)  If  the  assessor's determination is made prior to the filing of
 the tentative assessment roll,  the  assessor  shall  enter  the  exempt
 amount,  if  any,  on the tentative assessment roll and, within ten days
 after filing such roll, notify the applicant of the approval  or  denial
 of  such exemption, the exempt amount, if any, and the applicant's right
 to review by the board of assessment review.
   (iii) If the assessor's determination is made after the filing of  the
 tentative  assessment  roll,  the  assessor  shall petition the board of
 assessment review to correct the tentative or final assessment  roll  in
 the manner provided in title three of article five of this chapter, with
 respect  to  unlawful entries, in the case of wholly exempt parcels, and
 with respect of  clerical  errors,  in  the  case  of  partially  exempt
 parcels,  if the assessor determines that an exemption should be granted
 and, within ten days of petitioning  the  board  of  assessment  review,
 notify  the  applicant  of the approval or denial of such exemption, the
 amount of such exemption, if any, and the applicant's right to  adminis-
 trative  or  judicial  review  of such determination pursuant to article
 five or seven of this chapter, respectively.
   (c) If, for any reason, a determination to exempt property from  taxa-
 tion  as provided in paragraph (b) of this subdivision is not entered on
 the final assessment roll, the assessor  shall  petition  the  board  of
 assessment review to correct the final assessment roll.
   (d)  If,  for any reason, the pro rata tax credit as provided in para-
 graph (a) of this subdivision is not extended against the [tax]  ASSESS-
 MENT roll immediately succeeding the fiscal year during which the trans-
 fer  occurred,  the  assessor  shall  immediately  notify  the municipal
 corporation which levied the tax or for which the taxes were  levied  of
 A. 3853                             6
 
 the  amount  of  pro  rata  exemption credits for the year in which such
 transfer occurred. Such municipal corporation shall proceed as  provided
 in subparagraph (iv) of paragraph (a) of this subdivision.
   (e)  If, for any reason, a determination to exempt property from taxa-
 tion as provided in paragraph (b) of this subdivision is not entered  on
 the [tax] ASSESSMENT roll for the year immediately succeeding the fiscal
 year  during  which  the transfer occurred, the assessor shall determine
 the pro rata tax exemption credit for  such  [tax]  ASSESSMENT  roll  by
 multiplying  the  tax  rate  or tax rates for each municipal corporation
 which levied taxes or for which  taxes  were  levied  times  the  exempt
 amount and shall immediately notify such municipal corporation or corpo-
 rations  of  the  pro  rata  exemption credits for such [tax] ASSESSMENT
 roll. Such municipal corporation shall add such pro rata exemption cred-
 its for such property to any outstanding pro rata exemption amounts  and
 proceed as provided in subparagraph (iv) of paragraph (a) of this subdi-
 vision.
   § 3. This act shall take effect immediately.