S T A T E O F N E W Y O R K
________________________________________________________________________
1575
2025-2026 Regular Sessions
I N S E N A T E
January 10, 2025
___________
Introduced by Sen. BORRELLO -- 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 exemption
from taxation for non-profit organizations
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
THE MAINTENANCE OF OPEN SPACE OR PROPERTY UTILIZED PRIMARILY FOR HIKING
SHALL NOT BE CONSIDERED A FUNDAMENTAL OR INTRINSIC RELIGIOUS PURPOSE. A
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04606-01-5
S. 1575 2
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 SUCH
INDIVIDUAL'S FAMILY OF FOOD, OR CLOTHING OR SHELTER. THE FACT THAT INDI-
VIDUALS LIVE IN A CLASSLESS SOCIETY SHALL NOT BE A FACTOR IN GRANTING OR
DENYING AN EXEMPTION BASED ON RELIGIOUS PURPOSES. THE PROVISIONS OF THIS
SUBPARAGRAPH 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
PROVIDED FOR IN THIS SUBPARAGRAPH. PROPERTY NECESSARY FOR THE CARRYING
OUT OF EDUCATIONAL PURPOSES, INCLUDING PROPERTY NECESSARY FOR TRANSPOR-
S. 1575 3
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 SUCH PERSON'S 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 SUCH PERSON'S 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;
(C) REAL PROPERTY PRIMARILY USED FOR THE BENEFIT OF NON-HUMAN ANIMALS;
S. 1575 4
(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. 1575 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.
§ 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. 1575 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.
§ 3. The real property tax law is amended by adding a new section
420-d to read as follows:
§ 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 THE
S. 1575 7
AMOUNT APPROPRIATED BY THE LEGISLATURE 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.
§ 4. 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.
