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SECTION 420-A
Nonprofit organizations; mandatory class
Real Property Tax (RPT) CHAPTER 50-A, ARTICLE 4, TITLE 2
§ 420-a. Nonprofit organizations; mandatory class. 1. (a) Real
property owned by a corporation or association organized or conducted
exclusively for religious, charitable, hospital, educational, or moral
or mental improvement of men, women or children purposes, or for two or
more such purposes, and used exclusively for carrying out thereupon one
or more of such purposes either by the owning corporation or association
or by another such corporation or association as hereinafter provided
shall be exempt from taxation as provided in this section.

(b) Real property such as specified in paragraph (a) of this
subdivision shall not be exempt if any officer, member or employee of
the owning corporation or association shall receive or may be lawfully
entitled to receive any pecuniary profit from the operations thereof,
except reasonable compensation for services in effecting one or more of
such purposes, or as proper beneficiaries of its strictly charitable
purposes; or if the organization thereof for any such avowed purposes be
a guise or pretense for directly or indirectly making any other
pecuniary profit for such corporation or association or for any of its
members or employees; or if it be not in good faith organized or
conducted exclusively for one or more of such purposes.

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
otherwise 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 pursuant 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 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.

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 improvements thereon if (a) the construction of such
buildings or improvements is in progress or is in good faith
contemplated by such corporation or association 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.

4. Such real property shall be so exempt although it is used as a
polling place upon days of registration and election.

5. Such real property owned and actually used for hospital purposes by
a free public hospital which depends for maintenance and support upon
voluntary charity, shall be so exempt from taxation although a portion
thereof is leased or otherwise used for the purposes of income, if such
income is necessary for and is actually applied to the maintenance and
support of such hospital.

6. Such real property outside a city owned by a free public library or
held in trust by an educational corporation for free library purposes
shall be so exempt from taxation although a portion thereof is leased or
otherwise used for purposes of income, if such income is necessary for
and is actually applied to the maintenance and support of such library.

7. Real property which was, on the first day of January, nineteen
hundred eighty-three owned for more than one hundred years by a
corporation organized exclusively for purposes specified in subdivision
one of this section under a grant or devise and a special charter
granted by the legislature of the state of New York subject to
conditions which raise doubt as to the power of such corporation to
convey fee title to the property shall, if the property is used
exclusively for educational purposes by an educational corporation which
owns real property exempt from taxation, or whose real property if it
owned any would be exempt from taxation, as lessee for a term of not
less than twenty-five years and if such lease were in effect on the
first day of January, nineteen hundred eighty-three and requires the
lessee to pay all taxes levied against the property, be exempt from
taxation to the same extent and subject to the same conditions and
exceptions as property owned and used for educational purposes by a
corporation organized exclusively for educational purposes, regardless
of whether the moneys paid to the lessor by the lessee are limited to
the amount of the carrying, maintenance and depreciation charges of the
property.

8. Real property exempt from taxation pursuant to this section shall
also be exempt from special ad valorem levies and special assessments to
the extent provided in section four hundred ninety of this chapter.

9. In addition to the exemption provided in this section, any stadium
facility owned by a corporation organized exclusively for educational
purposes which is constructed in whole or in substantial part with state
funds shall be exempt from taxation notwithstanding its use by the
state, by a municipal corporation for a public use, or by or for
not-for-profit organizations.

10. Real property, which on the first day of January, nineteen hundred
ninety was exempt from real property taxation pursuant to this section
by reason of the ownership and use of such property by a corporation
organized exclusively for educational purposes, and which the fee title
to such property is conveyed prior to June thirtieth, nineteen hundred
ninety-one to a governmental entity, shall be exempt from taxation;
provided that (a) as a condition of such conveyance such property is
leased, for a term or terms exceeding one hundred years, to an
educational corporation whose real property, when used for educational
purposes, is exempt from taxation, and (b) such property shall continue
to be used by such corporation exclusively for educational purposes
subject to the same conditions and exceptions as property owned and used
for educational purposes by a corporation organized exclusively for such
purposes.

11. An exemption may be granted pursuant to this section upon
application by the owner on a form prescribed by the commissioner or any
comparable form, which application may be filed with the assessor of the
appropriate county, city, town or village on or before the applicable
taxable status date. Where the assessor receives no such application,
the assessor may nevertheless grant the exemption provided the assessor
personally inspects the property and certifies in writing that it
satisfies all of the requirements for exemption set forth in this
section. Where property is not granted an exemption pursuant to this
section, the owner may seek judicial review pursuant to article seven of
this chapter or article seventy-eight of the civil practice law and
rules.

12. Notwithstanding any provision of this chapter or any other law to
the contrary, real property, the fee title to which was acquired on
March twenty-third, nineteen hundred ninety-four pursuant to a mortgage
foreclosure sale conducted by the federal deposit insurance corporation,
by a corporation or association organized exclusively for educational
purposes, and which was used exclusively by such corporation or
association for carrying out thereupon educational purposes during the
period beginning on the date the fee title was acquired by such
corporation or association and ending on June thirtieth, nineteen
hundred ninety-five, shall be exempt from taxation for such period as
provided in this section. The city of New York may negotiate and execute
with the owner of real property in the city of New York qualifying for
exemption under this subdivision, an agreement for the payment of unpaid
real property taxes and interest thereon that accrued on such property
prior to the date on which the fee title to such property was acquired
by such owner. Notwithstanding any provision of this chapter or the
administrative code of the city of New York or any other law to the
contrary, such agreement may require that payment of such taxes and
interest thereon be made in quarterly installments over a period not to
exceed thirty years.

13. Notwithstanding any provision of this chapter or any other law to
the contrary, real property, the fee title to which was acquired on
March twenty-third, nineteen hundred ninety-four pursuant to a mortgage
foreclosure sale conducted by the federal deposit insurance corporation
by a corporation or association organized exclusively for educational
purposes, and which has been used exclusively by such corporation or
association for carrying out thereupon educational purposes since the
date on which the fee title was acquired by such corporation or
association, and is currently being used for such purposes, shall be
exempt from taxation as provided in this section and the city of New
York may cancel and annul any unpaid real property taxes that accrued on
such real property prior to the date on which the fee title to such
property was acquired by such owner together with any interest accruing
on such unpaid real property taxes.

14. Notwithstanding any provision of this chapter or any other law to
the contrary, real property in block 1175 in the county of Kings leased
to the unified court system for the establishment and operation of a
court officer academy authorized pursuant to section two hundred
nineteen-b of the judiciary law shall be exempt from taxation for the
duration of such lease provided that such property shall be used for
such purpose and provided that title to such property shall not be
conveyed to another owner at any time during the duration of such lease.

15. Notwithstanding any provision of this chapter or any other law to
the contrary, real property in block 1272 in the borough of Brooklyn,
the fee title to which was acquired in 1997 or 1998 in order to
establish a museum and center for children by a not-for-profit
corporation or association organized exclusively for charitable
purposes, and which has been used exclusively by such corporation or
association for carrying out thereupon charitable purposes since the
date on which the fee title was acquired by such corporation or
association, shall be exempt from taxation as provided in this section
and the city of New York may cancel and annul any unpaid real property
taxes that accrued on such real property prior to the date on which the
fee title to such property was acquired by such owner together with any
interest accruing such unpaid real property taxes.

16. (a) (i) For the purposes of this subdivision, "municipal
corporation" shall mean a county, city, town, village or school district
which, after public hearing, adopts a local law, ordinance or
resolution, 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 commissioner.

(ii) Where a nonprofit organization that meets the requirements for an
exemption pursuant to this section, purchases property after 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 exemption
with the assessor no later than the time specified in such local law,
ordinance or resolution. The assessor shall make a determination of
whether the parcel would have qualified for exempt status on the tax
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
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 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 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 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 remaining subsequent to
the transfer of title. The assessor shall immediately transmit a
statement of the pro rata exemption credit due to each municipal
corporation which levied taxes or for which taxes were levied on the tax
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
appropriation 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
collector 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
treasurer 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
corporation 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. The assessor shall
make a determination 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 application 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
administrative 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
taxation 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
paragraph (a) of this subdivision is not extended against the tax roll
immediately succeeding the fiscal year during which the transfer
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
taxation as provided in paragraph (b) of this subdivision is not entered
on the tax 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 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 corporations of the pro rata
exemption credits for such tax roll. Such municipal corporation shall
add such pro rata exemption credits for such property to any outstanding
pro rata exemption amounts and proceed as provided in subparagraph (iv)
of paragraph (a) of this subdivision.