§ 494. Taxation of exempt property upon transfer of title or
possession in certain instances. 1. The provisions of this section
shall apply only in a city having a population of one million or more.

2. Whenever any person, association or corporation not entitled to an
exemption from taxation acquires title to or possession of property
which is exempt from taxation, such property shall immediately become
subject to taxation and shall be taxed pro rata for the unexpired
portion of the taxable year. However, if the United States or the state
of New York, through the exercise of the power of eminent domain
acquires or shall have acquired temporarily the possession, occupation
or use of real property which was previously exempt from taxation
pursuant to former section four of the tax law, such previous exemption
shall be deemed to continue unbroken and to resume from the date when
the possession shall have been restored to the owner and the previously
exempt use resumed, despite the fact that such property may be or may
have been deemed taxable during the period when the United States or the
state of New York acquired or shall have acquired such temporary
possession, occupation or use.

3. If taxes on any such property become due and payable for the
entire taxable year on a single date, and any such change in title or
possession takes place prior to such due date, the pro rata portion of
taxes imposed upon such property pursuant to this section shall become
due and payable and shall become a lien upon such property upon such due
date, but if such change in title or possession takes place after such
due date, such pro rata portion of taxes shall become due and payable
and shall become a lien upon such property on the date when such change
in title or possession takes place. If taxes embracing such property
become due and payable on two dates in equal installments, and any such
change in title or possession takes place prior to the earlier of such
due dates, the pro rata portion of the first installment shall become
due and payable and shall become a lien on such property on such earlier
due date, and the entire second installment shall become due and payable
and shall become a lien on such property on the later of such due dates;
if any such change in title or possession takes place between such due
dates, the entire pro rata portion of the taxes to which such property
is subject for the taxable year pursuant to this section shall become
due and payable and shall become a lien on such property upon such later
due date; if any such transfer of title or possession takes place after
the later of such due dates, the pro rata portion of taxes to which such
property is subject for the taxable year pursuant to this section shall
become due and payable and shall become a lien on such property upon the
date of such transfer of title or possession. If taxes embracing such
property become due and payable on more than two dates in equal
installments, and any such change in title or possession takes place
prior to the first due date, or between due dates, the pro rata portion
of the first installment or of a subsequent installment affected by such
change, as the case may be, shall become due and payable and shall
become a lien on such property on the due date next following such
change in title or possession, and the remaining installments shall
become due and payable and shall become a lien on such property on their
respective due dates; if any such transfer of title or possession takes
place after the last due date in a taxable year, the pro rata portion of
tax to which such property is subject for the taxable year pursuant to
this section shall become due and payable and shall become a lien on
such property upon the date of such transfer of title or possession.

4. No right granted by this article to any person, association or
corporation to lease or otherwise use for income-producing purposes any
property of such person, association or corporation, without terminating
the tax exemption of such property in whole or in part, shall be
impaired or diminished by this section, but if any change of title or
possession of any property, shall, by virtue of the provisions of this
article, terminate the tax exemption of such property, in whole or in
part, the provisions of this section shall apply with full force and
effect to the extent that such property shall cease to be tax exempt by
virtue of the provisions of such article.