S T A T E   O F   N E W   Y O R K
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                                 1708--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M. of A. GUNTHER, COOK -- Multi-Sponsored by -- M. of A.
  STEC -- read once and referred to the Committee on Real Property Taxa-
  tion -- recommitted to the Committee  on  Real  Property  Taxation  in
  accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT to amend the real property tax law, in relation to the exemption
  from taxation for  non-profit  organizations  and  to  repeal  certain
  provisions of such law relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision 3 of section 420-a of the  real  property  tax
law is REPEALED and a new subdivision 3 is added to read as follows:
  3.  (A)  SUCH REAL PROPERTY WHICH IS NOT ACTUALLY AND EXCLUSIVELY USED
FOR EXEMPT PURPOSES SHALL, IF OWNED BY  AN  ORGANIZATION  EXEMPTED  FROM
TAXATION  PURSUANT TO THE INTERNAL REVENUE CODE, BE EXEMPT THOUGH NOT IN
ACTUAL USE THEREFOR BY REASON OF THE ABSENCE OF  SUITABLE  BUILDINGS  OR
IMPROVEMENTS  THEREON  IF THE CONSTRUCTION OF SUCH BUILDINGS OR IMPROVE-
MENTS IS IN PROGRESS OR IS IN GOOD FAITH CONTEMPLATED BY SUCH  ORGANIZA-
TION.  AS  USED  IN THIS SUBDIVISION, "IN GOOD FAITH CONTEMPLATED" MEANS
DEFINITE PLANS FOR  UTILIZING  AND  ADAPTING  THE  PROPERTY  FOR  EXEMPT
PURPOSES  WITHIN  FIVE YEARS AND THE FULL EXECUTION OF SUCH PLANS WITHIN
SEVEN YEARS. THE PLANS MUST BE PROVEN AND MUST BE IN WRITTEN  FORM.  THE
DEPARTMENT  SHALL  DEVELOP  GUIDELINES TO BE UTILIZED BY PROPERTY OWNERS
AND ASSESSORS TO DETERMINE WHETHER  SUCH  EVIDENCE  EXISTS  IN  ADEQUATE
FORM.
  (B)  IF NO PART OF THE PHYSICAL IMPROVEMENTS TO THE LAND ARE COMMENCED
WITHIN FIVE YEARS AND COMPLETED WITHIN SEVEN YEARS OF  TAKING  TITLE  TO
THE  PROPERTY, OR IF THE ORGANIZATION DOES NOT MEET THE STANDARDS OTHER-
WISE SET FORTH IN THIS SUBDIVISION, THE PROPERTY OWNER WHO RECEIVED  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD02666-02-4

A. 1708--A                          2

BENEFIT  OF  THE  EXEMPTION SHALL PAY ALL PROPERTY TAXES THAT WOULD HAVE
BEEN OWED; PROVIDED, HOWEVER, THAT FAILURE TO PAY DOES  NOT  CREATE  ANY
RIGHT  BY  ANY  GOVERNMENTAL UNIT TO COMMENCE A PROCEEDING TO EFFECTUATE
THE TAKING OF THE PROPERTY BUT DOES CREATE A CAUSE OF ACTION IN CONTRACT
BY ANY GOVERNMENTAL UNIT NEGATIVELY AFFECTED.
  S  2. 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 and shall apply to property irrespective of the
date of the transfer of title.