Bill S4609-2013

Repeals provisions of law granting real property tax exemption to certain entities

Repeals provisions of law granting real property tax exemption to certain entities.

Details

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  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Apr 15, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S4609

TITLE OF BILL: An act to repeal section 429 of the real property tax law relating to real property used for professional major league sports

PURPOSE:

To require payment of property taxes by the owners of Madison Square Garden.

SUMMARY OF PROVISIONS:

The bill repeals section 429 of the real property tax law, "real property used for professional major league sports, "to require that the owners of Madison Square Garden pay real property taxes. The Garden currently enjoys a curiously worded exemption from taxes, based on the fact that it meets the following criteria, which are applicable to no other property in New York:

1. It is located in a city with a population of one million or more, and used by both a professional major league hockey team which is a member of the National Hockey League and a professional major league basketball team which is a member of the National Basketball Association to play their home games.

2. It is exempt from taxation to the extent that the taxes are the obligation by lease or otherwise of the owners of franchises for such teams, provided that such owners enter into a written agreement with the chief executive officer of the municipality in which such property is located to play their home games within such municipality for a period of at least ten consecutive years.

3. The tax exemption is granted on the date the agreement is executed and applies to taxes which become due and payable after the agreement is executed. The Exemption continues as long as both of the professional teams play their home games there and no longer.

4. The exemption also applies to improvements used for the provision of facilities or services related to sports, entertainment, expositions, conventions or trade shows.

5. If one or both of said teams ceases to play their home games at the property at any time, the tax exemption ceases immediately.

The amendment adds new language to the section, to make it clear that the property is still subject to taxation, and that the full amount of such taxes are and shall be the obligations of the owners of such property, and may not be made obligations by lease or otherwise of the owners of the teams referred to hereinabove. The amendment also makes it clear that any provision in a lease, agreement, or any other written instrument requiring that any such taxes or their equivalent in the form of any charges of any kind whatsoever, imposed by whatever name, be made obligations of the owners of such teams shall be void on and after the effective date of this act as against state policy.

JUSTIFICATION:

No exemption is granted in perpetuity. The purpose of this bill is to eliminate a property tax exemption for a $4.4 billion corporation.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

No impact on New York State. Will add $16 million in revenue to New York City.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4609 2013-2014 Regular Sessions IN SENATE April 15, 2013 ___________
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to repeal section 429 of the real property tax law relating to real property used for professional major league sports THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative intent. The legislature hereby declares that any provision in a lease, agreement or any other written instrument requiring that any taxes or their equivalent, set forth in such instru- ment in the form of any charges of any kind whatsoever, imposed by any taxing authority, shall be made the obligation of any person, sole proprietorship, partnership, firm, corporation, limited liability compa- ny, association, franchise, team, or any other entity, other than the owner or owners of such property, shall be deemed void as against public policy. S 2. Section 429 of the real property tax law is REPEALED. S 3. This act shall take effect immediately.

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