Authorizes municipalities to extend the real property exemption for property owned by veterans' organizations to portions of the property which are used by entities which are not entitled to the exemption.
TITLE OF BILL: An act to amend the real property tax law, in relation to the real property exemption for certain portions of property owned by veterans' organizations
PURPOSE: Property owned by veteran organizations such as veteran post buildings are exempt from property taxes. Many of these veteran organizations rent space in their buildings to community, charitable, educational, and other organizations. However, sometimes the renting organization is not a tax exempt entity. Therefore the rental portion is subject to local property taxes. This legislation will permit municipalities to exempt veteran organizations from local property taxes including the rental portion.
SUMMARY OF PROVISIONS:
Section 1: Amends 452(2) of the Real Property Tax Law to allow governing bodies of municipalities to grant tax exemptions to entities who rent or use buildings owned by property tax exempt veteran groups.
Section 2: Effective date.
JUSTIFICATION: Veteran posts are integral to our communities. Many community, charitable, educational, and other organizations, use these posts for important functions which benefit the community as a whole. Furthermore, increasing property taxes are threatening the financial viability of many of our veteran, organizations that open their buildings up to the communities.
This legislation allows local governments to retain the necessary authority by giving them the option to exempt these veteran organizations from property taxes occasioned by renting their facilities.
PRIOR LEGISLATIVE HISTORY: New Legislation.
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: This act shall take effect on the second day of January next succeeding 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.
STATE OF NEW YORK ________________________________________________________________________ 7675 IN SENATE June 13, 2012 ___________Introduced by Sen. McDONALD -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the real property tax law, in relation to the real prop- erty exemption for certain portions of property owned by veterans' organizations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 2 of section 452 of the real property tax law is amended to read as follows: 2. (A) Such real property shall be so exempt although it or a portion thereof is used by another corporation or association whose real proper- ty would be entitled to an exemption pursuant to any section in titles one or two of this article except sections four hundred eight, four hundred forty, four hundred sixty-six or four hundred seventy-eight, if such corporation or association itself owned such real property, as long as any moneys paid to the owning corporation, association or post by the using corporation or association do not exceed the amount of carrying, maintenance and depreciation charges of the property or portion thereof, as the case may be. (B) If a portion of such real property is actually and exclusively used by any person whose real property would not be so entitled to an exemption, such portion shall be subject to taxation, special ad valorem levies and special assessments and the remaining portion only shall be exempt as provided herein SUBJECT TO THE PROVISIONS OF PARAGRAPH (C) OF THIS SUBDIVISION. (C) THE PORTION OF REAL PROPERTY WHICH WOULD OTHERWISE BE SUBJECT TO TAXATION, SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS UNDER PARA- GRAPH (B) OF THIS SUBDIVISION SHALL BE EXEMPT THEREFROM FOR PURPOSES OF ANY MUNICIPAL CORPORATION IN WHICH SUCH PROPERTY IS LOCATED ONLY IF THE GOVERNING BODY OF SUCH MUNICIPAL CORPORATION, AFTER A PUBLIC HEARING, ADOPTS A LOCAL LAW, ORDINANCE OR RESOLUTION SO PROVIDING. S 2. This act shall take effect on the second of January, next succeeding the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occur- ring on and after such date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15836-03-2