Requires the burden of annually establishing that the requirements of the mandatory class non-profit real property tax exemptions have been satisfied to fall upon the owner of the property and must be proven by clear and convincing evidence.

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S878-2013 Actions

• Jan 9, 2013: REFERRED TO LOCAL GOVERNMENT

S878-2013 Memo

BILL NUMBER:S878

TITLE OF BILL:
An act
to amend the real property tax law, in relation to the exemption from
taxation for non-profit organizations

PURPOSE:
To place the responsibility of annually establishing that a
not-for-profit corporation or association is entitled to real
property tax exemptions upon such corporation or association.

SUMMARY OF PROVISIONS:

Section 1: Amends section 420-a of the Real Property Tax Law by adding
a new subdivision 15 to require that the owner of a property which is
tax exempt pursuant to section 420-a of the Real Property Tax Law,
prove annually, by clear and convincing evidence, that the
requirements of section 420-a have been satisfied. Further, this new
subdivision provides that the New York State Department of Taxation
and Finance shall develop, in consultation with not-for-profit
organizations and assessors, guidance documents which shall be used
by assessors to determine whether the standard of proof has been met.

Section 2: Effective date.

EXISTING LAW:
While not-for-profit corporations or associations must initially seek
the granting of an exemption under Section 420-a, they are not
required to do so on an annual basis, nor are they regularly
compelled to provide convincing evidence that such exemption should
continue to apply.

JUSTIFICATION:
This proposed measure is one of a series of bills aimed at
reconstructing the framework for granting real property tax
exemptions across the state. Based on year 2010 assessment rolls,
there are over 5.6 million parcels of property in New York State
(valued at a total of $2.5 trillion). Of this number, some 3.5
million parcels enjoy at least 1 real property tax exemption. From a
taxable status standpoint, over 30% of the total value of property in
New York State ($789 billion) is either wholly or partially exempt
from real property taxation.

The lion's share of real property tax exemptions are state mandated,
and while the state has provided some reimbursement to relieve local
taxing jurisdictions (i.e. through the STAR program), high levels
of tax exemptions can present a serious burden to other property
owners who must support the cost of school district, municipal and
special district operations.

The State must help provide tools which promote greater accountability
from those seeking real property exemptions in order to balance
public needs and benefits. This specific legislation offers such a
tool by seeking to ensure that organizations which seek tax exemption
truly met those public purposes, and that lands receiving relief from


real property taxation are being fully used in support of such
purposes.

LEGISLATIVE HISTORY:

S.2545-A of 2012: Died in Senate Local Government, Died in Assembly
Real Property Taxation
S.2545 of 2011: Died in Senate Local
Government, Died in Assembly Ways and Means
S.8474 of 2010: Died in Senate Rules
S.478 of 2008: Died on Senate Floor Calendar, Died in Assembly Ways and
Means
S.478 of 2007: Died in Senate Local Government, Died in Assembly Real
Property Taxation
S.3926 of 2006: Died on Senate Floor Calendar, Died
in Assembly Real Property Taxation
S.3926 of 2005: Died on Senate
Floor Calendar, Died in Assembly Real Property Taxation
S.1123-A of
2004: Died in Senate Local Government, Died in Assembly Real Property
Taxation
S.1123-A of 2003: Died on Senate Floor Calendar

FISCAL IMPLICATIONS: None to the state.

LOCAL FISCAL IMPLICATIONS:
Undetermined, however, it is anticipated the bill will offer improved
local oversight of exemptions, with a salutary effect on school,
municipal and special district (i.e. fire protection) tax rolls.

EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become law and shall apply to assessment
rolls prepared on the basis of taxable status dates occurring on or
after such date.

S878-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     878

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sens. BONACIC, LARKIN -- read twice and ordered printed,
    and when printed to be committed to the Committee on Local Government

  AN ACT to amend the real property tax law, in relation to the  exemption
    from taxation for non-profit organizations

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


    Section 1.  Section 420-a of the real property tax law is  amended  by
  adding a new subdivision 15 to read as follows:

    15.  IN  ALL  INSTANCES,  THE BURDEN OF ANNUALLY ESTABLISHING THAT THE
  REQUIREMENTS OF THIS SECTION HAVE BEEN SATISFIED SHALL BE UPON THE OWNER
  OF THE PROPERTY AND MUST BE PROVEN BY CLEAR AND CONVINCING EVIDENCE. THE
  DEPARTMENT SHALL DEVELOP, IN CONSULTATION WITH NOT-FOR-PROFIT  ORGANIZA-
  TIONS  AND  ASSESSORS,  GUIDANCE  DOCUMENTS  TO  BE USED BY ASSESSORS IN
  DETERMINING WHETHER THE STANDARD OF PROOF ESTABLISHED BY  THIS  SUBDIVI-
  SION HAS BEEN MET.
    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.




   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02372-01-3