Bill Text: NY S00993 | 2017-2018 | General Assembly | Introduced

---

Bill Title: Ensures that exempt properties are being used in a manner which supports the specific exemption granted.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO LOCAL GOVERNMENT [S00993 Detail]

Download: New_York-2017-S00993-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                           993
                               2017-2018 Regular Sessions
                    IN SENATE
                                     January 6, 2017
                                       ___________
        Introduced  by  Sens.  BONACIC, LARKIN, LITTLE -- 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  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:
     1    Section 1.  Subdivision 3 of section 420-a of the  real  property  tax
     2  law is REPEALED and a new subdivision 3 is added to read as follows:
     3    3.  (a)  Such real property which is not actually and exclusively used
     4  for exempt purposes shall, if owned by  an  organization  exempted  from
     5  taxation  pursuant to the internal revenue code, be exempt though not in
     6  actual use therefor by reason of the absence of  suitable  buildings  or
     7  improvements  thereon  if the construction of such buildings or improve-
     8  ments is in progress or is in good faith contemplated by such  organiza-
     9  tion.  As  used  in this subdivision, "in good faith contemplated" means
    10  definite plans for  utilizing  and  adapting  the  property  for  exempt
    11  purposes  within  five years and the full execution of such plans within
    12  seven years. The plans must be proven and must be in written  form.  The
    13  department  shall  develop  guidelines to be utilized by property owners
    14  and assessors to determine whether  such  evidence  exists  in  adequate
    15  form.
    16    (b)  If no part of the physical improvements to the land are commenced
    17  within five years and completed within seven years of  taking  title  to
    18  the  property, or if the organization does not meet the standards other-
    19  wise set forth in this subdivision, the property owner who received  the
    20  benefit  of  the  exemption shall pay all property taxes that would have
    21  been owed; provided, however, that failure to pay does  not  create  any
    22  right  by  any  governmental unit to commence a proceeding to effectuate
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02948-01-7
        S. 993                              2
     1  the taking of the property but does create a cause of action in contract
     2  by any governmental unit negatively affected.
     3    §  2. This act shall take effect on the first of January next succeed-
     4  ing the date on which it shall have become a  law  and  shall  apply  to
     5  assessment rolls prepared on the basis of taxable status dates occurring
     6  on  or  after  such date and shall apply to property irrespective of the
     7  date of the transfer of title.