Bill Text: NY S01952 | 2021-2022 | 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 1-0)

Status: (Introduced) 2021-01-16 - REFERRED TO LOCAL GOVERNMENT [S01952 Detail]

Download: New_York-2021-S01952-Introduced.html

                STATE OF NEW YORK


                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 16, 2021

        Introduced  by  Sen.  AKSHAR -- 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     2  law is REPEALED and a new subdivision 3 is added to read as follows: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
    23  the taking of the property but does create a cause of action in contract
    24  by any governmental unit negatively affected.

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

        S. 1952                             2

     1    §  2. This act shall take effect on the first of January next succeed-
     2  ing the date on which it shall have become a  law  and  shall  apply  to
     3  assessment rolls prepared on the basis of taxable status dates occurring
     4  on  or  after  such date and shall apply to property irrespective of the
     5  date of the transfer of title.