NY Real Prop Tax L § 420-B (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 420-B - Nonprofit Organizations; Permissive Class.

§  420-b.  Nonprofit  organizations;  permissive  class.  1.  (a) Real property owned by  a  corporation  or  association  which  is  organized exclusively  for bible, tract, benevolent, missionary, infirmary, public playground, scientific,  literary,  bar  association,  medical  society, library,  patriotic  or historical purposes, for the development of good sportsmanship for persons under the age of eighteen  years  through  the conduct  of  supervised  athletic  games,  for  the  enforcement of laws relating to children or animals, or for two or more such  purposes,  and used exclusively for carrying out thereupon one or more of such purposes either  by  the  owning  corporation  or association, or by another such corporation or association as hereinafter provided, shall be exempt from taxation; provided, however, that such property shall be taxable by  any municipal  corporation within which it is located if the governing board of such municipal corporation, after public hearing, adopts a local law, ordinance or resolution so providing. None of the following subdivisions of this section providing that certain properties shall be exempt  under circumstances  or conditions set forth in such subdivisions shall exempt such property from taxation by a municipal corporation  whose  governing board  has  adopted  a local law, ordinance or resolution providing that such property shall be taxable pursuant to this subdivision.  (b) No local law, ordinance or resolution  adopted  pursuant  to  this subdivision shall provide for the taxation of any particular property or owner.  Any such local law, ordinance or resolution shall apply alike to all property owned by any corporation or association organized  for  one or  more  of  the  purposes  specified  in  such local law, ordinance or resolution, and used for carrying out thereupon  one  or  more  of  such purposes.  Any  purpose  so  specified  in  the  local law, ordinance or resolution must be one of the purposes listed in paragraph (a)  of  this subdivision,  but  the purposes so specified in the local law, ordinance or  resolution  need  not  include  all  the  purposes  listed  in  said paragraph.  Any  local  law, ordinance or resolution adopted pursuant to this subdivision may be amended or repealed.  (c)  Real  property  such  as  specified  in  paragraph  (a)  of  this subdivision  shall  not  be exempt if any officer, member or employee of the owning corporation or association shall receive any pecuniary profit from the operations thereof, except reasonable compensation for services in effecting one or more of such purposes, or as proper beneficiaries of its strictly charitable purposes; or if the organization thereof for any such avowed purposes be a guise or pretense for directly  or  indirectly making any other pecuniary profit for such corporation or association or for  any  of  its  members  or  employees; or if it be not in good faith organized exclusively for one or more of such purposes.   2. If any portion of such real property is not so used exclusively  to carry  out  thereupon  one or more of the purposes listed in subdivision one of this section, but is (a) leased or (b) otherwise used  for  other purposes,  such  portion  shall be subject to taxation and the remaining portion only shall be exempt; provided, however, that such real property shall be fully exempt from taxation although it or a portion thereof  is used  (a)  for  purposes  which  are  exempt pursuant to this section or sections four hundred twenty-a, four hundred  twenty-two,  four  hundred twenty-four,  four  hundred  twenty-six, four hundred twenty-eight, four hundred thirty  or  four  hundred  fifty  of  this  article  by  another corporation  which  owns  real property exempt from taxation pursuant to such sections or whose real property if it owned  any  would  be  exempt from  taxation  pursuant  to  such  sections, (b) for purposes which are exempt pursuant to section four hundred  six  or  section  four  hundred eight  of  this chapter by a corporation which owns real property exempt from taxation pursuant to such  section,  (c)  for  purposes  which  are  exempt  pursuant  to  section four hundred sixteen of this chapter by an organization which owns real property exempt from taxation  pursuant  to such section or whose real property if it owned any would be exempt from taxation  pursuant to such section or (d) for purposes relating to civil defense pursuant to the New York state defense emergency act,  including but  not  limited  to  activities in preparation for anticipated attack, during attack, or following attack  or  false  warning  thereof,  or  in connection  with  drill  or  test  ordered  or directed by civil defense authorities; and provided further  that  such  real  property  shall  be exempt  from  taxation  only  so long as it or a portion thereof, as the case may be, is devoted to such exempt  purposes  and  so  long  as  any moneys  paid  for  such  use  do  not  exceed  the  amount  of carrying, maintenance and depreciation charges of the property or portion thereof, as the case may be.   3. Such real property from which no revenue is derived shall be exempt though not in actual use therefor by reason of the absence  of  suitable buildings  or  improvements  thereon  if  (a)  the  construction of such buildings  or  improvements  is  in  progress  or  is  in   good   faith contemplated  by  such  corporation  or  association  or  (b)  such real property is held by such corporation or association upon condition  that the  title  thereto  shall  revert in case any building not intended and suitable for one or more of such purposes shall  be  erected  upon  such premises or some part thereof.   4.  Such  real  property  shall  be so exempt although it is used as a polling place upon days of registration and election.   5. Such real property outside a city owned by a free public library or held in trust by an educational corporation for  free  library  purposes shall be so exempt from taxation although a portion thereof is leased or otherwise  used  for purposes of income, if such income is necessary for and is actually applied to the maintenance and support of such library.   6. Real property exempt pursuant to this section from taxation by  all municipal  corporations  within which it is located shall also be exempt from special ad valorem levies and special  assessments  to  the  extent provided  in  section four hundred ninety of this chapter. Real property which is taxable  by  one  or  more,  but  not  all,  of  the  municipal corporations  within which it is located, pursuant to subdivision one of this section shall also be exempt from such levies  and  assessments  to the same extent except that:   such  real  property  taxable  by  a town shall be subject to any such levies and  assessments  which  are  imposed  to  defray  the  costs  of improvements  or services furnished by the town or by a special district established pursuant to the town law;   such real property taxable by a county shall be subject  to  any  such levies  and  assessments  which  are  imposed  to  defray  the  costs of improvements or services  furnished  by  the  county  or  by  a  special district established pursuant to the county law; and   such  real  property  taxable  by  a city shall be subject to any such levies  and  assessments  which  are  imposed  to  defray  the  cost  of improvements or service furnished by the city.   7.  An  exemption  may  be  granted pursuant to this section only upon application made by the owner of the property on a  form  prescribed  by the  commissioner.  The  application shall be filed with the assessor of the appropriate county, city, town or village on or before  the  taxable status date of such county, city, town or village.   8.   (a)   (i)  For  the  purposes  of  this  subdivision,  "municipal corporation" shall mean a county, city, town, village or school district which,  after  public  hearing,  adopts  a  local  law,   ordinance   or resolution,  providing  that  this  subdivision  shall  be applicable to  nonprofit  organizations  within  its  jurisdiction.  Such  local   law, ordinance  or  resolution shall apply to property transfers occurring on or after the effective date of such local law, ordinance or  resolution. A  copy  of  such local law, ordinance or resolution shall be filed with the commissioner.  (ii) Where a nonprofit organization that meets the requirements for an exemption pursuant to this section, purchases property after the levy of taxes, such nonprofit organization may file, if  permitted  by  a  local law,  ordinance  or resolution of the municipal corporation in which the nonprofit organization is located, an application for exemption with the assessor no later than the time specified in such local  law,  ordinance or  resolution.  The  assessor shall make a determination of whether the parcel would have qualified for exempt status on the tax roll  on  which the  taxes  were levied, had title to the parcel been in the name of the applicant on the taxable status date applicable to  the  tax  roll.  The application  shall  be  on  a  form  prescribed by the commissioner. The assessor, no later than thirty days after receipt of  such  application, shall  notify  both the applicant and the board of assessment review, by first class mail, of the exempt amount, if any, and  the  right  of  the owner  to  a  review  of  the exempt amount upon the filing of a written complaint.  Such  complaint  shall  be  on  a  form  prescribed  by  the commissioner  and  shall  be  filed  with the board of assessment review within twenty days of the mailing of such notice.  If  no  complaint  is received,  the  board  of assessment review shall so notify the assessor and the exempt amount determined by the assessor shall be final. If  the applicant  files  a  complaint,  the  board  of  assessment review shall schedule a time and place for a hearing with respect  thereto  no  later than  thirty  days  after the mailing of the notice by the assessor. The board of assessment review shall meet and determine the  exempt  amount, and  shall  immediately  notify the assessor and the applicant, by first class mail, of its determination. The  amount  of  exemption  determined pursuant  to  this  paragraph  shall be subject to review as provided in article seven of this chapter. Such  a  proceeding  shall  be  commenced within  thirty  days  of  the  mailing  of  the  notice  of the board of assessment review to the new owner as provided in this paragraph.  (iii) Upon receipt of a determination of the exempt amount as provided in subparagraph (ii) of this paragraph, the assessor shall determine the pro rata exemption to be credited toward such  property  by  multiplying the  tax  rate  or tax rates for each municipal corporation which levied taxes, or for which taxes were levied, on the appropriate tax roll  used for  the  fiscal  year or years during which the transfer occurred times the exempt amount, as determined in subparagraph (ii) of this paragraph, times the fraction of each fiscal year or years remaining subsequent  to the  transfer  of  title.  The  assessor  shall  immediately  transmit a statement of the  pro  rata  exemption  credit  due  to  each  municipal corporation which levied taxes or for which taxes were levied on the tax roll  used  for  the  fiscal  year  or  years  during which the transfer occurred and to the applicant.  (iv) Each municipal corporation which  receives  notice  of  pro  rata exemption   credits  pursuant  to  this  subdivision  shall  include  an appropriation in its budget for  the  next  fiscal  year  equal  to  the aggregate  amount  of  such  credits  to be applied in that fiscal year. Where a parcel, the owner of which is entitled to a pro  rata  exemption credit, is subject to taxation in said next fiscal year, the receiver or collector  shall apply the credit to reduce the amount of taxes owed for the parcel in such fiscal year. Pro rata exemption credits in excess  of the  amount  of  taxes, if any, owed for the parcel shall be paid by the treasurer of a municipal corporation which levies such taxes for  or  on  behalf  of  the municipal corporation to all owners of property entitled to such credits within thirty days of the expiration of the  warrant  to collect  taxes  in said next fiscal year. Notwithstanding the foregoing, where the municipal corporation has been reimbursed by another municipal corporation  for the tax credit to be paid to the owner pursuant to this subdivision, such credit shall be paid  to  such  municipal  corporation instead of such owner.  (b)  (i)  Notwithstanding  the  provisions  of  this  section, where a nonprofit organization that meets  the  requirements  for  an  exemption pursuant  to  this  section, purchases property after the taxable status date but prior to the levy of taxes, such nonprofit organization may, if permitted by a local law,  ordinance  or  resolution  of  the  municipal corporation  in  which  the  nonprofit  organization is located, file an application for an exemption with the assessor within thirty days of the transfer of title to such nonprofit  organization.  The  assessor  shall make   a   determination  within  thirty  days  after  receipt  of  such application of whether the applicant  would  qualify  for  an  exemption pursuant to this section on the assessment roll if title had been in the name  of  the  applicant  on  the taxable status date applicable to such assessment roll. The application shall be made on a form  prescribed  by the commissioner.  (ii)  If  the  assessor's determination is made prior to the filing of the tentative assessment roll,  the  assessor  shall  enter  the  exempt amount,  if  any,  on the tentative assessment roll and, within ten days after filing such roll, notify the applicant of the approval  or  denial of  such exemption, the exempt amount, if any, and the applicant's right to review by the board of assessment review.  (iii) If the assessor's determination is made after the filing of  the tentative  assessment  roll,  the  assessor  shall petition the board of assessment review to correct the tentative or final assessment  roll  in the manner provided in title three of article five of this chapter, with respect  to  unlawful entries, in the case of wholly exempt parcels, and with respect of  clerical  errors,  in  the  case  of  partially  exempt parcels,  if the assessor determines that an exemption should be granted and, within ten days of petitioning  the  board  of  assessment  review, notify  the  applicant  of the approval or denial of such exemption, the amount  of  such  exemption,  if  any,  and  the  applicant's  right  to administrative  or  judicial  review  of  such determination pursuant to article five or seven of this chapter, respectively.  (c) If, for any  reason,  a  determination  to  exempt  property  from taxation as provided in paragraph (b) of this subdivision is not entered on  the  final assessment roll, the assessor shall petition the board of assessment review to correct the final assessment roll.  (d) If, for any reason,  the  pro  rata  tax  credit  as  provided  in paragraph  (a)  of this subdivision is not extended against the tax roll immediately  succeeding  the  fiscal  year  during  which  the  transfer occurred,   the   assessor   shall   immediately  notify  the  municipal corporation which levied the tax or for which the taxes were  levied  of the  amount  of  pro  rata  exemption credits for the year in which such transfer occurred. Such municipal corporation shall proceed as  provided in subparagraph (iv) of paragraph (a) of this subdivision.  (e)  If,  for  any  reason,  a  determination  to exempt property from taxation as provided in paragraph (b) of this subdivision is not entered on the tax roll for the year  immediately  succeeding  the  fiscal  year during which the transfer occurred, the assessor shall determine the pro rata  tax exemption credit for such tax roll by multiplying the tax rate or tax rates for each municipal corporation which levied  taxes  or  for which  taxes  were  levied times the exempt amount and shall immediately  notify such municipal  corporation  or  corporations  of  the  pro  rata exemption  credits  for  such tax roll. Such municipal corporation shall add such pro rata exemption credits for such property to any outstanding pro  rata exemption amounts and proceed as provided in subparagraph (iv) of paragraph (a) of this subdivision.