2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 420-A - Nonprofit Organizations; Mandatory Class.

§  420-a.  Nonprofit  organizations;  mandatory  class.  1.  (a)  Real
property owned by a corporation or association  organized  or  conducted
exclusively  for  religious, charitable, hospital, educational, or moral
or mental improvement of men, women or children purposes, 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 as provided in this section.
(b)  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 or may be lawfully
entitled to 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 or
conducted 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  such purposes but is leased or
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-b,  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 chapter 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 or if it
owned any would be 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, (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, or (e) for purposes of a tax-free NY  area
that  has  been  approved pursuant to article twenty-one of the economic
development law, subject to the conditions that the real  property  must
have  been owned by the corporation or association organized exclusively
for educational purposes and exempt pursuant to  this  section  on  June
first, two thousand thirteen, and that the exemption shall apply only to
the  portion  of  such  real  property  that is used for purposes of the
START-UP NY program; 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 the 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  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 owned and actually used for hospital purposes by
a  free  public  hospital which depends for maintenance and support upon
voluntary charity, shall be so exempt from taxation although  a  portion
thereof  is leased or otherwise used for the purposes of income, if such
income is necessary for and is actually applied to the  maintenance  and
support of such hospital.
6. 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.
7.  Real  property  which  was,  on the first day of January, nineteen
hundred eighty-three  owned  for  more  than  one  hundred  years  by  a
corporation  organized exclusively for purposes specified in subdivision
one of this section under a  grant  or  devise  and  a  special  charter
granted  by  the  legislature  of  the  state  of  New  York  subject to
conditions which raise doubt as to the  power  of  such  corporation  to
convey  fee  title  to  the  property  shall,  if  the  property is used
exclusively for educational purposes by an educational corporation which
owns real property exempt from taxation, or whose real  property  if  it
owned  any  would  be  exempt from taxation, as lessee for a term of not
less than twenty-five years and if such lease  were  in  effect  on  the
first  day  of  January,  nineteen hundred eighty-three and requires the
lessee to pay all taxes levied against  the  property,  be  exempt  from
taxation  to  the  same  extent  and  subject to the same conditions and
exceptions as property owned and used  for  educational  purposes  by  a
corporation  organized  exclusively for educational purposes, regardless
of whether the moneys paid to the lessor by the lessee  are  limited  to
the  amount of the carrying, maintenance and depreciation charges of the
property.
8. Real property exempt from taxation pursuant to this  section  shall
also be exempt from special ad valorem levies and special assessments to
the extent provided in section four hundred ninety of this chapter.
9.  In addition to the exemption provided in this section, any stadium
facility owned by a corporation organized  exclusively  for  educational
purposes which is constructed in whole or in substantial part with state
funds  shall  be  exempt  from  taxation  notwithstanding its use by the
state, by a municipal corporation  for  a  public  use,  or  by  or  for
not-for-profit organizations.
10. Real property, which on the first day of January, nineteen hundred
ninety  was  exempt from real property taxation pursuant to this section
by reason of the ownership and use of such  property  by  a  corporation
organized  exclusively for educational purposes, and which the fee title
to such property is conveyed prior to June thirtieth,  nineteen  hundred
ninety-one  to  a  governmental  entity,  shall be exempt from taxation;
provided that (a) as a condition of such  conveyance  such  property  is
leased,  for  a  term  or  terms  exceeding  one  hundred  years,  to an
educational corporation whose real property, when used  for  educational
purposes,  is exempt from taxation, and (b) such property shall continue

to be used by such  corporation  exclusively  for  educational  purposes
subject to the same conditions and exceptions as property owned and used
for educational purposes by a corporation organized exclusively for such
purposes.
11.  An  exemption  may  be  granted  pursuant  to  this  section upon
application by the owner on a form prescribed by the commissioner or any
comparable form, which application may be filed with the assessor of the
appropriate county, city, town or village on or  before  the  applicable
taxable  status  date.  Where the assessor receives no such application,
the assessor may nevertheless grant the exemption provided the  assessor
personally  inspects  the  property  and  certifies  in  writing that it
satisfies all of the  requirements  for  exemption  set  forth  in  this
section.  Where  property  is  not granted an exemption pursuant to this
section, the owner may seek judicial review pursuant to article seven of
this chapter or article seventy-eight of  the  civil  practice  law  and
rules.
12.  Notwithstanding any provision of this chapter or any other law to
the contrary, real property, the fee title  to  which  was  acquired  on
March  twenty-third, nineteen hundred ninety-four pursuant to a mortgage
foreclosure sale conducted by the federal deposit insurance corporation,
by a corporation or association organized  exclusively  for  educational
purposes,  and  which  was  used  exclusively  by  such  corporation  or
association for carrying out thereupon educational purposes  during  the
period  beginning  on  the  date  the  fee  title  was  acquired by such
corporation or  association  and  ending  on  June  thirtieth,  nineteen
hundred  ninety-five,  shall  be exempt from taxation for such period as
provided in this section. The city of New York may negotiate and execute
with the owner of real property in the city of New York  qualifying  for
exemption under this subdivision, an agreement for the payment of unpaid
real  property  taxes and interest thereon that accrued on such property
prior to the date on which the fee title to such property  was  acquired
by  such  owner.  Notwithstanding  any  provision of this chapter or the
administrative code of the city of New York or  any  other  law  to  the
contrary,  such  agreement  may  require  that payment of such taxes and
interest thereon be made in quarterly installments over a period not  to
exceed thirty years.
13.  Notwithstanding any provision of this chapter or any other law to
the contrary, real property, the fee title  to  which  was  acquired  on
March  twenty-third, nineteen hundred ninety-four pursuant to a mortgage
foreclosure sale conducted by the federal deposit insurance  corporation
by  a  corporation  or association organized exclusively for educational
purposes, and which has been used exclusively  by  such  corporation  or
association  for  carrying  out thereupon educational purposes since the
date on which  the  fee  title  was  acquired  by  such  corporation  or
association,  and  is  currently  being used for such purposes, shall be
exempt from taxation as provided in this section and  the  city  of  New
York may cancel and annul any unpaid real property taxes that accrued on
such  real  property  prior  to  the date on which the fee title to such
property was acquired by such owner together with any interest  accruing
on such unpaid real property taxes.
14.  Notwithstanding any provision of this chapter or any other law to
the contrary, real property in block 1175 in the county of Kings  leased
to  the  unified  court  system for the establishment and operation of a
court  officer  academy  authorized  pursuant  to  section  two  hundred
nineteen-b  of  the  judiciary law shall be exempt from taxation for the
duration of such lease provided that such property  shall  be  used  for
such  purpose  and  provided  that  title  to such property shall not be
conveyed to another owner at any time during the duration of such lease.
15. Notwithstanding any provision of this chapter or any other law  to
the  contrary,  real  property in block 1272 in the borough of Brooklyn,
the fee title to which  was  acquired  in  1997  or  1998  in  order  to
establish   a  museum  and  center  for  children  by  a  not-for-profit
corporation   or   association   organized  exclusively  for  charitable
purposes, and which has been used exclusively  by  such  corporation  or
association  for  carrying  out  thereupon charitable purposes since the
date on which  the  fee  title  was  acquired  by  such  corporation  or
association,  shall  be exempt from taxation as provided in this section
and the city of New York may cancel and annul any unpaid  real  property
taxes  that accrued on such real property prior to the date on which the
fee title to such property was acquired by such owner together with  any
interest accruing such unpaid real property taxes.
16.   (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, if permitted  by  a  local  law,
ordinance  or  resolution  of  the  municipal  corporation  in which the
nonprofit organization is located, file  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.