2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 3 - Miscellaneous Provisions › 494 - Taxation of Exempt Property Upon Transfer of Title or Possession in Certain Instances.

§  494.    Taxation  of  exempt  property  upon  transfer  of title or
  possession in certain instances.   1.   The provisions of  this  section
  shall apply only in a city having a population of one million or more.
2.  Whenever any person, association or corporation not entitled to an
  exemption  from  taxation  acquires  title  to or possession of property
  which is exempt from taxation, such property  shall  immediately  become
  subject  to  taxation  and  shall  be  taxed  pro rata for the unexpired
  portion of the taxable year.  However, if the United States or the state
  of New York, through  the  exercise  of  the  power  of  eminent  domain
  acquires  or  shall have acquired temporarily the possession, occupation
  or use of real  property  which  was  previously  exempt  from  taxation
  pursuant  to former section four of the tax law, such previous exemption
  shall be deemed to continue unbroken and to resume from  the  date  when
  the  possession shall have been restored to the owner and the previously
  exempt use resumed, despite the fact that such property may  be  or  may
  have been deemed taxable during the period when the United States or the
  state  of  New  York  acquired  or  shall  have  acquired such temporary
  possession, occupation or use.
3.  If taxes on any such property  become  due  and  payable  for  the
  entire  taxable  year  on a single date, and any such change in title or
  possession takes place prior to such due date, the pro rata  portion  of
  taxes  imposed  upon such property pursuant to this section shall become
  due and payable and shall become a lien upon such property upon such due
  date, but if such change in title or possession takes place  after  such
  due  date,  such  pro rata portion of taxes shall become due and payable
  and shall become a lien upon such property on the date when such  change
  in  title  or  possession takes place.  If taxes embracing such property
  become due and payable on two dates in equal installments, and any  such
  change  in  title or possession takes place prior to the earlier of such
  due dates, the pro rata portion of the first  installment  shall  become
  due and payable and shall become a lien on such property on such earlier
  due date, and the entire second installment shall become due and payable
  and shall become a lien on such property on the later of such due dates;
  if  any  such change in title or possession takes place between such due
  dates, the entire pro rata portion of the taxes to which  such  property
  is  subject  for  the taxable year pursuant to this section shall become
  due and payable and shall become a lien on such property upon such later
  due date; if any such transfer of title or possession takes place  after
  the later of such due dates, the pro rata portion of taxes to which such
  property  is subject for the taxable year pursuant to this section shall
  become due and payable and shall become a lien on such property upon the
  date of such transfer of title or possession.  If taxes  embracing  such
  property  become  due  and  payable  on  more  than  two  dates in equal
  installments, and any such change in title  or  possession  takes  place
  prior  to the first due date, or between due dates, the pro rata portion
  of the first installment or of a subsequent installment affected by such
  change, as the case may be, shall  become  due  and  payable  and  shall
  become  a  lien  on  such  property  on the due date next following such
  change in title or possession,  and  the  remaining  installments  shall
  become due and payable and shall become a lien on such property on their
  respective  due dates; if any such transfer of title or possession takes
  place after the last due date in a taxable year, the pro rata portion of
  tax to which such property is subject for the taxable year  pursuant  to
  this  section  shall  become  due and payable and shall become a lien on
  such property upon the date of such transfer of title or possession.
4.  No right granted by this article to  any  person,  association  or
  corporation  to lease or otherwise use for income-producing purposes any
  property of such person, association or corporation, without terminating

  the tax exemption of such  property  in  whole  or  in  part,  shall  be
  impaired  or  diminished  by this section, but if any change of title or
  possession of any property, shall, by virtue of the provisions  of  this
  article,  terminate  the  tax exemption of such property, in whole or in
  part, the provisions of this section shall apply  with  full  force  and
  effect  to the extent that such property shall cease to be tax exempt by
  virtue of the provisions of such article.