2023 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this subdivision may be amended or repealed.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.