contemplated-use-exemption

Not-for-Profit Property Tax Exemption


Eligibility ToolPartial Exemption


Contemplated Use Exemption for Vacant Buildings or Unimproved Land

Not-for-profit organizations may be eligible for a Contemplated Use Exemption if they have unimproved land, vacant buildings, or both.

Unimproved land or vacant buildings, or both, may be eligible for the Contemplated Use Exemption if the not-for-profit organization has active plans and documentation to show that the property will be used in the foreseeable future for one of the approved purposes in Real Property Tax Law 420-a or 420-b. (Note that mere ownership of a property by an eligible not-for-profit entity is not sufficient to receive an exemption; the property must be used for an eligible purpose.)

Required Documentation

In addition to providing required not-for-profit exemption application documents, an applicant may also be asked to provide documentation including, but not limited to, the following:

Documents to show specifics of the parcel’s contemplated use, such as a board or corporate resolution

A timeline on when and how the property will be developed, including steps on financial targets and development of building plans

Architectural and building plans

Department of Buildings permits

Proof of building funds, such as loans to develop the property

Contractor agreements or proof of payments

Annual Renewal Requirement

Contemplated Use Exemptions are only temporary. Applicants will be required to file an annual renewal to prove continuing eligibility and show meaningful and ongoing progress or completion of the planned construction/renovation. If progress has not been meaningful or continuing over the year, the exemption may not be renewed.

Partial Exemptions

It is possible to receive a partial Contemplated Use Exemption when the property will only partially be used for an exempt purpose in the future.

After the Project Is Completed

Upon completion of the construction or renovation, the not-for-profit organization will be required to file a new “Application for Exemption.” The property must be used for an exempt purpose in order for the organization to continue receiving a property tax exemption.

Applicants must inform the Department of Finance if the post-completion use differs from the use stated in the original Contemplated Use Exemption application.