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New York Real Property Tax Law Section 420-a - Nonprofit Organizations; Mandatory Class.Legal Research Home > New York Lawyer > Real Property Tax > New York Real Property Tax Law Section 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 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
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 state board 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.
* NB There are 2 sub 13's
* 13. 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.
* NB There are 2 sub 13's
Last modified: August 26, 2006 |