STATE OF NEW YORK ________________________________________________________________________ 3853 2025-2026 Regular Sessions IN ASSEMBLY January 30, 2025 ___________ Introduced by M. of A. WILLIAMS -- read once and referred to the Commit- tee on Real Property Taxation AN ACT to amend the real property tax law, in relation to property tax exemptions for nonprofit organizations The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 16 of section 420-a of the real property tax 2 law, as added by chapter 358 of the laws of 2018, is amended to read as 3 follows: 4 16. (a) (i) For the purposes of this subdivision, "municipal corpo- 5 ration" shall mean a county, city, town, village or school district 6 [which, after public hearing, adopts a local law, ordinance or resol- 7 ution, providing that this subdivision shall be applicable to nonprofit 8 organizations within its jurisdiction. Such local law, ordinance or 9 resolution shall apply to property transfers occurring on or after the 10 effective date of such local law, ordinance or resolution. A copy of 11 such local law, ordinance or resolution shall be filed with the commis- 12 sioner]. 13 (ii) Where a nonprofit organization that meets the requirements for an 14 exemption pursuant to this section, purchases property after the levy of 15 taxes but prior to the taxable status date applicable to the following 16 year's assessment roll, such nonprofit organization may[, if permitted 17 by a local law, ordinance or resolution of the municipal corporation in 18 which the nonprofit organization is located,] file an application for 19 exemption with the assessor no later than the [time specified in such 20 local law, ordinance or resolution] taxable status date applicable to 21 the assessment roll three years subsequent to the purchase of such prop- 22 erty. The assessor shall make a determination of whether the parcel 23 would have qualified for exempt status on the [tax] assessment roll on 24 which the taxes were levied, had title to the parcel been in the name of 25 the applicant on the taxable status date applicable to the [tax] assess- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07293-01-5
A. 3853 2 1 ment roll. The application shall be on a form prescribed by the commis- 2 sioner. The assessor, no later than thirty days after receipt of such 3 application, shall notify both the applicant and the board of assessment 4 review, by first class mail, of the exempt amount, if any, and the right 5 of the owner to a review of the exempt amount upon the filing of a writ- 6 ten complaint. Such complaint shall be on a form prescribed by the 7 commissioner and shall be filed with the board of assessment review 8 within twenty days of the mailing of such notice. If no complaint is 9 received, the board of assessment review shall so notify the assessor 10 and the exempt amount determined by the assessor shall be final. If the 11 applicant files a complaint, the board of assessment review shall sched- 12 ule a time and place for a hearing with respect thereto no later than 13 thirty days after the mailing of the notice by the assessor. The board 14 of assessment review shall meet and determine the exempt amount, and 15 shall immediately notify the assessor and the applicant, by first class 16 mail, of its determination. The amount of exemption determined pursuant 17 to this paragraph shall be subject to review as provided in article 18 seven of this chapter. Such a proceeding shall be commenced within thir- 19 ty days of the mailing of the notice of the board of assessment review 20 to the new owner as provided in this paragraph. 21 (iii) Upon receipt of a determination of the exempt amount as provided 22 in subparagraph (ii) of this paragraph, the assessor shall determine the 23 pro rata exemption to be credited toward such property by multiplying 24 the tax rate or tax rates for each municipal corporation which levied 25 taxes, or for which taxes were levied, on the appropriate [tax] assess- 26 ment roll used for the fiscal year or years during which the transfer 27 occurred times the exempt amount, as determined in subparagraph (ii) of 28 this paragraph, times the fraction of each fiscal year or years remain- 29 ing subsequent to the transfer of title. The assessor shall immediately 30 transmit a statement of the pro rata exemption credit due to each munic- 31 ipal corporation which levied taxes or for which taxes were levied on 32 the [tax] assessment roll used for the fiscal year or years during which 33 the transfer occurred and to the applicant. 34 (iv) Each municipal corporation which receives notice of pro rata 35 exemption credits pursuant to this subdivision shall include an appro- 36 priation in its budget for the next fiscal year equal to the aggregate 37 amount of such credits to be applied in that fiscal year. Where a 38 parcel, the owner of which is entitled to a pro rata exemption credit, 39 is subject to taxation in said next fiscal year, the receiver or collec- 40 tor shall apply the credit to reduce the amount of taxes owed for the 41 parcel in such fiscal year. Pro rata exemption credits in excess of the 42 amount of taxes, if any, owed for the parcel shall be paid by the treas- 43 urer of a municipal corporation which levies such taxes for or on behalf 44 of the municipal corporation to all owners of property entitled to such 45 credits within thirty days of the expiration of the warrant to collect 46 taxes in said next fiscal year. Notwithstanding the foregoing, where the 47 municipal corporation has been reimbursed by another municipal corpo- 48 ration for the tax credit to be paid to the owner pursuant to this 49 subdivision, such credit shall be paid to such municipal corporation 50 instead of such owner. 51 (b) (i) Notwithstanding the provisions of this section, where a 52 nonprofit organization that meets the requirements for an exemption 53 pursuant to this section, purchases property after the taxable status 54 date but prior to the levy of taxes, such nonprofit organization may[, 55 if permitted by a local law, ordinance or resolution of the municipal 56 corporation in which the nonprofit organization is located,] file an
A. 3853 3 1 application for an exemption with the assessor [within thirty days of 2 the transfer of title to such nonprofit organization] no later than the 3 taxable status date applicable to the assessment roll three years subse- 4 quent to the purchase of such property. The assessor shall make a deter- 5 mination within thirty days after receipt of such application of whether 6 the applicant would qualify for an exemption pursuant to this section on 7 the assessment roll if title had been in the name of the applicant on 8 the taxable status date applicable to such assessment roll. The applica- 9 tion shall be made on a form prescribed by the commissioner. 10 (ii) If the assessor's determination is made prior to the filing of 11 the tentative assessment roll, the assessor shall enter the exempt 12 amount, if any, on the tentative assessment roll and, within ten days 13 after filing such roll, notify the applicant of the approval or denial 14 of such exemption, the exempt amount, if any, and the applicant's right 15 to review by the board of assessment review. 16 (iii) If the assessor's determination is made after the filing of the 17 tentative assessment roll, the assessor shall petition the board of 18 assessment review to correct the tentative or final assessment roll in 19 the manner provided in title three of article five of this chapter, with 20 respect to unlawful entries, in the case of wholly exempt parcels, and 21 with respect of clerical errors, in the case of partially exempt 22 parcels, if the assessor determines that an exemption should be granted 23 and, within ten days of petitioning the board of assessment review, 24 notify the applicant of the approval or denial of such exemption, the 25 amount of such exemption, if any, and the applicant's right to adminis- 26 trative or judicial review of such determination pursuant to article 27 five or seven of this chapter, respectively. 28 (c) If, for any reason, a determination to exempt property from taxa- 29 tion as provided in paragraph (b) of this subdivision is not entered on 30 the final assessment roll, the assessor shall petition the board of 31 assessment review to correct the final assessment roll. 32 (d) If, for any reason, the pro rata tax credit as provided in para- 33 graph (a) of this subdivision is not extended against the [tax] assess- 34 ment roll immediately succeeding the fiscal year during which the trans- 35 fer occurred, the assessor shall immediately notify the municipal 36 corporation which levied the tax or for which the taxes were levied of 37 the amount of pro rata exemption credits for the year in which such 38 transfer occurred. Such municipal corporation shall proceed as provided 39 in subparagraph (iv) of paragraph (a) of this subdivision. 40 (e) If, for any reason, a determination to exempt property from taxa- 41 tion as provided in paragraph (b) of this subdivision is not entered on 42 the [tax] assessment roll for the year immediately succeeding the fiscal 43 year during which the transfer occurred, the assessor shall determine 44 the pro rata tax exemption credit for such [tax] assessment roll by 45 multiplying the tax rate or tax rates for each municipal corporation 46 which levied taxes or for which taxes were levied times the exempt 47 amount and shall immediately notify such municipal corporation or corpo- 48 rations of the pro rata exemption credits for such [tax] assessment 49 roll. Such municipal corporation shall add such pro rata exemption cred- 50 its for such property to any outstanding pro rata exemption amounts and 51 proceed as provided in subparagraph (iv) of paragraph (a) of this subdi- 52 vision. 53 § 2. Subdivision 8 of section 420-b of the real property tax law, as 54 added by chapter 358 of the laws of 2018, is amended to read as follows: 55 8. (a) (i) For the purposes of this subdivision, "municipal corpo- 56 ration" shall mean a county, city, town, village or school district
A. 3853 4 1 [which, after public hearing, adopts a local law, ordinance or resol- 2 ution, providing that this subdivision shall be applicable to nonprofit 3 organizations within its jurisdiction. Such local law, ordinance or 4 resolution shall apply to property transfers occurring on or after the 5 effective date of such local law, ordinance or resolution. A copy of 6 such local law, ordinance or resolution shall be filed with the commis- 7 sioner]. 8 (ii) Where a nonprofit organization that meets the requirements for an 9 exemption pursuant to this section, purchases property after the levy of 10 taxes but prior to the taxable status date applicable to the following 11 year's assessment roll, such nonprofit organization may file[, if 12 permitted by a local law, ordinance or resolution of the municipal 13 corporation in which the nonprofit organization is located,] an applica- 14 tion for exemption with the assessor no later than the [time specified 15 in such local law, ordinance or resolution] taxable status date applica- 16 ble to the assessment roll three years subsequent to the purchase of 17 such property. The assessor shall make a determination of whether the 18 parcel would have qualified for exempt status on the [tax] assessment 19 roll on which the taxes were levied, had title to the parcel been in the 20 name of the applicant on the taxable status date applicable to the [tax] 21 assessment roll. The application shall be on a form prescribed by the 22 commissioner. The assessor, no later than thirty days after receipt of 23 such application, shall notify both the applicant and the board of 24 assessment review, by first class mail, of the exempt amount, if any, 25 and the right of the owner to a review of the exempt amount upon the 26 filing of a written complaint. Such complaint shall be on a form 27 prescribed by the commissioner and shall be filed with the board of 28 assessment review within twenty days of the mailing of such notice. If 29 no complaint is received, the board of assessment review shall so notify 30 the assessor and the exempt amount determined by the assessor shall be 31 final. If the applicant files a complaint, the board of assessment 32 review shall schedule a time and place for a hearing with respect there- 33 to no later than thirty days after the mailing of the notice by the 34 assessor. The board of assessment review shall meet and determine the 35 exempt amount, and shall immediately notify the assessor and the appli- 36 cant, by first class mail, of its determination. The amount of exemption 37 determined pursuant to this paragraph shall be subject to review as 38 provided in article seven of this chapter. Such a proceeding shall be 39 commenced within thirty days of the mailing of the notice of the board 40 of assessment review to the new owner as provided in this paragraph. 41 (iii) Upon receipt of a determination of the exempt amount as provided 42 in subparagraph (ii) of this paragraph, the assessor shall determine the 43 pro rata exemption to be credited toward such property by multiplying 44 the tax rate or tax rates for each municipal corporation which levied 45 taxes, or for which taxes were levied, on the appropriate [tax] assess- 46 ment roll used for the fiscal year or years during which the transfer 47 occurred times the exempt amount, as determined in subparagraph (ii) of 48 this paragraph, times the fraction of each fiscal year or years remain- 49 ing subsequent to the transfer of title. The assessor shall immediately 50 transmit a statement of the pro rata exemption credit due to each munic- 51 ipal corporation which levied taxes or for which taxes were levied on 52 the [tax] assessment roll used for the fiscal year or years during which 53 the transfer occurred and to the applicant. 54 (iv) Each municipal corporation which receives notice of pro rata 55 exemption credits pursuant to this subdivision shall include an appro- 56 priation in its budget for the next fiscal year equal to the aggregate
A. 3853 5 1 amount of such credits to be applied in that fiscal year. Where a 2 parcel, the owner of which is entitled to a pro rata exemption credit, 3 is subject to taxation in said next fiscal year, the receiver or collec- 4 tor shall apply the credit to reduce the amount of taxes owed for the 5 parcel in such fiscal year. Pro rata exemption credits in excess of the 6 amount of taxes, if any, owed for the parcel shall be paid by the treas- 7 urer of a municipal corporation which levies such taxes for or on behalf 8 of the municipal corporation to all owners of property entitled to such 9 credits within thirty days of the expiration of the warrant to collect 10 taxes in said next fiscal year. Notwithstanding the foregoing, where the 11 municipal corporation has been reimbursed by another municipal corpo- 12 ration for the tax credit to be paid to the owner pursuant to this 13 subdivision, such credit shall be paid to such municipal corporation 14 instead of such owner. 15 (b) (i) Notwithstanding the provisions of this section, where a 16 nonprofit organization that meets the requirements for an exemption 17 pursuant to this section, purchases property after the taxable status 18 date but prior to the levy of taxes, such nonprofit organization may[, 19 if permitted by a local law, ordinance or resolution of the municipal 20 corporation in which the nonprofit organization is located,] file an 21 application for an exemption with the assessor [within thirty days of 22 the transfer of title to such nonprofit organization] no later than the 23 taxable status date applicable to the assessment roll three years subse- 24 quent to the purchase of such property. The assessor shall make a deter- 25 mination within thirty days after receipt of such application of whether 26 the applicant would qualify for an exemption pursuant to this section on 27 the assessment roll if title had been in the name of the applicant on 28 the taxable status date applicable to such assessment roll. The applica- 29 tion shall be made on a form prescribed by the commissioner. 30 (ii) If the assessor's determination is made prior to the filing of 31 the tentative assessment roll, the assessor shall enter the exempt 32 amount, if any, on the tentative assessment roll and, within ten days 33 after filing such roll, notify the applicant of the approval or denial 34 of such exemption, the exempt amount, if any, and the applicant's right 35 to review by the board of assessment review. 36 (iii) If the assessor's determination is made after the filing of the 37 tentative assessment roll, the assessor shall petition the board of 38 assessment review to correct the tentative or final assessment roll in 39 the manner provided in title three of article five of this chapter, with 40 respect to unlawful entries, in the case of wholly exempt parcels, and 41 with respect of clerical errors, in the case of partially exempt 42 parcels, if the assessor determines that an exemption should be granted 43 and, within ten days of petitioning the board of assessment review, 44 notify the applicant of the approval or denial of such exemption, the 45 amount of such exemption, if any, and the applicant's right to adminis- 46 trative or judicial review of such determination pursuant to article 47 five or seven of this chapter, respectively. 48 (c) If, for any reason, a determination to exempt property from taxa- 49 tion as provided in paragraph (b) of this subdivision is not entered on 50 the final assessment roll, the assessor shall petition the board of 51 assessment review to correct the final assessment roll. 52 (d) If, for any reason, the pro rata tax credit as provided in para- 53 graph (a) of this subdivision is not extended against the [tax] assess- 54 ment roll immediately succeeding the fiscal year during which the trans- 55 fer occurred, the assessor shall immediately notify the municipal 56 corporation which levied the tax or for which the taxes were levied of
A. 3853 6 1 the amount of pro rata exemption credits for the year in which such 2 transfer occurred. Such municipal corporation shall proceed as provided 3 in subparagraph (iv) of paragraph (a) of this subdivision. 4 (e) If, for any reason, a determination to exempt property from taxa- 5 tion as provided in paragraph (b) of this subdivision is not entered on 6 the [tax] assessment roll for the year immediately succeeding the fiscal 7 year during which the transfer occurred, the assessor shall determine 8 the pro rata tax exemption credit for such [tax] assessment roll by 9 multiplying the tax rate or tax rates for each municipal corporation 10 which levied taxes or for which taxes were levied times the exempt 11 amount and shall immediately notify such municipal corporation or corpo- 12 rations of the pro rata exemption credits for such [tax] assessment 13 roll. Such municipal corporation shall add such pro rata exemption cred- 14 its for such property to any outstanding pro rata exemption amounts and 15 proceed as provided in subparagraph (iv) of paragraph (a) of this subdi- 16 vision. 17 § 3. This act shall take effect immediately.