New York S 1575: Provides that certain real property tax exemptions shall only be granted where such property is actually used for certain enumerated purposes

Bill Text

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S01575 Summary:

BILL NOS01575 

&nbsp

SAME ASNo Same As

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SPONSORBORRELLO

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COSPNSR

&nbsp

MLTSPNSR

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Amd §§420-a & 420-b, add §420-d, RPT L

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Provides that real property tax exemptions granted to real property owned by corporations or associations organized or conducted exclusively for hospital or for purposes related to the moral or mental improvement of men, women, or children and used exclusively for carrying out such purposes shall only be granted if the property owner can prove by clear and convincing evidence that each acre is actually used for such purpose at least 120 days a year.

Go to top S01575 Actions:

BILL NOS01575 

&nbsp

01/10/2025REFERRED TO LOCAL GOVERNMENT

01/07/2026REFERRED TO LOCAL GOVERNMENT

Go to topS01575 Committee&nbspVotes:

Go to topS01575 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS01575 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 1575

 2025-2026 Regular Sessions

 IN SENATE

 January 10, 2025
 ___________

 Introduced by Sen. BORRELLO -- read twice and ordered printed, and when
 printed to be committed to the Committee on Local Government

 AN ACT to amend the real property tax law, in relation to the exemption
 from taxation for non-profit organizations

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivision 1 of section 420-a of the real property tax law
 2 is amended by adding a new paragraph (c) to read as follows:
 3 (c) When used in this section:
 4 (i) "organized or conducted exclusively" shall require that a corpo-
 5 ration's or association's organizational documents limit the purposes of
 6 such corporation or association to one or more exempt purposes, as set
 7 out in paragraph (a) of this subdivision;
 8 (ii) "used exclusively" shall require that a corporation or associ-
 9 ation use its property only for exempt purposes. Uses which may be help-
 10 ful to the exempt organization but would not, if done on land owned by
 11 an otherwise taxable entity, qualify for tax exemption shall subject the
 12 portion of the property so used to real property taxation. Such phrase
 13 shall be strictly construed and shall be intended to limit exemptions to
 14 property and improvements utilized solely for exempt purposes. Where an
 15 exempt organization utilizes its land for other purposes, including but
 16 not limited to, the sale of products made on the land commercially or
 17 the sale of timber, or otherwise leases the land for commercial
 18 purposes, or allows the placement or construction of improvements on the
 19 land for commercial purposes, that portion of such property and any
 20 improvements thereon if such improvements are not utilized for wholly
 21 exempt purposes shall be subject to real property taxation;
 22 (iii) "religious purposes" shall mean an activity that is fundamental,
 23 necessary and intrinsic to the practice of a religion. Meditation or
 24 the maintenance of open space or property utilized primarily for hiking
 25 shall not be considered a fundamental or intrinsic religious purpose. A

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04606-01-5

 S. 1575 2

 1 corporation or association organized or conducted exclusively for a
 2 religious purpose shall have its own beliefs, form of worship and form
 3 of organization. No exemption may be claimed for religious purposes for
 4 buildings which are on a parcel where persons live if such persons work
 5 in income producing ventures where the income either goes to the indi-
 6 vidual or to another claiming the exemption or to an organization which
 7 is legally associated or affiliated with the income producing venture,
 8 unless such goods or services are exclusively and without exception sold
 9 to or provided to individuals of the same religion. For the purposes of
 10 this paragraph, the term "income" need not include payment of money but
 11 may include the receipt by an individual who has provided work or such
 12 individual's family of food, or clothing or shelter. The fact that indi-
 13 viduals live in a classless society shall not be a factor in granting or
 14 deny