Nonprofit Property Tax Exemption Applications Due By March 1 in Most Communities in New York

Non-profit entities in New York that are seeking a real property tax exemption under Real Property Tax Law (“RPTL”) § 420-a must do so by the taxable status date, March 1 in most communities.  Whether or not real property is taxable or tax-exempt “shall be determined annually according to its condition and ownership as of the first day of March.”  RPTL § 302(1).  There are exceptions to the March 1 date, such as in Nassau and Westchester counties and New York City, and therefore property owners should check the assessment dates for each municipality in which they own property.  Those non-profit organizations that already have an RPTL § 420-a exemption should also file a renewal form by this deadline.  Though an assessor can renew the exemption if there has been no change in ownership or use under RPTL § 420(a)(11), organizations may find themselves in a position to file a grievance if the assessor does not do so in the absence of a renewal application. 

To qualify for the exemption, the statute requires that the property be owned by a non-profit entity and be used for the entity’s exempt purposes.  RPTL § 420-a.  But the exemption is not all or nothing.  In instances where a non-profit entity owns the property, but uses only a portion of it for its exempt purposes, perhaps leasing the other portion to a for-profit that is using it for private endeavors, a partial exemption can be granted. There are also opportunities for non-profits to secure an exemption on vacant land based on contemplated use and factual circumstances.    

For those who have already applied for the exemption and await a determination, there is a limited window of time to act to challenge a denial of an exemption application.  In those communities with a March 1 deadline, the decision is memorialized on the tentative assessment roll that comes out May 1.  For those communities on this schedule, grievances must be filed with local boards of assessment review by the fourth Tuesday in May.  RPTL § 512(1).  Those who fail to timely file a grievance will lose the opportunity to challenge the denial. 

If you have any questions about non-profit property tax exemption under RPTL § 420-a, securing the exemption, or the application process for the exemption, please contact Daniel Spitzer, Amy D’Ambrogio, or Henry Zomerfeld.  If you received this alert from a third party or from visiting our website, and would like to be added to our tax-exempt entities or tax assessment mailing lists, or any other of our mailing lists, please subscribe, here. 

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This client alert is a form of attorney advertising. Hodgson Russ LLP provides this information as a service to its clients and other readers for educational purposes only. Nothing in this client alert should be construed as, or relied upon, as legal advice or as creating a lawyer-client relationship.