BILL NUMBER: S8527
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to the clergy
property tax exemption
 
PURPOSE:
This bill would extend the existing clergy property tax exemption to
include residential units owned as cooperative housing, ensuring equita-
ble treatment for clergy residing in such units.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends subdivisions 1 and 2 of section 460 of the Real Proper-
ty Tax Law to make a $1,500 clergy property tax exemption, which
currently applies to real property directly owned by clergy members,
also apply to property held in cooperative ownership.
Section 2 amends section 467-a(2)(f) of the Real Property Tax Law to
confirm that a qualified property may still receive co-op/condo tax
abatements even if certain dwelling units are benefitting from the cler-
gy exemption under RPTL section 460.
 
JUSTIFICATION: Under current law, New York's clergy property tax
exemption (Real Property Tax Law Section 460) provides a $1,500
exemption for real property owned by eligible clergy members. However,
this exemption has not applied to cooperative housing, since co-ops are
legally structured as shares in a corporation rather than direct owner-
ship of real property.
As a result, clergy who reside in co-op apartments have been excluded
from this tax relief, while those in single-family homes or condominiums
have been eligible. This bill corrects that inequity by extending the
Section 460 exemption to co-op shareholders who are otherwise eligible.
It also clarifies interaction with the existing co-op/condo tax abate-
ment (RPTL 467-a) to ensure that units benefiting from the clergy
exemption are not disqualified from participation.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None to the state. Some local governments will see a small reduction in
property tax revenue.
 
EFFECTIVE DATE:
This act shall take effect immediately.