BILL NUMBER: S8548
SPONSOR: WEIK
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to the payment of
property taxes to municipalities by hospitals considered nonprofit
organizations
 
PURPOSE:
To require nonprofit hospitals to contribute toward municipal property
tax revenues in order to reduce the financial burden caused by their
tax-exempt status, while allowing flexibility for hospitals already
engaged in payments in lieu of taxes (PILOT) or similar agreements.
 
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 1 of section 420-a of the Real Property Tax
Law to require nonprofit hospitals to pay seventy-five percent of their
annual property taxes to the municipality in which they are located.
Hospitals with existing PILOT agreements or similar arrangements are
exempt.
Section 2 provides that the act shall take effect on the first of Janu-
ary next succeeding the date on which it becomes law and shall apply to
assessment rolls prepared on or after that date.
 
JUSTIFICATION:
Municipalities across New York rely heavily on property tax revenues to
fund essential services. While nonprofit hospitals play a vital role in
delivering health care, their tax-exempt status often results in signif-
icant revenue losses for local governments, especially in smaller or
fiscally strained municipalities. Requiring nonprofit hospitals to
contribute seventy-five percent of their annual property tax obligation
strikes a balance between preserving their nonprofit mission and ensur-
ing that municipalities are not overburdened by the cost of supporting
critical services. By exempting hospitals that already participate in
PILOT programs or similar agreements, this legislation recognizes and
protects existing arrangements while promoting fairness and fiscal
stability across the state.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

Statutes affected:
S8548: 420-a real property tax law, 420-a(1) real property tax law