BILL NUMBER: S8548A
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 any nonprofit organization
 
PURPOSE:
To require nonprofit organizations to contribute toward municipal prop-
erty tax revenues in order to reduce the financial burden caused by
their tax-exempt status, while allowing flexibility for nonprofit organ-
izations 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 organizations to pay seventy-five percent of
their annual property taxes to the municipality in which they are
located. Nonprofit organizations with existing PILOT agreements or simi-
lar 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 organizations may play a vital
role, their tax-exempt status often results in significant revenue loss-
es for local governments, especially in smaller or fiscally strained
municipalities. Requiring nonprofit organizations to contribute seven-
ty-five percent of their annual property tax obligation strikes a
balance between preserving their nonprofit mission and ensuring that
municipalities are not overburdened by the cost of supporting critical
services. By exempting nonprofits 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
S8548A: 420-a real property tax law, 420-a(1) real property tax law