BILL NUMBER: S8726
SPONSOR: WEIK
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to requiring
applications for property tax exemptions by nonprofit organizations be
filed at the time of purchase of a property
 
PURPOSE:
To ensure nonprofit organizations receive property tax exemptions they
are entitled to by requiring timely filing at the time of purchase and
holding representatives accountable for failure to act.
 
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 11, subparagraph (ii) of paragraph (a), and
subparagraph (i) of paragraph (b) of subdivision 16 of section 420-a of
the real property tax law to require that applications for tax
exemptions be filed at the time of property purchase. Attorneys or
authorized representatives responsible for filing who fail to submit
such applications on time are subject to a penalty equal to twenty-five
percent of the property's assessed taxes.
Section 2 sets the effective date as January 1, 2027.
 
JUSTIFICATION:
Nonprofit organizations that qualify for property tax exemptions some-
times lose those exemptions because their attorney or representative
fails to file the necessary paperwork on time. This oversight can leave
nonprofits with unexpected tax bills, diverting resources away from
their mission and placing financial strain on organizations that often
serve vulnerable communities. By requiring exemption applications be
filed at the time of purchase, this bill closes the gap that allows for
administrative negligence. The penalty for attorneys or authorized
representatives who fail to act creates accountability and incentivizes
timely filing. This ensures nonprofits are not unfairly penalized for
errors outside their control and prevents them from being burdened with
taxes they should not owe.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect January 1, 2027.