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Volume 1 - Opinions of Counsel SBEA No. 6

Opinions of Counsel index

Urban renewal property sold to non-exempt redeveloper - General Municipal Law, § 555:

Urban renewal property sold to a non-exempt redeveloper becomes taxable upon completion of sale, and is taxed pro rata for the unexpired portion of the taxable year on the assessed value of the property appearing on the assessment roll. Improvements made after taxable status date cannot be included.

Where urban renewal property is sold to a redeveloper who is not entitled to a tax exemption, the property, in the words of section 555 of the General Municipal Law, “shall immediately become subject to taxation * * * and shall be taxed pro rata for the unexpired portion of the taxable year.” Accordingly, the property becomes taxable upon completion of the sale and a tax prorated for the unexpired portion of the taxable year should be levied on the assessed value of the property.

The taxes payable by the redeveloper are based on the assessed value as it appears on the roll, which normally will reflect the condition of the property on taxable status date and can never include improvements made after taxable status date.

May 20, 1968

Updated: