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Volume 3 - Opinions of Counsel SBEA No. 125

Opinions of Counsel index

Veterans organization exemption (VFW Post) (portion leased to United States Government) - Real Property Tax Law, § 452:

Where a Veterans of Foreign Wars post rents a portion of its real property to the United States Government for governmental purposes, and the rental does not exceed the amount of carrying, maintenance and depreciation charges of such property, the property will be exempt from taxation pursuant to section 452 of the Real Property Tax Law.

We have received an inquiry concerning the veterans organization exemption (Real Property Tax Law, § 452). The facts are that the Veterans of Foreign Wars (VFW) own real estate which, if actually and exclusively used by it, would be exempt from taxation. The VFW rents a portion of the premises to the United States Government for office, storage and training space, and other governmental purposes (i.e., the Army Reserve), and that the rental does not exceed the amount of carrying, maintenance and depreciation charges of the property. An opinion is requested as to the taxable status of such property under such circumstances.

Subdivision 2 of section 452 provides that real property owned by a corporation, association or post composed of the Veterans of Foreign Wars shall be exempt from taxation although it or a portion thereof is used by another corporation or association whose real property would be entitled to an exemption pursuant to any section in titles 1 or 2 of Article 4 (with certain exceptions which are not applicable in the given fact situation) if such corporation or association itself owned such real property, as long as moneys paid to the owning corporation, association or post by the using corporation or association do not exceed the amount of carrying, maintenance and depreciation charges of the property or portion thereof, as the case may be.

If this property were owned by the United States Government for the purposes set forth in the inquiry, it would be exempt from taxation pursuant to section 401 of the Real Property Tax Law. Accordingly, in this factual situation, the property in question would be exempt pursuant to said subdivision 2 of section 452 of such law.

October 22, 1974

Updated: