Assessor Manuals, Exemption Administration: RPTL Section 404(3)
Exemption Administration Manual—Part 1: New York State Government
Section 4.02 - RPTL Section 404(3): State of New York (Teachers' Retirement System)
Year originally enacted:
- RPTL §§404(1), 490
- Ed L §508
- Pub Lands L §19-a
Real property that is owned by the NYS Teachers' Retirement System or one of its duly authorized nominees and is used for certain purposes is wholly exempt from taxation except when the property is located in one of the areas described in RPTL §532 or §536 and is one of the types of property described there (see the Exemption Profiles for these statutes).
Such property is also exempt, for certain purposes, from special assessments. In addition, while RPTL §404(1) and §490 imply that state-owned property is entitled to a limited exemption from special ad valorem levies, it has been the opinion of the NYS Attorney General (Op.Atty.Gen., 1953, p.133) that state-owned lands and improvements are wholly exempt from such levies except as otherwise provided in RPTL §532. Property owned by the retirement system that is not eligible for exemption under RPTL §404(3) may be exempt under RPTL §404(1) (see profile).
Property must be owned by the Teachers' Retirement System or one of its duly authorized nominees. An authorized nominee, as defined in Education Law §508(17), is a corporation organized by the retirement system for the purpose of acquiring real estate.
Property location requirements:
See property use requirements below.
Property use requirements:
Land and improvements must be used for the following purposes in the following geographic areas:
|a. County of Albany||Office buildings for transacting the business of the retirement system*|
|b. Cities of Albany, Binghamton, New York, Rochester, and Utica||Office buildings for sale or lease to the state|
|c. Statewide||Buildings or other facilities for sale or lease to the State University Construction Fund and subsequently used by the State University, a state-operated institution, a college under the jurisdiction of the State University, or the students, faculty, staff, and families of the university, institution, or college|
*Portions of such buildings not needed for retirement system business may be leased to any public agency without affecting the property's exempt status.
Certification by state or local government:
Required construction start date or other time requirement:
Limitation on exemption
|General municipal taxes||School district taxes||Special ad valorem tax||Special assessments|
|1. Amount||No limit||No limit||No limit||No limit|
|2. Duration||No limit||No limit||No limit||No limit|
|a. County or County Special Districts||Ex||NA||Ex**||L|
|c. Town or Town Special District||Ex||NA||Ex*||L|
|e. School district||NA||Ex||NA||NA|
|Ex-Exempt Tax-Taxable NA-Not Applicable|
|L - Liable only for (1) county and town charges for capital costs of sewer systems, water supply systems, waterways and drainage improvements, and streets and highways, plus (2) special assessments for indebtedness contracted before 7/1/53.|
* Per opinion of Attorney General.
Payments in lieu of taxes:
See §4.02, RPTL §404(1).
Calculation of exemption
General municipal and school district taxes:
100% of assessed value.
Special ad valorem levies and special assessments:
Special ad valorem levies:
100% of assessed value.
100% of basis of assessment.
The exemption applies to all assessments imposed by counties, county special districts, towns, and town special districts except (1) charges levied to pay for the capital costs of sewer systems, water supply systems, waterways and drainage improvements, and streets and highways, and (2) special assessments for indebtedness contracted before 7/1/53. The exemption does not apply to special assessments imposed by cities or villages.
Coding of exemption on assessment roll
|Code||Description of alternative codes possible|
Assessment roll section(s)
Exempt (ARLM §8).
Note: This code should not be used to identify property that is taxable under RPTL §532, or is exempt for certain purposes under RPTL §536, or is exempt under any of the statutes listed under Similar Exemptions below. For coding of such property, see the Exemption Profile for the statute that applies.
Filing requirements (owner or occupant of property)
Reporting requirements (assessor)
|Retirement systems||RPTL §488 & Ins L §4607|
|State and Local Employees' Retirement System, NY||RPTL §404(2)|
|State and Local Police and Fire Retirement System, NY||RSS L §313(h)|
|State of New York (generally)||RPTL §404(1)|
|State-owned lands subject to taxation for school purposes only||RPTL §536|
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