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Assessor Manuals, Exemption Administration

Exemption Administration Manual—Part 1: Municipal Governments

Section 4.03 - RPTL Section 406(1) Municipal Corporations (Property within corporate limits held for public use)

 Exemption code(s)
County-owned property 13100
City-owned property 13350
Town-owned property 13500
Village-owned property 13650

Year originally enacted:

Before 1896

Related statutes:

RPTL §490

Summary:

Real property that (1) is owned by a county, city, town, or village, (2) is located within the boundaries of the owning municipal corporation, and (3) is held for public use is wholly exempt from taxation and is exempt, for certain purposes, from special ad valorem levies and special assessments.*

Eligibility requirements

Ownership requirements:

Property must be owned by a county, city, town, or village.

Property location requirements:

Property must be located inside the boundaries of the owning county, city, town, or village.

Property use requirements:

Property must be held for a public use," which means a use that is of benefit to the community at large (see definition in note below). This requirement is satisfied if the property is devoted to use by the general public or public agencies. Land or improvements, as well as portions thereof, which are leased to a private individual or organization are exempt so long as they are held for a public purpose. Conversely, if land or improvements, or portions thereof, are leased to a private individual or concern and used for nonpublic purposes they are subject to taxation for all purposes.

Certification by state or local government:

None required.

Required construction start date or other time requirement:

None. 

Local option

None.

Limitation on exemption

 Limitation on exemption by amount, duration, and taxing jurisdiction
  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
3. Taxing Jurisdiction
a. County or County Special Districts Ex NA L L
b. City Ex NA NA Tax
c. Town or Town Special District Ex NA L L
d. Village Ex NA NA Tax
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.

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

100% of assessed value of portion(s) of property held for property use. 

Special ad valorem levies and special assessments:

See General Municipal Taxes above.

The exemption applies to all levies and 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

 Coding of exemption on assessment roll
Code Description of alternative codes possible
13100 County-owned property
13350 City-owned property
13500 Town-owned property
13650 Village-owned property

Assessment roll section(s):

Exempt (ARLM § 8).

Note: These codes should not be used to identify (1) property acquired through tax sale and exempt under RPTL §406(5), (2) reforested lands owned by counties (RPTL §406(6)), (3) property owned by a school district or Board of Cooperative Educational Services (RPTL §408), (4) property owned by a special district (RPTL §410 or §410-a), (5) cemetery property exempt under RPTL §446, or (6) property that 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)

None.

Reporting requirements (assessor)

None.

Similar exemptions

 Similar exemptions
Subject Statute
Cemeteries, public or private RPTL §446
City University Construction Fund (NYC) Ed L §6282
Cultural Resources Trust, NYC Art-Cult L §21
Educational Construction Fund, NYC Ed L §468
Educational Construction Fund, Yonkers Ed L §492
Health & Hospital Corporation, NYC McK U Con L §7400
Multiple dwellings owned by municipality PHFL § §36-a(2), 36-a(4)
Municipal corporations, revenue-producing undertakings not exempt under RPTL §406(1) Gen Muny L §411
Municipal industrial development agencies RPTL §412-a & Gen Muny L §874
Public authorities RPTL §412 & Pub Auth L
Railroads and related property (NYC) Rap Tran L §103
Urban renewal property owned by municipality Gen Muny L § §506, 555, 560
Utica Transit Authority Trans L §64

* The New York State Court of Appeals has stated that held for public use" means that the property should be occupied, employed, or availed of, by and for the benefit of the community at large, and implies a possession, occupation and enjoyment of the public, or by public agencies" (Town of Harrison v. Westchester County, 1963).

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