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Assessor's Manual, Volume 4, ExemptionAdministration

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Year Originally Enacted: Before 1896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.*

  1. ELIGIBILITY REQUIREMENTS:
    1. Ownership Requirements: Property must be owned by a county, city, town, or village.
       
    2. Property Location Requirements: Property must be located inside the boundaries of the owning county, city, town, or village.
       
    3. 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.
       
    4. Certification by State or Local Government: None required.
       
    5. Required Construction Start Date or Other Time Requirement: None.
       
  2. LOCAL OPTION: None.
     
  3. 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
    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.

     
  4. PAYMENTS IN LIEU OF TAXES: None required.
     
  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes: 100% of assessed value of portion(s) of property held for property use.
       
    2. 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.

  6. 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 Section 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.

  7. FILING REQUIREMENTS (Owner or Occupant of Property): None.
     
  8. REPORTING REQUIREMENTS (Assessor): None.
     
  9. 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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