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Assessor Manuals, Exemption Administration

Exemption Administration Manual—Part 1: Municipal Governments

Section 4.03 - RPTL Section 406(5): Municipal Corporations(Property acquired by tax deed)

 Exemption code(s)
County-owned property 3320_
City-owned property 3340_
Town-owned property 3355_
Village-owned property 3370_

Year originally enacted:

Before 1896

Related statutes:

RPTL Article 11 (Alternative Procedures for Enforcement of Collection of Delinquent Taxes)


Real property that (1) is owned by a county, city, town, or village and (2) has been acquired by tax deed is wholly exempt from general municipal taxes and special ad valorem levies for a period of three years from the taxable status date immediately following the date of the deed provided that the municipal corporation owning the property is not receiving any revenue from the property on taxable status date. During the three-year period, however, such property is liable for school district taxes and special assessments.

At the end of the three-year period, the property ceases to be eligible for this exemption. However, it may be eligible for another type of exemption: (1) if it continues to be owned by a municipal corporation and is devoted to a public use, then it is exempt under RPTL §406(1); (2) if title is acquired by an individual or organization entitled to exemption under some other statute, then the property is exempt to the extent provided in that statute. Otherwise the property becomes taxable for all purposes.

Eligibility requirements

Ownership requirements:

Property (1) must be owned by a county, city, town, or village and (2) must have been acquired by tax deed, by referee's deed in tax foreclosure pursuant to RPTL Article 11, or by a deed made in lieu of tax foreclosure.

Property location requirements:

Property must be located within the boundaries of the owning municipal corporation.

Property use requirements:

Property must not be used to generate revenue for the municipal corporation. 

Certification by state or local government:

None required.

Required construction start date or other time requirement:


Local option


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 exemption allowed No limit No exemption allowed
2. Duration 3 years from date of tax deed No exemption allowed 3 years from date of tax deed No exemption allowed
3. Taxing Jurisdiction
a. County or County Special Districts Ex NA Ex Tax
b. City Ex NA NA Tax
c. Town or Town Special District Ex NA Ex Tax
d. Village Ex NA NA Tax
e. School District NA Tax NA NA
Ex-Exempt      Tax-Taxable       NA-Not Applicable

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

General municipal taxes:

100% of assessed value.

School district taxes:

No exemption allowed.

Special Ad Valorem Levies and special assessments:

Special ad valorem levies:

100% of assessed value.

Special assessments:

No exemption allowed.

Coding of exemption on assessment roll

 Coding of exemption on assessment roll
Code Description of alternative codes possible
3320_ County-owned property
3340_ City-owned property
3355_ Town-owned property
3370_ Village-owned property

Assessment roll section(s)

Taxable (ARLM § 1)

Note: These codes should not be used to identify property that is owned by a municipal corporation and is exempt under RPTL §406(1).

Filing requirements (owner or occupant of property):


Reporting requirements (assessor):


Similar exemptions:


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