Assessor Manual, Exemption Administration: NPCL section 1608
Exemption Administration Manual—Part 2: Private Community Service and Social Organizations
Section 4.05, NPCL section 1608: Land Banks
Exemption code: 25900
Year originally enacted: 2011
Related statutes: NPCL Art. 16; RPTL §1102(6)
If a city, town, village or county adopts a local option to create a land bank under Not-for-Profit Corporation Law Article 16 for purposes of acquiring, holding, managing and developing tax-delinquent, tax foreclosed, vacant, and abandoned property for the eventual return of such property to productive use, such property acquired or transferred to the land bank or a lawfully organized subsidiary becomes exempt from all taxation, special ad valorem levies and special assessments. Each land bank created must be a Type-C not-for-profit corporation, with the power to design, develop, construct, demolish, reconstruct, rehabilitate, renovate, relocate and otherwise improve real property or rights or real property rights and interests. The term of the exemption benefit for an acquired property extends up to when the land bank transfers the property, or until the land bank dissolves, whichever comes first.
Property must be owned by a land bank created under Article 16 of the NPCL, which for purposes of this exemption is defined as a Type-C not for profit corporation, and created by a foreclosing governmental unit or units (defined as a taxing district of a city, town, village or county). Or the property must be owned by a lawfully organized subsidiary of such land bank.
Property location requirements: Property acquired or held by a land bank must be located within the foreclosing governmental unit or units which created the land bank, unless the land bank is granted authority under an intergovernmental cooperation agreement with another municipality (city, town, village, or county) to manage and maintain the property located within such other municipality. If a county creates a land bank, such land bank's power to acquire real property is limited to those portions of the county located outside of the geographic boundaries of any other land bank created by other foreclosing governmental units located partially or entirely within such county.
Note: A school district partially or wholly located in a foreclosing governmental unit or units which created the land bank may participate in such land bank under an intergovernmental cooperation agreement concerning the land bank's operation.
Property use requirements:
Property acquired by the land bank must be limited to real property that is tax-delinquent, tax foreclosed, vacant or abandoned. However, a land bank may enter into an agreement to purchase other real property that is consistent with a redevelopment plan approved by the foreclosing governmental unit or units which created the land bank. In any event, the land bank must maintain all of the real property according to the laws and ordinances of the jurisdiction in which the property is located.
Certification by state or local government:
Creation of a land bank must be approved by the New York State Urban Development Corporation (doing business as the Empire State Development Corporation). No more than thirty-five land banks may exist at any given time across the state. Furthermore, each land bank that produces a redevelopment plan must submit such a plan to the foreclosing governmental unit or units for approval.
Required construction start date or other time requirement:
Exempt status is effective upon the date of transfer of title to a land bank.
Yes - Each foreclosing governmental unit may choose whether or not to create a land bank under Article 16 of the Not-for-Profit Corporation Law. The option must be exercised through adoption of a local law, ordinance or resolution after a public hearing. Once the option to create the land bank is adopted, exemption from taxation becomes available to property acquired by the land bank.
Limitation on exemption:
|Type of limitation||General municipal taxes||School district taxes||Special ad valorem levies||Special assessments|
|Amount||No limit*||No Limit*||No limit*||No limit*|
|Duration||No limit**||No limit**||No limit**||No limit**|
|Taxing jurisdiction: county or county special district||Exempt***||Not applicable||Exempt***||Exempt***|
|Taxing jurisdiction: city||Exempt*||Not applicable||Not applicable||Exempt*|
|Taxing jurisdiction: town or town special district||Exempt*||Not applicable||Exempt*||Exempt*|
|Taxing jurisdiction: village||Exempt*||Not applicable||Not applicable||Exempt*|
|Taxing jurisdiction: school district||Not applicable||Exempt****||Not applicable||Not applicable|
*If land bank is created by municipal option;
**Unless and until sold or transferred by land bank, or until dissolution of land bank, whichever occurs first
***Exemption by county-created land bank is limited to areas outside of land banks created by other municipalities located partially or wholly within such county
****If property is located in portion of school district that is part of land bank
Payments in lieu of taxes:
Calculation of exemption:
General municipal and school district taxes: 100% of assessed value.
Special ad valorem levies and special assessments: 100% of assessed value.
Assessment roll section:
Exempt (RPS Roll Section 8)
Filing requirements (owner or occupant of property):
Reporting requirements (Assessor):