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Assessor Manuals, Exemption Administration

Exemption Administration Manual—Part 2: Private Community Service and Social Organizations

Section 4.05 - RPTL Section 427: Performing Arts Building

Exemption code(s):

29500

Year originally enacted:

1960

Related statutes:

RPTL § §420-a, 490

Summary:

Real property owned by a corporation organized to sustain, encourage, promote, and educate the general public in musical and performing arts is wholly exempt from taxation and is exempt, for certain purposes, from special ad valorem and special assessments.

The following conditions must be met: (1) the corporation's certificate of incorporation must be approved by the state Commissioner of Education, (2) the land portion of the property must have been acquired by a municipality by purchase or condemnation and sold at public auction to the corporation for the purpose of insuring neighborhood rehabilitation, (3) moneys donated to the corporation by other charitable or educational corporations or as a result of general appeal must have been used for acquisition of the property, and (4) the property must be used to provide operatic, musical, and dramatic performances and other related educational activities, either directly by the owning corporation or indirectly by leasing or otherwise making the property available for use by other nonprofit corporations organized for the same purposes as the owning corporation.

Eligibility requirements

Ownership requirements:

Property must be owned by a corporation organized to sustain, encourage, and promote musical and performing arts.

Property location requirements:

None.

Property Use Requirements: Property must be used for the production of musical and performing arts by providing operatic, musical, and dramatic performances and related educational activities, either directly by the owning corporation or indirectly by leasing or otherwise making the property, or portions of it, available to other nonprofit corporations organized for the same purposes as the owning corporation. The property may be leased for income purposes for public performances, theatrical performances, opera, ballet, concerts, lectures, meetings, graduation exercises, or other related educational or noncommercial uses without affecting the exempt status of the property, provided that the following conditions are met: (1) such leasing or use is not the principal purpose to which the property is put and (2) any income generated is necessary for and is actually applied to the maintenance and support of the owning corporation or another nonprofit corporation organized for the same purposes.

Certification by state or local government:

The owning corporation's certificate of incorporation must be approved by the state Commissioner of Education.

Required construction start date or other time requirement:

None.

Local option

No.

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.

Special ad valorem levies and special assessments:

100% of assessed value or other basis of assessment.

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
29500   

Assessment Roll Section(s):

Exempt (ARLM Section 8).

Note: This code should not be used to identify 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
Subject Statute
Academies of music RPTL §434
Institutes of arts and sciences (NYC) RPTL §424
Nonprofit organizations (mandatory class) RPTL §420-a
Nonprofit organizations (permissive class) RPTL §420-b
Opera houses RPTL §426
Theatrical corporations created by Congress RPTL §432

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