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Assessor's Manual, Volume 4, ExemptionAdministration

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Exemption Code(s): 29500 Year Originally Enacted: 1960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.

  1. ELIGIBILITY REQUIREMENTS:
    1. Ownership Requirements: Property must be owned by a corporation organized to sustain, encourage, and promote musical and performing arts.
       
    2. Property Location Requirements: None.
       
    3. 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.
       
    4. Certification by State or Local Government:The owning corporation's certificate of incorporation must be approved by the state Commissioner of Education.
       
    5. Required Construction Start Date or Other Time Requirement:  None.
       
  2. LOCAL OPTION: No.
     
  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.
    2. 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.

  6. 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.

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