Skip universal navigation

New York State Universal header

Skip to main content

Assessor's Manual, Volume 4, ExemptionAdministration

Exemption Administration Manual - Part 2
Private Community Service and Social Organizations

Section 4.05 - RPTL Section 428

Fraternal Organizations

Exemption Code(s): 25400 Year Originally Enacted: Before 1896

Related Statutes: RPTL §490

SUMMARY:  Real property owned by a fraternal corporation, association, or body created to build and maintain a building or buildings for meetings of the general assembly of its members or subordinate bodies and for the use of other fraternal organizations is wholly exempt from taxation and is exempt, for certain purposes, from special ad valorem levies and special assessments, provided that the entire net income from the property is used exclusively to provide certain facilities for the welfare of the organization's members or their spouses or orphans (see Property Use Requirements below).

This statute allows an exemption solely for the grand lodge of a fraternal organization; local chapters are not entitled to exemption under the provisions of this statute.

  1. ELIGIBILITY REQUIREMENTS:
    1. Ownership Requirements: Property must be owned by a fraternal organization created to build and maintain a building or buildings for meetings of the general assembly of its members or subordinate bodies and for the use of other fraternal organizations.
       
    2. Property Location Requirements: None.
       
    3. Property Use Requirements: Property must be used by the owning organization for its meetings or meetings of the general assembly of its members or subordinate bodies or by other fraternal organizations for the same purposes. The entire net income derived from the property must be used to build, furnish, or maintain one or more asylums, homes, or schools for the free education or relief of its members or for the relief, support, and care of the worthy and indigent members of the organization, their spouses, surviving spouses, or orphans.
       
    4. Certification by State or Local Government: None required.
       
    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
    25400  

    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
    Nonprofit organizations (permissive class) RPTL §420-b

| Top of Page | | Table of Contents| | Next Page| | Assessors' Manuals |

Please send general questions or comments to Orpts Solutions Center

Updated: