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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 438

Property Held by (a) Trustees of a Hospital, Playground,or Library or (b) Hospital Corporation for Benefit of a City

Exemption Code(s): Trustees of hospital 29350
    Trustees of playground or library 2935_
   Hospital corporation 29300

Year Originally Enacted: Before 1896

Related Statutes: RPTL § §420-a, 420-b, 490

SUMMARY: Real property that (1) is held for hospital, playground, or library purposes by trustees named in a will or deed of trust or appointed by the New York State Supreme Court or (2) is held for hospital purposes by a corporation organized to manage and control a hospital for the use and benefit of a city is wholly exempt from taxation and is exempt, for certain purposes, from special ad valorem levies and special assessments.

Property exempt pursuant to this section is subject to the same conditions and exceptions as property exempt pursuant to RPTL §420-a and §420-b. Thus, property held for playground or library purposes, as provided in RPTL §420-b, is exempt as described above unless a local law has been adopted providing that such property is taxable.

  1. ELIGIBILITY REQUIREMENTS:
    1. Ownership Requirements: Property must be held by (a) trustees named in a will or deed of trust or appointed by the New York State Supreme Court or (b) a corporation organized for the purpose of managing and controlling a hospital for the use and benefit of a city. In addition, pecuniary profit is prohibited (see Ownership Requirements for RPTL §420-a).
       
    2. Property Location Requirements: None.
       
    3. Property Use Requirements: Property owned by trustees must be used for hospital, playground, or library purposes. Property owned by a hospital corporation must be used for the benefit of a city. In addition, property exempt pursuant to this statute is subject to the same conditions and exceptions as property owned by organizations exempt pursuant to RPTL §420-a and §420-b (see Property Use Requirements for RPTL §420-a and §420-b).
       
    4. Certification by State or Local Government: None required.
       
    5. Required Construction Start Date or Other Time Requirement  None.
       
  2. LOCAL OPTION: Yes, but only in the case of playground or library property. Each county, city, town, village, and school district in which such property is located may choose whether or not to allow the exemption for either or both classes or property. The option to tax must be exercised through adoption of a local law, ordinance, or resolution (after a public hearing).
     
  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.

    NOTE: The following apply only to playground and library property:

    * Unless exemption disallowed by local option.
    ** Only if exemption from general municipal taxes is allowed by taxing jurisdiction. If exemption from taxes is disallowed, property is liable for all special ad valoremlevies and special assessments imposed by or on behalf of the taxing jurisdiction.

  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.

      Hospital Property

      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.

      Playground and Library Property

      If an exemption from general municipal taxes is allowed by both the county and the town in which the property is located, the exemption applies to all levies and assessments imposed by the county, any county special district, the town, and any town special district 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.

      If, on the other hand, tax exemption is disallowed by the county, the property is liable for all levies and assessments imposed by the county or any county special district. Likewise, if tax exemption is disallowed by the town, the property is liable for all levies and assessments imposed by the town or any town special district.

      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
    29350 Trustees of hospital
    2935 Trustees of playground or library
    29300 Hospital corporation

    Assessment Roll Section(s): Exempt (ARLM Section 8).

    NOTE: This code should not be used to identify property owned by nonprofit organizations that is exempt under RPTL §420-a or §420-b. 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 (mandatory class) RPTL §420-a
    Nonprofit organizations (permissive class) RPTL §420-b

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