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Assessor's Manual, Volume 4, ExemptionAdministration

Exemption Administration Manual - Part 2
Industrial, Commercial, and Public Service

Section 4.06 - RPTL Section 429

Sports Arena Used by NHL and NBA (New York City)

Exemption Code(s): 49000 Year Originally Enacted: 1982

Related Statutes: None

SUMMARY: Real property located in New York City and used by both a professional hockey team of the National Hockey League and a professional basketball team of the National Basketball Association to play their home games is exempt from taxation to the extent that such taxes are the obligation (by lease or otherwise) of the owners of the team franchises; such property is, however, liable for special assessments. To qualify for exemption, the franchise owners must enter into a written agreement with the mayor of the city to play their home games in the city for at least 10 consecutive years. If one or both of the teams cease playing their home games at the property at any time, the exemption ceases immediately, and the property becomes liable for taxes for the unexpired portion of the taxable year. The exemption does not apply to any improvement made after the date of the written agreement with the city unless the improvement is used for sports, entertainment, exposition, convention, or trade show purposes.

  1. ELIGIBILITY REQUIREMENTS:
    1. Ownership Requirements: The exemption allowed by this statute is solely for the benefit of the professional hockey and basketball team franchise owners; it removes any property tax liability that would otherwise be borne by them. In order to qualify for the exemption, the franchise owners must have entered into a written agreement with the mayor of the city to play the teams' home games at the property for a period of at least 10 consecutive years.
       
    2. Property Location Requirements: Property must be located in New York City.
       
    3. Property Use Requirements: Property must be used by both of the teams to play their home games. Any improvement made to the property after the agreement with the city is executed is not eligible for exemption unless the improvement is used to provide facilities or services related to sports, entertainment, expositions, conventions, or trade shows.
       
    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 Yes* Yes* NA No
    exemption
    allowed
    2. Duration Yes** Yes** NA No
    exemption
    allowed
    3. Taxing Jurisdiction
    a. City
    Ex NA NA Tax
    b. School District NA Ex NA NA
      Ex-Exempt  Tax-Taxable  NA-Not Applicable
    * Amount of exemption is limited to that portion of the assessed value for which taxes are the responsibility of the team franchise owners.

    ** Exemption is allowed only as long as both teams continue to play their home games at the property.

  4. PAYMENTS IN LIEU OF TAXES: None required.
     
  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes: 100% of that portion of the assessed value on which taxes would otherwise be payable by the team franchise owners.
       
    2. Special Ad Valorem Levies and Special Assessments: No exemption allowed.
       
  6. CODING OF EXEMPTION ON ASSESSMENT ROLL:
    Code Description of Alternative Codes Possible
    49000  

    Assessment Roll Section(s): Taxable.

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

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