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Assessor's Manual, Volume 4, ExemptionAdministration

Exemption Administration Manual - Part 2
Multiple Dwellings

Section 4.07 - Pub Hel L Section 2864

Limited-Profit Nursing Home Companies Pub Hel L Section 2864

Exemption Code(s): â  â  48640 Year Originally Enacted: â  â  1968

Related Statutes: â  â  Pub Hel L §2801 SUMMARY: â  â  Real property that is owned by a limited-profit nursing home company and is used to provide nursing home accommodations or other health-related services for persons of low income is partially exempt from taxation and special ad valorem levies, but is liable for special assessments. The exemption is limited in duration.

  1. ELIGIBILITY REQUIREMENTS: â  â 
    1. Ownership Requirements: Property must be owned by a limited-profit nursing home company. Specific organizational requirements are as follows:

      Laws under which incorporation required: Pub Hel L Article 28-A.

      Restrictions on corporate purposes or activities as stated in certificate of incorporation: (1) Company must be organized to plan, construct, acquire, alter, reconstruct, rehabilitate, own, maintain, and operate nursing homes and other health-related facilities for persons of low income subject to the supervision of the State Commissioner of Health and (2) no director, shareholder, or debenture holder may receive, in repayment of his investment in the company's shares or debentures, any sum in excess of the par value of the shares or debentures, together with such dividends, interest, or other compensation permitted under Pub Hel L Article 28-A.

    2. Property Location Requirements: None.
    3. Property Use Requirements: Property must be used for either (1) nursing home accommodations, including board and nursing care by or under the supervision of a duly licensed physician, for sick, invalid, infirm, disabled, or convalescent persons of low income or (2) other health-related services (physical care including, but not limited to, the recording of health information, dietary supervision, and supervised hygienic services) for persons of low income. The probable aggregate annual income of the occupants must not exceed two times the annual charges for such accommodations or services.
    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* Yes* No
    exemption
    allowed
    2. Duration Yes** Yes** Yes** No
    exemption
    allowed
    3. Taxing Jurisdiction
    a. County or County
    Special Districts
    Ex NA Ex Tax
    b. City
    Ex NA NA Tax
    c. Town or Town
    Special District
    Ex NA Ex Tax
    d. Village
    Ex NA NA Tax
    e. School District
    NA Ex NA NA
    Ex-Exemptâ â â â â â Tax-Taxableâ â â â â â NA-Not Applicable
    * Amount of exemption is limited to the increase in assessed value over the value of the property at the time of its acquisition by the limited-profit nursing home company.

    ** Duration of exemption is limited to the period during which the mortgage loan made by the NYS Housing Finance Agency or the NYS Medical Care Facilities Finance Agency is outstanding, but in no event for more than 30 years.

  4. PAYMENTS IN LIEU OF TAXES: None required.
  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes: Increase in assessed value over the value of the property at the time of its acquisition by the limited-profit nursing home company.
    2. Special Ad Valorem Levies and Special Assessments:

      Special Ad Valorem Levies: Increase in assessed value over the value of the property at the time of its acquisition by the limited-profit nursing home company.

      Special Assessments: No exemption allowed.

  6. CODING OF EXEMPTION ON ASSESSMENT ROLL:
    Code Description of Alternative Codes Possible
    48640

    Assessment Roll Section(s): Taxable (ARLM Section 1).

    NOTE: This code should not be used to identify property that is exempt under any of the statutes listed under Similar Exemptions below.

  7. FILING REQUIREMENTS (Owner or Occupant of Property): None.
  8. REPORTING REQUIREMENTS (Assessor): None.
  9. SIMILAR EXEMPTIONS: See Chart IA and Chart IB.

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