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Assessor Manuals, Exemption Administration

Exemption Administration Manual—Part 2: Multiple dwellings and urban renewal

Section 4.07 - Pub Hel L Section 2864: Limited-profit nursing home companies

Exemption code(s)

48640

Year originally enacted:

1968

Related statutes:

Pub Hel L §2801

Summary:

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.

Eligibility requirements

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.

Property location requirements:

None.

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.

Certification by state or local government:

None required.

Required construction start date or other time requirement:

None required.

Local option

No.

Limitation on exemption

Limitation on exemption by amount, duration, and taxing jurisdiction
General municipal taxes School district taxes Special ad valorem tax Special assessments
1. Amount Yes* Yes* Yes* No exemption allowed
2. Duration Yes** Yes** Yess** 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-Exempt     Tax-Taxable     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.

Payments in lieu of taxes

None required.

Calculation of exemption

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.

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.

Coding of exemption on assessment roll

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.

Filing requirements (owner or occupant of property)

None.

Reporting requirements (assessor)

None.

Similar exemptions

See Chart IA and Chart IB

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