Property Tax Exemption for Non Profits

Organizations can get a full or partial cut in property taxes if they use the property for certain not-for-profit purposes.

Eligibility

• The property must be owned by the not-for-profit group.
• Having federal not-for-profit status (501(c)(3)) does not mean you automatically get the NYC not-for-profit property tax exemption.
• The property must be used as stated in Sections 420-a, 420-b, 446 and 462 of the NYS Real Property Tax Law. Here is a table to help you understand these sections.

Partial Exemption

• You get an exemption for the part of the property used for an eligible purpose.
• Parts used for business or rented to private groups do not get an exemption.
• If another not-for-profit rents the property, you may still qualify if the owner does not make a profit and it is used for eligible purposes.

Vacant Land/Buildings

• Vacant land or buildings may get the not-for-profit exemption if you have active plans and documentation that it will be used soon for one of the approved purposes.
• This is called a "Contemplated Use Exemption."
• If you have a Contemplated Use Exemption, you must file a not-for-profit tax exemption application once work is done or you may lose your property tax exemption.

• The non profit must own the property.

• The property must be used for one of these purposes:

  • Charity
  • Education
  • Hospital
  • Helping people
  • Religion
  • Bar Association
  • Helping others
  • Bible
  • Protecting children or animals
  • History
  • Infirmary
  • Library
  • Medical Society
  • Missionary
  • Patriotism
  • Public Playground
  • Science
  • Youth Sports
  • Tract
  • Cemetery
  • Parsonage or Manse

If part of the property is used for ineligible purposes, only the eligible part gets an exemption. Parts leased to private groups are not exempt. Unimproved land or vacant buildings may be eligible if you show plans for contemplated use or construction. If another exempt group uses part of the property, that part may be eligible if used for exempt purposes.

Tax Exemptions for Nonprofits

Non profit organizations may not have to pay some business taxes. These include:

• General Corporation Tax
• Hotel Room Occupancy Tax
• Taxicab Transfer License Tax

Clergy Exemption for Religious Groups

If you are a religious group, your members may get a Clergy Exemption.

Exemptions for Housing Groups

Some non profits help with housing. They may get tax breaks if they help low-income or homeless people.

• Every property with a Not-for-Profit Exemption must renew each year.
• For the 2014/15 tax year, Finance started an online renewal system. In July 2013, letters with a user name and password were sent to all non profits to log in to the renewal system.

• Submit the Not-for-Profit Organizations Tax Exemption Application with these documents:

  • A copy of the organization's Articles of Incorporation

  • A copy of the organization's By-laws or Constitution

  • A copy of the organization's most recent annual federal tax returns, including all schedules, if required

  • If exempt from federal income tax, a copy of the Determination or Ruling Letter

  • If not exempt but has applied for exemption, a copy of that application, request or statement and attachments

  • If all or part of the property is leased to another non profit, include the following items for the lessee, with a copy of the current lease:

    • A copy of the organization's most recent annual federal tax returns, including all schedules, if required
    • If exempt from federal income tax, a copy of the Determination or Ruling Letter
    • If not exempt but has applied for exemption, a copy of that application, request or statement and attachments

  • If used as a parsonage or manse, submit a statement with:

    • Names of all officiating clergy
    • Details of their formal training
    • If no formal training, explain why
    • If ordained, explain when, where and by whom
    • If not ordained, explain the circumstances

  • If there are resolutions for construction, the implementation of other improvements or renovation, attach a copy.