N.Y. Real Property Tax Law § 494: Taxation of exempt property upon transfer of title or possession in certain instances

§ 494. Taxation of exempt property upon transfer of title or

possession in certain instances. 1. The provisions of this section

shall apply only in a city having a population of one million or more.

2. Whenever any person, association or corporation not entitled to an

exemption from taxation acquires title to or possession of property

which is exempt from taxation, such property shall immediately become

subject to taxation and shall be taxed pro rata for the unexpired

portion of the taxable year. However, if the United States or the state

of New York, through the exercise of the power of eminent domain

acquires or shall have acquired temporarily the possession, occupation

or use of real property which was previously exempt from taxation

pursuant to former section four of the tax law, such previous exemption

shall be deemed to continue unbroken and to resume from the date when

the possession shall have been restored to the owner and the previously

exempt use resumed, despite the fact that such property may be or may

have been deemed taxable during the period when the United States or the

state of New York acquired or shall have acquired such temporary

possession, occupation or use.

3. If taxes on any such property become due and payable for the

entire taxable year on a single date, and any such change in title or

possession takes place prior to such due date, the pro rata portion of

taxes imposed upon such property pursuant to this section shall become

due and payable and shall become a lien upon such property upon such due

date, but if such change in title or possession takes place after such

due date, such pro rata portion of taxes shall become due and payable

and shall become a lien upon such property on the date when such change

in title or possession takes place. If taxes embracing such property

become due and payable on two dates in equal installments, and any such

change in title or possession takes place prior to the earlier of such

due dates, the pro rata portion of the first installment shall become

due and payable and shall become a lien on such property on such earlier

due date, and the entire second installment shall become due and payable

and shall become a lien on such property on the later of such due dates;

if any such change in title or possession takes place between such due

dates, the entire pro rata portion of the taxes to which such property

is subject for the taxable year pursuant to this section shall become

due and payable and shall become a lien on such property upon such later

due date; if any such transfer of title or possession takes place after

the later of such due dates, the pro rata portion of taxes to which such

property is subject for the taxable year pursuant to this section shall

become due and payable and shall become a lien on such property upon the

date of such transfer of title or possession. If taxes embracing such

property become due and payable on more than two dates in equal

installments, and any such change in title or possession takes place

prior to the first due date, or between due dates, the pro rata portion

of the first installment or of a subsequent installment affected by such

change, as the case may be, shall become due and payable and shall

become a lien on such property on the due date next following such

change in title or possession, and the remaining installments shall

become due and payable and shall become a lien on such property on their

respective due dates; if any such transfer of title or possession takes

place after the last due date in a taxable year, the pro rata portion of

tax to which such property is subject for the taxable year pursuant to

this section shall become due and payable and shall become a lien on

such property upon the date of such transfer of title or possession.

4. No right granted by this article to any person, association or

corporation to lease or otherwise use for income-producing purposes any

property of such person, association or corporation, without terminating

the tax exemption of such property in whole or in part, shall be

impaired or diminished by this section, but if any change of title or

possession of any property, shall, by virtue of the provisions of this

article, terminate the tax exemption of such property, in whole or in

part, the provisions of this section shall apply with full force and

effect to the extent that such property shall cease to be tax exempt by

virtue of the provisions of such article.