N.Y. Real Property Tax Law § 520: Assessment and taxation of exempt property upon transfer of title

§ 520. Assessment and taxation of exempt property upon transfer of

title. 1. Whenever any person, association or corporation not otherwise

entitled to an exemption from taxation acquires title to real property

which is exempt, in whole or in part, from taxation, such property shall

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

unexpired portion of any fiscal year during which said transfer of title

occurred, and shall be liable in full for taxes in any fiscal year

commencing subsequent to the date of transfer, as provided in this

section.

2. If within the fiscal year during which a transfer of title occurs

or within the next succeeding fiscal year, an assessor is made aware of

the fact that title to real property receiving a total or partial

exemption from taxation has been transferred to a person, corporation or

association not otherwise entitled to an exemption from taxation, he or

she shall forthwith assess such property at its value as of the date of

transfer, shall, where appropriate for purposes of article eighteen or

nineteen of this chapter, reclassify the property, and shall notify the

new owner of the assessment and of the right of that owner to a review

of the assessment and reclassification, if appropriate, as provided by

title three of article five of this chapter.

3. For purposes of any fiscal year or years during which title to such

property is transferred, such property shall be deemed to have been

omitted and the assessed value thereof shall be entered on the

assessment roll to be used for the next tax levy by or for each

municipal corporation in which such property is located in the same

manner as provided by title three of article five of this chapter with

respect to a parcel omitted from the assessment roll of the previous

year. A pro rata tax shall be extended against the property for the

unexpired portion of each fiscal year. Such real property shall be taxed

at the tax rate or tax rates for the fiscal year during which the

transfer occurred. The amount of tax or taxes levied pursuant to this

subdivision shall be deducted from the aggregate amount of taxes to be

levied for the fiscal year immediately succeeding the fiscal year during

which the transfer occurred.

4. For purposes of any fiscal year commencing on or after the date on

which title to such property is transferred, if the assessor receives

notice of such transfer prior to the levy of taxes for said fiscal year,

the assessed value of such property shall be entered on the assessment

roll to be used for the levy of taxes for said fiscal year in the same

manner as provided by title three of article five of this chapter with

respect to a parcel of property omitted from the assessment roll. If the

assessor fails to receive notice of such transfer until after the levy

of taxes for said fiscal year or for any reason fails to add such

property to the assessment roll as provided by this subdivision, the

property shall be deemed to have been omitted and shall be assessed as

provided in subdivision three of this section and shall be liable in

full for the taxes levied for said fiscal year.

5. The provisions of this section shall not apply when the transferred

property is receiving only the school tax relief (STAR) exemption

authorized by section four hundred twenty-five of this chapter, and no

other exemption. If the property is receiving the STAR exemption and one

or more other exemptions, the provisions of this section shall apply

only to the extent that the property is receiving such other exemption

or exemptions.