Property Tax Exemption for Not-For-Profit (NFP) Organizations

Many types of not-for-profit organizations are eligible for a full or partial property tax reduction if their property is used for charitable, educational, medical, or religious purposes.

Information on NFP Renewals
For properties currently receiving Not-for-Profit Contemplated Use exemptions: Renewal forms must be filed by January 30, 2009.

For properties currently receiving Not-for-Profit Full or Partial exemptions: Renewal forms will not be required for the tax year beginning on July 1, 2009.

Eligibility
Requirements
Deadlines
Forms & Publications
Additional Information

Eligibility
Ownership: The legal title for the parcel(s) for which exemption is sought must be in the name of the not-for-profit applicant.

Type of Organization and Use of the Property: The purposes for which the applicant is organized must be one of the exemptible categories that are outlined in Sections 420-a, 420-b, 446, and 462 of the NYS Real Property Tax Law, or two or more of those purposes, as follows (in alphabetical order):

• 420(a)
  Charitable
  Educational
  Hospital
  Moral or mental health of men, women or children
  Religious
  
  
• 420(b)
  Bar Association
  Benevolent
  Bible
  Enforcement of Law relating to children or animals
  Historical
  Infirmary
  Library
  Medical Society
  Missionary
  Patriotic
  Public Playground
  Scientific
  Supervised Youth Sportsmanship or Tract
  
  
• 446
  Cemetery
  
  
• 462
  Parsonage
  Manse

If a portion of the property is used for ineligible (e.g., commercial) purposes, an exemption may be sought only for the part of the property that is used for eligible purposes. Unused portions of the property leased to private entities are not exemptible.

Unimproved land and/or vacant buildings may be eligible if supporting documentation of contemplated use or construction in progress is supplied.

If all or part of the property is leased to or otherwise used by another exempt organization, that part may be eligible for exemption if it is used for exempt purposes, and the amount of rental income does not exceed the normal carrying, maintenance or depreciation charges.

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Requirements
Applicants must submit the Not-for-Profit Organizations Tax Exemption Application along with the following documents:

1. If the organization is exempt from federal income tax, a copy of the Determination or Ruling Letter;
2. If the organization is not exempt from federal income tax but has applied for exemption, a copy of that application, request or statement and attachments

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Deadlines
For properties currently receiving Not-for-Profit Contemplated Use exemptions: Renewal forms must be filed by January 30, 2009.

For properties currently receiving Not-for-Profit Full or Partial exemptions: Renewal forms will not be required for the tax year beginning on July 1, 2009. 

Forms & Publication

Exemption from Real Estate Taxation for Property Owned by Nonprofit Organizations Application
 Download Form (287k)

Renewal Form Not-For-Profit Full Exemption
 Download Form (37.9k)

Renewal Form Not-For-Profit Partial Exemption
 Download Form (36.9k)

Renewal Form Not-For-Profit Contemplated Use
 Download Form (36.7k)

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Additional Information
Please report  changes to the "use" of property receiving a Not-for-Profit exemption as soon as they occur.*  Changes include, but are not limited to, a change in the percentage of total square footage rented for commercial purposes, or a change of lessee from a tax exempt organization to a for profit commercial tenant.

*Please mail information regarding property changes to:

NYC Dept. of Finance
Exemptions Unit - NFP (CU)
PO Box 3120
Church Street Station
New York, NY 10008-3120

Not-for-Profit Organizations may also be exempt from one or more business income and excise taxes.

See also General Corporation Tax, Hotel Room Occupancy Tax, and Taxicab License Transfer Tax.

If applicant is a religious organization, individual members may qualify for a Clergy Exemption.

Some not-for-profit organizations, incorporated as either limited partnerships or Housing Development Fund Companies (HDFCs), may be eligible for partial or full exemptions for properties set aside for transitional housing for low-income or homeless individuals. Contact NYC Department of Housing Preservation and Development.

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