Assessor Manuals, Exemption Administration: RPTL Section 404(2)

Exemption Administration Manual—Part 1: New York State Government

Section 4.02 - RPTL Section 404(2): State of New York (State and Local Employees' Retirement System)

Exemption code(s):

12150

Year originally enacted:

1955*

*1987 - Name changed from New York State Employees' Retirement System to New York State and Local Employees' Retirement System.

Related statutes:

• RPTL §§404(1), 490
• Pub Lands L §19-a
• RSS L Art. 2

Summary:

Real property located in certain areas that is owned by the New York State and Local Employees' Retirement System and is used for certain purposes is wholly exempt from taxation except when the property is located in one of the areas described in RPTL §532 or §536 and is one of the types of property described there (see the Exemption Profiles for these statutes).

Such property is also exempt, for certain purposes, from special assessments. In addition, while RPTL §404(1) and §490 imply that state-owned property is entitled to a limited exemption from special ad valorem levies, it has been the opinion of the NYS Attorney General (Op.Atty.Gen., 1953, p.133) that state-owned lands and improvements are wholly exempt from such levies except as otherwise provided in RPTL §532. Property owned by the retirement system that is not eligible for exemption under RPTL §404(2) may be exempt under RPTL §404(1) (see profile).

Eligibility requirements

Ownership requirements:

Property must be owned by the New York State and Local Employees' Retirement System. Total funds expended for the below-listed projects may not exceed 10% of the system's assets. 

Property location requirements:

See property use requirements below.

Property use requirements:

Land and improvements must have been acquired or constructed for the following purposes in the following geographic areas:

1. City of Albany:
   1. Suitable office building(s) for transacting business of the retirement system.
   2. Suitable office building(s) for sale or lease to the state.
   3. Suitable parking facilities and associated structures for state employees and persons having business with state departments or agencies.
   4. Power plants and electric substations, including their service connections, garages, warehouses, and restaurant facilities necessary to the operation of the Washington Avenue "Campus Site". 
2. Cities of Binghamton, Buffalo, New York, Rochester, Syracuse, and Utica: suitable office building(s) for sale or lease to the state.
3. The following types of property are eligible for exemption in all areas:
   1. Suitable buildings or facilities, constructed on sites approved by the State University trustees, for sale or lease to the State University Construction Fund and subsequently used by (a) the State University, (b) state-operated institutions, (c) statutory or contract colleges under the State University, or (d) students, faculty, staff, and families of the aforementioned institutions or colleges.
   2. Office buildings or other buildings, constructed on land purchased from the NYS Thruway Authority, which are leased to the NYS Thruway Authority.
   3. Portions of buildings not used for retirement system business transactions which are leased to any public agency. 

Certification by state or local government:

None required. 

Required construction start date or other time requirement:

None.

Local option

No. 

Limitation on exemption

* Per opinion of Attorney General.

Payments in lieu of taxes

See Section 4.02, RPTL Section 404(1).

Calculation of exemption

General municipal and school district taxes:

100% of assessed value.

Special ad valorem levies and special assessments:

Special Ad Valorem Levies:

100% of assessed value.

Special Assessments:

100% of basis of assessment.

The exemption applies to all assessments imposed by counties, county special districts, towns, and town special districts except (1) charges levied to pay for the capital costs of sewer systems, water supply systems, waterways and drainage improvements, and streets and highways, and (2) special assessments for indebtedness contracted before 7/1/53. The exemption does not apply to special assessments imposed by cities or villages.

Coding of exemption on assessment roll:

Assessment roll section(s):

Exempt (ARLM §8).

Note: This code should not be used to identify property that is taxable under RPTL §532, or is exempt for certain purposes under RPTL §536, or is exempt under any of the statutes listed under Similar Exemptions below. For coding of such property, see the Exemption Profile for the statute that applies.

Filing requirements (owner or occupant of property)

None.

Reporting requirements (assessor)

None.

Similar exemptions

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