Exemption Administration Manual, Part 1: Municipal Governments—Section 4.03 - RPTL Section 406(5): Municipal Corporations(Property acquired by tax deed)
Assessor Manuals
Section 4.03 - RPTL Section 406(5): Municipal Corporations(Property acquired by tax deed)
| County-owned property | 3320_ |
| City-owned property | 3340_ |
| Town-owned property | 3355_ |
| Village-owned property | 3370_ |
Year originally enacted:
Before 1896
Related statutes:
RPTL Article 11 (Alternative Procedures for Enforcement of Collection of Delinquent Taxes)
Summary:
Real property that (1) is owned by a county, city, town, or village and (2) has been acquired by tax deed is wholly exempt from general municipal taxes and special ad valorem levies for a period of three years from the taxable status date immediately following the date of the deed provided that the municipal corporation owning the property is not receiving any revenue from the property on taxable status date. During the three-year period, however, such property is liable for school district taxes and special assessments.
At the end of the three-year period, the property ceases to be eligible for this exemption. However, it may be eligible for another type of exemption: (1) if it continues to be owned by a municipal corporation and is devoted to a public use, then it is exempt under RPTL §406(1); (2) if title is acquired by an individual or organization entitled to exemption under some other statute, then the property is exempt to the extent provided in that statute. Otherwise the property becomes taxable for all purposes.
Eligibility requirements
Ownership requirements:
Property (1) must be owned by a county, city, town, or village and (2) must have been acquired by tax deed, by referee's deed in tax foreclosure pursuant to RPTL Article 11, or by a deed made in lieu of tax foreclosure.
Property location requirements:
Property must be located within the boundaries of the owning municipal corporation.
Property use requirements:
Property must not be used to generate revenue for the municipal corporation.
Certification by state or local government:
None required.
Required construction start date or other time requirement:
None.
Local option
No.
Limitation on exemption
| General municipal taxes | School district taxes | Special ad valorem tax | Special assessments | ||
|---|---|---|---|---|---|
| 1. Amount | No limit | No exemption allowed | No limit | No exemption allowed | |
| 2. Duration | 3 years from date of tax deed | No exemption allowed | 3 years from date of tax deed | No exemption allowed | |
| 3. Taxing Jurisdiction | a. County or County Special Districts | Ex | NA | Ex | Tax |
| b. City | Ex | NA | NA | Tax | |
| c. Town or Town Special District | Ex | NA | Ex | Tax | |
| d. Village | Ex | NA | NA | Tax | |
| e. School District | NA | Tax | NA | NA | |
| Ex-Exempt Tax-Taxable NA-Not Applicable | |||||
Payments in lieu of taxes
None required.
Calculation of exemption
General municipal and school district taxes:
General municipal taxes:
100% of assessed value.
School district taxes:
No exemption allowed.
Special Ad Valorem Levies and special assessments:
Special ad valorem levies:
100% of assessed value.
Special assessments:
No exemption allowed.
Coding of exemption on assessment roll
| Code | Description of alternative codes possible |
|---|---|
| 3320_ | County-owned property |
| 3340_ | City-owned property |
| 3355_ | Town-owned property |
| 3370_ | Village-owned property |
Assessment roll section(s)
Taxable (ARLM § 1)
Note: These codes should not be used to identify property that is owned by a municipal corporation and is exempt under RPTL §406(1).
Filing requirements (owner or occupant of property):
None.
Reporting requirements (assessor):
None.
Similar exemptions:
None.
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