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

Finance will be mailing exemption renewal letters the week of September 15, 2014. The filing deadline is January 5, 2015.


General Information
Organizations can qualify for a full or partial property tax reduction if they use the property for specific not for profit purposes. These purposes are specified below.

Eligibility
The legal title for the property must be in the name of the Not-For-Profit organization. Federal Not-For-Profit Status (501 c 3) does not automatically qualify you for NYC Not-For-Profit Property Tax Exemption. The property’s use must meet the requirements specified in Sections § 420-a, § 420-b, § 446, and § 462 of the NYS Real Property Tax Law. 

§ 420-a

§ 420-b

§ 446

§ 462

Charitable, Educational, Hospital, Moral or mental health of men, women or children, Religious

Benevolent, Bible.Enforcement of Law relating to children or animals, Historical, Infirmary, Library, Missionary, Patriotic, Public Playground, Scientific, Supervised Youth Sportsmanship or Tract

Cemetery

Parsonage or Manse


Partial Exemption
Exemptions are given for the part of the property that is used for an eligible purpose.  Portions of the property used for commercial purposes or leased to private entities will not receive an exemption. If another Not-For-Profit organization leases the property, you may still qualify as long as the owner does not earn a profit on the lease and it is used for eligible purposes. 

Vacant land/Buildings
Vacant land and/or buildings may be eligible for the Not-For-Profit exemption if you have active plans and documentation to show that it will be used in the near future for one of the approved purposes listed above. This is a “Contemplated Use Exemption.” If you have a Contemplated Use Exemption you must file a Not-For-Profit Organization's Tax Exemption Application once work is completed or you may lose your property tax exemption.

How to Apply
Submit the Not-For-Profit Organization's Tax Exemption Application along with the following documents:

  • If the organization is exempt from Federal income taxes, a copy of the Determination or Ruling Letter; or
  • If the organization is not exempt from Federal income taxes, a copy of the application for that benefit and any requests for statements and attachments. 

Renewing your Exemption
Every Borough-Block-Lot with a partial or full Not-For-Profit Exemption is required to file a renewal each year in order to continue receiving the exemption.

You can renew your exemption using the online renewal system. We mailed all Not-For-Profit organizations letters which contained a User Name and Password to log in to the renewal system. 

Changes to a Property receiving a Not-For-Profit Exemption
Please report any changes in use to us as soon as they occur. These include:

  • Changes to the percentage of total square footage rented (for profit or non-profit purposes)
  • If part/all of the property is not being used
  • Construction is complete on a property receiving a Contemplated Use exemption.

Forms and Reports
Forms

Other Exemptions for Not-For-Profit Organizations
Not-for-Profit organizations may also be exempt from business income and excise taxes such as General Corporation Tax, Hotel Room Occupancy Tax, and Taxicab License Transfer Tax. Visit the Business section of this website for more information.

If you are applying as a religious organization, individual members may also qualify for a Clergy Exemption.

Some Not-For-Profit Limited Partnerships or Housing Development Fund Companies (HDFCs) may be eligible for exemptions if they set aside transitional housing for low-income residents or the homeless.  For more information, contact the NYC Department of Housing Preservation and Development.