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Volume 2 - Opinions of Counsel SBEA No. 28

Opinions of Counsel index

Taxable Status Date (exemptions generally) (transfer after taxable Ins date) - Real Property Tax Law, § 302:

Real property of the Economic Development Agency which was entitled to a tax exemption on taxable status date but which was subsequently sold to a person who is not entitled to exemption, remains exempt until the next assessment roll is prepared.

Our opinion has been requested as to the taxable status of property entitled to an exemption on the taxable status date of the City of Salamanca which is sold thereafter but prior to the final completion of the assessment roll.

The Economic Development Agency, an agency of the Federal Government, had title to property in the City of Salamanca on taxable status date, May 1, 1972. This agency is expected to convey title to one whose property is not entitled to exemption and the question is whether or not the property can be returned to the taxable portion of the roll.

It is our opinion that the property is exempt from any taxes levied on the 1972 assessment roll, the roll which has a May 1, 1972 taxable status date. The “taxability of property is determined by its ownership on the status date” and “a transfer of title made subsequent to that date does not effect its taxability.” Lutheran High School Ass’n. of New York v. City of New York, 29 App. Div.2d 890, 288 N.Y.S. 2d 855, aff’d 27 N.Y.2d 939, 267 N.E.2d 101, 318 N.Y.S.2d 314.

There are a few special situations where a statute expressly makes property taxable pro rata for the taxable year upon sale after taxable status date (e.g., Real Property Tax Law, § 494; General Municipal Law, §§ 506 and 555) but these do not apply to the facts here.

September 25, 1972

NOTE:  Construes law prior to L.1978, c.635.