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Volume 3 - Opinions of Counsel SBEA No. 103

Opinions of Counsel index

Limited-profit nursing home company exemption (generally) - Public Health Law, § 2864; Real Property Tax Law, § 414:

Limited-profit nursing home companies are entitled to an exemption to the extent the assessed value of the property included in such project is increased after title to it was acquired by the company.

Our opinion has been requested concerning the real property tax exemption available for limited-profit nursing home companies.

Section 414 of the Real Property Tax Law provides that limited-profit nursing home companies shall be exempt pursuant to the provisions of section 2864 of the Public Health Law. Section 2864 provides that:

§ 2864. Tax exemptions of limited-profit nursing home companies.

The real property in a project of a limited-profit nursing home company shall be exempt from all local and municipal taxes, other than assessments for local improvements, to the extent of the value of the property included in any such project as represents an increase over the assessed valuation of the real property, both land and improvements, acquired for the project on the date of its acquisition by the limited-profit nursing home company. The tax exemption shall operate and continue so long as the mortgage loan by the New York state housing finance agency or the New York state medical care facilities finance agency, as the case may be, to the limited-profit nursing home company is outstanding but in no event for a period of more than thirty years, commencing in each instance from the date when the limited-profit nursing home company first acquired such property...

Pursuant to this section, limited-profit nursing home companies are entitled to an exemption as a matter of law in the amount of the increased assessed value of the property. The assessor should contact the appropriate representative of such company in order to acquire any needed statistical information to compute the exemption. Once the amount of the exemption is determined it should be entered on the exempt portion of the assessment roll.

May 1, 1974