Not-For-Profit (NFP) Organization Property Tax Exemptions/Reductions

The 2017/18 Renewal Period has ended.

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. Be sure to read all instructions carefully and submit required documentation. Incomplete submissions will delay processing.

  • Complete Section 1 - Property Information
  • Complete Section 2 - Owner Information
  • Complete Section 3 - Organizational Purpose
  • Complete Section 4 - Federal Income Tax Status of Organization (attach IRS determination letter)
  • Complete Sections 5 through 7 - Property Use
  • Complete Affidavit (sign and notarize)

Required Documentation

  • Articles of Incorporation (If you are leasing any part of the parcel to a not-for-profit, attach that organization's Articles)
  • By-laws (If you are leasing any part of the parcel to a not-for-profit, attach that organization's By-laws)
  • Deed (if parcel is in Staten Island or not recorded in ACRIS)
  • Certificate of Occupancy
  • If leasing, attach the lease
  • If applying for a parsonage, attach ordination document
  • If applying for contemplated use, attach building plans/architect's drawing or Department of Buildings permit or evidence of building fund

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. Please complete your form(s) by January 5, 2018. Enter the User ID and password you received in our October letter.

Go to www.nyc.gov/commercialexemptions

Frequently Asked Questions

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; and
  • 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 Taxes 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.


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