http://www.recordonline.com/archive/2003/04/27/bl427edi.htm
N.Y.: Put the brakes on the free rides
"New York state is one of most generous states in the union toward tax exempts. That is not why we are here, but as long as that is the law, we will take advantage of what the law provides."
– Kirby Flodin, facilities manager at Jehovah's Witness Watchtower facility in Shawangunk, the largest not-for profit in the area with nearly $120 million in land.
And that's why it's time for New York state to become a bit more stingy on who gets a tax break, because as the law stands now, the "haves" are getting a free ride while the "have-nots" are paying the tab.
And that's why we support the efforts by state Sen. John Bonacic and Sen. Elizabeth Little, who have introduced legislation to tighten what they perceive as loopholes and abuse of the tax system in New York.
Counties, cities, towns and villages in the mid-Hudson and Catskills are losing millions of dollars from not-for-profit organizations. On average, nearly 16 percent of all the property in these municipalities is tax exempt in some fashion (not-for-profit, STAR, veterans, government). In some of our towns (Fallsburg, Goshen and Highlands) more than 40 percent of the property is off the rolls.
The problem for municipalities is the lack of a definitive definition for not-for-profit organizations, as well as an inability to tax property owned by these organizations, but not directly used for not-for-profit purposes.
Religious groups, the Boy Scouts of America and YMCA, for example, can purchase property not used exclusively for the purpose of the group – or use a site for just two months of the year – and still receive a full tax exemption.
An investigation by the Times Herald-Record found some real examples:
-- The Boy Scouts of America's New York City council, based in Manhattan, owns 8,000 acres in the Sullivan County Town of Tusten. A few miles away in the Sullivan Town of Forestburgh, two New Jersey-based Boy Scout troops not only own tax-exempt property, but sell timber from the tax-free land and keep the profits.
-- The Buddhist Society of Wonderful Enlightenment bought a 197-acre farm in the Town of Crawford in Orange County. The group has its mail sent to its New York City address. It has not built anything new on the property. And it pays no taxes on it.
"In 30 years the courts have interpreted what is charitable, what is education, what is 'moral betterment.' It is anything you want it to be. Anyone can come in and file a 503 [not-for-profit-status] and your hands are tied," Bonacic says.
He spent weeks touring the three counties, hearing from property owners upset that their taxes rise every year, while at the same time an increasing number of organizations move down the road, claim an exemption and live tax-free.
Bonacic says it's time for a change to the tax-exempt system in this state and we couldn't agree more. The free rides must end soon, because more of us just can't afford to get behind the wheel.