Lincoln Center, with properties valued at $1.1 billion, is exempt from property tax as a cultural institution. Image credit: Matthew Bisanz
A long-standing feature of American tax policy is the exemption granted to nonprofit organizations, the largest of which is the exemption from local property taxes. The exemption, with origins back to the 18th century, is widespread. Among the 50 states, 17 state constitutions mandate property tax exemptions for charitable organizations, 25 authorize the legislature to give exemptions, and eight do not address the issue. New York State establishes two classes of exemptions for nonprofits: mandatory property tax exemptions apply to religious, educational, hospital, mental health and certain other charitable institutions; permissive exemptions are given to most other nonprofits, but localities may remove them. New York City has not passed any limiting local legislation.
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Stuyvesant High School in Manhattan. Image credit: CityLand
(Editor’s Note: The Department of Education recently released statistics on the first round of 2015 admissions for New York City’s examination high schools. According to their report, offers to join the 2015-2016 incoming class at Stuyvesant High School counts just ten African-American and twenty Latino students. The following by Professor Aaron Saiger of Fordham University’s School of Law was published in the January/February issue of CityLaw.)
New York City is experiencing one of its periodic flare-ups over its eight selective “examination” high schools. As in the past, attention has focused upon what a United Federation of Teachers task force calls “the profound inequity in the admissions demographics” at the exam schools. UFT, Redefining High Performance for Entrance into Specialized High Schools 3 (March 2014). This inequity results from these schools’ practice of admitting students based exclusively upon scores on the standardized Specialized High Schools Admissions Test. Because the exam schools now function as one component in the broader current system of citywide high school choice, however, it is possible to argue that their test-only admissions in fact enhance the diversity of the system overall, their racial demographics notwithstanding.
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Under ordinary circumstances the City may not enter into a contract with a vendor when the City finds that the vendor is not responsible because of tax, criminal, financial, ethical or performance reasons. It may not always be in the City’s interests, however, to refuse to deal with the vendor. One option available to the City that allows the City to continue to do business with such a vendor is an Independent Private Sector Inspector General Agreement, a so-called IPSIG.
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Illustration: Jeff Hopkins.
Over 72 million Americans are considered clinically obese. With the increased emphasis on diet and exercise, gyms are turning up everywhere throughout New York City. Owning and operating a gym is not a simple process. Gym owners face zoning restrictions, permit requirements, and potential tort liability. (read more…)
