In a very important decision with significant and potentially broad ramifications, the Second Department ruled that Real Property Tax Law Section 420-a applied to the residence of NMB client Harrison Orthodox Minyan’s Torah reader, because the home was “utilized primarily in furtherance of exempt purposes.” The opinion began with “[t]his appeal provides this Court with an opportunity to clarify the standards courts should consider when deciding whether a covered not-for-profit corporation is entitled to a full tax exemption pursuant to RPTL 420-a for property allegedly utilized primarily in furtherance of exempt purposes.” This decision will likely prove to be a lead case upon which many courts will rely to determine similar matters.
The decision was covered by Bloomberg. The full opinion can be viewed here.