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A Guide for Church Trustees
II. Real Estate
All real property in the City of New York is identified by a "Block" and "Lot" number. The Trustees should maintain records on each separate property owned by the Congregation, including such documents as the deed, the New York City Tax Assessment Information and any leases or use of property by other entities with specific information regarding each usage.
Real Estate Taxes
Generally speaking, property which is owned by a religious organization and used by a religious organization for religious or charitable purposes is exempt from real estate tax.
An exemption application must be made to the New York City Department of Finance in order to qualify for exemption from real property taxes. Annual renewal applications must be filed before January 5th each year. Whenever there is a change in use of a property, you are required to notify the City of the change in use and it will determine whether or not the exemption should be maintained.
When property becomes surplus or is used by outside or other entities, it is likely to become subject to real estate taxation, as an example when the rent received by the Congregation is greater than its expense in connection with that specific property. Prior to considering any proposal for lease or use of congregation property, the real estate tax questions should be seriously considered. The information which is supplied regarding assessed valuation of property herein, we hope can provide a guideline for an analysis of potential real estate tax.
Water Bills
As a rule, Congregations and Schools are exempt from Water and Sewer charges. Rectories, manses, and parsongages, as residences, are not exempt from charges nor are most leased premises.
The exemption applications for the Department of Environmental Protection ("DEP") are different from Real Estate Tax exemption applications and once again your Congregation's Attorney or legal advisor should file all necessary documents for the obtaining of the exemption.
The most common problems with water bills are overcharges and incorrect billing information. The best way to address these problems is with patience and the proper information. In the property description section contained herein, we have included information in regard to each property's status as exempt or not as well as your water meter numbers. You should verify the accuracy of this information by having your maintenance person inspect your water meters for correct numbers, etc.
Sidewalk Repairs
The general rule is, "No one is exempt from paying for services actually rendered," therefore if the work is done the charges should be paid. However, unnecessary work and substandard work may be challenged to the Comptroller's Office but this must be done in a timely manner and only after all other remedies have been exhausted.
A common practice of the City of New York occurs when construction is about to begin on a street that may affect the sidewalk, such as street widening or installing new water mains. An inspector will come to issue violations on the sidewalk. The owner will be responsible then to pay for any repair work which is done to its sidewalk which had a violation on it. This practice can be challenged if no violation exists, however, it requires quick and early intervention and your Congregation's Attorney or legal advisor is equipped to guide you in this matter. We recommend such practices as taking pictures of your sidewalks at the time the violations are issued.
There has been a recent change in the law effectively transferring liability for injuries which occur on sidewalks from the City of New York to the abutting property owner.