Property Tax Alert–New York

December 2004

A privately operated parking garage on county-owed land was exempt from New York property tax because it was being used for a public purpose and the county retained beneficial ownership. The county was the primary beneficiary of insurance proceeds; however the terms of the lease dictated that the company had the right to claim depreciation and a portion of excess insurance in the event of a total loss. These and other factors indicated that the county exercised such dominion and control over the garage as to warrant a finding that it retained beneficial ownership. The fact that the lease specifically provided that the garage was to be built to provide parking so that the public could access the adjacent arena indicated that the garage was held for a public purpose.

Please contact Rash & Associates for more information.