Court Of Appeals Affirms Revocation Of Tax Exemption For Public Parking Facilities -

Reversing a decision by the Appellate Division, the Court of Appeals has held in a 5-2 decision that a charitable organization is not entitled to a continued exemption from real property taxes for the public parking facilities it owns and operates. Matter of Greater Jamaica Dev. Corp. v. New York City Tax Commission, N.Y. Decision No. 108 (July 1, 2015).

Facts. Greater Jamaica Development Corporation (“GJDC”) was formed in 1967 as a charitable not-for-profit corporation with a mission to promote the development of the business district of Jamaica, Queens. In 1998, it created Jamaica First Parking, LLC (“JFP”) to acquire, develop, and operate parking facilities in Jamaica on a nonprofit basis. JFP operated five facilities, four of which had formerly been operated by the New York City Department of Transportation, and the fifth of which was built on vacant land purchased from the City with monies received from the operation of the other four parking facilities. The parking facilities offered below-market rate parking accessible to local retail stores, state and federal office buildings, and religious organizations.