New York Assembly Bill A05778

New York 2025-2026 Regular Session

• Introduced: 2/20/25
• Refer: 2/20/25
• Refer: 1/7/26

Caption

Exempts certain not-for-profit corporations from the real estate transfer tax if such conveyance is to a food relief organization for the purpose of providing food for free to persons experiencing food insecurity.

Summary

A05778 would amend New York’s tax law to allow towns, by local law, to create a real estate transfer tax exemption for conveyances to certain food relief organizations. The bill defines a food relief organization broadly to include religious organizations and other tax-exempt not-for-profit corporations that provide food for free to people experiencing food insecurity, such as food pantries, food banks, and soup kitchens. In practical terms, the measure is aimed at reducing transaction costs when property is transferred to organizations that serve as emergency food providers. It would apply only where a town chooses to adopt the exemption, so the bill does not mandate a statewide tax break but instead authorizes local governments to offer one for qualifying charitable conveyances.

Impact

The bill would amend section 1449-ee of the Tax Law to add a new local-option exemption from the real estate transfer tax for conveyances to food relief organizations. This would affect towns that choose to enact the exemption and the not-for-profit entities receiving property for food assistance purposes, potentially lowering acquisition costs for facilities used as food pantries, food banks, soup kitchens, or similar charitable operations. The bill takes effect immediately and is structured to remain tied to the underlying section’s repeal provisions.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be framed as a targeted charitable tax relief proposal with an overall supportive policy rationale. Its focus on food insecurity and free food distribution suggests a socially beneficial purpose that would likely draw favorable attention from anti-hunger advocates, faith-based charities, and nonprofit service providers. No formal opposition or recorded controversy is available in the provided materials.

Contention

The main policy issue is the bill’s local-option structure: towns may, but are not required to, create the exemption, which could lead to uneven treatment across jurisdictions. Another possible point of contention is the breadth of the definition of “food relief organization,” which includes religious organizations and other tax-exempt nonprofits, potentially raising questions about eligibility, administration, and whether the tax benefit should extend to faith-based entities. No specific objections, amendments, or recorded dissent are included in the available history.