The Appellate Division of the New York State Supreme Court has determined that Playland Park in Rye was tax exempt during the period it was operated by Standard Amusements, leading to a disputed $3.6 million tax bill.
Westchester County Executive Ken Jenkins confirmed, “Westchester County has always maintained that Playland Park should have never been removed from tax exempt status by the City of Rye. The unnecessary legal expenses, the consequences of the self-inflicted negative financial impact to both the City of Rye and the Rye School District on this ill-advised change of tax status cannot be understated.”
In May 2022, the City of Rye informed the Westchester County Tax Commission about the change in the tax exempt status for Playland, planning to charge Standard Amusements a tax bill of $3.6 million. The City justified this by arguing that since Playland Park was operated under contract and not for public use, it was taxable.
This week, the Appellate Division of the New York State Supreme Court rejected the City of Rye’s appeal. The court clarified that since ownership of the Park had not been officially transferred to Standard Amusements and it was operated under contract as a public park, the tax exemption removal was unfounded.
The complete ruling from the Supreme Court provides detailed insights into the decision.
