Court Says (Again) Playland Exempt from Tax, City of Rye Fails in Appeal

(This story was updated on 4/17 at 2pm with comments from the County.)

The Supreme Court of the State of New York affirmed on Wednesday that Playland Park is exempt from tax. The decision is a win for the County and for Standard Amusements, the private park operator that is now in a separate battle with Westchester to unwind its operating agreement with the County. It is a headache for the City of Rye, as it has been banking on a $3.6 million tax bill being paid by Standard. The City (and the school district, the largest beneficiary of property tax dollars) will now need to find those funds elsewhere.

Back on May 26, 2022 in a letter to the Westchester County Tax Commission, the City of Rye notified the County of a change in the tax exempt status of Playland Park and announced it would send Standard Amusements a tax bill of $3.6 million in the Spring of 2023. Rye argued that because the park was then being run under a long term contract with Standard Amusements, the park was no longer public and hence taxable. On September 26, 2023 the State Supreme Court ruled that the City was not going to get its tax money.

It is Rye’s appeal of the 2023 decision that was rejected on Wednesday.

“[The City of Rye] failed to raise a triable issue of fact as to whether Playland Park is subject to taxation. Contrary to the appellants’ contention, the management agreement did not confer ownership of the property upon Standard Amusements, said the Supreme Court of the State of New York. “…the County contracted with Standard Amusements to manage Playland Park, and Standard Amusements did not exercise such “dominion and control” over the property so as to transfer ownership to Standard Amusements, which would justify revocation of the tax exemption.”

“The Appellate Division decision is disappointing,” Rye Mayor Josh Cohn told MyRye.com Wednesday evening. “We are just assessing its ramifications and will need to decide if we appeal further. As I stated in my recent Mayor’s Message, when others on the Council and I learned that the City’s attorney and City Manager were suggesting that the City’s independent Assessor consider making Playland taxable, we insisted repeatedly that the City’s attorney review her assurances. Although, the equitable basis of taxing Playland still seems strong given the enormous role the for-profit Standard Amusements then had (and the value of the services the City provided), it appears that the legal basis is being rebuffed.”

In response to the ruling Westchester County Executive Ken Jenkins said: “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.”

While this single legal chapter appears complete, other Playland induced sagas continue including: 1. Rye accounting for the $3.6 million tax bill that will never be paid; 2. Rye still picking up the tab for public safety calls (police, fire, EMS) to Playland; 3. The County and Standard Amusements unraveling their agreement in court and 4. If the County will successfully open and operate the park this summer.

Read Wednesday’s decision.