New York Democrats Want to Rescind Madison Square Garden’s Property Tax Exemption (EXCLUSIVE)

Albany. Perhaps Madison Square Garden’s sweetheart’s property tax exemption time is ticking away.

Senate Democrats are including a measure in their budget bill that would remove a long-standing tax break that MSG owner James Dolan has enjoyed for more than four decades, a source familiar with the proposal told the Daily News on Monday.

The move comes amid backlash over the controversial use of facial recognition technology at the Garden and other properties owned by Dolan.

The “world’s most famous arena” received a property tax exemption that was enshrined in state law when the Knicks and Rangers threatened to leave the city in the early 1980s.

Exterior view of Madison Square Garden

But amid ongoing public spats and legal battles over a critics ban and an arena liquor license, Dems is eyeing a repeal of the exemption, which saves Dolan an estimated $43 million a year.

The measure, to be included in the Senate budget plan, would remove Madison Square Garden’s tax-exempt status and funnel all future property tax revenue to the cash-strapped Metropolitan Transportation Authority, according to the bill’s wording provided by The News.

Including repeal in the Senate’s budget proposal is no guarantee that it will make it into the state’s final spending plan, which is due out by April 1. the next few weeks.

While Dolan has clashed with several Democrats in recent months over his ban on critics from the venue, he and his family are big supporters of the governor. Last year, members of the Dolan family poured hundreds of thousands of dollars into Hochul’s campaign coffers when she narrowly defeated Republican Lee Zeldin.

James Dolan, Executive Chairman of Madison Square Garden Sports Corp.

The New York Recovery Coalition, a political action committee founded by Dolan, also spent more than half a million dollars on advertising in support of the Democratic governor.

Sen. Brad Hoylman-Segal (D-Manhattan), whose district includes MSG, is a vocal critic of Dolan, who has previously supported the removal of tax credits.

In recent months, Hoylman-Segal has publicly feuded with Dolan over MSG’s use of surveillance and facial recognition technology to keep opponents out of the arena and his other famous properties, including Radio City Music Hall.

Earlier this year, the legislator wrote a bill that would add sporting events to the current law that would prohibit “wrongful denial” of visitors with valid tickets to “places of public entertainment or entertainment.” He also attended a rally to end MSG’s tax break on Friday.

“Madison Square Garden is receiving an incredibly generous subsidy that, quite frankly, has outlived its useful purpose and outlasted it 30 years ago,” Hoylman-Segal told The News. “They are not a church, they are not a non-profit organization; they benefited from four decades of government officials looking the other way.”

In a statement, a MSG spokeswoman took aim at Hoylman-Segal’s support for tax breaks for film and other industries when asked about the new proposal.

“Our tax credits are no different than the government subsidies that every stadium and arena in New York and the state receives, and are, in fact, hundreds of millions of dollars less than most other places,” the spokeswoman said. “Where is the withdrawal of subsidies for all other teams and stadiums across the state?”

Dolan’s troubles intensified over the weekend. The state liquor administration threatened to revoke MSG’s license to sell alcohol in the arena, as well as Radio City and the Beacon Theater, due to a ban on lawyers involved in the lawsuit against Garden.

MSG filed an injunction in court preventing the state from imposing any ban on the sale of alcohol in its establishments on Saturday.

Earlier this year, State Attorney General Letitia James asked Dolan in a letter to “justify the company’s policy” of keeping some fans out of his venues.

She said research suggests that the company’s use of facial recognition software “may be associated with prejudice and false positives” against people of color and women.

Dolan defended the politics and use of surveillance technology in a fiery Fox 5 “Good Day, New York” speech in January.

“If someone is suing you, it’s a confrontation,” he said. “If you’re being sued, you don’t have to invite that person into your home.”

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