WHITE PLAINS, NY (April 17, 2025) — The Appellate Division of the New York State Supreme Court has ruled that Playland Park in Rye remains tax-exempt, rejecting the City of Rye’s attempt to impose a $3.6 million tax bill on the property managed by Standard Amusements, LLC, in a significant victory for Westchester County.
The decision, issued on April 16, 2025, affirms a September 2023 Supreme Court order granting Westchester County and Standard Amusements’ motion to annul the 2022 tax assessment on Playland Park, restore its tax-exempt status under Real Property Tax Law (RPTL) 406(1), and refund any overpaid taxes. The ruling stems from a dispute initiated when Rye’s Assessor, in a May 26, 2022 letter, declared Playland Park taxable, arguing that Standard Amusements, under a 2021 management agreement, was the beneficial owner and the park was no longer operated for public use.
Westchester County Executive Ken Jenkins hailed the decision, stating, “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.”
The court found that Playland Park, owned by Westchester County, remains exempt under RPTL 406(1), which grants tax exemptions to municipally owned property held for public use. The management agreement with Standard Amusements did not transfer ownership, as it required the company to “manage and operate Playland Park consistent with its current recreational uses as a public park facility” and submit plans for county approval. The agreement explicitly stated that no land, building, or interest in Playland Park was sold or leased.
The City of Rye, its Assessor, and Board of Assessment Review argued that Standard Amusements’ management role justified revoking the exemption. However, the court ruled that the company did not exercise “dominion and control” over the property to warrant taxation, affirming that the county retained ownership and the park served a public purpose.
The legal battle began when Westchester County and Standard Amusements filed a petition on October 13, 2022, challenging the 2022 tax assessment after the city’s Board of Assessment Review denied their grievances. The Supreme Court’s September 2023 ruling, now upheld, found Rye failed to prove Playland Park was taxable.
The decision relieves Westchester County of the $3.6 million tax bill and underscores the financial and legal misstep by Rye, which delayed proceedings by seeking adjournments to respond to the county’s petition. The full ruling is available here.