Source: https://www.tax.ny.gov/research/property/assess/manuals/vol4/pt2/sec4_07/sec423.htm
Timestamp: 2018-05-23 18:38:36
Document Index: 619556906

Matched Legal Cases: ['§125', '§125', '§423', '§125', '§125', '§125', '§125', '§125', '§125', '§423', '§423', '§125', '§423', '§125', '§423', '§125']

Section 4.07 - RPTL Section 423
(Continuation (phase out) of other housing exemption) RPTL Section 423
Exemption Code(s): â â 4869_
Year Originally Enacted: â â 1974
Related Statutes: â â PHFL § §125, 127
SUMMARY: â â New or rehabilitated dwellings that (1) are located in substandard or in sanitary areas, (2) are owned by redevelopment companies, (3) are used for low?income or moderate? income housing, (4) have come to the end of the exemption period specified by the contracting municipality in accordance with the provisions of PHFL §125, and (5) have not had such contracted exemption period extended are partially exempt from general municipal and school district taxes, but are liable for special ad valorem levies and special assessments. The duration of the exemption under RPTL §423 is limited to a period of 9 years, except in New York City, where the duration of this exemption is contingent on the property's exemption benefit period under PHFL §125.
Ownership Requirements: Property must be owned or under the control of a redevelopment company. The organizational requirements are as follows:
Property Use Requirements: Property must be used primarily for housing for low-income or moderate-income persons or families. For a description of the income limits for low-income tenants, see Chart ID, PHFL Article 5, 125, 126. The statute sets no limits on the income of moderate-income tenants. Portions of the property may be used for business, commercial, cultural, or recreational purposes if they are appurtenant to the housing project and have been approved by the NYC Department of Housing Preservation and Development or the comptroller or other chief fiscal officer of a municipality outside New York City, as appropriate.
2. Duration 9 years** 9 years** No
*Amount of the exemption is limited to the amount of assessed value approved by the local option provision of PHFL §125, but taxes payable for any given year are determined in accordance with the formula described under Calculation of Exemption below.
** Redevelopment projects located in New York City may not receive this exemption in any year in which the combined period of benefits under this exemption and the exemption provided under PHFL §125 would exceed 60 years.
General Municipal and School District Taxes: Amount of the exemption is limited to the amount of the assessed value exempted by the local option provision of PHFL §125, but taxes payable for any given year are determined in accordance with the following formula:
Year After Termination of
Exemption under PHFL §125
Taxes Which Will Be Payable
Tenth Y0 + 1/10(Y1 without ex. - Y0)*
Y1 + 1/9(Y2 without ex. - Y1)
Y2 + 1/8(Y3 without ex. - Y2)
Y3 + 1/7(Y4 without ex. - Y3)
Y4 + 1/6(Y5 without ex. - Y4)
Y5 + 1/5(Y6 without ex. - Y5)
Y6 + 1/4(Y7 without ex. - Y6)
Y7 + 1/3(Y8 without ex. - Y7)
Y8 + ½(Y9 without ex. - Y8)
*Y0 = Taxes paid in last year of PHFL §125 exemption
Y1 = Taxes paid in first year of RPTL §423 exemption
Y2 = Taxes paid in second year of RPTL §423 exemption
Y1 without ex. = Taxes that would have been payable in the first year after expiration of PHFL §125 exemption without the RPTL §423 exemption
Y2 without ex. = Taxes that would have been payable in the second year after expiration of PHFL §125 exemption without RPTL §423 exemption
4869_
NOTE: This code should not be used to identify property that is exempt under the provisions of PHFL § §125, 127 (first exemption) or is exempt under any of the statutes listed under Similar Exemptions below.