NY Real Prop Tax L § 421-F (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 421-F - Exemption of Capital Improvements to Residential Buildings and Certain New Construction.

§  421-f. * Exemption of capital improvements to residential buildings and certain new construction.   * NB Effective until January 1, 2026   * Exemption of capital improvements to residential buildings.   * NB Effective January 1, 2026 1. Residential buildings reconstructed, altered or  improved  subsequent to  the  effective  date  of  a local law or resolution pursuant to this section shall be exempt from taxation and special ad valorem  levies  to the  extent  provided hereinafter. After a public hearing, the governing board of a county, city, town or village may adopt a  local  law  and  a school  district,  other  than  a  school  district  subject  to article fifty-two of the education law, may adopt  a  resolution  to  grant  the exemption  authorized pursuant to this section. A copy of such local law or resolution shall be filed with the commissioner and the  assessor  of such  county,  city, town or village who prepares the assessment roll on which the taxes of such county, city, town, village or  school  district are levied.   * 1-a.  Buildings classified as class one property in section eighteen hundred two of this chapter reconstructed, altered, improved,  or  newly constructed  in  a  special  assessing  unit that is not a city shall be exempt from taxation  and  special  ad  valorem  levies  to  the  extent provided  hereinafter  in  the  same  manner  and  to the same extent to county, town, special district and school district taxes levied  on  the assessment  roll  prepared  by  such  special assessing unit. Additional buildings and yard improvements shall be excluded  from  receiving  this exemption.   An  application  shall  not  be  required  to  receive  the exemption.   * NB Repealed January 1, 2026   * 2. (a) Such buildings shall be exempt for a period of  one  year  to the  extent  of one hundred per centum of the increase in assessed value thereof attributable to such reconstruction, alteration or  improvement, and  new construction pursuant to subdivision one-a of this section, and for an additional period of seven years subject to the following:  (i) The extent of such exemption shall  be  decreased  by  twelve  and one-half  per  centum  of  the  "exemption  base"  each year during such additional period.  The  "exemption  base"  shall  be  the  increase  in assessed  value  as  determined  in  the initial year of the term of the exemption, except as provided in subparagraph (ii) of this paragraph.  (ii) In any year in which a change in level of assessment  of  fifteen percent or more is certified for a final assessment roll pursuant to the rules  of  the commissioner, the exemption base shall be multiplied by a fraction, the numerator of which shall be the total  assessed  value  of the  parcel  on  such  final  assessment  roll (after accounting for any physical or  quantity  changes  to  the  parcel  since  the  immediately preceding  assessment  roll),  and the denominator of which shall be the total assessed value of the parcel on the  immediately  preceding  final assessment  roll.  The  result  shall  be  the  new  exemption base. The exemption shall thereupon be recomputed to take  into  account  the  new exemption  base,  notwithstanding  the  fact  that the assessor receives certification of the change in level of assessment after the completion, verification and filing of the final assessment roll. In the  event  the assessor  does  not  have custody of the roll when such certification is received, the assessor shall certify the  recomputed  exemption  to  the local  officers  having  custody and control of the roll, and such local officers are hereby directed and  authorized  to  enter  the  recomputed exemption certified by the assessor on the roll. The assessor shall give written  notice  of such recomputed exemption to the property owner, who may,  if  he  or  she  believes  that  the  exemption   was   recomputed  incorrectly,  apply  for  a  correction  in the manner provided by title three of article five of this chapter for  the  correction  of  clerical errors.  (iii)  Except  in  a  special  assessing unit that is not a city, such exemption shall be limited  to  eighty  thousand  dollars  in  increased market  value,  or such other sum less than eighty thousand dollars, but not less than five thousand dollars as may be provided by the local  law or  resolution,  of  the  property  attributable to such reconstruction, alteration or improvement and any increase in market value greater  than such  amount  shall  not  be eligible for the exemption pursuant to this section. In a special assessing unit that is not a city,  the  exemption shall  be  limited  to seven hundred fifty thousand dollars in increased market value. For the purposes of this section, the market value of  the reconstruction,  alteration  or  improvement,  or  new  construction  as authorized by subdivision one-a of this section, shall be equal  to  the increased   assessed   value   attributable   to   such  reconstruction, alteration, improvement or new construction divided  by  the  class  one ratio in a special assessing unit or the most recently established state equalization  rate  or special equalization rate in the remainder of the state, except where the state equalization rate or special  equalization rate  equals  or exceeds ninety-five percent, in which case the increase in assessed  value  attributable  to  such  reconstruction,  alteration, improvement  or  new  construction  shall  be deemed to equal the market value of such reconstruction, alteration or improvement.  (b) Except in a special assessing unit that is not  a  city,  no  such exemption   shall   be   granted   for  reconstruction,  alterations  or improvements unless:  (i) such  reconstruction,  alteration  or  improvement  was  commenced subsequent  to the effective date of the local law or resolution adopted pursuant to subdivision one of this section; and  (ii) the value  of  such  reconstruction,  alteration  or  improvement exceeds three thousand dollars; and  (iii)  the greater portion, as so determined by square footage, of the building reconstructed, altered or improved is at least five years old.  (c) For purposes of this section the terms reconstruction,  alteration and improvement shall not include ordinary maintenance and repairs.   * NB Effective until January 1, 2026   * 2.  (a)  Such  buildings shall be exempt for a period of one year to the extent of one hundred per centum of the increase in  assessed  value thereof  attributable  to such reconstruction, alteration or improvement and for an additional period of seven years subject to the following:  (i) The extent of such exemption shall  be  decreased  by  twelve  and one-half  per  centum  of  the  "exemption  base"  each year during such additional period.  The  "exemption  base"  shall  be  the  increase  in assessed  value  as  determined  in  the initial year of the term of the exemption, except as provided in subparagraph (ii) of this paragraph.  (ii) In any year in which a change in level of assessment  of  fifteen percent or more is certified for a final assessment roll pursuant to the rules  of  the commissioner, the exemption base shall be multiplied by a fraction, the numerator of which shall be the total  assessed  value  of the  parcel  on  such  final  assessment  roll (after accounting for any physical or  quantity  changes  to  the  parcel  since  the  immediately preceding  assessment  roll),  and the denominator of which shall be the total assessed value of the parcel on the  immediately  preceding  final assessment  roll.  The  result  shall  be  the  new  exemption base. The exemption shall thereupon be recomputed to take  into  account  the  new exemption  base,  notwithstanding  the  fact  that the assessor receives certification of the change in level of assessment after the completion,  verification and filing of the final assessment roll. In the  event  the assessor  does  not  have custody of the roll when such certification is received, the assessor shall certify the  recomputed  exemption  to  the local  officers  having  custody and control of the roll, and such local officers are hereby directed and  authorized  to  enter  the  recomputed exemption certified by the assessor on the roll. The assessor shall give written  notice  of such recomputed exemption to the property owner, who may,  if  he  or  she  believes  that  the  exemption   was   recomputed incorrectly,  apply  for  a  correction  in the manner provided by title three of article five of this chapter for  the  correction  of  clerical errors.  (iii)  Such  exemption  shall be limited to eighty thousand dollars in increased market value, or such other  sum  less  than  eighty  thousand dollars,  but  not less than five thousand dollars as may be provided by the local law or  resolution,  of  the  property  attributable  to  such reconstruction,  alteration  or  improvement  and any increase in market value greater than such amount shall not be eligible for  the  exemption pursuant  to  this section. For the purposes of this section, the market value of the reconstruction, alteration or improvement shall be equal to the  increased  assessed  value  attributable  to  such  reconstruction, alteration  or  improvement  divided  by  the class I ratio in a special assessing unit or the most recently established state equalization  rate or special equalization rate in the remainder of the state, except where the  state  equalization  rate  or  special  equalization rate equals or exceeds ninety-five percent, in which  case  the  increase  in  assessed value  attributable  to  such  reconstruction, alteration or improvement shall be deemed to  equal  the  market  value  of  such  reconstruction, alteration or improvement.  (b) No such exemption shall be granted for reconstruction, alterations or improvements unless:  (i)  such  reconstruction,  alteration  or  improvement  was commenced subsequent to the effective date of the local law or resolution  adopted pursuant to subdivision one of this section; and  (ii)  the  value  of  such  reconstruction,  alteration or improvement exceeds three thousand dollars; and  (iii) the greater portion, as so determined by square footage, of  the building reconstructed, altered or improved is at least five years old.  (c)  For purposes of this section the terms reconstruction, alteration and improvement shall not include ordinary maintenance and repairs.   * NB Effective January 1, 2026   * 3. Except in a special assessing unit  that  is  not  a  city,  such exemption  shall  be  granted only upon application by the owner of such building on a form prescribed by the commissioner. The application shall be filed with the assessor of the city, town, village or  county  having the  power  to assess property for taxation on or before the appropriate taxable status date of such city, town, village or county. In a  special assessing  unit that is not a city, the exemption shall be applied based upon that completion of reconstruction, alteration, improvement  or  new construction  on  or  before  the  applicable taxable status date of the special assessing unit; provided, however that the  exemption  for  such reconstruction,   alteration,   improvement  or  new  construction  that occurred after the taxable status date of such  special  assessing  unit for the two thousand nineteen -- two thousand twenty assessment roll and on  or before the taxable status date of such special assessing unit for the two thousand twenty -- two thousand twenty-one assessment roll shall be applied beginning with the two thousand twenty-one  --  two  thousand twenty-two assessment roll.   * NB Effective until January 1, 2026    * 3.  Such  exemption  shall  be  granted only upon application by the owner of such building on a form prescribed  by  the  commissioner.  The application  shall be filed with the assessor of the city, town, village or county having the power to assess property for taxation on or  before the  appropriate  taxable  status  date  of  such city, town, village or county.   * NB Effective January 1, 2026   4. If satisfied  that  the  applicant  is  entitled  to  an  exemption pursuant to this section, the assessor shall approve the application and such  building  shall  thereafter be exempt from taxation and special ad valorem levies as herein provided commencing with  the  assessment  roll prepared  on  the  basis  of  the  taxable  status  date  referred to in subdivision three of this section. The assessed value of  any  exemption granted pursuant to this section shall be entered by the assessor on the assessment  roll  with  the  taxable  property,  with  the amount of the exemption shown in a separate column.   * 5. For the purposes of this section, except in a  special  assessing unit  that is not a city, a residential building shall mean any building or structure designed and occupied exclusively for residential  purposes by not more than two families.   * NB Effective until January 1, 2026   * 5.  For  the  purposes of this section, a residential building shall mean any building or structure designed  and  occupied  exclusively  for residential purposes by not more than two families.   * NB Effective January 1, 2026   * 6.  In  the  event  that a building granted an exemption pursuant to this section ceases to be used primarily for residential purposes, is no longer classified as class one property in a special assessing unit that is not a city, or title thereto is transferred to other than  the  heirs or distributees of the owner in other than a special assessing unit that is  not  a  city,  the  exemption granted pursuant to this section shall cease.   * NB Effective until January 1, 2026   * 6. In the event that a building granted  an  exemption  pursuant  to this  section  ceases  to  be used primarily for residential purposes or title thereto is transferred to other than the heirs or distributees  of the owner, the exemption granted pursuant to this section shall cease.   * NB Effective January 1, 2026   * 7.  (a)  Except  for  a special assessing unit that is not a city, a county, city, town or village may, by its local law, or school district, by its resolution:  (i) reduce the per centum of exemption otherwise allowed  pursuant  to this section;  (ii)   limit   eligibility   for  the  exemption  to  those  forms  of reconstruction, alterations or improvements as are  prescribed  in  such local law or resolution;  (iii)  provide  that  the  exemption shall be applicable only to those improvements which would otherwise result in an increase in the assessed valuation of the  real  property  but  which  consist  of  an  addition, remodeling  or  modernization  to  an  existing residential structure to prevent physical deterioration  of  the  structure  or  to  comply  with applicable building, sanitary, health and/or fire codes.  (b)  No  such  local  law  or  resolution  shall  reduce  or repeal an exemption granted pursuant to this section until the expiration  of  the period for which such exemption was granted.   * NB Effective until January 1, 2026   * 7.  (a)  A  county,  city, town or village may, by its local law, or school district, by its resolution:  (i) reduce the per centum of exemption otherwise allowed  pursuant  to this section;  (ii)   limit   eligibility   for  the  exemption  to  those  forms  of reconstruction, alterations or improvements as are  prescribed  in  such local law or resolution;  (iii)  provide  that  the  exemption shall be applicable only to those improvements which would otherwise result in an increase in the assessed valuation of the  real  property  but  which  consist  of  an  addition, remodeling  or  modernization  to  an  existing residential structure to prevent physical deterioration  of  the  structure  or  to  comply  with applicable building, sanitary, health and/or fire codes.  (b)  No  such  local  law  or  resolution  shall  reduce  or repeal an exemption granted pursuant to this section until the expiration  of  the period for which such exemption was granted.   * NB Effective January 1, 2026   8.  The  provisions  of  this section shall not apply to a city with a population of more than one million.