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

§ 421-l. Exemption of capital improvements to residential buildings in certain   towns.   1.   Residential   buildings  designed  and  occupied exclusively for residential purposes by not  more  than  three  families that  are 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 town  with  a population of not less than sixteen thousand three hundred fifty and not more than sixteen thousand three hundred  sixty,  situated in  a  county  with  a population of not less than nine hundred nineteen thousand and not more than nine hundred nineteen thousand  one  hundred, based upon the two thousand ten federal census, may adopt a local law to grant  the  exemption authorized pursuant to this section. Subsequent to the adoption of such a local law, the  county  in  which  such  town  is located,  any  village  located within such town and any school district all or part of which is located within such  town  may  likewise  exempt such  property  from its taxation and special ad valorem levies by local law, or in the case of a school district,  by  resolution  in  the  same manner  and to the same extent as the town. A copy of such local laws or resolutions  shall  be  filed  with  the  commissioner  and  appropriate assessor.   2.  Such residential real property shall be exempt for a period of one year to the extent of fifty per centum of the increase in assessed value thereof attributable to such reconstruction, alteration  or  improvement and for an additional period of four years subject to the following:  (i)  The extent of such exemption shall be decreased by ten per centum of the "exemption base"  each  year  during  such  additional  four-year period,  such  that during year two there shall be an exemption of forty per centum of the  increase  in  assessed  value  thereof  attributable, during  year  three  there shall be an exemption of thirty per centum of the increase in assessed value thereof attributable, in year four  there shall  be  an exemption of twenty per centum of the increase in assessed value thereof attributable and in year five there shall be an  exemption of   ten   per   centum  of  the  increase  in  assessed  value  thereof attributable;  (ii) The "exemption base" shall be the increase in assessed value  due to  reconstruction,  alterations  or  improvements  as determined by the assessor in the initial year of  such  five-year  period  following  the filing of an original application; and  (iii) A qualified reconstruction, alteration or improvement shall have increased  the  assessed  value  of  the  real  property by at least ten thousand dollars, with a maximum permitted exemption not to  exceed  one hundred fifty thousand dollars.   3.  For  purposes  of  this section, "reconstruction", "alteration" or "improvement" shall not include ordinary maintenance and repairs.   4. Any owner of a one to three family residence  may  qualify  for  an exemption  pursuant  to this section, including owners who do not occupy such  residences,  individuals,  partnerships  and   limited   liability corporations.  Exemptions  granted  pursuant  to  this  section  are not transferable from owner to another if  the  real  property  is  sold  or transferred during the exemption period.   5. No such exemption shall be granted unless:  (a)  Such  reconstruction,  alteration  or  improvement  was commenced subsequent to the effective date of the local law or resolution  adopted by  a  town,  county, village or school district pursuant to subdivision one of this section;  (b) The owner  of  real  property  applying  for  such  exemption  has satisfied   all   outstanding  town,  county,  village  and  school  tax obligations; and  (c)  Such reconstruction, alteration or improvement is documented by a building permit, if required, for the improvements or other  appropriate documentation  as  required  by  the  assessor  and/or  code enforcement officer.   6. Such exemption shall be granted only upon application by the  owner of  such  real  property  on a form prescribed by the commissioner. Such application  shall  be  filed  with  the  assessor  on  or  before   the appropriate  taxable  status  date and within one year after the date of completion of such reconstruction, alteration or improvement.   7. 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  provided  in  this  section  commencing  with   the assessment  roll  prepared  on  the  basis  of  the  taxable status date referred to in subdivision six of this section. The assessor shall enter the assessed value of any exemption granted pursuant to this section  on the  assessment  roll  for  the taxable property, with the amount of the exemption shown in a separate column.   8. In the event that real property granted an  exemption  pursuant  to this  section  ceases  to  be  used primarily for eligible purposes, the exemption granted pursuant to this section shall cease.   9. Such town, county, village or school district shall be permitted by local law to reduce the percentage of exemption otherwise  allowable  by subdivision  two  of  this  section  or  increase  the  required minimum assessed values set forth in paragraph (iii) of subdivision two of  this section,  provided  that  a  project  in  the  course of reconstruction, alteration or improvement shall not be subject to such amendments.