NY Real Prop Tax L § 485-Q (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 485-Q - Residential Investment Exemption; Certain Cities.

§   485-q.   Residential  investment  exemption;  certain  cities.  1. Residential real property constructed on or after the first day of July, two thousand fourteen in cities with  a  population  of  not  less  than thirteen  thousand  five  hundred  and  not more than fourteen thousand, determined in accordance with the latest decennial census, may be exempt from city taxation and special ad valorem levies  as  provided  in  this section.   2. (a) (i) Such 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 construction and for an  additional  period of nine years provided, however, that the extent of such exemption shall be  decreased by five per centum each year during such additional period of nine years and such exemption shall be computed with respect  to  the "exemption  base".  The exemption base shall be the increase in assessed value as determined  in  the  initial  year  of  such  ten  year  period following  the  filing of an original application, 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 the 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) The following table shall illustrate the computation of the city tax exemption:        Year of exemption                      Percentage of exemption               1                                        50               2                                        45               3                                        40               4                                        35               5                                        30               6                                        25               7                                        20               8                                        15               9                                        10              10                                         5  (b) No such exemption shall be granted unless:  (i)  such  construction  was  commenced  on  or after the first day of January, two thousand fourteen or such later date as may be specified by local law;  (ii)  the  residential  real  property  is  situate  in  a city with a population of not less than thirteen thousand five hundred and not  more than  fourteen  thousand,  determined  in  accordance  with  the  latest decennial census;  (iii) the cost of such construction exceeds the sum of thirty thousand dollars or such greater amount as may be specified by local law; and  (iv)  such  construction  is  completed  as  may  be  evidenced  by  a certificate  of occupancy or other appropriate documentation as provided by the owner.  (c) For purposes of this  section  the  term  construction  shall  not include ordinary maintenance and repairs.   3.  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 of a city with a population of  not  less  than  thirteen  thousand  five  hundred and not more than fourteen thousand, determined in accordance with  the  latest  decennial census,  on  or  before the appropriate taxable status date of such city and within one year from the date of completion of such construction.   4. If the assessor is satisfied that the applicant is entitled  to  an exemption  pursuant  to  this  section,  he  or  she  shall  approve the application and such real  property  shall  thereafter  be  exempt  from taxation  and  special  ad valorem levies by a city with a population of not less than thirteen thousand five hundred and not more than  fourteen thousand,  determined in accordance with the latest decennial census, as provided in this section commencing with the  assessment  roll  prepared after  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. The provisions of this section shall apply to real property used as the primary residence of the owner.   6. 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.   7. A city with a population of not less than  thirteen  thousand  five hundred  and  not  more than fourteen thousand, determined in accordance with the latest decennial census, may, by  local  law,  reduce  the  per centum   of  exemption  otherwise  allowed  pursuant  to  this  section; provided,  however,  that  a  project  in  course  of  construction  and exemptions existing prior in time to passage of any such local law shall not  be  subject  to  any  such  reduction  so  effected. Such city upon reduction of the per centum of exemption pursuant  to  this  subdivision may thereafter, by local law, increase the per centum of exemption up to any  per  centum not exceeding the maximum allowed by subdivision two or eleven of this section, whichever is applicable, provided, however, that any such local law shall apply only to construction commenced subsequent to the effective date of such local law. A copy of all such  local  laws shall be filed with the commissioner and the assessor of the city.   8.  A  city  with a population of not less than thirteen thousand five hundred and not more than fourteen thousand,  determined  in  accordance with  the  latest  decennial census, may, by local law, establish a date for the commencement of effectiveness of exemption offered  pursuant  to this  section  and may provide that the provisions of this section shall apply only to construction having a greater value than that specified by  subdivision two of this section, provided,  however,  that  such  amount shall not exceed seventy thousand dollars.   9.  (a)  A  city  with a population of not less than thirteen thousand five  hundred  and  not  more  than  fourteen  thousand,  determined  in accordance  with  the  latest  decennial  census,  may,  by  local  law, establish a board to be known as the residential  incentive  board.  The membership and composition of such board shall be set forth in the local law.  (b)  The  residential  incentive  board  shall  present  a plan to the legislative body of a city with a population of not less  than  thirteen thousand five hundred and not more than fourteen thousand, determined in accordance  with  the  latest  decennial  census, concerning the various types of residential real property which should be  granted  eligibility for  an exemption pursuant to subdivision one of this section. Such plan shall make a recommendation as to whether the exemption be  computed  as provided in subdivision two or eleven of this section. In addition, such plan   shall  identify  specific  geographic  areas  within  which  such exemptions should be offered. In developing the plan  required  by  this paragraph,  the  board  shall consider the planning objectives of a city with a population of not less than thirteen thousand  five  hundred  and not  more  than  fourteen  thousand,  determined  in accordance with the latest  decennial  census,  the  necessity  of  the  exemption  to   the attraction  or  retention of home owners and the economic benefit to the area of providing exemptions to home owners.  (c) In addition, the board may make recommendations to the legislative body of a city with a population of not less than thirteen thousand five hundred and not more than fourteen thousand,  determined  in  accordance with  the  latest  decennial  census,  with  respect to actions it deems desirable to improve the economic climate therein.   10. If a city with a population of not  less  than  thirteen  thousand five  hundred  and  not  more  than  fourteen  thousand,  determined  in accordance with the latest decennial census, establishes  a  residential incentive board, pursuant to subdivision nine of this section, such city may,  by  local  law,  restrict  real  property  eligible to receive the exemption to real property constructed for those purposes identified  in the  plan  presented  by  the  board.  Such local law shall restrict the availability  of  such  exemption  to  the  specific  geographic   areas identified in the plan presented by the board.   11. Notwithstanding subdivision two of this section, where a city with a  population  of  not  less than thirteen thousand five hundred and not more than fourteen thousand, determined in accordance  with  the  latest decennial  census,  adopts restricted exemptions pursuant to subdivision ten of this section, the local law  may  provide  that  such  exemptions shall  be  computed  pursuant  to  the  following  accelerated strategic exemption schedule:        Year of exemption                      Percentage of exemption               1                                        50               2                                        45               3                                        40               4                                        35               5                                        30               6                                        25               7                                        20               8                                        15               9                                        10              10                                         5    Provided however, that such local law shall:  (i)  contain  findings that the adoption of this accelerated strategic exemption  schedule  is  necessary  to  encourage  targeted  residential development,  and  that  the  value  of the exemptions to be provided is justified by the need to broaden the tax base; and  (ii) limit the applicability of such schedule to  projects  where  the cost  of  such construction exceeds the sum of seventy thousand dollars; and  (iii) provide that such exemptions are restricted by geographic  areas as provided by subdivision ten of this section.