NY Real Prop Tax L § 421-O (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 421-O - Exemption of Capital Improvements to Multiple Dwelling Buildings Within Cert Ain Cities.

* §  421-o.  Exemption  of  capital  improvements to multiple dwelling buildings  within  certain  cities.  1.  Multiple  dwelling   buildings, reconstructed,  altered,  converted  back  to  an  owner occupied single family dwelling located in any city having a  population  of  more  than eight  thousand  inhabitants  but  fewer than nine thousand inhabitants, that  is  located  in  a  county  having  a  population  of  more   than ninety-seven  thousand  inhabitants  but fewer than ninety-nine thousand inhabitants, determined in accordance with the latest federal  decennial census,  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 such city may adopt a local law to  grant  the  exemption  authorized pursuant  to  this section. A copy of such local law shall be filed with the commissioner  and  the  assessor  of  such  city  who  prepares  the assessment roll on which the taxes of such city are levied.   2. (a) Such buildings within such city shall be exempt for a period of one  year  to  the  extent  of  one  hundred  percent of the increase in assessed  value  attributable  to  such  reconstruction,  alteration  or improvement  and for an additional period of eleven years subject to the following:  (i) The extent of such exemption  shall  be  decreased  by  eight  and one-third  percent  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 one hundred thousand dollars in increased market value, or such  other  sum  less  than  one  hundred thousand  dollars,  but  not  less  than  ten 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 most recently established state equalization rate  for  such  city.  Where  the  state equalization  rate  or  special  equalization  rate  equals  or  exceeds ninety-five percent, 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  converted  improvement  was commenced  subsequent  to  the  effective  date of the local law adopted pursuant to subdivision one of this section by such city;  (ii) the value  of  such  reconstruction,  alteration  or  improvement exceeds five 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.   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 such city on or before the appropriate taxable status date of such city.   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  provided  in  this  section  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  purposes  of  this  section,  an owner occupied single family dwelling shall mean any building or structure designed and  occupied  as the temporary or permanent residence or home of one family.   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.   7. (a) The enactment of a local law in such city may:  (i) reduce the percent 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 residence building  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 shall reduce  or  repeal  an  exemption  granted pursuant  to  this  section until the expiration of the period for which such exemption was granted.   * NB There are 2 § 421-o's