NY Real Prop Tax L § 485-T (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 485-T - Owner Occupied Residential Property Exemption Program.

§  485-t.  Owner  occupied  residential property exemption program. 1. Definitions. As used in this section, the following terms shall have the following meanings:  (a) "Applicant" means any person obligated to pay real property  taxes on real property, which he or she owns and upon which he or she resides, or  will reside and for which an exemption from taxes under this section is sought.  (b) "Municipality" means any city having a population of not less than thirty-one thousand one hundred  forty  and  not  more  than  thirty-one thousand one hundred fifty as determined by the latest federal decennial census.  (c)   "Residential   construction   work"   means  (i)  the  creation, modernization, rehabilitation, expansion or other improvement of  single family  or  two  family  residential  property  that  is vacant, legally condemned and has outstanding state and local  building  and  fire  code violations,  where  the  cost  of  remedying such violations exceeds the value of such property; or  (ii) the construction of a new single or two family residence  of  not less  than one thousand two hundred square feet on a parcel upon which a prior structure was demolished.   2. A municipality, may, by local law, provide  for  the  exemption  of owner   occupied   residential  property,  which  has  been  subject  to residential  construction  work,  from  taxation  as  provided  in  this section.  Subsequent  to the adoption of such a local law, the county in which such municipality is located may, by local  law,  and  any  school district,  all or part of which is located in such municipality, may, by resolution, exempt such property from its taxation in  the  same  manner and to the same extent as such municipality has done.   3.  Upon  the  adoption  of  such  a  local  law  the  owner  occupied residential  property  that  was  created,  modernized,   rehabilitated, expanded  or  otherwise  improved,  shall  be  exempt  from taxation and special ad valorem levies as provided for in subdivision  four  of  this section.   4.  (a)  (i) For a period of eleven years following the approval of an application,  the  increase  in  assessed   value   of   such   property attributable  to such creation, modernization, rehabilitation, expansion or other improvement shall be exempt as provided in subparagraph (ii) of this paragraph. Such exemption shall be computed  with  respect  to  the "exemption  base".  The exemption base shall be determined for each year in which there is an increase in assessed  value  so  attributable  from that of the previous year's assessed value.  (ii)  The  following  shall  determine  the  computation  of  the  tax exemption:  Year of exemption   Percentage of exemption    1 through 3      100% of exemption base    4 through 5      80% of exemption base    6 through 7      60% of exemption base    8 through 9      40% of exemption base    10 through 11    20% of exemption base  (b) No such exemption shall be granted unless:  (i) such creation, modernization, rehabilitation, expansion  or  other improvement   was   commenced  subsequent  to  the  date  on  which  the municipality's local law took effect;  (ii)  the  cost  of  such  creation,  modernization,   rehabilitation, expansion  or  other improvement exceeds the sum of ten thousand dollars or such greater amount as may be specified by local law;  (iii) the building department has issued a  certificate  of  occupancy following the completion of the residential construction work; and  (iv)  the  property complies with all applicable codes and zoning laws of the city.  (c) For purposes of this section the  term  "creation,  modernization, rehabilitation,  expansion  or  other  improvement"  shall  not  include ordinary maintenance and repairs.  (d) No such exemption shall be granted concurrent with  or  subsequent to   any   other  real  property  tax  exemption  granted  to  the  same improvements to real property, except, where during the period  of  such previous  exemption,  payments  in  lieu of taxes or other payments were made to the municipality in an amount that would have been equal  to  or greater than the amount of real property taxes that would have been paid on  such  improvements  had  such  property  been  granted  an exemption pursuant to this section. In such case, an exemption  shall  be  granted for  a  number  of  years  equal  to  the  eleven year exemption granted pursuant to this section less the number of  years  the  property  would have been previously exempt from real property taxes.   5.  (a)  Such  exemption  shall be granted only upon application by an owner who resides or certifies that he or she will reside  on  the  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.  (b) Such application must include information that discloses the scope of work to be undertaken and shall contain cost estimates and quotes for such  work  from  contractors,  plumbers and electricians licensed to do business within the municipality.  (c) The application and the scope of work shall  be  reviewed  by  the municipal  housing code enforcement officer and the appropriate fire and building code enforcement officer who shall  ensure  that  all  proposed work  complies with the provisions of the New York state fire prevention and building code and all applicable municipal codes and ordinances.   6. 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  as provided in this section commencing with the assessment roll prepared after  the  taxable  status date referred to in subdivision five 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.