NY Real Prop Tax L § 421-B (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 421-B - Exemption of Certain Private Dwellings, Multiple Dwellings and Improvements From Local Taxation; Certain Cases.

§  421-b.  Exemption  of certain private dwellings, multiple dwellings and improvements from local taxation; certain cases.  1.  (a)  Within  a city having a population of one million or more, private dwellings (land and  improvements)  to  be  occupied  as a residence for the first time, whether newly constructed  or  resulting  from  the  conversion  of  any building  or  structure  to  a  private  dwelling,  and existing private dwellings previously occupied, reconstructed or improved to  the  extent of  at  least  forty  percent  of  their  assessed valuation without the improvement, shall be exempt from all local and municipal  taxes,  other than  assessments  for  local improvements, during the tax year or years next following the taxable status date or dates after  commencement  and before completion of construction, reconstruction or conversion thereof, but  for no more than two years after commencement of such construction, reconstruction or conversion, and shall be exempt from  such  local  and municipal  taxes  after  the earlier of completion of such construction, reconstruction or conversion or the end of  such  two  year  period,  as follows:  two  years  of  exemption from all such taxes; followed by one year of exemption from seventy-five percent of such taxes;  followed  by one year of exemption from sixty-two and one-half percent of such taxes; followed  by  one  year  of  exemption from fifty percent of such taxes; followed by one year of exemption from thirty-seven and one-half percent of such taxes; followed  by  one  year  of  exemption  from  twenty-five percent of such taxes; and followed by one year of exemption from twelve and  one-half  percent  of  such  taxes.  Notwithstanding  the foregoing provisions of this paragraph:  (i) exemption from  local  and  municipal taxes  under this section shall not be available to property exempt from such taxes under any other law; (ii) the tax lot (land and improvements) upon  which  the  private  dwelling  is  constructed,  reconstructed  or converted  shall at all times be subject to local and municipal taxes in an amount not less than the amount of local  and  municipal  taxes  that would  be  payable  thereon  based  upon  the  lesser  of  the  assessed valuation, during the tax year immediately preceding  the  tax  year  in which  such  construction,  reconstruction or conversion commenced or in the case of  new  construction,  the  assessed  valuation  of  the  land appearing  on  the assessment roll in the first year after completion of construction; and (iii) in the event that a  private  dwelling,  whether owner  occupied  or  not,  is  fully  demolished and removed on or after September first, two thousand four, the tax lot (land and  improvements) upon  which  such private dwelling was located shall not be eligible for exemption from local and municipal taxes under this section for a period of three years commencing upon the date of issuance  of  the  demolition and removal permit for such private dwelling.  (b) Within a city having a population of one million or more, multiple dwellings (land and improvements) containing not more than four dwelling units  to  be  occupied as a residence for the first time, whether newly constructed  or  resulting  from  the  conversion  of  any  building  or structure  to  a  multiple  dwelling,  and  existing  multiple dwellings containing not  more  than  four  dwelling  units  previously  occupied, reconstructed  or  improved  to  the extent of at least forty percent of their assessed valuation without the improvement, shall be  exempt  from all  local  and  municipal  taxes,  other  than  assessments  for  local improvements, during the tax year or years next  following  the  taxable status  date  or  dates  after  commencement  and  before  completion of construction, reconstruction or conversion thereof, but for no more than two years after commencement of  such  construction,  reconstruction  or conversion,  and  shall  be  exempt  from such local and municipal taxes after the earlier of completion of such construction, reconstruction  or conversion  or the end of such two year period, as follows: two years of  exemption from all such taxes; followed by one year  of  exemption  from seventy-five  percent  of  such taxes; followed by one year of exemption from sixty-two and one-half percent of such taxes; followed by one  year of  exemption  from fifty percent of such taxes; followed by one year of exemption from thirty-seven and one-half  percent  of  such  taxes;  and followed  by  one  year  of  exemption  from twenty-five percent of such taxes; and followed by one year of exemption from  twelve  and  one-half percent  of such taxes. Notwithstanding the foregoing provisions of this paragraph: (i) exemption from  local  and  municipal  taxes  under  this section  shall not be available to property exempt from such taxes under any other law; (ii) the tax lot (land and improvements) upon  which  the multiple  dwelling  is  constructed, reconstructed or converted shall at all times be subject to local and municipal taxes in an amount not  less than  the  amount  of  local  and  municipal taxes that would be payable thereon based upon the lesser of the assessed valuation, during the  tax year  immediately  preceding  the  tax  year in which such construction, reconstruction  or  conversion  commenced  or  in  the   case   of   new construction,  the  assessed  valuation  of  the  land  appearing on the assessment roll in the first  year  after  completion  of  construction; (iii)  multiple  dwellings (land and improvements) shall not be eligible for exemption from local and municipal taxes under this  section  unless such  multiple  dwellings  are  developed  in  a governmentally assisted project, as defined in rules promulgated by the  local  housing  agency; and  (iv)  such  multiple  dwellings  are  constructed, reconstructed or converted on real property that has been (A)  acquired  by  the  federal government  as  the result of the foreclosure of a mortgage loan insured by the federal government and (B) conveyed by the federal government  to an  owner  approved  by  the  local  housing  agency  for the purpose of rehabilitation in accordance with an agreement between the owner of  the real property and the federal government.   2.  (a) For purposes of this section: "private dwelling" shall mean an owner occupied building or structure, with the land on which the same is constructed,  intended  for residential use and occupancy by one or more families living  independently  of  each  other  with  separate  cooking facilities,  which  is not a multiple dwelling within the meaning of the multiple  dwelling  law,  and  the   construction,   reconstruction   or conversion  of which (i) is commenced after July first, nineteen hundred seventy-eight and before July first, nineteen hundred eighty-two and  is completed  no later than April first, nineteen hundred eighty-four; (ii) is commenced on or after July first,  nineteen  hundred  eighty-two  and before July first, nineteen hundred eighty-six and is completed no later than July first, nineteen hundred eighty-eight; (iii) is commenced on or after  July  first,  nineteen  hundred eighty-six and before July first, nineteen hundred ninety and is  completed  no  later  than  July  first, nineteen  hundred  ninety-two; (iv) is commenced on or after July first, nineteen  hundred  ninety  and  before  July  first,  nineteen   hundred ninety-four  and is completed no later than July first, nineteen hundred ninety-six; (v) is commenced on or after July  first,  nineteen  hundred ninety-four  and before July first, nineteen hundred ninety-eight and is completed no later than July first, two thousand; (vi) is  commenced  on or  after  July  first,  nineteen  hundred  ninety-eight and before July first, two thousand two and is completed no later than July  first,  two thousand  four;  or  (vii)  is  commenced  on  or  after July first, two thousand two and before July first, two thousand six and is completed no later than July first, two thousand eleven.  (b) For purposes of this section: "multiple dwelling"  shall  mean  an owner occupied building or structure, with the land on which the same is constructed,  which is a multiple dwelling within the meaning of section  four of the multiple dwelling law, and the construction,  reconstruction or conversion of which is commenced on or after July first, two thousand two  and  before  July first, two thousand six and is completed no later than July first, two thousand eight.  (c)  Construction  or  reconstruction  of, or conversion to, a private dwelling or multiple dwelling shall be deemed to have commenced when the agency or department of the city having jurisdiction has issued a permit for construction  work  and  such  work  has  begun  in  good  faith  in accordance  with such permit; construction, reconstruction or conversion shall be deemed to have been completed when the agency or department  of the  city  having  jurisdiction  has  issued  a  temporary  or permanent certificate of occupancy under which occupancy of the  private  dwelling or  multiple  dwelling  for  residential  use  may lawfully begin or the reconstruction has been finally accepted and approved.  (d) For the purposes of this section:  "local  housing  agency"  shall have  the  same  meaning as the term "agency" under section five hundred two of the general municipal law, except that the term  shall  mean  the department  of  housing  preservation and development if there is such a department in such city.  (e) Upon issuance of a violation by an agency, department or bureau of the city of New York for an illegal occupancy,  the  finance  department shall revoke the tax exemption thereunder. The owner shall pay the city, with  interest,  the  amount  of  taxes  from  which such owner had been exempted. Such amount, if  unpaid,  shall  become  a  lien  against  the property.   3.  (a)  Applications  for exemption under this section shall be filed with the assessors between February first and  March  fifteenth  of  the calendar  year  and,  based  on  the  certification of the local housing agency pursuant to this section, the  assessors  shall  certify  to  the collecting  officer  the  amount  of  exemption from local and municipal taxes. No such application shall be accepted  by  the  assessors  unless accompanied  by  a  certificate  of  the local housing agency certifying eligibility for exemption pursuant to this section.  (b) The local housing agency may promulgate rules and  regulations  to carry  out  the  provisions of this section and may require payment of a reasonable filing fee, and in the case of  an  application  involving  a dwelling  which  has  been reconstructed or improved a fee not to exceed ten dollars for the certification of such  local  housing  agency  under this subdivision.  (c) At any time after two years of exemption from taxation pursuant to this  section, the local housing agency may certify to the assessors and the collecting officer that a private dwelling or multiple  dwelling  is not  being  used  for  residential  purposes and upon the filing of such certification with the assessors and the collecting  officer,  exemption from taxation under this section shall terminate.