2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 485-N - Residential-Commercial Exemption Program.

* §  485-n.  Residential-commercial 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 for which an exemption from taxes under this section is
sought.
(b) "Benefit area" means the area within a municipality, designated by
local law, to which an exemption, established pursuant to this  section,
applies.
(c)   "Commercial   construction   work"   means   the  modernization,
rehabilitation,  expansion  or  other  improvement  of  commercial   use
property  or the portion of mixed-use property to be used for commercial
purposes.
(d) "Commercial purpose or use" means the buying, selling or otherwise
providing of goods or  services,  including  hotel  services,  or  other
lawful  business  or  commercial  activities  permitted  upon  mixed-use
property.
(e) "Commercial use property" means real property on which will exist,
after completion of commercial construction work, a  building  used  for
commercial purposes or use.
(f)  "Mixed-use  property"  means  real  property on which will exist,
after completion of residential construction work or  a  combination  of
residential  construction  work  and  commercial  construction  work,  a
building or structure used for both residential and commercial purposes.
(g) "Municipality" means any  town,  city,  village  or  other  taxing
entity  located  in  a  county  having  a  population  of  not less than
sixty-five thousand three hundred ninety and not  more  than  sixty-five
thousand  four hundred as determined by the federal decennial census for
the year two thousand ten or in a county having a population of not less
than ninety-eight thousand nine hundred and not  more  than  ninety-nine
thousand  as determined by the federal decennial census for the year two
thousand ten.
(h) "Residential construction work" means the creation, modernization,
rehabilitation, expansion or other improvement of dwelling units,  other
than  dwelling units in a hotel, in the portion of mixed-use property to
be used for residential purposes.
2. (a) A municipality, other than  a  county  or  school  district  as
provided  in  this section, may, by local law, provide for the exemption
of real property in a designated benefit area 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.
(b)   Such   local   law  shall  provide  for  the  appointment  of  a
commercial/mixed use incentive board  which  shall  be  responsible  for
designating  the  benefit area to be exempt from taxation as provided in
this section. The membership and composition of such board shall be  set
forth  in  local  law.  Such  board  shall  present  a plan to the local
governing  body  concerning  the  various  types  of  commercial  and/or
mixed-use  properties which may be granted an exemption pursuant to this
section. In addition such plan shall identify designated benefit  areas,
within  which such exemption may be offered. In developing such plan the
commercial/mixed  use  incentive  board  shall  consider  the   planning
objectives of the municipality and the necessity of the exemption to the
attraction  of commercial and mixed use development as identified by the
municipality  and  the  economic  benefit  to  the  area  of   providing
exemptions  to commercial and mixed-use properties. In instances where a

municipality has previously designed a business district encompassing  a
defined  area  which was subject to public input and was approved by and
received funding for economic development purposes from a state  agency,
the  municipality  may utilize the defined boundaries of such previously
defined area, or a combination of such boundaries subject to  review  by
the commercial/mixed-use incentive board.
3.  Upon  the adoption of such a local law the commercial use property
or  mixed-use  property  that  was   converted,   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 twelve years following the approval of an
application,  the  increase  in  assessed   value   of   such   property
attributable    to    such    conversion,    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 8      100% of exemption base
9                80% of exemption base
10               60% of exemption base
11               40% of exemption base
12               20% of exemption base
(b) No such exemption shall be granted unless:
(i)  such   conversion,   creation,   modernization,   rehabilitation,
expansion  or  other improvement was commenced subsequent to the date on
which the municipality's local law took effect; and
(ii) the cost of such conversion  exceeds  the  sum  of  ten  thousand
dollars or such greater amount as may be specified by local law.
(c)  For  purposes  of  this  section  the term "conversion, 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  twelve year exemption granted
pursuant to this section less the number of  years  the  property  would
have been previously exempt from real property taxes.
5.  Such exemption shall be granted only upon application by the owner
of real  property  on  a  form  prescribed  by  the  commissioner.  Such
application  shall  be  filed  with  the assessor of the municipality or
county having the power to assess property for taxation on or before the
appropriate taxable status date of such municipality or county.
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.
* NB Repealed September 23, 2024