2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 485-I*2 - Residential Investment Exemption; Certain Cities.

* §  485-i.  Residential  investment  exemption;  certain  cities.  1.
Residential real property constructed on  or  after  the  first  day  of
April,  two  thousand  four in cities with a population of not less than
thirty-four thousand and not more than thirty-five thousand  based  upon
the  two  thousand  federal  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
April, two thousand four 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  thirty-four  thousand  and  not  more  than
thirty-five thousand based upon the two thousand federal census;
(iii)  the  cost  of  such  construction  exceeds  the  sum of seventy
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 thirty-four thousand  and  not  more  than  thirty-five
thousand  based  upon  the  two thousand federal 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  thirty-four  thousand  and  not  more  than thirty-five
thousand based upon the two thousand federal 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 thirty-four thousand and
not more than thirty-five thousand based upon the two  thousand  federal
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 of this section, 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 thirty-four thousand and
not more than thirty-five thousand based upon the two  thousand  federal
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 three hundred fifty thousand dollars.
9. (a) A city with a population of not less than thirty-four  thousand
and  not  more  than  thirty-five  thousand  based upon the two thousand
federal 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
thirty-four  thousand  and not more than thirty-five thousand based upon
the  two  thousand  federal  census  concerning  the  various  types  of
residential  real  property  which  should be granted eligibility for an
exemption pursuant to subdivision one 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 thirty-four thousand and not more
than thirty-five thousand based upon the two  thousand  federal  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 thirty-four thousand
and not more than thirty-five  thousand  based  upon  the  two  thousand
federal 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 thirty-four thousand
and not more than thirty-five  thousand  based  upon  the  two  thousand
federal  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. Any city which adopts an exemption pursuant to this section  shall
cause  information  relating  to  the  availability  of  such exemption,
including requirements and application procedures, to be attached to all
building permit applications and copies of  such  information  shall  be
posted  in  a  conspicuous  location in any office or offices where such
permits and applications for permits are issued and processed.
* NB There are 2 § 485-i's