2023 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.