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

§   485-q.   Residential  investment  exemption;  certain  cities.  1.
Residential real property constructed on or after the first day of July,
two thousand fourteen in cities with  a  population  of  not  less  than
thirteen  thousand  five  hundred  and  not more than fourteen thousand,
determined in accordance with the latest decennial 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
January, two thousand fourteen 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 thirteen thousand five hundred and not  more
than  fourteen  thousand,  determined  in  accordance  with  the  latest
decennial census;
(iii) the cost of such construction exceeds the sum of thirty 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  thirteen  thousand  five  hundred and not more than
fourteen thousand, determined in accordance with  the  latest  decennial
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 thirteen thousand five hundred and not more than  fourteen
thousand,  determined in accordance with the latest decennial 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  thirteen  thousand  five
hundred  and  not  more than fourteen thousand, determined in accordance
with the latest decennial 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 or
eleven of this section, whichever is applicable, 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 thirteen thousand five
hundred and not more than fourteen thousand,  determined  in  accordance
with  the  latest  decennial 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 seventy thousand dollars.
9.  (a)  A  city  with a population of not less than thirteen thousand
five  hundred  and  not  more  than  fourteen  thousand,  determined  in
accordance  with  the  latest  decennial  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  thirteen
thousand five hundred and not more than fourteen thousand, determined in
accordance  with  the  latest  decennial  census, concerning the various
types of residential real property which should be  granted  eligibility
for  an exemption pursuant to subdivision one of this section. Such plan
shall make a recommendation as to whether the exemption be  computed  as
provided in subdivision two or eleven 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 thirteen thousand  five  hundred  and
not  more  than  fourteen  thousand,  determined  in accordance with the
latest  decennial  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 thirteen thousand five
hundred and not more than fourteen thousand,  determined  in  accordance
with  the  latest  decennial  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  thirteen  thousand
five  hundred  and  not  more  than  fourteen  thousand,  determined  in
accordance with the latest decennial 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. Notwithstanding subdivision two of this section, where a city with
a  population  of  not  less than thirteen thousand five hundred and not
more than fourteen thousand, determined in accordance  with  the  latest
decennial  census,  adopts restricted exemptions pursuant to subdivision
ten of this section, the local law  may  provide  that  such  exemptions
shall  be  computed  pursuant  to  the  following  accelerated strategic
exemption schedule:
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
Provided however, that such local law shall:
(i)  contain  findings that the adoption of this accelerated strategic
exemption  schedule  is  necessary  to  encourage  targeted  residential
development,  and  that  the  value  of the exemptions to be provided is
justified by the need to broaden the tax base; and
(ii) limit the applicability of such schedule to  projects  where  the
cost  of  such construction exceeds the sum of seventy thousand dollars;
and
(iii) provide that such exemptions are restricted by geographic  areas
as provided by subdivision ten of this section.