2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 485-J*5 - Residential Investment Exemption; Certain Cities.

* §  485-j.  Residential  investment  exemption;  certain  cities.  1.
Residential real property constructed on  or  after  the  first  day  of
January,  two thousand five in cities with a population of not less than
sixty thousand six hundred and not more than  sixty-one  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
January,  two  thousand  five  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 sixty thousand six hundred and not more than
sixty-one thousand based upon the two thousand federal census;
(iii)  the cost of such construction exceeds the sum of sixty 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 sixty thousand six hundred and not more than sixty-one
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 sixty thousand six hundred and  not  more  than  sixty-one
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  sixty  thousand  six
hundred and not more than sixty-one 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  sixty  thousand  six
hundred and not more than sixty-one 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 twenty-five thousand dollars.
9. (a) A city with a population of not less than  sixty  thousand  six
hundred and not more than sixty-one 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  sixty
thousand six hundred and not more than sixty-one 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 sixty thousand six hundred and not more than
sixty-one  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 sixty thousand six
hundred and not more than sixty-one 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  sixty  thousand  six
hundred and not more than sixty-one 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 5 § 485-j's