2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 485-J*3 - Residential Investment Exemption; Certain Cities and School Districts.

* § 485-j. Residential investment exemption; certain cities and school
districts.  1.  Residential  real  property  constructed on or after the
first day of July, two thousand five located  in  a  city  or  a  school
district which serves a city with a population of not less than thirteen
thousand  one hundred twenty-one and not more than thirteen thousand one
hundred forty-one, based upon the two thousand federal  census,  may  be
exempt  from  city  and  school  district  taxation  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
and school district 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
resolution;
(ii)  the  residential real property is situate in a city, or a school
district which serves a  city,  with  a  population  of  not  less  than
thirteen  thousand  one  hundred  twenty-one  and not more than thirteen
thousand one hundred forty-one, based  upon  the  two  thousand  federal
census;
(iii) the cost of such construction exceeds the sum of thirty thousand
dollars or such greater amount as may be specified; 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 one hundred twenty-one and  not  more
than  thirteen  thousand  one  hundred  forty-one,  based  upon  the two
thousand federal census, or with the local assessor if such property  is
located  in a school district which serves such city, but is not located
within such city, 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  by a city with a population of not less than thirteen thousand
one hundred twenty-one and not more than thirteen thousand  one  hundred
forty-one, based upon the two thousand federal census, and by any school
district  which  serves such city 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 one
hundred twenty-one and not  more  than  thirteen  thousand  one  hundred
forty-one,  based  upon  the  two thousand federal census, may, by local
law, and any school district which serves such city, may, by resolution,
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 resolution
shall not be subject to any such reduction so  effected.  Such  city  or
school  district, upon reduction of the per centum of exemption pursuant
to this subdivision, may thereafter by local law or resolution, 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 resolution shall  apply  only  to  construction  commenced
subsequent  to the effective date of such resolution. A copy of all such
resolutions shall be filed with the commissioner and the assessor of the

city, and to the assessor of any locality containing  real  property  to
which the provisions of this section may apply.
8.  A  city  with  a population of not less than thirteen thousand one
hundred twenty-one and not  more  than  thirteen  thousand  one  hundred
forty-one,  based  upon  the  two thousand federal census, may, by local
law, and any school district which serves such city, may, by resolution,
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 one
hundred twenty-one and not  more  than  thirteen  thousand  one  hundred
forty-one,  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  city
council  of  a city with a population of not less than thirteen thousand
one hundred twenty-one and not more than thirteen thousand  one  hundred
forty-one,  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. The exemption shall be computed as provided in subdivision  two
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 the school district which serves such city,
and 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 city
council of a city with a population of not less than  thirteen  thousand
one  hundred  twenty-one and not more than thirteen thousand one hundred
forty-one, 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 thirteen thousand one
hundred  twenty-one  and  not  more  than  thirteen thousand one hundred
forty-one, 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.
* NB There are 5 § 485-j's