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

* §  485-j.  Residential  investment  exemption;  certain  cities.  1.
Residential real property constructed on or after the first day of July,
two thousand six in cities with a population of not less  than  eighteen
thousand and not more than eighteen thousand five hundred 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 six 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 eighteen thousand and not more than eighteen
thousand five hundred 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 eighteen thousand and not more than  eighteen  thousand
five hundred 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 eighteen thousand and not more than eighteen thousand five
hundred 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 eighteen thousand and not
more  than  eighteen  thousand  five hundred 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 eighteen thousand and not
more  than  eighteen  thousand  five hundred 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 eighteen thousand and
not more than eighteen thousand five hundred 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  eighteen
thousand and not more than eighteen thousand five hundred 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 eighteen thousand and not more than eighteen
thousand  five  hundred  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 eighteen thousand and
not more than eighteen thousand five hundred 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 eighteen thousand and
not more than eighteen thousand five hundred 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