2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 421-J - Exemption of Capital Investment in Multiple Dwelling Buildings Within Certain Cities.

* §  421-j.  Exemption  of  capital  investment  in  multiple dwelling
buildings within certain cities.  1.  New  construction  of  a  multiple
dwelling  building,  reconstruction,  alteration,  or  improvement  of a
pre-existing multiple dwelling building or  structure  which  is  to  be
occupied  or  is occupied as a residence or home and consists of no less
than four  units,  whether  such  dwelling  is  rented  or  owned  as  a
cooperative  or  condominium,  and  is  located  in  any  city  having a
population of more than fifty-five  thousand  but  less  than  fifty-six
thousand  as  determined  by  the latest federal decennial census, where
such construction or renovation is initiated subsequent to the effective
date of a local law pursuant  to  this  section  shall  be  exempt  from
taxation  and  special  ad valorem levies to the extent provided in this
section. After a public hearing, the governing board of  such  city  may
adopt  a  local  law  to grant the exemption authorized pursuant to this
section. A copy of such local law shall be filed with  the  commissioner
and  the assessor of such city who prepares the assessment roll on which
the taxes of such city are levied.
2. (a) Such buildings within such city shall be exempt for a period of
one year to the extent  of  one  hundred  percent  of  the  increase  in
assessed  value  attributable  to such new construction, reconstruction,
alteration or improvement and for an additional period of seven years as
illustrated in the following table:
Year      Exemption: percentage of increase in assessed value
2                      87.5
3                      75
4                      62.5
5                      50
6                      37.5
7                      25
8                      12.5
(b)  No  such   exemption   shall   be   granted   for   construction,
reconstruction, alteration or improvements unless:
(i)  such  reconstruction,  alteration  or  improvement  was commenced
subsequent to the effective date of the local law  adopted  pursuant  to
subdivision one of this section by such city; and
(ii) the value of such new construction, reconstruction, alteration or
improvement exceeds fifteen thousand dollars per unit; and
(iii) a valid building permit shall have been issued.
(c)   For   purposes   of   this   section   the  terms  construction,
reconstruction, alteration and improvement shall  not  include  ordinary
maintenance and repairs.
3.  Such exemption shall be granted only upon application by the owner
of  such  building  on  a  form  prescribed  by  the  commissioner.  The
application  shall  be filed with the assessor of such city on or before
the appropriate taxable status date of such city.
4. If satisfied  that  the  applicant  is  entitled  to  an  exemption
pursuant to this section, the assessor shall approve the application and
such  building  shall  thereafter be exempt from taxation and special ad
valorem  levies  as  provided  in  this  section  commencing  with   the
assessment  roll  prepared  on  the  basis  of  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.  In the event that a building granted an exemption pursuant to this
section ceases to be used primarily for residential  purposes  or  title
thereto  is  transferred  to other than the heirs or distributees of the
owner, the exemption granted pursuant to this section shall cease.
6. (a) The enactment of a local law in such city may:
(i) reduce the percent of exemption otherwise allowed pursuant to this
section;
(ii)  limit  eligibility  for  the  exemption  to  those  forms of new
construction,  reconstruction,  alteration   or   improvement   as   are
prescribed in such local law or resolution;
(iii)  provide  that  the  exemption shall be applicable only to those
improvements which would otherwise result in an increase in the assessed
valuation of the  real  property  but  which  consist  of  an  addition,
remodeling  or modernization to an existing multiple residence structure
to prevent physical deterioration of the structure  or  to  comply  with
applicable building, sanitary, health and/or fire codes.
(b)  No  such  local  law  shall reduce or repeal an exemption granted
pursuant to this section until the expiration of the  period  for  which
such exemption was granted.
7. No additional exemptions shall apply.
* NB There are 2 § 421-j's