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

§  485-o.  New  residential  property  exemption;  certain  cities. 1.
Construction  of  qualified  new   residential   structures   or   total
rehabilitation  of qualified vacant residential structures determined to
be unoccupied hazards initiated on or after the first  day  of  January,
two  thousand  thirteen in cities with a population of not less than one
hundred thirty thousand and not more than one  hundred  sixty  thousand,
based  upon  the two thousand ten federal census may be exempt from city
and school taxation as provided in this section.
2. (a) (i) Such qualified residential real property shall be exempt in
accordance with the applicable exemption schedules  set  forth  in  this
subparagraph  and  such  exemption shall be computed with respect to the
"exemption base". The exemption  base  shall  be  the  increase  in  the
assessed  value  due  to  qualified  improvements  as  determined in the
initial year of the applicable exemption price following the  filing  of
an  original  application, provided that the application relative to the
rehabilitation of a qualified vacant residential structure determined to
be an unoccupied hazard shall be pre-approved by the city as provided in
this section.
(ii)
Construction of Qualified LEED Certified
New Residential Structures
Percentage of exemption
Year           Certified/Silver         Gold           Platinum
1              100%                     100%           100%
2              100%                     100%           100%
3              100%                     100%           100%
4              100%                     100%           100%
5              100%                     100%           100%
6              100%                     100%           100%
7              100%                     100%           100%
8              100%                     100%           100%
9              80%                      100%           100%
10             60%                      80%            100%
11             40%                      60%            100%
12             20%                      40%            75%
13             0%                       20%            50%
14             0%                       0%             25%
(iii)
Construction of Qualified New Residential Structure
or Total Rehabilitation of Pre-approved Qualified
Residential Structure Determined To Be An
Unoccupied Hazard
Year           Percentage of exemption
1              100%
2              100%
3              100%
4              100%
5              100%
6              100%
7              100%
8              75%
9              50%
10             25%
(iv) Any application submitted by the property owner for the exemption
relative to the rehabilitation of a residential structure determined  to
be an occupied hazard shall require pre-approval by the assessor of such
city and the director of code enforcement which pre-approval shall be in

writing and shall certify that the structure to be totally rehabilitated
qualifies as an unoccupied hazard. The failure of the applicant to apply
or  receive  such  pre-approval  for any exemption relative to the total
rehabilitation  of a qualified residential structure determined to be an
unoccupied hazard shall disqualify the subject property from eligibility
for any exemption pursuant to this section and the city's local law.
(v) For purposes of eligibility for  the  total  rehabilitation  of  a
residential  structure,  a qualified residential structure determined to
be an unoccupied hazard, an unoccupied hazard shall be  defined  as  any
residential  building  or  structure or a substantial part thereof which
remains unoccupied for a period of more than one year with either doors,
windows, or other openings broken, removed, boarded or sealed up.
(vi) For purposes of eligibility for the construction of  a  qualified
new residential structure, the new residential property must be a one or
two family residence. New residential real property constructed which is
greater than a one or two family residence shall in no event be eligible
for real property tax exemptions authorized by this section.
(vii)  (A)  For the purposes of eligibility under a LEED certification
standard the term  "LEED"  shall  mean  the  Leadership  in  Energy  and
Environmental  Design  Building  Rating  System  published by the United
States Green Building Council. Such residential real property  which  is
certified  under a LEED certification standard which is determined to be
for the categories of certified, silver, gold  or  platinum  as  meeting
green   building   standards,   as   determined  by  a  LEED  accredited
professional shall  be  exempt  as  provided  in  subparagraph  (ii)  of
paragraph  (a)  of  subdivision  two  of this section for the respective
percentages provided that a copy of the certification  for  a  qualified
category  is  filed  with  the city's commissioner of assessment and the
commissioner of assessment approves the application for  the  applicable
category  as  meeting  the  requirements  of this section and the city's
local law.
(B) Construction of a qualified new residential structure  which  does
not  meet the certified, silver, gold or platinum standard as determined
by the city shall be exempt under subparagraph (iii) of  this  paragraph
provided  it  meets  the applicable requirements of this section and the
city's local law.
(viii) Exemptions granted pursuant to this section shall apply to real
property taxes imposed for both city and school district purposes.
(b) No such exemption shall be granted unless:
(i) such construction of a qualified new residential real property  or
the total rehabilitation of a qualified residential structure determined
to  be  an  unoccupied  hazard  commenced  on  or after the first day of
January, two thousand thirteen or such later date as may be specified by
local law to qualify for the enhanced exemption;
(ii) the qualified residential real property is  situated  in  a  city
with  a  population of not less than one hundred thirty thousand and not
more than one hundred sixty thousand  based  on  the  two  thousand  ten
federal census;
(iii)  the  value  of  such  construction  exceeds  the  sum of twenty
thousand dollars; and
(iv)  such  construction  is  documented  by  a  building  permit,  if
required,  for  the  improvements, or other appropriate documentation as
required by the assessor.
(c)  For  purposes  of  this  section  the   term   "construction   of
improvements" shall not include ordinary maintenance and repairs.
3.  Such exemption for the construction of a qualified new residential
real property shall be granted only upon application  by  the  owner  of
such  real  property.  Such  exemption  for  a total rehabilitation of a

qualified residential structure determined to be  an  unoccupied  hazard
shall  be  granted  only  upon  application  by  the  owner of such real
property who has been pre-approved in accordance with  the  requirements
of  subparagraph  (iv)  of  paragraph  (a)  of  subdivision  two of this
section. Such application shall be filed with the  assessor  of  a  city
with  a  population of not less than one hundred thirty thousand and not
more than one hundred sixty thousand based upon  the  two  thousand  ten
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 of qualified residential structure improvements.
4. If the assessor of such city 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 one hundred thirty  thousand  and  not  more
than  one hundred sixty thousand based upon the two thousand ten 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  of  such  city  on  the
assessment  roll  with  the  taxable  property,  with  the amount of the
exemption shown in a separate column. In any  case  where  there  is  an
additional  partial  exemption  based on a LEED certification, a copy of
such certification shall be filed in the subject real property file.
5. In the event that real property granted an  exemption  pursuant  to
this  section  ceases  to  be used primarily for purposes as provided in
subparagraph (vi) of paragraph (a) of subdivision two  of  this  section
the exemption granted pursuant to this section shall cease.
6.  A  city  with  a  population  of  not less than one hundred thirty
thousand and not more than one hundred sixty thousand,  based  upon  the
two  thousand ten federal census may establish by a local law a date for
the commencement of effectiveness of the exemption offered  pursuant  to
this  section.  In  addition,  such  city  is  authorized  to  establish
procedures in such local law for the elimination of the exemption for an
otherwise qualified residential property  which  is  determined  by  the
assessor  of  such  city  and  the  director of code enforcement to have
serious code violations, as defined by the city in such  local  law,  at
any time subsequent to the approval of the application for real property
tax exemption pursuant to this section and which serious code violations
have  not  been  corrected and any judgments and/or fines, penalties and
costs, if any, have not been paid  in  accordance  with  the  applicable
laws,  local law, ordinances, rules and regulations. Notwithstanding the
foregoing, the elimination of any such exemption shall  take  effect  on
the  assessment roll based on the next taxable status date subsequent to
the city's determination to eliminate the exemption. A copy of all  such
local laws shall be filed with the commissioner and the assessor of such
city.