2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 457 - Exemption for First-Time Homebuyers of Newly Constructed Homes.

§ 457. Exemption for first-time homebuyers of newly constructed homes.
1.  Newly  constructed  primary residential property purchased by one or
more persons, each of whom is a first-time homebuyer and  has  not  been
married  to  a  homeowner  in the three years prior to applying for this
first-time homeowners exemption, shall be exempt from taxation levied by
or on behalf of any county, city, town, village or  school  district  in
which  such  newly constructed residential property is located, provided
the legislative body or governing board of such county,  city,  town  or
village, after public hearing, adopts a local law, or a school district,
other than a school district to which article fifty-two of the education
law  applies, adopts a resolution providing therefor. The length of such
exemption shall be set forth in such local law or resolution, but in  no
event shall it exceed five years.
Such exemption shall be computed in accordance with the following table:
Year of Exemption            Percentage assessed
Valuation exempt from tax
1                               50
2                               40
3                               30
4                               20
5                               10
6 or more                        0
A  copy  of  such  local  laws  or resolutions shall be filed with the
commissioner and the assessor of such county, city, town, or village who
prepares the assessment roll on which the taxes of  such  county,  city,
town, village or school district are levied.
2.  (a) Any newly constructed primary residential real property within
the purchase price limits defined by the  state  of  New  York  mortgage
agency  low interest rate mortgage program in the non-target, one family
new category for the county where such property is located and in effect
on the contract date for the purchase and sale of such  property,  shall
be eligible for the exemption allowed pursuant to this section.
(b)  A first-time homebuyer who either as part of the written contract
for sale of the primary residential  property,  or  who  enters  into  a
written  contract  within  ninety  days after closing of the sale of the
primary residence for reconstruction, alteration  or  improvements,  the
value   of   which  exceeds  three  thousand  dollars,  to  the  primary
residential property  shall  be  exempt  from  taxation  to  the  extent
provided  by  this  section.  Such  exemption  shall apply solely to the
increase in assessed value thereof attributable to such  reconstruction,
alteration  or  improvement  provided  that  the  assessed  value  after
reconstruction, alteration, or  improvements  does  not  exceed  fifteen
percent  more than the purchase price limits as defined in paragraph (a)
of  this  subdivision.  For  purposes  of   this   section   the   terms
reconstruction,  alteration  and  improvement shall not include ordinary
maintenance and repairs.
(c) A  first-time  homebuyer  shall  not  qualify  for  the  exemption
authorized  pursuant  to  this  section  if the household income exceeds
income limits defined by the state  of  New  York  mortgage  agency  low
interest  rate  mortgage  program  in the non-target, one and two person
household category for the county where such property is located and  in
effect on the contract date for the purchase and sale of such property.
(i)  The  term  "household income" as used herein shall mean the total
combined income of all the owners, and of any owners'  spouses  residing
on  the  premises,  for the income tax year preceding the date of making
application for the exemption.
(ii) The term "income" as used herein shall mean the  "adjusted  gross
income"  for  federal income tax purposes as reported on the applicant's

latest available federal or state  income  tax  return  subject  to  any
subsequent  amendments  or  revisions,  reduced by distributions, to the
extent included in federal  adjusted  gross  income,  received  from  an
individual  retirement  account  and  an  individual retirement annuity;
provided that if no such return was filed within  the  one  year  period
preceding  taxable  status  date, "income" shall mean the adjusted gross
income that would have been so reported if such a return had been filed.
For purposes of this subdivision, "latest available return"  shall  mean
the  federal  or  state  income  tax  return  for  the  year immediately
preceding the date of making application, provided however, that if  the
tax  return  for  such  tax year has not been filed, then the income tax
return for  the  tax  year  two  years  preceding  the  date  of  making
application shall be considered the latest available.
3.   Newly  constructed  primary  residential  property  purchased  by
first-time homebuyers at a sales price greater than the maximum eligible
sales price shall qualify for the exemption  allowed  pursuant  to  this
section  for  that  portion of the sales price of such newly constructed
primary residential property equal to the maximum eligible sales  price,
provided,  however,  that  any  newly  constructed  primary  residential
property purchased at a sales price greater than fifteen  percent  above
the maximum eligible sales price shall not be allowed any exemption.
4.  The legislative body or governing board of a county, city, town or
village may adopt a local law, or a school district, other than a school
district to which article fifty-two of the  education  law  applies  may
adopt  a resolution to provide for an increase not to exceed twenty-five
per centum on the purchase price limit  used  for  eligibility  for  the
exemption provided for in this section.
5.  No  exemption  shall  be  allowed pursuant to this section for any
newly constructed primary residential property purchased by a first-time
homebuyer on or after December thirty-first, two thousand  twenty-eight,
unless  such  purchase is pursuant to a binding written contract entered
into  prior  to  December  thirty-first,  two   thousand   twenty-eight.
Provided,  however,  that  any  first-time  homebuyer  who is allowed an
exemption pursuant to this section prior to such date shall continue  to
be  allowed  further  exemptions  pursuant  to  subdivision  one of this
section.
6. (a) No  portion  of  a  single  family  newly  constructed  primary
residential  property shall be leased during the period of time when the
first-time homeowner exemption shall apply  to  the  residence.  If  any
portion  of  the  single  family  newly  constructed primary residential
property is found to be the subject of a lease  agreement  the  assessor
shall discontinue any exemption granted pursuant to this section.
(b)  In  the  event  that  a  primary  residential property 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 be discontinued.
(c)  Upon  determining  that  an  exemption  granted  pursuant to this
section should be discontinued, the assessor  shall  mail  a  notice  so
stating  to  the  owner  or owners thereof at the time and in the manner
provided by section five hundred ten of  this  chapter.  Such  owner  or
owners  shall  be entitled to seek administrative and judicial review of
such action in the manner provided by  law,  provided  that  the  burden
shall  be  on  such  owner  or  owners  to establish eligibility for the
exemption.
7. 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 the city, town,  village

or  county having the power to assess property for taxation on or before
the appropriate taxable status date of  such  city,  town,  village  and
county.
8.  If  satisfied  that  the  applicant  is  entitled  to an exemption
pursuant to this section, the assessor shall approve the application and
such primary  residential  property  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  seven  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.
9.  For  purposes  of this section: (a) "first-time homebuyer" means a
person who has not owned a  primary  residential  property  and  is  not
married  to  a  person  who  has owned a residential property during the
three-year  period  prior  to  his  or  her  purchase  of  the   primary
residential  property,  and  who  does  not own a vacation or investment
home.
(b) "Primary residential property" means any one or two family  house,
townhouse  or  condominium located in this state which is owner occupied
by such homebuyer.
(c) "Newly constructed" means an improvement to  real  property  which
was  constructed  as a primary residential property, and which has never
been occupied and was constructed  after  the  effective  date  of  this
section.   "Newly constructed" shall also mean that portion of a primary
residential property that is altered, improved or reconstructed.