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

* § 485-i. Residential investment exemption; certain school districts.
1.    Residential real property constructed on or after the first day of
July, two thousand three in school districts which serve a city  with  a
population  of  not  less  than  thirty-one  thousand  and not more than
thirty-two thousand may be  exempt  from  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
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  three or such later date as may be specified by
resolution;
(ii) the residential real property is situate  in  a  school  district
which  serves  a  city  with  a  population  of not less than thirty-one
thousand and not more than thirty-two thousand;
(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 school district  which
serves a city with a population of not less than thirty-one thousand and
not  more  than thirty-two thousand on or before the appropriate taxable
status date of such school district 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 school district which serves a city with a population of
not less than thirty-one thousand and not more than thirty-two  thousand
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 school district which serves a city with a population of not less
than thirty-one thousand and not more than thirty-two thousand  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 school district upon reduction  of  the  per  centum  of  exemption
pursuant to this subdivision may thereafter, by resolution, increase the
per  centum  of exemption up to any per centum not exceeding the maximum
allowed by subdivision two or  eleven  of  this  section,  whichever  is
applicable, 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 school district.
8. A school district which serves a city with a population of not less
than  thirty-one  thousand and not more than thirty-two thousand 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 school district which serves a city with a population of not
less than thirty-one thousand and not more than thirty-two thousand may,
by resolution,  establish  a  board  to  be  known  as  the  residential

incentive  board.  The membership and composition of such board shall be
set forth in the resolution.
(b)  The residential incentive board shall present a plan to the board
of education of a school district which serves a city with a  population
of  not  less  than  thirty-one  thousand  and  not more than thirty-two
thousand concerning the various types of residential real property which
should be granted eligibility for an exemption pursuant  to  subdivision
one of this section. Such plan shall make a recommendation as to whether
the  exemption  be  computed as provided in subdivision two or eleven 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 school district which serves a city with a population of
not less than thirty-one thousand and not more than thirty-two thousand,
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 school
board of a school district which serves a city with a population of  not
less than thirty-one thousand and not more than thirty-two thousand with
respect  to  actions  it deems desirable to improve the economic climate
therein.
10. If a school district which serves a city with a population of  not
less  than  thirty-one  thousand  and  not more than thirty-two thousand
establishes a residential incentive board, pursuant to subdivision  nine
of  this section, such school district may, by resolution, restrict real
property eligible to receive the exemption to real property  constructed
for  those  purposes identified in the plan presented by the board. Such
resolution shall restrict the availability  of  such  exemption  to  the
specific geographic areas identified in the plan presented by the board.
11.  Notwithstanding  subdivision  two of this section, where a school
district which serves  a  city  with  a  population  of  not  less  than
thirty-one  thousand  and  not  more  than  thirty-two  thousand  adopts
restricted exemptions pursuant to subdivision ten of this  section,  the
resolution  may  provide that such exemptions shall be computed pursuant
to the following accelerated strategic exemption schedule:
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
Provided however, that such resolution shall:
(i) contain findings that the adoption of this  accelerated  strategic
exemption  schedule  is  necessary  to  encourage  targeted  residential
development, and that the value of the  exemptions  to  be  provided  is
justified by the need to broaden the tax base; and
(ii)  limit  the  applicability of such schedule to projects where the
cost of such construction exceeds the sum of seventy  thousand  dollars;
and
(iii)  provide that such exemptions are restricted by geographic areas
as provided by subdivision ten of this section.
* NB There are 2 § 485-i's