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

* § 485-l. Residential investment exemption; certain school districts.
1.  Residential  real  property constructed on or after the first day of
July, two thousand seven in school districts which serve a city  with  a
population of not less than eighteen thousand and not more than eighteen
thousand  five  hundred  may  be exempt from school district taxation as
provided in this section, provided that  the  governing  board  of  such
school  district  after  a  public hearing adopts a resolution providing
therefor.
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 July,
two thousand seven 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 eighteen thousand
and not more than eighteen thousand five hundred;
(iii) the cost  of  such  construction  exceeds  the  sum  of  seventy
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  appropriate  assessor  within  the
school  district  which serves a city with a population of not less than
eighteen thousand and not more than eighteen thousand five hundred 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 eighteen thousand and not more than eighteen thousand five
hundred  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  eighteen thousand and not more than eighteen thousand five hundred
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 of this section, 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  eighteen thousand and not more than eighteen thousand five hundred
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 three hundred fifty thousand dollars.
9.  (a) A school district which serves a city with a population of not
less than eighteen thousand and not more  than  eighteen  thousand  five
hundred  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 eighteen thousand and not more than eighteen thousand
five hundred 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
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 eighteen thousand and not more than eighteen
thousand  five hundred, 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  eighteen  thousand  and not more than eighteen thousand five
hundred 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 eighteen thousand and not more  than  eighteen  thousand  five
hundred   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.  Any  school  district  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
forwarded to each municipality which issues building permit applications
in which it is available and copies of such information shall be  posted
in  a  conspicuous  location in the office or offices where such permits
and applications are issued and processed.
* NB There are 2 § 485-l's