2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 421-H*2 - Exemption of Capital Improvements to Residential Buildings.

* § 421-h. Exemption of capital improvements to residential buildings.
1.  Residential  buildings reconstructed, altered or improved subsequent
to the effective date of a local law  or  resolution  pursuant  to  this
section  shall  be exempt from taxation and special ad valorem levies to
the extent provided hereinafter. After a public hearing,  the  governing
board  of  a  city,  with  a  population  of more than one hundred forty
thousand but less than one hundred fifty thousand as determined  by  the
latest  decennial federal census, may adopt a local law or resolution to
grant the exemption authorized pursuant to this section. A copy of  such
local  law  or  resolution  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 shall be exempt to the extent of one hundred per
centum  of  the  increase in assessed value thereof attributable to such
reconstruction, alteration or improvement subject to the  provisions  of
subdivision  six  of  this  section.  Such exemption shall be limited to
forty thousand dollars in increased market value, or such other sum less
than forty thousand dollars, as may be provided  by  the  local  law  or
resolution,   of  the  property  attributable  to  such  reconstruction,
alteration or improvement and any increase in market value greater  than
such  amount  shall  not  be eligible for the exemption pursuant to this
section. For the purposes of this  section,  the  market  value  of  the
reconstruction,   alteration  or  improvement  shall  be  equal  to  the
increased assessed value attributable to such reconstruction, alteration
or improvement divided by the class I ratio in a special assessing  unit
or  the  most  recently  established  state equalization rate or special
equalization rate in the remainder of the state, except where the  state
equalization  rate  or  special  equalization  rate  equals  or  exceeds
ninety-five percent, in  which  case  the  increase  in  assessed  value
attributable  to such reconstruction, alteration or improvement shall be
deemed to equal the market value of such reconstruction,  alteration  or
improvement.
(b) No such exemption shall be granted for reconstruction, alterations
or improvements unless:
(i)  such  reconstruction,  alteration  or  improvement  was commenced
subsequent to the effective date of the local law or resolution  adopted
pursuant to subdivision one of this section; and
(ii)  the  greater portion, as so determined by square footage, of the
building reconstructed, altered or improved is at least five years old.
(c) For purposes of this section the terms 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 the city having the
power to assess property for  taxation  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  herein provided 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.  No such application shall be
approved after December thirty-first, two thousand five.
5. For the purposes of this section, a residential building shall mean
any  building  or  structure  designed  and  occupied  exclusively   for
residential purposes by not more than one family.
6.  In the event that a building granted an exemption pursuant to this
section ceases to be used primarily  for  residential  purposes  by  the
owner  who  was  granted the exemption pursuant to this section or title
thereto is transferred to other  than  the  spouse  of  the  owner,  the
exemption granted pursuant to this section shall cease.
7. Such city may, by its local law or resolution:
(a)  reduce  the per centum of exemption otherwise allowed pursuant to
this section;
(b)  limit  eligibility  for  the  exemption   to   those   forms   of
reconstruction,  alterations  or  improvements as are prescribed in such
local law or resolution;
(c) 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  residential  structure  to
prevent  physical  deterioration  of  the  structure  or  to comply with
applicable building, sanitary, health and/or fire codes.
* NB There are 2 § 421-h's