2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 421-O*2 - Exemption of Capital Improvements to Multiple Dwelling Buildings Within Certain Cities.

* §  421-o.  Exemption  of  capital  improvements to multiple dwelling
buildings  within  certain  cities.  1.  Multiple  dwelling   buildings,
reconstructed,  altered,  converted  back  to  an  owner occupied single
family dwelling located in any city having a population of more than ten
thousand inhabitants but fewer than twelve thousand inhabitants, that is
located in a county  having  a  population  of  more  than  ninety-seven
thousand  inhabitants  but  fewer than ninety-nine thousand inhabitants,
determined in accordance with the latest federal decennial census,  that
are  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  such  city
may adopt a local law to grant the exemption authorized pursuant to this
section.  A  copy of such local law 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 within such city shall be exempt for a period of
one  year  to  the  extent  of  one  hundred  percent of the increase in
assessed  value  attributable  to  such  reconstruction,  alteration  or
improvement  and for an additional period of eleven years subject to the
following:
(i) The extent of such exemption  shall  be  decreased  by  eight  and
one-third  percent  of  the  "exemption  base"  each  year  during  such
additional period.  The  "exemption  base"  shall  be  the  increase  in
assessed  value  as  determined  in  the initial year of the term of the
exemption, 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
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)  Such exemption shall be limited to one hundred thousand dollars
in increased market value, or such  other  sum  less  than  one  hundred
thousand  dollars,  but  not  less  than  ten 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 most recently
established state equalization rate  for  such  city.  Where  the  state
equalization  rate  or  special  equalization  rate  equals  or  exceeds
ninety-five percent, 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  converted  improvement  was
commenced  subsequent  to  the  effective  date of the local law adopted
pursuant to subdivision one of this section by such city;
(ii) the value  of  such  reconstruction,  alteration  or  improvement
exceeds five thousand dollars; and
(iii)  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 such city 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  provided  in  this  section  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.
5.  For  purposes  of  this  section,  an owner occupied single family
dwelling shall mean any building or structure designed and  occupied  as
the temporary or permanent residence or home of one family.
6.  In the event that a building 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 cease.
7. (a) The enactment of a local law in such city may:
(i) reduce the percent of exemption otherwise allowed pursuant to this
section;
(ii)  limit  eligibility  for  the  exemption  to   those   forms   of
reconstruction,  alterations  or  improvements as are prescribed in such
local law or resolution;
(iii) 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 residence building  structure
to  prevent  physical  deterioration  of the structure or to comply with
applicable building, sanitary, health and/or fire codes.
(b) No such local law shall reduce  or  repeal  an  exemption  granted
pursuant  to  this  section until the expiration of the period for which
such exemption was granted.
* NB There are 2 § 421-o's