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

§  421-n.  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 or any owner occupied multiple dwelling located  in  any
city  having  a  population  of more than thirteen thousand five hundred
inhabitants but less than fourteen thousand inhabitants,  determined  in
accordance  with the latest federal decennial census, that is reduced to
at most two units by such reconstruction  subsequent  to  the  effective
date  of  a  local  law  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 seven years subject  to  the
following:
(i)  The  extent  of  such  exemption shall be decreased by twelve and
one-half  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; and
(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  the  purposes  of  this  section,  an owner occupied multiple
dwelling building shall mean any  building  or  structure  designed  and
occupied  as the temporary or permanent residence or home of two or more
families, including the owner of such building.
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  owner occupied multiple
residence 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.