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

§ 421-l. Exemption of capital improvements to residential buildings in
certain   towns.   1.   Residential   buildings  designed  and  occupied
exclusively for residential purposes by not  more  than  three  families
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  a
town  with  a population of not less than sixteen thousand three hundred
fifty and not more than sixteen thousand three hundred  sixty,  situated
in  a  county  with  a population of not less than nine hundred nineteen
thousand and not more than nine hundred nineteen thousand  one  hundred,
based upon the two thousand ten federal census, may adopt a local law to
grant  the  exemption authorized pursuant to this section. Subsequent to
the adoption of such a local law, the  county  in  which  such  town  is
located,  any  village  located within such town and any school district
all or part of which is located within such  town  may  likewise  exempt
such  property  from its taxation and special ad valorem levies by local
law, or in the case of a school district,  by  resolution  in  the  same
manner  and to the same extent as the town. A copy of such local laws or
resolutions  shall  be  filed  with  the  commissioner  and  appropriate
assessor.
2.  Such residential 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 reconstruction, alteration  or  improvement
and for an additional period of four years subject to the following:
(i)  The extent of such exemption shall be decreased by ten per centum
of the "exemption base"  each  year  during  such  additional  four-year
period,  such  that during year two there shall be an exemption of forty
per centum of the  increase  in  assessed  value  thereof  attributable,
during  year  three  there shall be an exemption of thirty per centum of
the increase in assessed value thereof attributable, in year four  there
shall  be  an exemption of twenty per centum of the increase in assessed
value thereof attributable and in year five there shall be an  exemption
of   ten   per   centum  of  the  increase  in  assessed  value  thereof
attributable;
(ii) The "exemption base" shall be the increase in assessed value  due
to  reconstruction,  alterations  or  improvements  as determined by the
assessor in the initial year of  such  five-year  period  following  the
filing of an original application; and
(iii) A qualified reconstruction, alteration or improvement shall have
increased  the  assessed  value  of  the  real  property by at least ten
thousand dollars, with a maximum permitted exemption not to  exceed  one
hundred fifty thousand dollars.
3.  For  purposes  of  this section, "reconstruction", "alteration" or
"improvement" shall not include ordinary maintenance and repairs.
4. Any owner of a one to three family residence  may  qualify  for  an
exemption  pursuant  to this section, including owners who do not occupy
such  residences,  individuals,  partnerships  and   limited   liability
corporations.  Exemptions  granted  pursuant  to  this  section  are not
transferable from owner to another if  the  real  property  is  sold  or
transferred during the exemption period.
5. No such exemption shall be granted unless:
(a)  Such  reconstruction,  alteration  or  improvement  was commenced
subsequent to the effective date of the local law or resolution  adopted
by  a  town,  county, village or school district pursuant to subdivision
one of this section;
(b) The owner  of  real  property  applying  for  such  exemption  has
satisfied   all   outstanding  town,  county,  village  and  school  tax
obligations; and
(c)  Such reconstruction, alteration or improvement is documented by a
building permit, if required, for the improvements or other  appropriate
documentation  as  required  by  the  assessor  and/or  code enforcement
officer.
6. 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  on  or  before   the
appropriate  taxable  status  date and within one year after the date of
completion of such reconstruction, alteration or improvement.
7. 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 six of this section. The assessor shall enter
the assessed value of any exemption granted pursuant to this section  on
the  assessment  roll  for  the taxable property, with the amount of the
exemption shown in a separate column.
8. 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.
9. Such town, county, village or school district shall be permitted by
local law to reduce the percentage of exemption otherwise  allowable  by
subdivision  two  of  this  section  or  increase  the  required minimum
assessed values set forth in paragraph (iii) of subdivision two of  this
section,  provided  that  a  project  in  the  course of reconstruction,
alteration or improvement shall not be subject to such amendments.