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

*§  485-v.  Residential  and  mixed-use  investment exemption; certain
cities  and  school  districts.  1.  As  used  in  this   section:   (a)
"residential and mixed-use real property" means any structure containing
one to four units of which one unit may be for commercial or retail use,
and the remaining units shall be for residential use; and
(b)  "construction" means the creation, modernization, rehabilitation,
expansion or other improvement of any structure but  shall  not  include
ordinary maintenance or repairs.
2. Residential and mixed-use real property constructed on or after the
first  day  of  July,  two  thousand twenty-one located in a city with a
population of not less than fifty thousand and not more  than  fifty-one
thousand,  based  upon  the  two  thousand  ten federal census, shall be
exempt from city,  county  and  school  taxation  as  provided  in  this
section.
3.  (a)  (i)  Such  real property shall be exempt for a period of four
years to the extent of  one  hundred  per  centum  of  the  increase  in
assessed  value  thereof  attributable  to  such construction and for an
additional period of eleven years provided, however, that the extent  of
such  exemption  shall  be  decreased  by twenty-five per centum in year
five, ten per centum in each year six through year nine,  and  five  per
centum  each  year  during  such additional period of six 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 fifteen-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, excluding any additional value
derived  from  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
city, county and school district tax exemption:
Year of exemption Percentage of exemption
1       100%
2       100%
3       100%
4       100%
5       75%
6       65%
7       55%
8       45%
9       35%
10      30%
11      25%
12      20%
13      15%
14      10%
15      5%
(b) No such exemption shall be granted unless:
(i) such construction was commenced on or after the first day of July,
two  thousand  twenty-one  or  such  later  date  as may be specified by
resolution;
(ii) the residential and mixed-use real property is situated in a city
with a population of not less than fifty  thousand  and  not  more  than
fifty-one thousand, based upon the two thousand ten federal census;
(iii)  the  cost  of  such  construction  exceeds  the  sum of seventy
thousand dollars;
(iv)  the  property  is  located  within  the  eligibility  area,   as
designated by being located within the following U.S. census tracts:
(A) Tract 401;
(B) Tract 402;
(C) Tract 403;
(D) Tract 404;
(E) Tract 405;
(F) Tract 406;
(G) Tract 409;
(H) Tract 410; and
(v)  such  construction  is completed as evidenced by a certificate of
occupancy or other appropriate documentation as provided by the owner.
4. 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 of a city with a population
of not less than fifty thousand and not more  than  fifty-one  thousand,
based  upon  the  two  thousand  ten  federal  census,  on or before the
appropriate taxable status date of such city and within  one  year  from
the date of completion of such construction.
5.  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 the city, and taxation by the county in which such  city  is
located if such county passes a local law to provide for such exemption,
and  taxation  by  any  school  district  which serves such city if such
school district passes a resolution to provide for such  exemption.  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.
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 to be applied to
the property commencing with the immediately following assessment roll.
7. In the event that  the  real  property  is  sold  or  the  deed  is
transferred to a new owner or ownership entity differing in ownership or
members,  the  exemption granted pursuant to this section shall cease to
be applied to the  property  commencing  on  the  immediately  following
assessment roll.
8.  The exemption established pursuant to this section shall not apply
to special assessments or special ad valorem levies on the property.
* NB There are § 485-v's