2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 421-B - Exemption of Certain Private Dwellings, Multiple Dwellings and Improvements From Local Taxation; Certain Cases.

§  421-b.  Exemption  of certain private dwellings, multiple dwellings
and improvements from local taxation; certain cases.  1.  (a)  Within  a
city having a population of one million or more, private dwellings (land
and  improvements)  to  be  occupied  as a residence for the first time,
whether newly constructed  or  resulting  from  the  conversion  of  any
building  or  structure  to  a  private  dwelling,  and existing private
dwellings previously occupied, reconstructed or improved to  the  extent
of  at  least  forty  percent  of  their  assessed valuation without the
improvement, shall be exempt from all local and municipal  taxes,  other
than  assessments  for  local improvements, during the tax year or years
next following the taxable status date or dates after  commencement  and
before completion of construction, reconstruction or conversion thereof,
but  for no more than two years after commencement of such construction,
reconstruction or conversion, and shall be exempt from  such  local  and
municipal  taxes  after  the earlier of completion of such construction,
reconstruction or conversion or the end of  such  two  year  period,  as
follows:  two  years  of  exemption from all such taxes; followed by one
year of exemption from seventy-five percent of such taxes;  followed  by
one year of exemption from sixty-two and one-half percent of such taxes;
followed  by  one  year  of  exemption from fifty percent of such taxes;
followed by one year of exemption from thirty-seven and one-half percent
of such taxes; followed  by  one  year  of  exemption  from  twenty-five
percent of such taxes; and followed by one year of exemption from twelve
and  one-half  percent  of  such  taxes.  Notwithstanding  the foregoing
provisions of this paragraph:  (i) exemption from  local  and  municipal
taxes  under this section shall not be available to property exempt from
such taxes under any other law; (ii) the tax lot (land and improvements)
upon  which  the  private  dwelling  is  constructed,  reconstructed  or
converted  shall at all times be subject to local and municipal taxes in
an amount not less than the amount of local  and  municipal  taxes  that
would  be  payable  thereon  based  upon  the  lesser  of  the  assessed
valuation, during the tax year immediately preceding  the  tax  year  in
which  such  construction,  reconstruction or conversion commenced or in
the case of  new  construction,  the  assessed  valuation  of  the  land
appearing  on  the assessment roll in the first year after completion of
construction; and (iii) in the event that a  private  dwelling,  whether
owner  occupied  or  not,  is  fully  demolished and removed on or after
September first, two thousand four, the tax lot (land and  improvements)
upon  which  such private dwelling was located shall not be eligible for
exemption from local and municipal taxes under this section for a period
of three years commencing upon the date of issuance  of  the  demolition
and removal permit for such private dwelling.
(b) Within a city having a population of one million or more, multiple
dwellings (land and improvements) containing not more than four dwelling
units  to  be  occupied as a residence for the first time, whether newly
constructed  or  resulting  from  the  conversion  of  any  building  or
structure  to  a  multiple  dwelling,  and  existing  multiple dwellings
containing not  more  than  four  dwelling  units  previously  occupied,
reconstructed  or  improved  to  the extent of at least forty percent of
their assessed valuation without the improvement, shall be  exempt  from
all  local  and  municipal  taxes,  other  than  assessments  for  local
improvements, during the tax year or years next  following  the  taxable
status  date  or  dates  after  commencement  and  before  completion of
construction, reconstruction or conversion thereof, but for no more than
two years after commencement of  such  construction,  reconstruction  or
conversion,  and  shall  be  exempt  from such local and municipal taxes
after the earlier of completion of such construction, reconstruction  or
conversion  or the end of such two year period, as follows: two years of

exemption from all such taxes; followed by one year  of  exemption  from
seventy-five  percent  of  such taxes; followed by one year of exemption
from sixty-two and one-half percent of such taxes; followed by one  year
of  exemption  from fifty percent of such taxes; followed by one year of
exemption from thirty-seven and one-half  percent  of  such  taxes;  and
followed  by  one  year  of  exemption  from twenty-five percent of such
taxes; and followed by one year of exemption from  twelve  and  one-half
percent  of such taxes. Notwithstanding the foregoing provisions of this
paragraph: (i) exemption from  local  and  municipal  taxes  under  this
section  shall not be available to property exempt from such taxes under
any other law; (ii) the tax lot (land and improvements) upon  which  the
multiple  dwelling  is  constructed, reconstructed or converted shall at
all times be subject to local and municipal taxes in an amount not  less
than  the  amount  of  local  and  municipal taxes that would be payable
thereon based upon the lesser of the assessed valuation, during the  tax
year  immediately  preceding  the  tax  year in which such construction,
reconstruction  or  conversion  commenced  or  in  the   case   of   new
construction,  the  assessed  valuation  of  the  land  appearing on the
assessment roll in the first  year  after  completion  of  construction;
(iii)  multiple  dwellings (land and improvements) shall not be eligible
for exemption from local and municipal taxes under this  section  unless
such  multiple  dwellings  are  developed  in  a governmentally assisted
project, as defined in rules promulgated by the  local  housing  agency;
and  (iv)  such  multiple  dwellings  are  constructed, reconstructed or
converted on real property that has been (A)  acquired  by  the  federal
government  as  the result of the foreclosure of a mortgage loan insured
by the federal government and (B) conveyed by the federal government  to
an  owner  approved  by  the  local  housing  agency  for the purpose of
rehabilitation in accordance with an agreement between the owner of  the
real property and the federal government.
2.  (a) For purposes of this section: "private dwelling" shall mean an
owner occupied building or structure, with the land on which the same is
constructed,  intended  for residential use and occupancy by one or more
families living  independently  of  each  other  with  separate  cooking
facilities,  which  is not a multiple dwelling within the meaning of the
multiple  dwelling  law,  and  the   construction,   reconstruction   or
conversion  of which (i) is commenced after July first, nineteen hundred
seventy-eight and before July first, nineteen hundred eighty-two and  is
completed  no later than April first, nineteen hundred eighty-four; (ii)
is commenced on or after July first,  nineteen  hundred  eighty-two  and
before July first, nineteen hundred eighty-six and is completed no later
than July first, nineteen hundred eighty-eight; (iii) is commenced on or
after  July  first,  nineteen  hundred eighty-six and before July first,
nineteen hundred ninety and is  completed  no  later  than  July  first,
nineteen  hundred  ninety-two; (iv) is commenced on or after July first,
nineteen  hundred  ninety  and  before  July  first,  nineteen   hundred
ninety-four  and is completed no later than July first, nineteen hundred
ninety-six; (v) is commenced on or after July  first,  nineteen  hundred
ninety-four  and before July first, nineteen hundred ninety-eight and is
completed no later than July first, two thousand; (vi) is  commenced  on
or  after  July  first,  nineteen  hundred  ninety-eight and before July
first, two thousand two and is completed no later than July  first,  two
thousand  four;  or  (vii)  is  commenced  on  or  after July first, two
thousand two and before July first, two thousand six and is completed no
later than July first, two thousand eleven.
(b) For purposes of this section: "multiple dwelling"  shall  mean  an
owner occupied building or structure, with the land on which the same is
constructed,  which is a multiple dwelling within the meaning of section

four of the multiple dwelling law, and the construction,  reconstruction
or conversion of which is commenced on or after July first, two thousand
two  and  before  July first, two thousand six and is completed no later
than July first, two thousand eight.
(c)  Construction  or  reconstruction  of, or conversion to, a private
dwelling or multiple dwelling shall be deemed to have commenced when the
agency or department of the city having jurisdiction has issued a permit
for construction  work  and  such  work  has  begun  in  good  faith  in
accordance  with such permit; construction, reconstruction or conversion
shall be deemed to have been completed when the agency or department  of
the  city  having  jurisdiction  has  issued  a  temporary  or permanent
certificate of occupancy under which occupancy of the  private  dwelling
or  multiple  dwelling  for  residential  use  may lawfully begin or the
reconstruction has been finally accepted and approved.
(d) For the purposes of this section:  "local  housing  agency"  shall
have  the  same  meaning as the term "agency" under section five hundred
two of the general municipal law, except that the term  shall  mean  the
department  of  housing  preservation and development if there is such a
department in such city.
(e) Upon issuance of a violation by an agency, department or bureau of
the city of New York for an illegal occupancy,  the  finance  department
shall revoke the tax exemption thereunder. The owner shall pay the city,
with  interest,  the  amount  of  taxes  from  which such owner had been
exempted. Such amount, if  unpaid,  shall  become  a  lien  against  the
property.
3.  (a)  Applications  for exemption under this section shall be filed
with the assessors between February first and  March  fifteenth  of  the
calendar  year  and,  based  on  the  certification of the local housing
agency pursuant to this section, the  assessors  shall  certify  to  the
collecting  officer  the  amount  of  exemption from local and municipal
taxes. No such application shall be accepted  by  the  assessors  unless
accompanied  by  a  certificate  of  the local housing agency certifying
eligibility for exemption pursuant to this section.
(b) The local housing agency may promulgate rules and  regulations  to
carry  out  the  provisions of this section and may require payment of a
reasonable filing fee, and in the case of  an  application  involving  a
dwelling  which  has  been reconstructed or improved a fee not to exceed
ten dollars for the certification of such  local  housing  agency  under
this subdivision.
(c) At any time after two years of exemption from taxation pursuant to
this  section, the local housing agency may certify to the assessors and
the collecting officer that a private dwelling or multiple  dwelling  is
not  being  used  for  residential  purposes and upon the filing of such
certification with the assessors and the collecting  officer,  exemption
from taxation under this section shall terminate.