2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 485-K - Residential Investment Exemption; Certain School Districts.

§  485-k.  Residential investment exemption; certain school districts.
1.  Residential real property constructed on or after the first  day  of
January, two thousand five in school districts which serve a city with a
population of not less than sixty thousand six hundred and not more than
sixty-one  thousand  may  be  exempt  from  school  district taxation as
provided in this section.
2. (a) (i) Such 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 construction and for an additional period
of nine years provided, however, that the extent of such exemption shall
be decreased by five per centum each year during such additional  period
of  nine  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  ten 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  (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  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
school district tax exemption:
Year of exemption                      Percentage of exemption
1                                        50
2                                        45
3                                        40
4                                        35
5                                        30
6                                        25
7                                        20
8                                        15
9                                        10
10                                         5
(b) No such exemption shall be granted unless:
(i)  such  construction  was  commenced  on  or after the first day of
January, two thousand five or such later date as  may  be  specified  by
resolution;
(ii)  the  residential  real  property is situate in a school district
which serves a city with a population of not less  than  sixty  thousand
six hundred and not more than sixty-one thousand;
(iii)  the cost of such construction exceeds the sum of sixty thousand
dollars or such greater amount as may be specified; and
(iv)  such  construction  is  completed  as  may  be  evidenced  by  a
certificate  of occupancy or other appropriate documentation as provided
by the owner.
(c) For purposes of this  section  the  term  construction  shall  not
include ordinary maintenance and repairs.
3.  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 school district which
serves a city with a population of not  less  than  sixty  thousand  six
hundred   and  not  more  than  sixty-one  thousand  on  or  before  the
appropriate taxable status date of such school district and  within  one
year from the date of completion of such construction.
4.  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 a school district which serves a city with a  population  of
not  less  than  sixty  thousand six hundred and not more than sixty-one
thousand as provided in this section commencing with the assessment roll
prepared after 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. The provisions of this section shall apply to real property used as
the primary residence of the owner.
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.
7. A school district which serves a city with a population of not less
than  sixty  thousand  six  hundred and not more than sixty-one thousand
may, by resolution, reduce the per centum of exemption otherwise allowed
pursuant to this section; provided, however, that a project in course of
construction and exemptions existing prior in time  to  passage  of  any
such  resolution shall not be subject to any such reduction so effected.
Such school district upon reduction  of  the  per  centum  of  exemption
pursuant to this subdivision may thereafter, by resolution, increase the
per  centum  of exemption up to any per centum not exceeding the maximum
allowed by subdivision two of this  section,  whichever  is  applicable,
provided,  however,  that  any  such  resolution  shall  apply  only  to
construction  commenced  subsequent  to  the  effective  date  of   such
resolution.  A  copy  of  all  such  resolutions shall be filed with the
commissioner and the assessor of the school district.
8. A school district which serves a city with a population of not less
than sixty thousand six hundred and not  more  than  sixty-one  thousand
may,   by   resolution,   establish  a  date  for  the  commencement  of
effectiveness of exemption offered pursuant  to  this  section  and  may
provide  that  the  provisions  of  this  section  shall  apply  only to
construction having a greater value than that specified  by  subdivision
two  of  this  section,  provided,  however,  that such amount shall not
exceed three hundred twenty-five thousand dollars.
9. (a) A school district which serves a city with a population of  not
less  than  sixty  thousand  six  hundred  and  not  more than sixty-one
thousand may, by resolution, establish  a  board  to  be  known  as  the

residential  incentive  board.  The  membership  and composition of such
board shall be set forth in the resolution.
(b)  The residential incentive board shall present a plan to the board
of education of a school district which serves a city with a  population
of  not less than sixty thousand six hundred and not more than sixty-one
thousand concerning the various types of residential real property which
should be granted eligibility for an exemption pursuant  to  subdivision
one of this section. Such plan shall make a recommendation as to whether
the  exemption  be  computed  as  provided  in  subdivision  two of this
section. In addition, such plan shall identify specific geographic areas
within which such exemptions should be offered. In developing  the  plan
required  by  this  paragraph,  the  board  shall  consider the planning
objectives of a school district which serves a city with a population of
not less than sixty thousand six hundred and  not  more  than  sixty-one
thousand,  the necessity of the exemption to the attraction or retention
of home owners and  the  economic  benefit  to  the  area  of  providing
exemptions to home owners.
(c)  In  addition,  the  board  may make recommendations to the school
board of a school district which serves a city with a population of  not
less  than  sixty  thousand  six  hundred  and  not  more than sixty-one
thousand with respect to actions  it  deems  desirable  to  improve  the
economic climate therein.
10.  If a school district which serves a city with a population of not
less than sixty  thousand  six  hundred  and  not  more  than  sixty-one
thousand   establishes   a  residential  incentive  board,  pursuant  to
subdivision  nine  of  this  section,  such  school  district  may,   by
resolution,  restrict real property eligible to receive the exemption to
real property constructed for those  purposes  identified  in  the  plan
presented  by the board. Such resolution shall restrict the availability
of such exemption to the specific geographic  areas  identified  in  the
plan presented by the board.