§ 421-B — Exemption of certain private dwellings, multiple dwellings and improvements from local taxation; certain cases

New York § 421-B

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2: Private Property
• Art. 4: Exemptions

Text

§ 421-b. Exemption of certain private dwellings, multiple dwellings\nand improvements from local taxation; certain cases. 1. (a) Within a\ncity having a population of one million or more, private dwellings (land\nand improvements) to be occupied as a residence for the first time,\nwhether newly constructed or resulting from the conversion of any\nbuilding or structure to a private dwelling, and existing private\ndwellings previously occupied, reconstructed or improved to the extent\nof at least forty percent of their assessed valuation without the\nimprovement, shall be exempt from all local and municipal taxes, other\nthan assessments for local improvements, during the tax year or years\nnext following the taxable status date or dates after commencement and\nbefore completion of construction, reconstruction or conversion thereof,\nbut for no more than two years after commencement of such construction,\nreconstruction or conversion, and shall be exempt from such local and\nmunicipal taxes after the earlier of completion of such construction,\nreconstruction or conversion or the end of such two year period, as\nfollows: two years of exemption from all such taxes; followed by one\nyear of exemption from seventy-five percent of such taxes; followed by\none year of exemption from sixty-two and one-half percent of such taxes;\nfollowed by one year of exemption from fifty percent of such taxes;\nfollowed by one year of exemption from thirty-seven and one-half percent\nof such taxes; followed by one year of exemption from twenty-five\npercent of such taxes; and followed by one year of exemption from twelve\nand one-half percent of such taxes. Notwithstanding the foregoing\nprovisions of this paragraph: (i) exemption from local and municipal\ntaxes under this section shall not be available to property exempt from\nsuch taxes under any other law; (ii) the tax lot (land and improvements)\nupon which the private dwelling is constructed, reconstructed or\nconverted shall at all times be subject to local and municipal taxes in\nan amount not less than the amount of local and municipal taxes that\nwould be payable thereon based upon the lesser of the assessed\nvaluation, during the tax year immediately preceding the tax year in\nwhich such construction, reconstruction or conversion commenced or in\nthe case of new construction, the assessed valuation of the land\nappearing on the assessment roll in the first year after completion of\nconstruction; and (iii) in the event that a private dwelling, whether\nowner occupied or not, is fully demolished and removed on or after\nSeptember first, two thousand four, the tax lot (land and improvements)\nupon which such private dwelling was located shall not be eligible for\nexemption from local and municipal taxes under this section for a period\nof three years commencing upon the date of issuance of the demolition\nand removal permit for such private dwelling.\n (b) Within a city having a population of one million or more, multiple\ndwellings (land and improvements) containing not more than four dwelling\nunits to be occupied as a residence for the first time, whether newly\nconstructed or resulting from the conversion of any building or\nstructure to a multiple dwelling, and existing multiple dwellings\ncontaining not more than four dwelling units previously occupied,\nreconstructed or improved to the extent of at least forty percent of\ntheir assessed valuation without the improvement, shall be exempt from\nall local and municipal taxes, other than assessments for local\nimprovements, during the tax year or years next following the taxable\nstatus date or dates after commencement and before completion of\nconstruction, reconstruction or conversion thereof, but for no more than\ntwo years after commencement of such construction, reconstruction or\nconversion, and shall be exempt from such local and municipal taxes\nafter the earlier of completion of such construction, reconstruction or\nconversion or the end of such two year period, as follows: two years of\nexemption from all such taxes; followed by one year of exemption from\nseventy-five percent of such taxes; followed by one year of exemption\nfrom sixty-two and one-half percent of such taxes; followed by one year\nof exemption from fifty percent of such taxes; followed by one year of\nexemption from thirty-seven and one-half percent of such taxes; and\nfollowed by one year of exemption from twenty-five percent of such\ntaxes; and followed by one year of exemption from twelve and one-half\npercent of such taxes. Notwithstanding the foregoing provisions of this\nparagraph: (i) exemption from local and municipal taxes under this\nsection shall not be available to property exempt from such taxes under\nany other law; (ii) the tax lot (land and improvements) upon which the\nmultiple dwelling is constructed, reconstructed or converted shall at\nall times be subject to local and municipal taxes in an amount not less\nthan the amount of local and municipal taxes that would be payable\nthereon based upon the lesser of the assessed valuation, during the tax\nyear immediately preceding the tax year in which such construction,\nreconstruction or conversion commenced or in the case of new\nconstruction, the assessed valuation of the land appearing on the\nassessment roll in the first year after completion of construction;\n(iii) multiple dwellings (land and improvements) shall not be eligible\nfor exemption from local and municipal taxes under this section unless\nsuch multiple dwellings are developed in a governmentally assisted\nproject, as defined in rules promulgated by the local housing agency;\nand (iv) such multiple dwellings are constructed, reconstructed or\nconverted on real property that has been (A) acquired by the federal\ngovernment as the result of the foreclosure of a mortgage loan insured\nby the federal government and (B) conveyed by the federal government to\nan owner approved by the local housing agency for the purpose of\nrehabilitation in accordance with an agreement between the owner of the\nreal property and the federal government.\n 2. (a) For purposes of this section: "private dwelling" shall mean an\nowner occupied building or structure, with the land on which the same is\nconstructed, intended for residential use and occupancy by one or more\nfamilies living independently of each other with separate cooking\nfacilities, which is not a multiple dwelling within the meaning of the\nmultiple dwelling law, and the construction, reconstruction or\nconversion of which (i) is commenced after July first, nineteen hundred\nseventy-eight and before July first, nineteen hundred eighty-two and is\ncompleted no later than April first, nineteen hundred eighty-four; (ii)\nis commenced on or after July first, nineteen hundred eighty-two and\nbefore July first, nineteen hundred eighty-six and is completed no later\nthan July first, nineteen hundred eighty-eight; (iii) is commenced on or\nafter July first, nineteen hundred eighty-six and before July first,\nnineteen hundred ninety and is completed no later than July first,\nnineteen hundred ninety-two; (iv) is commenced on or after July first,\nnineteen hundred ninety and before July first, nineteen hundred\nninety-four and is completed no later than July first, nineteen hundred\nninety-six; (v) is commenced on or after July first, nineteen hundred\nninety-four and before July first, nineteen hundred ninety-eight and is\ncompleted no later than July first, two thousand; (vi) is commenced on\nor after July first, nineteen hundred ninety-eight and before July\nfirst, two thousand two and is completed no later than July first, two\nthousand four; or (vii) is commenced on or after July first, two\nthousand two and before July first, two thousand six and is completed no\nlater than July first, two thousand eleven.\n (b) For purposes of this section: "multiple dwelling" shall mean an\nowner occupied building or structure, with the land on which the same is\nconstructed, which is a multiple dwelling within the meaning of section\nfour of the multiple dwelling law, and the construction, reconstruction\nor conversion of which is commenced on or after July first, two thousand\ntwo and before July first, two thousand six and is completed no later\nthan July first, two thousand eight.\n (c) Construction or reconstruction of, or conversion to, a private\ndwelling or multiple dwelling shall be deemed to have commenced when the\nagency or department of the city having jurisdiction has issued a permit\nfor construction work and such work has begun in good faith in\naccordance with such permit; construction, reconstruction or conversion\nshall be deemed to have been completed when the agency or department of\nthe city having jurisdiction has issued a temporary or permanent\ncertificate of occupancy under which occupancy of the private dwelling\nor multiple dwelling for residential use may lawfully begin or the\nreconstruction has been finally accepted and approved.\n (d) For the purposes of this section: "local housing agency" shall\nhave the same meaning as the term "agency" under section five hundred\ntwo of the general municipal law, except that the term shall mean the\ndepartment of housing preservation and development if there is such a\ndepartment in such city.\n (e) Upon issuance of a violation by an agency, department or bureau of\nthe city of New York for an illegal occupancy, the finance department\nshall revoke the tax exemption thereunder. The owner shall pay the city,\nwith interest, the amount of taxes from which such owner had been\nexempted. Such amount, if unpaid, shall become a lien against the\nproperty.\n 3. (a) Applications for exemption under this section shall be filed\nwith the assessors between February first and March fifteenth of the\ncalendar year and, based on the certification of the local housing\nagency pursuant to this section, the assessors shall certify to the\ncollecting officer the amount of exemption from local and municipal\ntaxes. No such application shall be accepted by the assessors unless\naccompanied by a certificate of the local housing agency certifying\neligibility for exemption pursuant to this section.\n (b) The local housing agency may promulgate rules and regulations to\ncarry out the provisions of this section and may require payment of a\nreasonable filing fee, and in the case of an application involving a\ndwelling which has been reconstructed or improved a fee not to exceed\nten dollars for the certification of such local housing agency under\nthis subdivision.\n (c) At any time after two years of exemption from taxation pursuant to\nthis section, the local housing agency may certify to the assessors and\nthe collecting officer that a private dwelling or multiple dwelling is\nnot being used for residential purposes and upon the filing of such\ncertification with the assessors and the collecting officer, exemption\nfrom taxation under this section shall terminate.\n