§ 421-H*2 — Exemption of capital improvements to residential buildings

New York § 421-H*2

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

Text

* § 421-h. Exemption of capital improvements to residential buildings.\n1. Residential buildings reconstructed, altered or improved subsequent\nto the effective date of a local law or resolution pursuant to this\nsection shall be exempt from taxation and special ad valorem levies to\nthe extent provided hereinafter. After a public hearing, the governing\nboard of a city, with a population of more than one hundred forty\nthousand but less than one hundred fifty thousand as determined by the\nlatest decennial federal census, may adopt a local law or resolution to\ngrant the exemption authorized pursuant to this section. A copy of such\nlocal law or resolution shall be filed with the commissioner and the\nassessor of such city who prepares the assessment roll on which the\ntaxes of such city are levied.\n 2. (a) Such buildings shall be exempt to the extent of one hundred per\ncentum of the increase in assessed value thereof attributable to such\nreconstruction, alteration or improvement subject to the provisions of\nsubdivision six of this section. Such exemption shall be limited to\nforty thousand dollars in increased market value, or such other sum less\nthan forty thousand dollars, as may be provided by the local law or\nresolution, of the property attributable to such reconstruction,\nalteration or improvement and any increase in market value greater than\nsuch amount shall not be eligible for the exemption pursuant to this\nsection. For the purposes of this section, the market value of the\nreconstruction, alteration or improvement shall be equal to the\nincreased assessed value attributable to such reconstruction, alteration\nor improvement divided by the class I ratio in a special assessing unit\nor the most recently established state equalization rate or special\nequalization rate in the remainder of the state, except where the state\nequalization rate or special equalization rate equals or exceeds\nninety-five percent, in which case the increase in assessed value\nattributable to such reconstruction, alteration or improvement shall be\ndeemed to equal the market value of such reconstruction, alteration or\nimprovement.\n (b) No such exemption shall be granted for reconstruction, alterations\nor improvements unless:\n (i) such reconstruction, alteration or improvement was commenced\nsubsequent to the effective date of the local law or resolution adopted\npursuant to subdivision one of this section; and\n (ii) the greater portion, as so determined by square footage, of the\nbuilding reconstructed, altered or improved is at least five years old.\n (c) For purposes of this section the terms reconstruction, alteration\nand improvement shall not include ordinary maintenance and repairs.\n 3. Such exemption shall be granted only upon application by the owner\nof such building on a form prescribed by the commissioner. The\napplication shall be filed with the assessor of the city having the\npower to assess property for taxation on or before the appropriate\ntaxable status date of such city.\n 4. If satisfied that the applicant is entitled to an exemption\npursuant to this section, the assessor shall approve the application and\nsuch building shall thereafter be exempt from taxation and special ad\nvalorem levies as herein provided commencing with the assessment roll\nprepared on the basis of the taxable status date referred to in\nsubdivision three of this section. The assessed value of any exemption\ngranted pursuant to this section shall be entered by the assessor on the\nassessment roll with the taxable property, with the amount of the\nexemption shown in a separate column. No such application shall be\napproved after December thirty-first, two thousand five.\n 5. For the purposes of this section, a residential building shall mean\nany building or structure designed and occupied exclusively for\nresidential purposes by not more than one family.\n 6. In the event that a building granted an exemption pursuant to this\nsection ceases to be used primarily for residential purposes by the\nowner who was granted the exemption pursuant to this section or title\nthereto is transferred to other than the spouse of the owner, the\nexemption granted pursuant to this section shall cease.\n 7. Such city may, by its local law or resolution:\n (a) reduce the per centum of exemption otherwise allowed pursuant to\nthis section;\n (b) limit eligibility for the exemption to those forms of\nreconstruction, alterations or improvements as are prescribed in such\nlocal law or resolution;\n (c) provide that the exemption shall be applicable only to those\nimprovements which would otherwise result in an increase in the assessed\nvaluation of the real property but which consist of an addition,\nremodeling or modernization to an existing residential structure to\nprevent physical deterioration of the structure or to comply with\napplicable building, sanitary, health and/or fire codes.\n * NB There are 2 § 421-h's\n