§ 421-L — Exemption of capital improvements to residential buildings in certain towns

New York § 421-L

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

Text

§ 421-l. Exemption of capital improvements to residential buildings in\ncertain towns. 1. Residential buildings designed and occupied\nexclusively for residential purposes by not more than three families\nthat are reconstructed, altered or improved subsequent to the effective\ndate of a local law or resolution pursuant to this section shall be\nexempt from taxation and special ad valorem levies to the extent\nprovided hereinafter. After a public hearing, the governing board of a\ntown with a population of not less than sixteen thousand three hundred\nfifty and not more than sixteen thousand three hundred sixty, situated\nin a county with a population of not less than nine hundred nineteen\nthousand and not more than nine hundred nineteen thousand one hundred,\nbased upon the two thousand ten federal census, may adopt a local law to\ngrant the exemption authorized pursuant to this section. Subsequent to\nthe adoption of such a local law, the county in which such town is\nlocated, any village located within such town and any school district\nall or part of which is located within such town may likewise exempt\nsuch property from its taxation and special ad valorem levies by local\nlaw, or in the case of a school district, by resolution in the same\nmanner and to the same extent as the town. A copy of such local laws or\nresolutions shall be filed with the commissioner and appropriate\nassessor.\n 2. Such residential real property shall be exempt for a period of one\nyear to the extent of fifty per centum of the increase in assessed value\nthereof attributable to such reconstruction, alteration or improvement\nand for an additional period of four years subject to the following:\n (i) The extent of such exemption shall be decreased by ten per centum\nof the "exemption base" each year during such additional four-year\nperiod, such that during year two there shall be an exemption of forty\nper centum of the increase in assessed value thereof attributable,\nduring year three there shall be an exemption of thirty per centum of\nthe increase in assessed value thereof attributable, in year four there\nshall be an exemption of twenty per centum of the increase in assessed\nvalue thereof attributable and in year five there shall be an exemption\nof ten per centum of the increase in assessed value thereof\nattributable;\n (ii) The "exemption base" shall be the increase in assessed value due\nto reconstruction, alterations or improvements as determined by the\nassessor in the initial year of such five-year period following the\nfiling of an original application; and\n (iii) A qualified reconstruction, alteration or improvement shall have\nincreased the assessed value of the real property by at least ten\nthousand dollars, with a maximum permitted exemption not to exceed one\nhundred fifty thousand dollars.\n 3. For purposes of this section, "reconstruction", "alteration" or\n"improvement" shall not include ordinary maintenance and repairs.\n 4. Any owner of a one to three family residence may qualify for an\nexemption pursuant to this section, including owners who do not occupy\nsuch residences, individuals, partnerships and limited liability\ncorporations. Exemptions granted pursuant to this section are not\ntransferable from owner to another if the real property is sold or\ntransferred during the exemption period.\n 5. No such exemption shall be granted unless:\n (a) Such reconstruction, alteration or improvement was commenced\nsubsequent to the effective date of the local law or resolution adopted\nby a town, county, village or school district pursuant to subdivision\none of this section;\n (b) The owner of real property applying for such exemption has\nsatisfied all outstanding town, county, village and school tax\nobligations; and\n (c) Such reconstruction, alteration or improvement is documented by a\nbuilding permit, if required, for the improvements or other appropriate\ndocumentation as required by the assessor and/or code enforcement\nofficer.\n 6. Such exemption shall be granted only upon application by the owner\nof such real property on a form prescribed by the commissioner. Such\napplication shall be filed with the assessor on or before the\nappropriate taxable status date and within one year after the date of\ncompletion of such reconstruction, alteration or improvement.\n 7. 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 provided in this section commencing with the\nassessment roll prepared on the basis of the taxable status date\nreferred to in subdivision six of this section. The assessor shall enter\nthe assessed value of any exemption granted pursuant to this section on\nthe assessment roll for the taxable property, with the amount of the\nexemption shown in a separate column.\n 8. In the event that real property granted an exemption pursuant to\nthis section ceases to be used primarily for eligible purposes, the\nexemption granted pursuant to this section shall cease.\n 9. Such town, county, village or school district shall be permitted by\nlocal law to reduce the percentage of exemption otherwise allowable by\nsubdivision two of this section or increase the required minimum\nassessed values set forth in paragraph (iii) of subdivision two of this\nsection, provided that a project in the course of reconstruction,\nalteration or improvement shall not be subject to such amendments.\n