§ 421-O — Exemption of capital improvements to multiple dwelling buildings within certain cities

New York § 421-O

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

Text

* § 421-o. Exemption of capital improvements to multiple dwelling\nbuildings within certain cities. 1. Multiple dwelling buildings,\nreconstructed, altered, converted back to an owner occupied single\nfamily dwelling located in any city having a population of more than\neight thousand inhabitants but fewer than nine thousand inhabitants,\nthat is located in a county having a population of more than\nninety-seven thousand inhabitants but fewer than ninety-nine thousand\ninhabitants, determined in accordance with the latest federal decennial\ncensus, that are reconstructed, altered or improved subsequent to the\neffective date of a local law or resolution pursuant to this section\nshall be exempt from taxation and special ad valorem levies to the\nextent provided hereinafter. After a public hearing, the governing board\nof such city may adopt a local law to grant the exemption authorized\npursuant to this section. A copy of such local law shall be filed with\nthe commissioner and the assessor of such city who prepares the\nassessment roll on which the taxes of such city are levied.\n 2. (a) Such buildings within such city shall be exempt for a period of\none year to the extent of one hundred percent of the increase in\nassessed value attributable to such reconstruction, alteration or\nimprovement and for an additional period of eleven years subject to the\nfollowing:\n (i) The extent of such exemption shall be decreased by eight and\none-third percent of the "exemption base" each year during such\nadditional period. The "exemption base" shall be the increase in\nassessed value as determined in the initial year of the term of the\nexemption, except as provided in subparagraph (ii) of this paragraph.\n (ii) In any year in which a change in level of assessment of fifteen\npercent or more is certified for a final assessment roll pursuant to the\nrules of the commissioner, the exemption base shall be multiplied by a\nfraction, the numerator of which shall be the total assessed value of\nthe parcel on such final assessment roll (after accounting for any\nphysical or quantity changes to the parcel since the immediately\npreceding assessment roll), and the denominator of which shall be the\ntotal assessed value of the parcel on the immediately preceding final\nassessment roll. The result shall be the new exemption base. The\nexemption shall thereupon be recomputed to take into account the new\nexemption base, notwithstanding the fact that the assessor receives\ncertification of the change in level of assessment after the completion,\nverification and filing of the final assessment roll. In the event the\nassessor does not have custody of the roll when such certification is\nreceived, the assessor shall certify the recomputed exemption to the\nlocal officers having custody and control of the roll, and such local\nofficers are hereby directed and authorized to enter the recomputed\nexemption certified by the assessor on the roll. The assessor shall give\nwritten notice of such recomputed exemption to the property owner, who\nmay, if he or she believes that the exemption was recomputed\nincorrectly, apply for a correction in the manner provided by title\nthree of article five of this chapter for the correction of clerical\nerrors.\n (iii) Such exemption shall be limited to one hundred thousand dollars\nin increased market value, or such other sum less than one hundred\nthousand dollars, but not less than ten thousand dollars as may be\nprovided by the local law or resolution, of the property attributable to\nsuch reconstruction, alteration or improvement and any increase in\nmarket value greater than such amount shall not be eligible for the\nexemption pursuant to this section. For the purposes of this section,\nthe market value of the reconstruction, alteration or improvement shall\nbe equal to the increased assessed value attributable to such\nreconstruction, alteration or improvement divided by the most recently\nestablished state equalization rate for such city. Where the state\nequalization rate or special equalization rate equals or exceeds\nninety-five percent, the increase in assessed value attributable to such\nreconstruction, alteration or improvement shall be deemed to equal the\nmarket value of such reconstruction, alteration or improvement.\n (b) No such exemption shall be granted for reconstruction, alterations\nor improvements unless:\n (i) such reconstruction, alteration or converted improvement was\ncommenced subsequent to the effective date of the local law adopted\npursuant to subdivision one of this section by such city;\n (ii) the value of such reconstruction, alteration or improvement\nexceeds five thousand dollars; and\n (iii) 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 such city on or before\nthe appropriate taxable 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 provided in this section commencing with the\nassessment roll prepared on the basis of the taxable status date\nreferred to in subdivision three of this section. The assessed value of\nany exemption granted pursuant to this section shall be entered by the\nassessor on the assessment roll with the taxable property, with the\namount of the exemption shown in a separate column.\n 5. For purposes of this section, an owner occupied single family\ndwelling shall mean any building or structure designed and occupied as\nthe temporary or permanent residence or home of 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 or title\nthereto is transferred to other than the heirs or distributees of the\nowner, the exemption granted pursuant to this section shall cease.\n 7. (a) The enactment of a local law in such city may:\n (i) reduce the percent of exemption otherwise allowed pursuant to this\nsection;\n (ii) limit eligibility for the exemption to those forms of\nreconstruction, alterations or improvements as are prescribed in such\nlocal law or resolution;\n (iii) 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 residence building structure\nto prevent physical deterioration of the structure or to comply with\napplicable building, sanitary, health and/or fire codes.\n (b) No such local law shall reduce or repeal an exemption granted\npursuant to this section until the expiration of the period for which\nsuch exemption was granted.\n * NB There are 2 § 421-o's\n