§ 457 — Exemption for first-time homebuyers of newly constructed homes

New York § 457

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

Text

§ 457. Exemption for first-time homebuyers of newly constructed homes.\n1. Newly constructed primary residential property purchased by one or\nmore persons, each of whom is a first-time homebuyer and has not been\nmarried to a homeowner in the three years prior to applying for this\nfirst-time homeowners exemption, shall be exempt from taxation levied by\nor on behalf of any county, city, town, village or school district in\nwhich such newly constructed residential property is located, provided\nthe legislative body or governing board of such county, city, town or\nvillage, after public hearing, adopts a local law, or a school district,\nother than a school district to which article fifty-two of the education\nlaw applies, adopts a resolution providing therefor. The length of such\nexemption shall be set forth in such local law or resolution, but in no\nevent shall it exceed five years.\nSuch exemption shall be computed in accordance with the following table:\n Year of Exemption Percentage assessed\n Valuation exempt from tax\n 1 50\n 2 40\n 3 30\n 4 20\n 5 10\n 6 or more 0\n A copy of such local laws or resolutions shall be filed with the\ncommissioner and the assessor of such county, city, town, or village who\nprepares the assessment roll on which the taxes of such county, city,\ntown, village or school district are levied.\n 2. (a) Any newly constructed primary residential real property within\nthe purchase price limits defined by the state of New York mortgage\nagency low interest rate mortgage program in the non-target, one family\nnew category for the county where such property is located and in effect\non the contract date for the purchase and sale of such property, shall\nbe eligible for the exemption allowed pursuant to this section.\n (b) A first-time homebuyer who either as part of the written contract\nfor sale of the primary residential property, or who enters into a\nwritten contract within ninety days after closing of the sale of the\nprimary residence for reconstruction, alteration or improvements, the\nvalue of which exceeds three thousand dollars, to the primary\nresidential property shall be exempt from taxation to the extent\nprovided by this section. Such exemption shall apply solely to the\nincrease in assessed value thereof attributable to such reconstruction,\nalteration or improvement provided that the assessed value after\nreconstruction, alteration, or improvements does not exceed fifteen\npercent more than the purchase price limits as defined in paragraph (a)\nof this subdivision. For purposes of this section the terms\nreconstruction, alteration and improvement shall not include ordinary\nmaintenance and repairs.\n (c) A first-time homebuyer shall not qualify for the exemption\nauthorized pursuant to this section if the household income exceeds\nincome limits defined by the state of New York mortgage agency low\ninterest rate mortgage program in the non-target, one and two person\nhousehold category for the county where such property is located and in\neffect on the contract date for the purchase and sale of such property.\n (i) The term "household income" as used herein shall mean the total\ncombined income of all the owners, and of any owners' spouses residing\non the premises, for the income tax year preceding the date of making\napplication for the exemption.\n (ii) The term "income" as used herein shall mean the "adjusted gross\nincome" for federal income tax purposes as reported on the applicant's\nlatest available federal or state income tax return subject to any\nsubsequent amendments or revisions, reduced by distributions, to the\nextent included in federal adjusted gross income, received from an\nindividual retirement account and an individual retirement annuity;\nprovided that if no such return was filed within the one year period\npreceding taxable status date, "income" shall mean the adjusted gross\nincome that would have been so reported if such a return had been filed.\nFor purposes of this subdivision, "latest available return" shall mean\nthe federal or state income tax return for the year immediately\npreceding the date of making application, provided however, that if the\ntax return for such tax year has not been filed, then the income tax\nreturn for the tax year two years preceding the date of making\napplication shall be considered the latest available.\n 3. Newly constructed primary residential property purchased by\nfirst-time homebuyers at a sales price greater than the maximum eligible\nsales price shall qualify for the exemption allowed pursuant to this\nsection for that portion of the sales price of such newly constructed\nprimary residential property equal to the maximum eligible sales price,\nprovided, however, that any newly constructed primary residential\nproperty purchased at a sales price greater than fifteen percent above\nthe maximum eligible sales price shall not be allowed any exemption.\n 4. The legislative body or governing board of a county, city, town or\nvillage may adopt a local law, or a school district, other than a school\ndistrict to which article fifty-two of the education law applies may\nadopt a resolution to provide for an increase not to exceed twenty-five\nper centum on the purchase price limit used for eligibility for the\nexemption provided for in this section.\n 5. No exemption shall be allowed pursuant to this section for any\nnewly constructed primary residential property purchased by a first-time\nhomebuyer on or after December thirty-first, two thousand twenty-eight,\nunless such purchase is pursuant to a binding written contract entered\ninto prior to December thirty-first, two thousand twenty-eight.\nProvided, however, that any first-time homebuyer who is allowed an\nexemption pursuant to this section prior to such date shall continue to\nbe allowed further exemptions pursuant to subdivision one of this\nsection.\n 6. (a) No portion of a single family newly constructed primary\nresidential property shall be leased during the period of time when the\nfirst-time homeowner exemption shall apply to the residence. If any\nportion of the single family newly constructed primary residential\nproperty is found to be the subject of a lease agreement the assessor\nshall discontinue any exemption granted pursuant to this section.\n (b) In the event that a primary residential property granted an\nexemption pursuant to this section ceases to be used primarily for\nresidential purposes or title thereto is transferred to other than the\nheirs or distributees of the owner, the exemption granted pursuant to\nthis section shall be discontinued.\n (c) Upon determining that an exemption granted pursuant to this\nsection should be discontinued, the assessor shall mail a notice so\nstating to the owner or owners thereof at the time and in the manner\nprovided by section five hundred ten of this chapter. Such owner or\nowners shall be entitled to seek administrative and judicial review of\nsuch action in the manner provided by law, provided that the burden\nshall be on such owner or owners to establish eligibility for the\nexemption.\n 7. 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, town, village\nor county having the power to assess property for taxation on or before\nthe appropriate taxable status date of such city, town, village and\ncounty.\n 8. If satisfied that the applicant is entitled to an exemption\npursuant to this section, the assessor shall approve the application and\nsuch primary residential property shall thereafter be exempt from\ntaxation and special ad valorem levies as provided in this section\ncommencing with the assessment roll prepared on the basis of the taxable\nstatus date referred to in subdivision seven of this section. The\nassessed value of any exemption granted pursuant to this section shall\nbe entered by the assessor on the assessment roll with the taxable\nproperty, with the amount of the exemption shown in a separate column.\n 9. For purposes of this section: (a) "first-time homebuyer" means a\nperson who has not owned a primary residential property and is not\nmarried to a person who has owned a residential property during the\nthree-year period prior to his or her purchase of the primary\nresidential property, and who does not own a vacation or investment\nhome.\n (b) "Primary residential property" means any one or two family house,\ntownhouse or condominium located in this state which is owner occupied\nby such homebuyer.\n (c) "Newly constructed" means an improvement to real property which\nwas constructed as a primary residential property, and which has never\nbeen occupied and was constructed after the effective date of this\nsection. "Newly constructed" shall also mean that portion of a primary\nresidential property that is altered, improved or reconstructed.\n