§ 485-H — Residential investment exemption; certain cities

New York § 485-H

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

Text

§ 485-h. Residential investment exemption; certain cities. 1.\nResidential real property constructed on or after the first day of July,\ntwo thousand three in cities with a population of not less than\nthirty-one thousand and not more than thirty-two thousand may be exempt\nfrom city taxation and special ad valorem levies as provided in this\nsection.\n 2. (a) (i) Such real property shall be exempt for a period of one year\nto the extent of fifty per centum of the increase in assessed value\nthereof attributable to such construction and for an additional period\nof nine years provided, however, that the extent of such exemption shall\nbe decreased by five per centum each year during such additional period\nof nine years and such exemption shall be computed with respect to the\n"exemption base". The exemption base shall be the increase in assessed\nvalue as determined in the initial year of such ten year period\nfollowing the filing of an original application, except as provided in\nsubparagraph (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 the\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) The following table shall illustrate the computation of the city\ntax exemption:\n Year of exemption Percentage of exemption\n 1 50\n 2 45\n 3 40\n 4 35\n 5 30\n 6 25\n 7 20\n 8 15\n 9 10\n 10 5\n (b) No such exemption shall be granted unless:\n (i) such construction was commenced on or after the first day of\nJanuary, two thousand three or such later date as may be specified by\nlocal law;\n (ii) the residential real property is situate in a city with a\npopulation of not less than thirty-one thousand and not more than\nthirty-two thousand;\n (iii) the cost of such construction exceeds the sum of thirty thousand\ndollars or such greater amount as may be specified by local law; and\n (iv) such construction is completed as may be evidenced by a\ncertificate of occupancy or other appropriate documentation as provided\nby the owner.\n (c) For purposes of this section the term construction shall not\ninclude ordinary maintenance and repairs.\n 3. 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 of a city with a population\nof not less than thirty-one thousand and not more than thirty-two\nthousand on or before the appropriate taxable status date of such city\nand within one year from the date of completion of such construction.\n 4. If the assessor is satisfied that the applicant is entitled to an\nexemption pursuant to this section, he or she shall approve the\napplication and such real property shall thereafter be exempt from\ntaxation and special ad valorem levies by a city with a population of\nnot less than thirty-one thousand and not more than thirty-two thousand\nas provided in this section commencing with the assessment roll prepared\nafter the taxable status date referred to in subdivision three of this\nsection. The assessed value of any exemption granted pursuant to this\nsection shall be entered by the assessor on the assessment roll with the\ntaxable property, with the amount of the exemption shown in a separate\ncolumn.\n 5. The provisions of this section shall apply to real property used as\nthe primary residence of the owner.\n 6. 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 7. A city with a population of not less than thirty-one thousand and\nnot more than thirty-two thousand may, by local law, reduce the per\ncentum of exemption otherwise allowed pursuant to this section;\nprovided, however, that a project in course of construction and\nexemptions existing prior in time to passage of any such local law shall\nnot be subject to any such reduction so effected. Such city upon\nreduction of the per centum of exemption pursuant to this subdivision\nmay thereafter, by local law, increase the per centum of exemption up to\nany per centum not exceeding the maximum allowed by subdivision two or\neleven of this section, whichever is applicable, provided, however, that\nany such local law shall apply only to construction commenced subsequent\nto the effective date of such local law. A copy of all such local laws\nshall be filed with the commissioner and the assessor of the city.\n 8. A city with a population of not less than thirty-one thousand and\nnot more than thirty-two thousand may, by local law, establish a date\nfor the commencement of effectiveness of exemption offered pursuant to\nthis section and may provide that the provisions of this section shall\napply only to construction having a greater value than that specified by\nsubdivision two of this section, provided, however, that such amount\nshall not exceed seventy thousand dollars.\n 9. (a) A city with a population of not less than thirty-one thousand\nand not more than thirty-two thousand may, by local law, establish a\nboard to be known as the residential incentive board. The membership and\ncomposition of such board shall be set forth in the local law.\n (b) The residential incentive board shall present a plan to the\nlegislative body of a city with a population of not less than thirty-one\nthousand and not more than thirty-two thousand concerning the various\ntypes of residential real property which should be granted eligibility\nfor an exemption pursuant to subdivision one of this section. Such plan\nshall make a recommendation as to whether the exemption be computed as\nprovided in subdivision two or eleven of this section. In addition, such\nplan shall identify specific geographic areas within which such\nexemptions should be offered. In developing the plan required by this\nparagraph, the board shall consider the planning objectives of a city\nwith a population of not less than thirty-one thousand and not more than\nthirty-two thousand, the necessity of the exemption to the attraction or\nretention of home owners and the economic benefit to the area of\nproviding exemptions to home owners.\n (c) In addition, the board may make recommendations to the legislative\nbody of a city with a population of not less than thirty-one thousand\nand not more than thirty-two thousand with respect to actions it deems\ndesirable to improve the economic climate therein.\n 10. If a city with a population of not less than thirty-one thousand\nand not more than thirty-two thousand establishes a residential\nincentive board, pursuant to subdivision nine of this section, such city\nmay, by local law, restrict real property eligible to receive the\nexemption to real property constructed for those purposes identified in\nthe plan presented by the board. Such local law shall restrict the\navailability of such exemption to the specific geographic areas\nidentified in the plan presented by the board.\n 11. Notwithstanding subdivision two of this section, where a city with\na population of not less than thirty-one thousand and not more than\nthirty-two thousand adopts restricted exemptions pursuant to subdivision\nten of this section, the local law may provide that such exemptions\nshall be computed pursuant to the following accelerated strategic\nexemption schedule:\n Year of exemption Percentage of exemption\n 1 50\n 2 45\n 3 40\n 4 35\n 5 30\n 6 25\n 7 20\n 8 15\n 9 10\n 10 5\n Provided however, that such local law shall:\n (i) contain findings that the adoption of this accelerated strategic\nexemption schedule is necessary to encourage targeted residential\ndevelopment, and that the value of the exemptions to be provided is\njustified by the need to broaden the tax base; and\n (ii) limit the applicability of such schedule to projects where the\ncost of such construction exceeds the sum of seventy thousand dollars;\nand\n (iii) provide that such exemptions are restricted by geographic areas\nas provided by subdivision ten of this section.\n