§ 485-I — Residential investment exemption; certain school districts

New York § 485-I

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

Text

* § 485-i. Residential investment exemption; certain school districts.\n1. Residential real property constructed on or after the first day of\nJuly, two thousand three in school districts which serve a city with a\npopulation of not less than thirty-one thousand and not more than\nthirty-two thousand may be exempt from school district taxation as\nprovided in this section.\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\nschool district tax 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\nresolution;\n (ii) the residential real property is situate in a school district\nwhich serves a city with a population of not less than thirty-one\nthousand and not more than thirty-two thousand;\n (iii) the cost of such construction exceeds the sum of thirty thousand\ndollars or such greater amount as may be specified; 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 school district which\nserves a city with a population of not less than thirty-one thousand and\nnot more than thirty-two thousand on or before the appropriate taxable\nstatus date of such school district and within one year from the date of\ncompletion 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 by a school district which serves 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 school district which serves a city with a population of not less\nthan thirty-one thousand and not more than thirty-two thousand may, by\nresolution, reduce the per centum of exemption otherwise allowed\npursuant to this section; provided, however, that a project in course of\nconstruction and exemptions existing prior in time to passage of any\nsuch resolution shall not be subject to any such reduction so effected.\nSuch school district upon reduction of the per centum of exemption\npursuant to this subdivision may thereafter, by resolution, increase the\nper centum of exemption up to any per centum not exceeding the maximum\nallowed by subdivision two or eleven of this section, whichever is\napplicable, provided, however, that any such resolution shall apply only\nto construction commenced subsequent to the effective date of such\nresolution. A copy of all such resolutions shall be filed with the\ncommissioner and the assessor of the school district.\n 8. A school district which serves a city with a population of not less\nthan thirty-one thousand and not more than thirty-two thousand may, by\nresolution, establish a date for the commencement of effectiveness of\nexemption offered pursuant to this section and may provide that the\nprovisions of this section shall apply only to construction having a\ngreater value than that specified by subdivision two of this section,\nprovided, however, that such amount shall not exceed seventy thousand\ndollars.\n 9. (a) A school district which serves a city with a population of not\nless than thirty-one thousand and not more than thirty-two thousand may,\nby resolution, establish a board to be known as the residential\nincentive board. The membership and composition of such board shall be\nset forth in the resolution.\n (b) The residential incentive board shall present a plan to the board\nof education of a school district which serves a city with a population\nof not less than thirty-one thousand and not more than thirty-two\nthousand concerning the various types of residential real property which\nshould be granted eligibility for an exemption pursuant to subdivision\none of this section. Such plan shall make a recommendation as to whether\nthe exemption be computed as provided in subdivision two or eleven of\nthis section. In addition, such plan shall identify specific geographic\nareas within which such exemptions should be offered. In developing the\nplan required by this paragraph, the board shall consider the planning\nobjectives of a school district which serves a city with a population of\nnot less than thirty-one thousand and not more than thirty-two thousand,\nthe necessity of the exemption to the attraction or retention of home\nowners and the economic benefit to the area of providing exemptions to\nhome owners.\n (c) In addition, the board may make recommendations to the school\nboard of a school district which serves a city with a population of not\nless than thirty-one thousand and not more than thirty-two thousand with\nrespect to actions it deems desirable to improve the economic climate\ntherein.\n 10. If a school district which serves a city with a population of not\nless than thirty-one thousand and not more than thirty-two thousand\nestablishes a residential incentive board, pursuant to subdivision nine\nof this section, such school district may, by resolution, restrict real\nproperty eligible to receive the exemption to real property constructed\nfor those purposes identified in the plan presented by the board. Such\nresolution shall restrict the availability of such exemption to the\nspecific geographic areas identified in the plan presented by the board.\n 11. Notwithstanding subdivision two of this section, where a school\ndistrict which serves a city with a population of not less than\nthirty-one thousand and not more than thirty-two thousand adopts\nrestricted exemptions pursuant to subdivision ten of this section, the\nresolution may provide that such exemptions shall be computed pursuant\nto the following accelerated strategic exemption 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 resolution 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 * NB There are 2 § 485-i's\n