§ 485-J*5 — Residential investment exemption; certain cities

* § 485-j. Residential investment exemption; certain cities. 1.\nResidential real property constructed on or after the first day of\nJanuary, two thousand five in cities with a population of not less than\nsixty thousand six hundred and not more than sixty-one thousand based\nupon the two thousand federal census may be exempt from city taxation\nand special ad valorem levies as provided 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 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 five 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 sixty thousand six hundred and not more than\nsixty-one thousand based upon the two thousand federal census;\n (iii) the cost of such construction exceeds the sum of sixty 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 sixty thousand six hundred and not more than sixty-one\nthousand based upon the two thousand federal census on or before the\nappropriate taxable status date of such city and within one year from\nthe 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 sixty thousand six hundred and not more than sixty-one\nthousand based upon the two thousand federal census as provided in this\nsection commencing with the assessment roll prepared after the taxable\nstatus date referred to in subdivision three 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 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 sixty thousand six\nhundred and not more than sixty-one thousand based upon the two thousand\nfederal census may, by local law, reduce the per centum of exemption\notherwise allowed pursuant to this section; provided, however, that a\nproject in course of construction and exemptions existing prior in time\nto passage of any such local law shall not be subject to any such\nreduction so effected. Such city upon reduction of the per centum of\nexemption pursuant to this subdivision may thereafter, by local law,\nincrease the per centum of exemption up to any per centum not exceeding\nthe maximum allowed by subdivision two of this section, provided,\nhowever, that any such local law shall apply only to construction\ncommenced subsequent to the effective date of such local law. A copy of\nall such local laws shall be filed with the commissioner and the\nassessor of the city.\n 8. A city with a population of not less than sixty thousand six\nhundred and not more than sixty-one thousand based upon the two thousand\nfederal census may, by local law, establish a date for the commencement\nof effectiveness of exemption offered pursuant to this section and may\nprovide that the provisions of this section shall apply only to\nconstruction having a greater value than that specified by subdivision\ntwo of this section, provided, however, that such amount shall not\nexceed three hundred twenty-five thousand dollars.\n 9. (a) A city with a population of not less than sixty thousand six\nhundred and not more than sixty-one thousand based upon the two thousand\nfederal census may, by local law, establish a board to be known as the\nresidential incentive board. The membership and composition of such\nboard 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 sixty\nthousand six hundred and not more than sixty-one thousand based upon the\ntwo thousand federal census concerning the various types of residential\nreal property which should be granted eligibility for an exemption\npursuant to subdivision one of this section. In addition, such plan\nshall identify specific geographic areas within which such exemptions\nshould be offered. In developing the plan required by this paragraph,\nthe board shall consider the planning objectives of a city with a\npopulation of not less than sixty thousand six hundred and not more than\nsixty-one thousand based upon the two thousand federal census, the\nnecessity of the exemption to the attraction or retention of home owners\nand the economic benefit to the area of providing exemptions to home\nowners.\n (c) In addition, the board may make recommendations to the legislative\nbody of a city with a population of not less than sixty thousand six\nhundred and not more than sixty-one thousand based upon the two thousand\nfederal census with respect to actions it deems desirable to improve the\neconomic climate therein.\n 10. If a city with a population of not less than sixty thousand six\nhundred and not more than sixty-one thousand based upon the two thousand\nfederal census establishes a residential incentive board, pursuant to\nsubdivision nine of this section, such city may, by local law, restrict\nreal property eligible to receive the exemption to real property\nconstructed for those purposes identified in the plan presented by the\nboard. Such local law shall restrict the availability of such exemption\nto the specific geographic areas identified in the plan presented by the\nboard.\n 11. Any city which adopts an exemption pursuant to this section shall\ncause information relating to the availability of such exemption,\nincluding requirements and application procedures, to be attached to all\nbuilding permit applications and copies of such information shall be\nposted in a conspicuous location in any office or offices where such\npermits and applications for permits are issued and processed.\n * NB There are 5 § 485-j's\n