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

New York § 485-M

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

Text

§ 485-m. Residential investment exemption; certain school districts.\n1. Residential real property constructed on or after the first day of\nJanuary, two thousand eight in school districts which serve a city with\na population of not less than thirty-four thousand and not more than\nthirty-five thousand based upon the two thousand federal census may be\nexempt from school district taxation 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\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 eight 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-four\nthousand and not more than thirty-five thousand based upon the two\nthousand federal census;\n (iii) the cost of such construction exceeds the sum of seventy\nthousand dollars 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-four thousand\nand not more than thirty-five thousand based upon the two thousand\nfederal census on or before the appropriate taxable status date of such\nschool district and within one year from the date of completion of such\nconstruction.\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-four thousand and not more than thirty-five\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 school district which serves a city with a population of not less\nthan thirty-four thousand and not more than thirty-five thousand based\nupon the two thousand federal census may, by resolution, 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 resolution\nshall not be subject to any such reduction so effected. Such school\ndistrict upon reduction of the per centum of exemption pursuant to this\nsubdivision may thereafter, by resolution, increase the per centum of\nexemption up to any per centum not exceeding the maximum allowed by\nsubdivision two or eleven of this section, whichever is applicable,\nprovided, however, that any such resolution shall apply only to\nconstruction 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-four thousand and not more than thirty-five thousand based\nupon the two thousand federal census by resolution, establish a date for\nthe commencement of effectiveness of exemption offered pursuant to this\nsection and may provide that the provisions of this section shall apply\nonly to construction having a greater value than that specified by\nsubdivision two of this section, provided, however, that such amount\nshall not exceed three hundred fifty thousand dollars.\n 9. (a) A school district which serves a city with a population of not\nless than thirty-four thousand and not more than thirty-five thousand\nbased upon the two thousand federal census may, by resolution, establish\na board to be known as the residential incentive board. The membership\nand composition of such board shall be set 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-four thousand and not more than thirty-five\nthousand based upon the two thousand federal census concerning the\nvarious types of residential real property which should be granted\neligibility for an exemption pursuant to subdivision one of this\nsection. Such plan shall make a recommendation as to whether the\nexemption be computed as provided in subdivision two of this section. In\naddition, such plan shall identify specific geographic areas within\nwhich such exemptions should be offered. In developing the plan required\nby this paragraph, the board shall consider the planning objectives of a\nschool district which serves a city with a population of not less than\nthirty-four thousand and not more than thirty-five thousand based upon\nthe two thousand federal census, the necessity of the exemption to the\nattraction or retention of home owners and the economic benefit to the\narea of providing exemptions to home 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-four thousand and not more than thirty-five thousand\nbased upon the two thousand federal census with respect to actions it\ndeems desirable to improve the economic climate therein.\n 10. If a school district which serves a city with a population of not\nless than thirty-four thousand and not more than thirty-five thousand\nbased upon the two thousand federal census establishes a residential\nincentive board, pursuant to subdivision nine of this section, such\nschool district may, by resolution, restrict real property eligible to\nreceive the exemption to real property constructed for those purposes\nidentified in the plan presented by the board. Such resolution shall\nrestrict the availability of such exemption to the specific geographic\nareas identified in the plan presented by the board.\n 11. Any school district which adopts an exemption pursuant to this\nsection shall cause information relating to the availability of such\nexemption, including requirements and application procedures, to be\nattached to all building permit applications and copies of such\ninformation shall be posted in a conspicuous location in any office or\noffices where such permits and applications for permits are issued and\nprocessed.\n