§ 485-O — New residential property exemption; certain cities

§ 485-o. New residential property exemption; certain cities. 1.\nConstruction of qualified new residential structures or total\nrehabilitation of qualified vacant residential structures determined to\nbe unoccupied hazards initiated on or after the first day of January,\ntwo thousand thirteen in cities with a population of not less than one\nhundred thirty thousand and not more than one hundred sixty thousand,\nbased upon the two thousand ten federal census may be exempt from city\nand school taxation as provided in this section.\n 2. (a) (i) Such qualified residential real property shall be exempt in\naccordance with the applicable exemption schedules set forth in this\nsubparagraph and such exemption shall be computed with respect to the\n"exemption base". The exemption base shall be the increase in the\nassessed value due to qualified improvements as determined in the\ninitial year of the applicable exemption price following the filing of\nan original application, provided that the application relative to the\nrehabilitation of a qualified vacant residential structure determined to\nbe an unoccupied hazard shall be pre-approved by the city as provided in\nthis section.\n (ii)\n Construction of Qualified LEED Certified\n New Residential Structures\n Percentage of exemption\nYear Certified/Silver Gold Platinum\n1 100% 100% 100%\n2 100% 100% 100%\n3 100% 100% 100%\n4 100% 100% 100%\n5 100% 100% 100%\n6 100% 100% 100%\n7 100% 100% 100%\n8 100% 100% 100%\n9 80% 100% 100%\n10 60% 80% 100%\n11 40% 60% 100%\n12 20% 40% 75%\n13 0% 20% 50%\n14 0% 0% 25%\n (iii)\n Construction of Qualified New Residential Structure\n or Total Rehabilitation of Pre-approved Qualified\n Residential Structure Determined To Be An\n Unoccupied Hazard\nYear Percentage of exemption\n1 100%\n2 100%\n3 100%\n4 100%\n5 100%\n6 100%\n7 100%\n8 75%\n9 50%\n10 25%\n (iv) Any application submitted by the property owner for the exemption\nrelative to the rehabilitation of a residential structure determined to\nbe an occupied hazard shall require pre-approval by the assessor of such\ncity and the director of code enforcement which pre-approval shall be in\nwriting and shall certify that the structure to be totally rehabilitated\nqualifies as an unoccupied hazard. The failure of the applicant to apply\nor receive such pre-approval for any exemption relative to the total\nrehabilitation of a qualified residential structure determined to be an\nunoccupied hazard shall disqualify the subject property from eligibility\nfor any exemption pursuant to this section and the city's local law.\n (v) For purposes of eligibility for the total rehabilitation of a\nresidential structure, a qualified residential structure determined to\nbe an unoccupied hazard, an unoccupied hazard shall be defined as any\nresidential building or structure or a substantial part thereof which\nremains unoccupied for a period of more than one year with either doors,\nwindows, or other openings broken, removed, boarded or sealed up.\n (vi) For purposes of eligibility for the construction of a qualified\nnew residential structure, the new residential property must be a one or\ntwo family residence. New residential real property constructed which is\ngreater than a one or two family residence shall in no event be eligible\nfor real property tax exemptions authorized by this section.\n (vii) (A) For the purposes of eligibility under a LEED certification\nstandard the term "LEED" shall mean the Leadership in Energy and\nEnvironmental Design Building Rating System published by the United\nStates Green Building Council. Such residential real property which is\ncertified under a LEED certification standard which is determined to be\nfor the categories of certified, silver, gold or platinum as meeting\ngreen building standards, as determined by a LEED accredited\nprofessional shall be exempt as provided in subparagraph (ii) of\nparagraph (a) of subdivision two of this section for the respective\npercentages provided that a copy of the certification for a qualified\ncategory is filed with the city's commissioner of assessment and the\ncommissioner of assessment approves the application for the applicable\ncategory as meeting the requirements of this section and the city's\nlocal law.\n (B) Construction of a qualified new residential structure which does\nnot meet the certified, silver, gold or platinum standard as determined\nby the city shall be exempt under subparagraph (iii) of this paragraph\nprovided it meets the applicable requirements of this section and the\ncity's local law.\n (viii) Exemptions granted pursuant to this section shall apply to real\nproperty taxes imposed for both city and school district purposes.\n (b) No such exemption shall be granted unless:\n (i) such construction of a qualified new residential real property or\nthe total rehabilitation of a qualified residential structure determined\nto be an unoccupied hazard commenced on or after the first day of\nJanuary, two thousand thirteen or such later date as may be specified by\nlocal law to qualify for the enhanced exemption;\n (ii) the qualified residential real property is situated in a city\nwith a population of not less than one hundred thirty thousand and not\nmore than one hundred sixty thousand based on the two thousand ten\nfederal census;\n (iii) the value of such construction exceeds the sum of twenty\nthousand dollars; and\n (iv) such construction is documented by a building permit, if\nrequired, for the improvements, or other appropriate documentation as\nrequired by the assessor.\n (c) For purposes of this section the term "construction of\nimprovements" shall not include ordinary maintenance and repairs.\n 3. Such exemption for the construction of a qualified new residential\nreal property shall be granted only upon application by the owner of\nsuch real property. Such exemption for a total rehabilitation of a\nqualified residential structure determined to be an unoccupied hazard\nshall be granted only upon application by the owner of such real\nproperty who has been pre-approved in accordance with the requirements\nof subparagraph (iv) of paragraph (a) of subdivision two of this\nsection. Such application shall be filed with the assessor of a city\nwith a population of not less than one hundred thirty thousand and not\nmore than one hundred sixty thousand based upon the two thousand ten\nfederal census, on or before the appropriate taxable status date of such\ncity and within one year from the date of completion of such\nconstruction of qualified residential structure improvements.\n 4. If the assessor of such city is satisfied that the applicant is\nentitled to an exemption pursuant to this section, he or she shall\napprove the application and such real property shall thereafter be\nexempt from taxation and special ad valorem levies by a city with a\npopulation of not less than one hundred thirty thousand and not more\nthan one hundred sixty thousand based upon the two thousand ten federal\ncensus, as provided in this section commencing with the assessment roll\nprepared after the taxable status date referred to in subdivision three\nof this section. The assessed value of any exemption granted pursuant to\nthis section shall be entered by the assessor of such city on the\nassessment roll with the taxable property, with the amount of the\nexemption shown in a separate column. In any case where there is an\nadditional partial exemption based on a LEED certification, a copy of\nsuch certification shall be filed in the subject real property file.\n 5. In the event that real property granted an exemption pursuant to\nthis section ceases to be used primarily for purposes as provided in\nsubparagraph (vi) of paragraph (a) of subdivision two of this section\nthe exemption granted pursuant to this section shall cease.\n 6. A city with a population of not less than one hundred thirty\nthousand and not more than one hundred sixty thousand, based upon the\ntwo thousand ten federal census may establish by a local law a date for\nthe commencement of effectiveness of the exemption offered pursuant to\nthis section. In addition, such city is authorized to establish\nprocedures in such local law for the elimination of the exemption for an\notherwise qualified residential property which is determined by the\nassessor of such city and the director of code enforcement to have\nserious code violations, as defined by the city in such local law, at\nany time subsequent to the approval of the application for real property\ntax exemption pursuant to this section and which serious code violations\nhave not been corrected and any judgments and/or fines, penalties and\ncosts, if any, have not been paid in accordance with the applicable\nlaws, local law, ordinances, rules and regulations. Notwithstanding the\nforegoing, the elimination of any such exemption shall take effect on\nthe assessment roll based on the next taxable status date subsequent to\nthe city's determination to eliminate the exemption. A copy of all such\nlocal laws shall be filed with the commissioner and the assessor of such\ncity.\n