N.Y. Real Property Tax Law § 421-b: Exemption of certain private dwellings, multiple dwellings and improvements from local taxation; certain cases

§ 421-b. Exemption of certain private dwellings, multiple dwellings

and improvements from local taxation; certain cases. 1. (a) Within a

city having a population of one million or more, private dwellings (land

and improvements) to be occupied as a residence for the first time,

whether newly constructed or resulting from the conversion of any

building or structure to a private dwelling, and existing private

dwellings previously occupied, reconstructed or improved to the extent

of at least forty percent of their assessed valuation without the

improvement, shall be exempt from all local and municipal taxes, other

than assessments for local improvements, during the tax year or years

next following the taxable status date or dates after commencement and

before completion of construction, reconstruction or conversion thereof,

but for no more than two years after commencement of such construction,

reconstruction or conversion, and shall be exempt from such local and

municipal taxes after the earlier of completion of such construction,

reconstruction or conversion or the end of such two year period, as

follows: two years of exemption from all such taxes; followed by one

year of exemption from seventy-five percent of such taxes; followed by

one year of exemption from sixty-two and one-half percent of such taxes;

followed by one year of exemption from fifty percent of such taxes;

followed by one year of exemption from thirty-seven and one-half percent

of such taxes; followed by one year of exemption from twenty-five

percent of such taxes; and followed by one year of exemption from twelve

and one-half percent of such taxes. Notwithstanding the foregoing

provisions of this paragraph: (i) exemption from local and municipal

taxes under this section shall not be available to property exempt from

such taxes under any other law; (ii) the tax lot (land and improvements)

upon which the private dwelling is constructed, reconstructed or

converted shall at all times be subject to local and municipal taxes in

an amount not less than the amount of local and municipal taxes that

would be payable thereon based upon the lesser of the assessed

valuation, during the tax year immediately preceding the tax year in

which such construction, reconstruction or conversion commenced or in

the case of new construction, the assessed valuation of the land

appearing on the assessment roll in the first year after completion of

construction; and (iii) in the event that a private dwelling, whether

owner occupied or not, is fully demolished and removed on or after

September first, two thousand four, the tax lot (land and improvements)

upon which such private dwelling was located shall not be eligible for

exemption from local and municipal taxes under this section for a period

of three years commencing upon the date of issuance of the demolition

and removal permit for such private dwelling.

(b) Within a city having a population of one million or more, multiple

dwellings (land and improvements) containing not more than four dwelling

units to be occupied as a residence for the first time, whether newly

constructed or resulting from the conversion of any building or

structure to a multiple dwelling, and existing multiple dwellings

containing not more than four dwelling units previously occupied,

reconstructed or improved to the extent of at least forty percent of

their assessed valuation without the improvement, shall be exempt from

all local and municipal taxes, other than assessments for local

improvements, during the tax year or years next following the taxable

status date or dates after commencement and before completion of

construction, reconstruction or conversion thereof, but for no more than

two years after commencement of such construction, reconstruction or

conversion, and shall be exempt from such local and municipal taxes

after the earlier of completion of such construction, reconstruction or

conversion or the end of such two year period, as follows: two years of

exemption from all such taxes; followed by one year of exemption from

seventy-five percent of such taxes; followed by one year of exemption

from sixty-two and one-half percent of such taxes; followed by one year

of exemption from fifty percent of such taxes; followed by one year of

exemption from thirty-seven and one-half percent of such taxes; and

followed by one year of exemption from twenty-five percent of such

taxes; and followed by one year of exemption from twelve and one-half

percent of such taxes. Notwithstanding the foregoing provisions of this

paragraph: (i) exemption from local and municipal taxes under this

section shall not be available to property exempt from such taxes under

any other law; (ii) the tax lot (land and improvements) upon which the

multiple dwelling is constructed, reconstructed or converted shall at

all times be subject to local and municipal taxes in an amount not less

than the amount of local and municipal taxes that would be payable

thereon based upon the lesser of the assessed valuation, during the tax

year immediately preceding the tax year in which such construction,

reconstruction or conversion commenced or in the case of new

construction, the assessed valuation of the land appearing on the

assessment roll in the first year after completion of construction;

(iii) multiple dwellings (land and improvements) shall not be eligible

for exemption from local and municipal taxes under this section unless

such multiple dwellings are developed in a governmentally assisted

project, as defined in rules promulgated by the local housing agency;

and (iv) such multiple dwellings are constructed, reconstructed or

converted on real property that has been (A) acquired by the federal

government as the result of the foreclosure of a mortgage loan insured

by the federal government and (B) conveyed by the federal government to

an owner approved by the local housing agency for the purpose of

rehabilitation in accordance with an agreement between the owner of the

real property and the federal government.

2. (a) For purposes of this section: "private dwelling" shall mean an

owner occupied building or structure, with the land on which the same is

constructed, intended for residential use and occupancy by one or more

families living independently of each other with separate cooking

facilities, which is not a multiple dwelling within the meaning of the

multiple dwelling law, and the construction, reconstruction or

conversion of which (i) is commenced after July first, nineteen hundred

seventy-eight and before July first, nineteen hundred eighty-two and is

completed no later than April first, nineteen hundred eighty-four; (ii)

is commenced on or after July first, nineteen hundred eighty-two and

before July first, nineteen hundred eighty-six and is completed no later

than July first, nineteen hundred eighty-eight; (iii) is commenced on or

after July first, nineteen hundred eighty-six and before July first,

nineteen hundred ninety and is completed no later than July first,

nineteen hundred ninety-two; (iv) is commenced on or after July first,

nineteen hundred ninety and before July first, nineteen hundred

ninety-four and is completed no later than July first, nineteen hundred

ninety-six; (v) is commenced on or after July first, nineteen hundred

ninety-four and before July first, nineteen hundred ninety-eight and is

completed no later than July first, two thousand; (vi) is commenced on

or after July first, nineteen hundred ninety-eight and before July

first, two thousand two and is completed no later than July first, two

thousand four; or (vii) is commenced on or after July first, two

thousand two and before July first, two thousand six and is completed no

later than July first, two thousand eleven.

(b) For purposes of this section: "multiple dwelling" shall mean an

owner occupied building or structure, with the land on which the same is

constructed, which is a multiple dwelling within the meaning of section

four of the multiple dwelling law, and the construction, reconstruction

or conversion of which is commenced on or after July first, two thousand

two and before July first, two thousand six and is completed no later

than July first, two thousand eight.

(c) Construction or reconstruction of, or conversion to, a private

dwelling or multiple dwelling shall be deemed to have commenced when the

agency or department of the city having jurisdiction has issued a permit

for construction work and such work has begun in good faith in

accordance with such permit; construction, reconstruction or conversion

shall be deemed to have been completed when the agency or department of

the city having jurisdiction has issued a temporary or permanent

certificate of occupancy under which occupancy of the private dwelling

or multiple dwelling for residential use may lawfully begin or the

reconstruction has been finally accepted and approved.

(d) For the purposes of this section: "local housing agency" shall

have the same meaning as the term "agency" under section five hundred

two of the general municipal law, except that the term shall mean the

department of housing preservation and development if there is such a

department in such city.

(e) Upon issuance of a violation by an agency, department or bureau of

the city of New York for an illegal occupancy, the finance department

shall revoke the tax exemption thereunder. The owner shall pay the city,

with interest, the amount of taxes from which such owner had been

exempted. Such amount, if unpaid, shall become a lien against the

property.

3. (a) Applications for exemption under this section shall be filed

with the assessors between February first and March fifteenth of the

calendar year and, based on the certification of the local housing

agency pursuant to this section, the assessors shall certify to the

collecting officer the amount of exemption from local and municipal

taxes. No such application shall be accepted by the assessors unless

accompanied by a certificate of the local housing agency certifying

eligibility for exemption pursuant to this section.

(b) The local housing agency may promulgate rules and regulations to

carry out the provisions of this section and may require payment of a

reasonable filing fee, and in the case of an application involving a

dwelling which has been reconstructed or improved a fee not to exceed

ten dollars for the certification of such local housing agency under

this subdivision.

(c) At any time after two years of exemption from taxation pursuant to

this section, the local housing agency may certify to the assessors and

the collecting officer that a private dwelling or multiple dwelling is

not being used for residential purposes and upon the filing of such

certification with the assessors and the collecting officer, exemption

from taxation under this section shall terminate.