N.Y. Real Property Tax Law § 421-h*2: Exemption of capital improvements to residential buildings

* § 421-h. Exemption of capital improvements to residential buildings.

1. Residential buildings reconstructed, altered or improved subsequent

to the effective date of a local law or resolution pursuant to this

section shall be exempt from taxation and special ad valorem levies to

the extent provided hereinafter. After a public hearing, the governing

board of a city, with a population of more than one hundred forty

thousand but less than one hundred fifty thousand as determined by the

latest decennial federal census, may adopt a local law or resolution to

grant the exemption authorized pursuant to this section. A copy of such

local law or resolution shall be filed with the commissioner and the

assessor of such city who prepares the assessment roll on which the

taxes of such city are levied.

2. (a) Such buildings shall be exempt to the extent of one hundred per

centum of the increase in assessed value thereof attributable to such

reconstruction, alteration or improvement subject to the provisions of

subdivision six of this section. Such exemption shall be limited to

forty thousand dollars in increased market value, or such other sum less

than forty thousand dollars, as may be provided by the local law or

resolution, of the property attributable to such reconstruction,

alteration or improvement and any increase in market value greater than

such amount shall not be eligible for the exemption pursuant to this

section. For the purposes of this section, the market value of the

reconstruction, alteration or improvement shall be equal to the

increased assessed value attributable to such reconstruction, alteration

or improvement divided by the class I ratio in a special assessing unit

or the most recently established state equalization rate or special

equalization rate in the remainder of the state, except where the state

equalization rate or special equalization rate equals or exceeds

ninety-five percent, in which case the increase in assessed value

attributable to such reconstruction, alteration or improvement shall be

deemed to equal the market value of such reconstruction, alteration or

improvement.

(b) No such exemption shall be granted for reconstruction, alterations

or improvements unless:

(i) such reconstruction, alteration or improvement was commenced

subsequent to the effective date of the local law or resolution adopted

pursuant to subdivision one of this section; and

(ii) the greater portion, as so determined by square footage, of the

building reconstructed, altered or improved is at least five years old.

(c) For purposes of this section the terms reconstruction, alteration

and improvement shall not include ordinary maintenance and repairs.

3. Such exemption shall be granted only upon application by the owner

of such building on a form prescribed by the commissioner. The

application shall be filed with the assessor of the city having the

power to assess property for taxation on or before the appropriate

taxable status date of such city.

4. If satisfied that the applicant is entitled to an exemption

pursuant to this section, the assessor shall approve the application and

such building shall thereafter be exempt from taxation and special ad

valorem levies as herein provided commencing with the assessment roll

prepared on the basis of the taxable status date referred to in

subdivision three of this section. The assessed value of any exemption

granted pursuant to this section shall be entered by the assessor on the

assessment roll with the taxable property, with the amount of the

exemption shown in a separate column. No such application shall be

approved after December thirty-first, two thousand five.

5. For the purposes of this section, a residential building shall mean

any building or structure designed and occupied exclusively for

residential purposes by not more than one family.

6. In the event that a building granted an exemption pursuant to this

section ceases to be used primarily for residential purposes by the

owner who was granted the exemption pursuant to this section or title

thereto is transferred to other than the spouse of the owner, the

exemption granted pursuant to this section shall cease.

7. Such city may, by its local law or resolution:

(a) reduce the per centum of exemption otherwise allowed pursuant to

this section;

(b) limit eligibility for the exemption to those forms of

reconstruction, alterations or improvements as are prescribed in such

local law or resolution;

(c) provide that the exemption shall be applicable only to those

improvements which would otherwise result in an increase in the assessed

valuation of the real property but which consist of an addition,

remodeling or modernization to an existing residential structure to

prevent physical deterioration of the structure or to comply with

applicable building, sanitary, health and/or fire codes.

* NB There are 2 § 421-h's