N.Y. Real Property Tax Law § 421-j: Exemption of capital investment in multiple dwelling buildings within certain cities

* § 421-j. Exemption of capital investment in multiple dwelling

buildings within certain cities. 1. New construction of a multiple

dwelling building, reconstruction, alteration, or improvement of a

pre-existing multiple dwelling building or structure which is to be

occupied or is occupied as a residence or home and consists of no less

than four units, whether such dwelling is rented or owned as a

cooperative or condominium, and is located in any city having a

population of more than fifty-five thousand but less than fifty-six

thousand as determined by the latest federal decennial census, where

such construction or renovation is initiated subsequent to the effective

date of a local law pursuant to this section shall be exempt from

taxation and special ad valorem levies to the extent provided in this

section. After a public hearing, the governing board of such city may

adopt a local law to grant the exemption authorized pursuant to this

section. A copy of such local law 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 within such city shall be exempt for a period of

one year to the extent of one hundred percent of the increase in

assessed value attributable to such new construction, reconstruction,

alteration or improvement and for an additional period of seven years as

illustrated in the following table:

Year Exemption: percentage of increase in assessed value

2 87.5

3 75

4 62.5

5 50

6 37.5

7 25

8 12.5

(b) No such exemption shall be granted for construction,

reconstruction, alteration or improvements unless:

(i) such reconstruction, alteration or improvement was commenced

subsequent to the effective date of the local law adopted pursuant to

subdivision one of this section by such city; and

(ii) the value of such new construction, reconstruction, alteration or

improvement exceeds fifteen thousand dollars per unit; and

(iii) a valid building permit shall have been issued.

(c) For purposes of this section the terms construction,

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 such city 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 provided in this section 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.

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

section ceases to be used primarily for residential purposes or title

thereto is transferred to other than the heirs or distributees of the

owner, the exemption granted pursuant to this section shall cease.

6. (a) The enactment of a local law in such city may:

(i) reduce the percent of exemption otherwise allowed pursuant to this

section;

(ii) limit eligibility for the exemption to those forms of new

construction, reconstruction, alteration or improvement as are

prescribed in such local law or resolution;

(iii) 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 multiple residence structure

to prevent physical deterioration of the structure or to comply with

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

(b) No such local law shall reduce or repeal an exemption granted

pursuant to this section until the expiration of the period for which

such exemption was granted.

7. No additional exemptions shall apply.

* NB There are 2 § 421-j's