N.Y. Real Property Tax Law § 421-k: Exemption of certain multiple dwellings

§ 421-k. Exemption of certain multiple dwellings. 1. Multiple dwelling

buildings, reconstructed, altered, converted back to an owner occupied

single family dwelling or any owner occupied multiple dwelling located

in any city having a population of more than twenty-eight thousand five

hundred inhabitants but less than twenty-nine thousand inhabitants,

determined in accordance with the latest federal decennial census, that

is reduced to at most two units by such reconstruction 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 reconstruction, alteration or

improvement and for an additional period of seven years subject to the

following:

(i) The extent of such exemption shall be decreased by twelve and

one-half percent of the "exemption base" each year during such

additional period.

The "exemption base" shall be the increase in assessed value as

determined in the initial year of the term of the exemption, except as

provided in subparagraph (ii) of this paragraph.

(ii) In any year in which a change in level of assessment of fifteen

percent or more is certified for a final assessment roll pursuant to the

rules of the commissioner, the exemption base shall be multiplied by a

fraction, the numerator of which shall be the total assessed value of

the parcel on such final assessment roll (after accounting for any

physical or quality changes to the parcel since the immediately

preceding assessment roll), and the denominator of which shall be the

total assessed value of the parcel on the immediately preceding final

assessment roll. The result shall be the new exemption base. The

exemption shall thereupon be recomputed to take into account the new

exemption base, notwithstanding the fact that the assessor receives

certification of the change in level of assessment after the completion,

verification and filing of the final assessment roll. In the event the

assessor does not have custody of the roll when such certification is

received, the assessor shall certify the recomputed exemption to the

local officers having custody and control of the roll, and such local

officers are hereby directed and authorized to enter the recomputed

exemption certified by the assessor on the roll. The assessor shall give

written notice of such recomputed exemption to the property owner, who

may, if he or she believes that the exemption was recomputed

incorrectly, apply for a correction in the manner provided by title

three of article five of this chapter for the correction of clerical

errors.

(iii) Such exemption shall be limited to one hundred thousand dollars

in increased market value, or such other sum less than one hundred

thousand dollars, but not less than ten 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 most recently

established state equalization rate for such city. Where the state

equalization rate or special equalization rate equals or exceeds

ninety-five percent, 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 converted 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 reconstruction, alteration or improvement

exceeds five thousand dollars; and

(iii) 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 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. For the purposes of this section, an owner occupied multiple

dwelling building shall mean any building or structure designed and

occupied as the temporary or permanent residence or home of two or more

families, including the owner of such building.

6. 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.

7. (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

reconstruction, alterations or improvements 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 owner occupied 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.