N.Y. Real Property Tax Law § 421-l: Exemption of capital improvements to residential buildings in certain towns

§ 421-l. Exemption of capital improvements to residential buildings in

certain towns. 1. Residential buildings designed and occupied

exclusively for residential purposes by not more than three families

that are 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

town with a population of not less than sixteen thousand three hundred

fifty and not more than sixteen thousand three hundred sixty, situated

in a county with a population of not less than nine hundred nineteen

thousand and not more than nine hundred nineteen thousand one hundred,

based upon the two thousand ten federal census, may adopt a local law to

grant the exemption authorized pursuant to this section. Subsequent to

the adoption of such a local law, the county in which such town is

located, any village located within such town and any school district

all or part of which is located within such town may likewise exempt

such property from its taxation and special ad valorem levies by local

law, or in the case of a school district, by resolution in the same

manner and to the same extent as the town. A copy of such local laws or

resolutions shall be filed with the commissioner and appropriate

assessor.

2. Such residential real property shall be exempt for a period of one

year to the extent of fifty per centum of the increase in assessed value

thereof attributable to such reconstruction, alteration or improvement

and for an additional period of four years subject to the following:

(i) The extent of such exemption shall be decreased by ten per centum

of the "exemption base" each year during such additional four-year

period, such that during year two there shall be an exemption of forty

per centum of the increase in assessed value thereof attributable,

during year three there shall be an exemption of thirty per centum of

the increase in assessed value thereof attributable, in year four there

shall be an exemption of twenty per centum of the increase in assessed

value thereof attributable and in year five there shall be an exemption

of ten per centum of the increase in assessed value thereof

attributable;

(ii) The "exemption base" shall be the increase in assessed value due

to reconstruction, alterations or improvements as determined by the

assessor in the initial year of such five-year period following the

filing of an original application; and

(iii) A qualified reconstruction, alteration or improvement shall have

increased the assessed value of the real property by at least ten

thousand dollars, with a maximum permitted exemption not to exceed one

hundred fifty thousand dollars.

3. For purposes of this section, "reconstruction", "alteration" or

"improvement" shall not include ordinary maintenance and repairs.

4. Any owner of a one to three family residence may qualify for an

exemption pursuant to this section, including owners who do not occupy

such residences, individuals, partnerships and limited liability

corporations. Exemptions granted pursuant to this section are not

transferable from owner to another if the real property is sold or

transferred during the exemption period.

5. No such exemption shall be granted unless:

(a) Such reconstruction, alteration or improvement was commenced

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

by a town, county, village or school district pursuant to subdivision

one of this section;

(b) The owner of real property applying for such exemption has

satisfied all outstanding town, county, village and school tax

obligations; and

(c) Such reconstruction, alteration or improvement is documented by a

building permit, if required, for the improvements or other appropriate

documentation as required by the assessor and/or code enforcement

officer.

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

of such real property on a form prescribed by the commissioner. Such

application shall be filed with the assessor on or before the

appropriate taxable status date and within one year after the date of

completion of such reconstruction, alteration or improvement.

7. 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 six of this section. The assessor shall enter

the assessed value of any exemption granted pursuant to this section on

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

exemption shown in a separate column.

8. In the event that real property granted an exemption pursuant to

this section ceases to be used primarily for eligible purposes, the

exemption granted pursuant to this section shall cease.

9. Such town, county, village or school district shall be permitted by

local law to reduce the percentage of exemption otherwise allowable by

subdivision two of this section or increase the required minimum

assessed values set forth in paragraph (iii) of subdivision two of this

section, provided that a project in the course of reconstruction,

alteration or improvement shall not be subject to such amendments.