N.Y. Real Property Tax Law § 485-i: Residential investment exemption; certain school districts

* § 485-i. Residential investment exemption; certain school districts.

1. Residential real property constructed on or after the first day of

July, two thousand three in school districts which serve a city with a

population of not less than thirty-one thousand and not more than

thirty-two thousand may be exempt from school district taxation as

provided in this section.

2. (a) (i) Such 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 construction and for an additional period

of nine years provided, however, that the extent of such exemption shall

be decreased by five per centum each year during such additional period

of nine years and such exemption shall be computed with respect to the

"exemption base". The exemption base shall be the increase in assessed

value as determined in the initial year of such ten year period

following the filing of an original application, 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 quantity 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 the

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) The following table shall illustrate the computation of the

school district tax exemption:

Year of exemption Percentage of exemption

1 50

2 45

3 40

4 35

5 30

6 25

7 20

8 15

9 10

10 5

(b) No such exemption shall be granted unless:

(i) such construction was commenced on or after the first day of

January, two thousand three or such later date as may be specified by

resolution;

(ii) the residential real property is situate in a school district

which serves a city with a population of not less than thirty-one

thousand and not more than thirty-two thousand;

(iii) the cost of such construction exceeds the sum of thirty thousand

dollars or such greater amount as may be specified; and

(iv) such construction is completed as may be evidenced by a

certificate of occupancy or other appropriate documentation as provided

by the owner.

(c) For purposes of this section the term construction shall not

include ordinary maintenance and repairs.

3. 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 of a school district which

serves a city with a population of not less than thirty-one thousand and

not more than thirty-two thousand on or before the appropriate taxable

status date of such school district and within one year from the date of

completion of such construction.

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

exemption pursuant to this section, he or she shall approve the

application and such real property shall thereafter be exempt from

taxation by a school district which serves a city with a population of

not less than thirty-one thousand and not more than thirty-two thousand

as provided in this section commencing with the assessment roll prepared

after 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. The provisions of this section shall apply to real property used as

the primary residence of the owner.

6. 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.

7. A school district which serves a city with a population of not less

than thirty-one thousand and not more than thirty-two thousand may, by

resolution, reduce the per centum of exemption otherwise allowed

pursuant to this section; provided, however, that a project in course of

construction and exemptions existing prior in time to passage of any

such resolution shall not be subject to any such reduction so effected.

Such school district upon reduction of the per centum of exemption

pursuant to this subdivision may thereafter, by resolution, increase the

per centum of exemption up to any per centum not exceeding the maximum

allowed by subdivision two or eleven of this section, whichever is

applicable, provided, however, that any such resolution shall apply only

to construction commenced subsequent to the effective date of such

resolution. A copy of all such resolutions shall be filed with the

commissioner and the assessor of the school district.

8. A school district which serves a city with a population of not less

than thirty-one thousand and not more than thirty-two thousand may, by

resolution, establish a date for the commencement of effectiveness of

exemption offered pursuant to this section and may provide that the

provisions of this section shall apply only to construction having a

greater value than that specified by subdivision two of this section,

provided, however, that such amount shall not exceed seventy thousand

dollars.

9. (a) A school district which serves a city with a population of not

less than thirty-one thousand and not more than thirty-two thousand may,

by resolution, establish a board to be known as the residential

incentive board. The membership and composition of such board shall be

set forth in the resolution.

(b) The residential incentive board shall present a plan to the board

of education of a school district which serves a city with a population

of not less than thirty-one thousand and not more than thirty-two

thousand concerning the various types of residential real property which

should be granted eligibility for an exemption pursuant to subdivision

one of this section. Such plan shall make a recommendation as to whether

the exemption be computed as provided in subdivision two or eleven of

this section. In addition, such plan shall identify specific geographic

areas within which such exemptions should be offered. In developing the

plan required by this paragraph, the board shall consider the planning

objectives of a school district which serves a city with a population of

not less than thirty-one thousand and not more than thirty-two thousand,

the necessity of the exemption to the attraction or retention of home

owners and the economic benefit to the area of providing exemptions to

home owners.

(c) In addition, the board may make recommendations to the school

board of a school district which serves a city with a population of not

less than thirty-one thousand and not more than thirty-two thousand with

respect to actions it deems desirable to improve the economic climate

therein.

10. If a school district which serves a city with a population of not

less than thirty-one thousand and not more than thirty-two thousand

establishes a residential incentive board, pursuant to subdivision nine

of this section, such school district may, by resolution, restrict real

property eligible to receive the exemption to real property constructed

for those purposes identified in the plan presented by the board. Such

resolution shall restrict the availability of such exemption to the

specific geographic areas identified in the plan presented by the board.

11. Notwithstanding subdivision two of this section, where a school

district which serves a city with a population of not less than

thirty-one thousand and not more than thirty-two thousand adopts

restricted exemptions pursuant to subdivision ten of this section, the

resolution may provide that such exemptions shall be computed pursuant

to the following accelerated strategic exemption schedule:

Year of exemption Percentage of exemption

1 50

2 45

3 40

4 35

5 30

6 25

7 20

8 15

9 10

10 5

Provided however, that such resolution shall:

(i) contain findings that the adoption of this accelerated strategic

exemption schedule is necessary to encourage targeted residential

development, and that the value of the exemptions to be provided is

justified by the need to broaden the tax base; and

(ii) limit the applicability of such schedule to projects where the

cost of such construction exceeds the sum of seventy thousand dollars;

and

(iii) provide that such exemptions are restricted by geographic areas

as provided by subdivision ten of this section.

* NB There are 2 § 485-i's