N.Y. Real Property Tax Law § 485-j: Residential property improvement exemption; certain cities

* § 485-j. Residential property improvement exemption; certain cities.

1. Construction of improvements to residential real property initiated

on or after the first day of January, two thousand six in the cities

with a population of not less than one hundred thirty thousand and not

more than one hundred sixty thousand may be exempt from city and school

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 one hundred per centum of the increase in assessed

value thereof attributable to such construction and for an additional

period of four years provided, however, that the extent of such

exemption shall be decreased by twenty per centum each year during such

additional period of four years and such exemption shall be computed

with respect to the "exemption base". The exemption base shall be the

increase in assessed value due to improvements as determined by the

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

filing of an original application.

(ii) The following table shall illustrate the computation of the city

tax exemption:

Year of exemption Percentage of exemption

1 100

2 80

3 60

4 40

5 20

(iii) Exemptions granted pursuant to this section shall apply to real

property taxes imposed for both city and school district purposes.

(b) No such exemption shall be granted unless: (i) such construction

of improvements was commenced on or after the first day of January two

thousand six or such later date as may be specified by local law;

(ii) the residential real property is situate in a city with a

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

than one hundred sixty thousand;

(iii) the value of such construction exceeds the sum of ten thousand

dollars; and

(iv) such construction is documented by a building permit, if

required, for the improvements, or other appropriate documentation as

required by the assessor.

(c) For purposes of this section the term "construction of

improvements" 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 city with a population

of not less than one hundred thirty thousand and not more than one

hundred sixty thousand on or before the appropriate taxable status date

of such city and within one year from the date of completion of such

construction of improvements.

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 and special ad valorem levies by a city with a population of

not less than one hundred thirty thousand and not more than one hundred

sixty 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. 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.

6. A city with a population of not less than one hundred thirty

thousand and not more than one hundred sixty thousand may, by local law,

establish a date for the commencement of effectiveness of the exemption

offered pursuant to this section. A copy of all such local laws shall be

filed with the commissioner and the assessor of the city.

* NB There are 5 § 485-j's