N.Y. Real Property Tax Law § 485-j*3: Residential investment exemption; certain cities and school districts

* § 485-j. Residential investment exemption; certain cities and school

districts. 1. Residential real property constructed on or after the

first day of July, two thousand five located in a city or a school

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

thousand one hundred twenty-one and not more than thirteen thousand one

hundred forty-one, based upon the two thousand federal census, may be

exempt from city and 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 city

and 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 five or such later date as may be specified by

resolution;

(ii) the residential real property is situate in a city, or a school

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

thirteen thousand one hundred twenty-one and not more than thirteen

thousand one hundred forty-one, based upon the two thousand federal

census;

(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 city with a population

of not less than thirteen thousand one hundred twenty-one and not more

than thirteen thousand one hundred forty-one, based upon the two

thousand federal census, or with the local assessor if such property is

located in a school district which serves such city, but is not located

within such city, on or before the appropriate taxable status date of

such city 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 city with a population of not less than thirteen thousand

one hundred twenty-one and not more than thirteen thousand one hundred

forty-one, based upon the two thousand federal census, and by any school

district which serves such city 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 city with a population of not less than thirteen thousand one

hundred twenty-one and not more than thirteen thousand one hundred

forty-one, based upon the two thousand federal census, may, by local

law, and any school district which serves such city, 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 city or

school district, upon reduction of the per centum of exemption pursuant

to this subdivision, may thereafter by local law or resolution, increase

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

maximum allowed by subdivision two of this section, 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

city, and to the assessor of any locality containing real property to

which the provisions of this section may apply.

8. A city with a population of not less than thirteen thousand one

hundred twenty-one and not more than thirteen thousand one hundred

forty-one, based upon the two thousand federal census, may, by local

law, and any school district which serves such city, 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 city with a population of not less than thirteen thousand one

hundred twenty-one and not more than thirteen thousand one hundred

forty-one, based upon the two thousand federal census, may, by local

law, establish a board to be known as the residential incentive board.

The membership and composition of such board shall be set forth in the

local law.

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

council of a city with a population of not less than thirteen thousand

one hundred twenty-one and not more than thirteen thousand one hundred

forty-one, based upon the two thousand federal census, concerning the

various types of residential real property which should be granted

eligibility for an exemption pursuant to subdivision one of this

section. The exemption shall be computed as provided in subdivision two

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 the school district which serves such city,

and 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 city

council of a city with a population of not less than thirteen thousand

one hundred twenty-one and not more than thirteen thousand one hundred

forty-one, based upon the two thousand federal census, with respect to

actions it deems desirable to improve the economic climate therein.

10. If a city with a population of not less than thirteen thousand one

hundred twenty-one and not more than thirteen thousand one hundred

forty-one, based upon the two thousand federal census, establishes a

residential incentive board, pursuant to subdivision nine of this

section, such city may, by local law, restrict real property eligible to

receive the exemption to real property constructed for those purposes

identified in the plan presented by the board. Such local law shall

restrict the availability of such exemption to the specific geographic

areas identified in the plan presented by the board.

* NB There are 5 § 485-j's