N.Y. Real Property Tax Law § 485-j*4: Residential investment exemption; certain cities

* § 485-j. Residential investment exemption; certain cities. 1.

Residential real property constructed on or after the first day of

April, two thousand six in cities with a population of not less than

fifty-five thousand and not more than fifty-six thousand based upon the

two thousand federal census may be exempt from city taxation and special

ad valorem levies 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

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

April, 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 fifty-five thousand and not more than

fifty-six thousand based upon the two thousand federal census;

(iii) the cost of such construction exceeds the sum of seventy

thousand dollars or such greater amount as may be specified by local

law; 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 fifty-five thousand and not more than fifty-six

thousand based upon the two thousand federal census 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 and special ad valorem levies by a city with a population of

not less than fifty-five thousand and not more than fifty-six thousand

based upon the two thousand federal census 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 fifty-five thousand and

not more than fifty-six thousand based upon the two thousand federal

census may, by local law, 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 local law shall not be subject to any such reduction so

effected. Such city upon reduction of the per centum of exemption

pursuant to this subdivision may thereafter, by local law, 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 local law shall apply only to construction commenced subsequent to

the effective date of such local law. A copy of all such local laws

shall be filed with the commissioner and the assessor of the city.

8. A city with a population of not less than fifty-five thousand and

not more than fifty-six thousand based upon the two thousand federal

census may, by local law, 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 three hundred fifty thousand dollars.

9. (a) A city with a population of not less than fifty-five thousand

and not more than fifty-six thousand 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

legislative body of a city with a population of not less than fifty-five

thousand and not more than fifty-six thousand 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. 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 city with a population of

not less than fifty-five thousand and not more than fifty-six thousand

based upon the two thousand federal census, 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 legislative

body of a city with a population of not less than fifty-five thousand

and not more than fifty-six thousand 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 fifty-five thousand

and not more than fifty-six thousand 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.

11. Any city which adopts an exemption pursuant to this section shall

cause information relating to the availability of such exemption,

including requirements and application procedures, to be attached to all

building permit applications and copies of such information shall be

posted in a conspicuous location in any office or offices where such

permits and applications for permits are issued and processed.

* NB There are 5 § 485-j's