N.Y. Real Property Tax Law § 485-j*5: Residential investment exemption; certain cities

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

Residential real property constructed on or after the first day of

January, two thousand five in cities with a population of not less than

sixty thousand six hundred and not more than sixty-one 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

January, two thousand five 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 sixty thousand six hundred and not more than

sixty-one thousand based upon the two thousand federal census;

(iii) the cost of such construction exceeds the sum of sixty 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 sixty thousand six hundred and not more than sixty-one

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 sixty thousand six hundred and not more than sixty-one

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 sixty thousand six

hundred and not more than sixty-one 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 sixty thousand six

hundred and not more than sixty-one 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 twenty-five thousand dollars.

9. (a) A city with a population of not less than sixty thousand six

hundred and not more than sixty-one 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 sixty

thousand six hundred and not more than sixty-one 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 sixty thousand six hundred and not more than

sixty-one 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 sixty thousand six

hundred and not more than sixty-one 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 sixty thousand six

hundred and not more than sixty-one 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