N.Y. Real Property Tax Law § 485-l: Residential property improvement; certain towns

* § 485-l. Residential property improvement; certain towns. 1.

Construction of improvements to residential real property initiated on

or after the first day of January, two thousand seven in towns with a

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

hundred twenty-five thousand in counties with a population of not less

than nine hundred fifty thousand and not more than nine hundred

seventy-five thousand may be exempt from county, city, town, village or

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 one hundred per centum of the increase in the 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." For purposes of this section, 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 illustrates the computation of the tax

exemption:

Year of Exemption Percentage of the Exemption

1 100

2 80

3 60

4 40

5 20

(b) In addition to the criteria set out in subdivision one of this

section, no exemption shall be granted unless: (i) The value of the

construction exceeds ten thousand dollars;

(ii) The construction is documented by a building permit, if required

for such improvements, or other appropriate documentation as required by

the assessor; and

(iii) Such construction takes place on a one or two-family residential

dwelling where the assessor has previously reduced the assessment of the

dwelling because of a decrease in value attributed by the assessor to

physical damage to the dwelling resulting from soil subsidence; and

(iv) The extent of such repairs eligible for the exemption shall be

limited to such construction upon a one or two-family residential

dwelling where the assessor has previously reduced the assessment of the

dwelling because of a decrease in value attributed by the assessor to

physical damage to the dwelling resulting from soil subsidence.

(c) For purposes of this section, "improvements" shall not include

ordinary maintenance and repairs.

3. Such exemption shall be granted upon application by the owner of

such real property upon a form prescribed by the commissioner. The

application shall be filed with the assessor of the town on or before

the taxable status date for that town and within one year from the date

of completion of the improvements.

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

exemption pursuant to this section, the assessor shall approve the

application and the real property shall thereafter be exempt from

taxation and special ad valorem taxes by a town as provided by 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. During the term of the exemption granted pursuant to this section

if title to the real property granted an exemption pursuant to this

section is transferred or if the property ceases to be used for eligible

purposes, the exemption granted pursuant to this section shall cease.

6. A town with a population of not less than one hundred thousand and

not more than one hundred twenty-five thousand in a county with a

population of not less than nine hundred fifty thousand and not more

than nine hundred seventy-five thousand may, by local law, establish a

date for the commencement of effectiveness of the exemption offered

pursuant to this section. A copy of the local laws shall be filed with

the commissioner, the assessor of the town, the clerk of the town, and

the secretary of state.

* NB There are 2 § 485-l's