N.Y. Real Property Tax Law § 485-m: Residential investment exemption; certain school districts

§ 485-m. Residential investment exemption; certain school districts.

1. Residential real property constructed on or after the first day of

January, two thousand eight in school districts which serve a city with

a population of not less than thirty-four thousand and not more than

thirty-five thousand based upon the two thousand federal census may be

exempt from 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

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 eight or such later date as may be specified by

resolution;

(ii) the residential real property is situate in a school district

which serves a city with a population of not less than thirty-four

thousand and not more than thirty-five 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; 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 school district which

serves a city with a population of not less than thirty-four thousand

and not more than thirty-five thousand based upon the two thousand

federal census on or before the appropriate taxable status date of such

school district 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 school district which serves a city with a population of

not less than thirty-four thousand and not more than thirty-five

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 school district which serves a city with a population of not less

than thirty-four thousand and not more than thirty-five thousand based

upon the two thousand federal census 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 school

district upon reduction of the per centum of exemption pursuant to this

subdivision may thereafter, by resolution, increase the per centum of

exemption up to any per centum not exceeding the maximum allowed by

subdivision two or eleven of this section, whichever is applicable,

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 school district.

8. A school district which serves a city with a population of not less

than thirty-four thousand and not more than thirty-five thousand based

upon the two thousand federal census 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 three hundred fifty thousand dollars.

9. (a) A school district which serves a city with a population of not

less than thirty-four thousand and not more than thirty-five thousand

based upon the two thousand federal census may, by resolution, establish

a board to be known as the residential incentive board. The membership

and composition of such board shall be set forth in the resolution.

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

of education of a school district which serves a city with a population

of not less than thirty-four thousand and not more than thirty-five

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. Such plan shall make a recommendation as to whether the

exemption 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 a

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

thirty-four thousand and not more than thirty-five 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 school

board of a school district which serves a city with a population of not

less than thirty-four thousand and not more than thirty-five thousand

based upon the two thousand federal census with respect to actions it

deems desirable to improve the economic climate therein.

10. If a school district which serves a city with a population of not

less than thirty-four thousand and not more than thirty-five thousand

based upon the two thousand federal census establishes a residential

incentive board, pursuant to subdivision nine of this section, such

school district may, by resolution, restrict real property eligible to

receive the exemption to real property constructed for those purposes

identified in the plan presented by the board. Such resolution shall

restrict the availability of such exemption to the specific geographic

areas identified in the plan presented by the board.

11. Any school district 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.