N.Y. Real Property Tax Law § 485-o: New residential property exemption; certain cities

§ 485-o. New residential property exemption; certain cities. 1.

Construction of qualified new residential structures or total

rehabilitation of qualified vacant residential structures determined to

be unoccupied hazards initiated on or after the first day of January,

two thousand thirteen in cities with a population of not less than one

hundred thirty thousand and not more than one hundred sixty thousand,

based upon the two thousand ten federal census may be exempt from city

and school taxation as provided in this section.

2. (a) (i) Such qualified residential real property shall be exempt in

accordance with the applicable exemption schedules set forth in this

subparagraph and such exemption shall be computed with respect to the

"exemption base". The exemption base shall be the increase in the

assessed value due to qualified improvements as determined in the

initial year of the applicable exemption price following the filing of

an original application, provided that the application relative to the

rehabilitation of a qualified vacant residential structure determined to

be an unoccupied hazard shall be pre-approved by the city as provided in

this section.

(ii)

Construction of Qualified LEED Certified

New Residential Structures

Percentage of exemption

Year Certified/Silver Gold Platinum

1 100% 100% 100%

2 100% 100% 100%

3 100% 100% 100%

4 100% 100% 100%

5 100% 100% 100%

6 100% 100% 100%

7 100% 100% 100%

8 100% 100% 100%

9 80% 100% 100%

10 60% 80% 100%

11 40% 60% 100%

12 20% 40% 75%

13 0% 20% 50%

14 0% 0% 25%

(iii)

Construction of Qualified New Residential Structure

or Total Rehabilitation of Pre-approved Qualified

Residential Structure Determined To Be An

Unoccupied Hazard

Year Percentage of exemption

1 100%

2 100%

3 100%

4 100%

5 100%

6 100%

7 100%

8 75%

9 50%

10 25%

(iv) Any application submitted by the property owner for the exemption

relative to the rehabilitation of a residential structure determined to

be an occupied hazard shall require pre-approval by the assessor of such

city and the director of code enforcement which pre-approval shall be in

writing and shall certify that the structure to be totally rehabilitated

qualifies as an unoccupied hazard. The failure of the applicant to apply

or receive such pre-approval for any exemption relative to the total

rehabilitation of a qualified residential structure determined to be an

unoccupied hazard shall disqualify the subject property from eligibility

for any exemption pursuant to this section and the city's local law.

(v) For purposes of eligibility for the total rehabilitation of a

residential structure, a qualified residential structure determined to

be an unoccupied hazard, an unoccupied hazard shall be defined as any

residential building or structure or a substantial part thereof which

remains unoccupied for a period of more than one year with either doors,

windows, or other openings broken, removed, boarded or sealed up.

(vi) For purposes of eligibility for the construction of a qualified

new residential structure, the new residential property must be a one or

two family residence. New residential real property constructed which is

greater than a one or two family residence shall in no event be eligible

for real property tax exemptions authorized by this section.

(vii) (A) For the purposes of eligibility under a LEED certification

standard the term "LEED" shall mean the Leadership in Energy and

Environmental Design Building Rating System published by the United

States Green Building Council. Such residential real property which is

certified under a LEED certification standard which is determined to be

for the categories of certified, silver, gold or platinum as meeting

green building standards, as determined by a LEED accredited

professional shall be exempt as provided in subparagraph (ii) of

paragraph (a) of subdivision two of this section for the respective

percentages provided that a copy of the certification for a qualified

category is filed with the city's commissioner of assessment and the

commissioner of assessment approves the application for the applicable

category as meeting the requirements of this section and the city's

local law.

(B) Construction of a qualified new residential structure which does

not meet the certified, silver, gold or platinum standard as determined

by the city shall be exempt under subparagraph (iii) of this paragraph

provided it meets the applicable requirements of this section and the

city's local law.

(viii) Exemptions granted pursuant to this section shall apply to real

property taxes imposed for both city and school district purposes.

(b) No such exemption shall be granted unless:

(i) such construction of a qualified new residential real property or

the total rehabilitation of a qualified residential structure determined

to be an unoccupied hazard commenced on or after the first day of

January, two thousand thirteen or such later date as may be specified by

local law to qualify for the enhanced exemption;

(ii) the qualified residential real property is situated in a city

with a population of not less than one hundred thirty thousand and not

more than one hundred sixty thousand based on the two thousand ten

federal census;

(iii) the value of such construction exceeds the sum of twenty

thousand dollars; and

(iv) such construction is documented by a building permit, if

required, for the improvements, or other appropriate documentation as

required by the assessor.

(c) For purposes of this section the term "construction of

improvements" shall not include ordinary maintenance and repairs.

3. Such exemption for the construction of a qualified new residential

real property shall be granted only upon application by the owner of

such real property. Such exemption for a total rehabilitation of a

qualified residential structure determined to be an unoccupied hazard

shall be granted only upon application by the owner of such real

property who has been pre-approved in accordance with the requirements

of subparagraph (iv) of paragraph (a) of subdivision two of this

section. Such application shall be filed with the assessor of a city

with a population of not less than one hundred thirty thousand and not

more than one hundred sixty thousand based upon the two thousand ten

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 of qualified residential structure improvements.

4. If the assessor of such city 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 one hundred thirty thousand and not more

than one hundred sixty thousand based upon the two thousand ten 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 of such city on the

assessment roll with the taxable property, with the amount of the

exemption shown in a separate column. In any case where there is an

additional partial exemption based on a LEED certification, a copy of

such certification shall be filed in the subject real property file.

5. In the event that real property granted an exemption pursuant to

this section ceases to be used primarily for purposes as provided in

subparagraph (vi) of paragraph (a) of subdivision two of this section

the exemption granted pursuant to this section shall cease.

6. A city with a population of not less than one hundred thirty

thousand and not more than one hundred sixty thousand, based upon the

two thousand ten federal census may establish by a local law a date for

the commencement of effectiveness of the exemption offered pursuant to

this section. In addition, such city is authorized to establish

procedures in such local law for the elimination of the exemption for an

otherwise qualified residential property which is determined by the

assessor of such city and the director of code enforcement to have

serious code violations, as defined by the city in such local law, at

any time subsequent to the approval of the application for real property

tax exemption pursuant to this section and which serious code violations

have not been corrected and any judgments and/or fines, penalties and

costs, if any, have not been paid in accordance with the applicable

laws, local law, ordinances, rules and regulations. Notwithstanding the

foregoing, the elimination of any such exemption shall take effect on

the assessment roll based on the next taxable status date subsequent to

the city's determination to eliminate the exemption. A copy of all such

local laws shall be filed with the commissioner and the assessor of such

city.