N.Y. Real Property Tax Law § 485-v*2: Residential and mixed-use investment exemption; certain cities and school districts

*§ 485-v. Residential and mixed-use investment exemption; certain

cities and school districts. 1. As used in this section: (a)

"residential and mixed-use real property" means any structure containing

one to four units of which one unit may be for commercial or retail use,

and the remaining units shall be for residential use; and

(b) "construction" means the creation, modernization, rehabilitation,

expansion or other improvement of any structure but shall not include

ordinary maintenance or repairs.

2. Residential and mixed-use real property constructed on or after the

first day of July, two thousand twenty-one located in a city with a

population of not less than fifty thousand and not more than fifty-one

thousand, based upon the two thousand ten federal census, shall be

exempt from city, county and school taxation as provided in this

section.

3. (a) (i) Such real property shall be exempt for a period of four

years to the extent of one hundred per centum of the increase in

assessed value thereof attributable to such construction and for an

additional period of eleven years provided, however, that the extent of

such exemption shall be decreased by twenty-five per centum in year

five, ten per centum in each year six through year nine, and five per

centum each year during such additional period of six 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 fifteen-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, excluding any additional value

derived from 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, county and school district tax exemption:

Year of exemption Percentage of exemption

1 100%

2 100%

3 100%

4 100%

5 75%

6 65%

7 55%

8 45%

9 35%

10 30%

11 25%

12 20%

13 15%

14 10%

15 5%

(b) No such exemption shall be granted unless:

(i) such construction was commenced on or after the first day of July,

two thousand twenty-one or such later date as may be specified by

resolution;

(ii) the residential and mixed-use real property is situated in a city

with a population of not less than fifty thousand and not more than

fifty-one thousand, based upon the two thousand ten federal census;

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

thousand dollars;

(iv) the property is located within the eligibility area, as

designated by being located within the following U.S. census tracts:

(A) Tract 401;

(B) Tract 402;

(C) Tract 403;

(D) Tract 404;

(E) Tract 405;

(F) Tract 406;

(G) Tract 409;

(H) Tract 410; and

(v) such construction is completed as evidenced by a certificate of

occupancy or other appropriate documentation as provided by the owner.

4. 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 thousand and not more than fifty-one 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.

5. 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 the city, and taxation by the county in which such city is

located if such county passes a local law to provide for such exemption,

and taxation by any school district which serves such city if such

school district passes a resolution to provide for such exemption. 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.

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 to be applied to

the property commencing with the immediately following assessment roll.

7. In the event that the real property is sold or the deed is

transferred to a new owner or ownership entity differing in ownership or

members, the exemption granted pursuant to this section shall cease to

be applied to the property commencing on the immediately following

assessment roll.

8. The exemption established pursuant to this section shall not apply

to special assessments or special ad valorem levies on the property.

* NB There are § 485-v's