N.Y. Real Property Tax Law § 485-y: Vacant residential real property improvement exemption; certain cities

§ 485-y. Vacant residential real property improvement exemption;

certain cities. 1. Construction of improvements to residential real

property, provided that such real property was continuously vacant for a

period of at least three years prior to such construction, initiated on

or after January first, two thousand twenty-five in a city with a

population of not less than seven thousand fifty and not more than seven

thousand sixty, determined in accordance with the two thousand twenty

census, may be exempt from city taxation as provided in this section.

2. (a)(i) During the construction period, such real property shall be

fully exempt from city taxation, up to a period of eighteen months or

until a certificate of occupancy is issued, whichever is sooner, on all

city taxation. For the purposes of this section, the term "construction

period" shall mean the period of time beginning on the date which the

actual construction of improvements to vacant residential real property,

pursuant to subdivision one of this section, lawfully begins in good

faith and ending on the date a certificate of occupancy has been issued.

(ii) (A) Upon the termination of the exemption provided for under

subparagraph (i) of this paragraph, such real property shall be exempt

for a period of one year to the extent of eighty per centum of the

assessed value thereof and for an additional period of three years,

provided, however, that the extent of such exemption shall decrease by

twenty per centum each year during such additional period of three years

and such exemption shall be computed with respect to the "exemption

base". For the purposes of this section, the term "exemption base" shall

mean the assessed value as determined by the assessor in the initial

year of such four-year period following the termination of the exemption

provided for under subparagraph (i) of this paragraph.

(B) The following table shall illustrate the computation of the city

tax exemption:

Year of exemption Percentage of exemption

1 80

2 60

3 40

4 20

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

property taxes imposed for city purposes.

(b) No such exemption shall be granted unless: (i) such construction

of improvements was commenced on or after the first day of January, two

thousand twenty-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 seven thousand fifty and not more than seven

thousand sixty, determined in accordance with the two thousand twenty

census; and

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

required, for the improvements, or other appropriate documentation as

required by the assessor.

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 seven thousand fifty and not more than seven thousand

sixty, determined in accordance with the two thousand twenty 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

improvements.

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

exemption pursuant to this section, they 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

seven thousand fifty and not more than seven thousand sixty, determined

in accordance with the two thousand twenty 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. 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.

6. A city with a population of not less than seven thousand fifty and

not more than seven thousand sixty, determined in accordance with the

two thousand twenty census, may, by local law, establish a date for the

commencement of effectiveness of the exemption offered pursuant to this

section. A copy of all such local laws shall be filed with the

commissioner and the assessor of the city.