senate Bill S2499A

Amended

Creates a real property tax exemption for capital improvements to multiple dwellings in certain cities

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 24 / Jan / 2011
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 07 / Mar / 2011
    • AMEND AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 07 / Mar / 2011
    • PRINT NUMBER 2499A
  • 04 / Jan / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 02 / May / 2012
    • AMEND AND RECOMMIT TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 02 / May / 2012
    • PRINT NUMBER 2499B

Summary

Creates a real property tax exemption for capital improvements to multiple dwellings in certain cities.

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Bill Details

See Assembly Version of this Bill:
A5644
Versions:
S2499
S2499A
S2499B
Legislative Cycle:
2011-2012
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Real Property Tax Law
Laws Affected:
Add ยง421-l, RPT L
Versions Introduced in 2009-2010 Legislative Cycle:
S5875A, A8648A

Sponsor Memo

BILL NUMBER:S2499A

TITLE OF BILL:
An act
to amend the real property tax law, in relation to exemption of capital
improvements to multiple dwelling buildings in certain cities

PURPOSE OR GENERAL IDEA OF BILL:
This bill would create a new section 421-1 of the real property tax
law in relation to an exemption on capital improvements to multiple
dwellings in Troy, New York.

SUMMARY OF SPECIFIC PROVISIONS:
The bill adds a new section 421-1 to the real property tax law to
allow a real property tax exemption for capital improvements to
multiple dwellings in the city of Troy. Such exemptions shall be
applied to multiple dwellings reconstructed, altered, or converted
back to owner occupied single family dwellings or dwellings with no
more than two units. After a public hearing, the governing board of
Troy may adopt a local law granting such exemption.

Such buildings shall be exempt for a period of one year to the extent
of 100% of the increase in assessed value attributed to such
reconstruction, alteration or improvement, and for an additional 7
years, decreasing by 12 1/2 percent of the "exemption base" for the
term of such additional period. In the event that a change in
assessment of 15% or more is certified for final assessment, a new
"exemption base" shall be calculated and the assessor shall give
written notice of such recomputed exemption to the property owner.

The value of such tax exemption shall be limited to not less than
$10,000 nor more than $100,000 and shall apply to alterations,
reconstructions and conversions subsequent to the effective date of
the local law adopted for projects that exceed $5,000 in dwellings 5
years of age or older.

The owner must apply for such exemption with the assessor, and if
satisfied, the assessor shall approve the application and grant the
exemption. If a building that was granted an exemption pursuant to
this section ceases to be used primarily for residential purposes or
title is transferred to someone other than the heirs or distributees
of the owner, the exemption granted shall cease.

The local law enacted in such city may reduce the percent of exemption
allowed pursuant to this section, limit eligibility to those forms of
reconstruction, alterations or improvements prescribed in such local
law or resolution, and provide that the exemption shall apply only to
those improvements resulting in an increase in the assessed valuation
to the property. However, no such local law shall reduce or repeal an
exemption

granted until the expiration of the period for which the exemption was
granted.

JUSTIFICATION:
This legislation will allow the city of Troy to provide real property
tax exemptions to the owners of multiple dwellings for significant
capital improvements to their property. Many cities are pursuing
innovative ways to encourage growth and economic stability in their
communities and have used tax exemptions to accomplish this. For
example Peekskill and Cohoes are two cities which have benefited from
offering tax exemptions for capital improvements. Extending this
authority to Troy will go a long way in improving the housing stock
in the city and increasing property values.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2499--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 24, 2011
                               ___________

Introduced  by Sen. McDONALD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community  Development  -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the real property tax law, in relation to  exemption  of
  capital improvements to multiple dwelling buildings in certain cities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 421-l to read as follows:
  S 421-L. EXEMPTION OF CAPITAL IMPROVEMENTS TO MULTIPLE DWELLING BUILD-
INGS  WITHIN  CERTAIN  CITIES.  1.  MULTIPLE  DWELLING BUILDINGS, RECON-
STRUCTED, ALTERED, CONVERTED BACK TO AN  OWNER  OCCUPIED  SINGLE  FAMILY
DWELLING  OR  ANY  OWNER  OCCUPIED MULTIPLE DWELLING LOCATED IN ANY CITY
HAVING A POPULATION OF  MORE  THAN  FORTY-EIGHT  THOUSAND  NINE  HUNDRED
INHABITANTS  BUT LESS THAN FORTY-NINE THOUSAND FOUR HUNDRED INHABITANTS,
DETERMINED IN ACCORDANCE WITH THE LATEST FEDERAL DECENNIAL CENSUS,  THAT
IS REDUCED TO AT MOST TWO UNITS BY SUCH RECONSTRUCTION SUBSEQUENT TO THE
EFFECTIVE  DATE  OF A LOCAL LAW PURSUANT TO THIS SECTION SHALL BE EXEMPT
FROM TAXATION AND SPECIAL AD VALOREM LEVIES TO THE EXTENT PROVIDED HERE-
INAFTER. AFTER A PUBLIC HEARING, THE GOVERNING BOARD OF  SUCH  CITY  MAY
ADOPT  A  LOCAL  LAW  TO GRANT THE EXEMPTION AUTHORIZED PURSUANT TO THIS
SECTION. A COPY OF SUCH LOCAL LAW SHALL BE FILED WITH  THE  COMMISSIONER
AND  THE ASSESSOR OF SUCH CITY WHO PREPARES THE ASSESSMENT ROLL ON WHICH
THE TAXES OF SUCH CITY ARE LEVIED.
  2. (A) SUCH BUILDINGS WITHIN SUCH CITY SHALL BE EXEMPT FOR A PERIOD OF
ONE YEAR TO THE EXTENT  OF  ONE  HUNDRED  PERCENT  OF  THE  INCREASE  IN
ASSESSED  VALUE  ATTRIBUTABLE  TO  SUCH  RECONSTRUCTION,  ALTERATION  OR
IMPROVEMENT AND FOR AN ADDITIONAL PERIOD OF SEVEN YEARS SUBJECT  TO  THE
FOLLOWING:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01576-04-1

S. 2499--A                          2

  (I)  THE  EXTENT  OF  SUCH  EXEMPTION SHALL BE DECREASED BY TWELVE AND
ONE-HALF PERCENT OF THE "EXEMPTION BASE" EACH  YEAR  DURING  SUCH  ADDI-
TIONAL  PERIOD.  THE  "EXEMPTION BASE" SHALL BE THE INCREASE IN ASSESSED
VALUE AS DETERMINED IN THE INITIAL YEAR OF THE TERM  OF  THE  EXEMPTION,
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 PHYS-
ICAL 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  ASSESS-
MENT  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 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 CERTI-
FIED 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) SUCH EXEMPTION SHALL BE LIMITED TO ONE HUNDRED THOUSAND  DOLLARS
IN INCREASED MARKET VALUE, OR SUCH OTHER SUM LESS THAN ONE HUNDRED THOU-
SAND  DOLLARS, BUT NOT LESS THAN TEN THOUSAND DOLLARS AS MAY BE PROVIDED
BY THE LOCAL LAW OR RESOLUTION, OF THE  PROPERTY  ATTRIBUTABLE  TO  SUCH
RECONSTRUCTION,  ALTERATION  OR  IMPROVEMENT  AND ANY INCREASE IN MARKET
VALUE GREATER THAN SUCH AMOUNT SHALL NOT BE ELIGIBLE FOR  THE  EXEMPTION
PURSUANT  TO  THIS SECTION. FOR THE PURPOSES OF THIS SECTION, THE MARKET
VALUE OF THE RECONSTRUCTION, ALTERATION OR IMPROVEMENT SHALL BE EQUAL TO
THE INCREASED ASSESSED VALUE ATTRIBUTABLE TO SUCH RECONSTRUCTION, ALTER-
ATION OR IMPROVEMENT DIVIDED BY  THE  MOST  RECENTLY  ESTABLISHED  STATE
EQUALIZATION  RATE  FOR SUCH CITY.  WHERE THE STATE EQUALIZATION RATE OR
SPECIAL EQUALIZATION RATE EQUALS OR  EXCEEDS  NINETY-FIVE  PERCENT,  THE
INCREASE  IN  ASSESSED VALUE ATTRIBUTABLE TO SUCH RECONSTRUCTION, ALTER-
ATION OR IMPROVEMENT SHALL BE DEEMED TO EQUAL THE MARKET VALUE  OF  SUCH
RECONSTRUCTION, ALTERATION OR IMPROVEMENT.
  (B) NO SUCH EXEMPTION SHALL BE GRANTED FOR RECONSTRUCTION, ALTERATIONS
OR IMPROVEMENTS UNLESS:
  (I)  SUCH  RECONSTRUCTION,  ALTERATION  OR  CONVERTED  IMPROVEMENT WAS
COMMENCED SUBSEQUENT TO THE EFFECTIVE DATE  OF  THE  LOCAL  LAW  ADOPTED
PURSUANT TO SUBDIVISION ONE OF THIS SECTION BY SUCH CITY; AND
  (II)  THE  VALUE  OF  SUCH  RECONSTRUCTION,  ALTERATION OR IMPROVEMENT
EXCEEDS FIVE THOUSAND DOLLARS; AND
  (III) THE GREATER PORTION, AS SO DETERMINED BY SQUARE FOOTAGE, OF  THE
BUILDING RECONSTRUCTED, ALTERED OR IMPROVED IS AT LEAST FIVE YEARS OLD.
  (C)  FOR PURPOSES OF THIS SECTION THE TERMS RECONSTRUCTION, ALTERATION
AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTENANCE AND REPAIRS.
  3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH BUILDING ON A FORM PRESCRIBED BY THE COMMISSIONER.  THE APPLICA-

S. 2499--A                          3

TION SHALL BE FILED WITH THE ASSESSOR OF SUCH  CITY  ON  OR  BEFORE  THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY.
  4.  IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
BUILDING SHALL THEREAFTER BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM
LEVIES AS PROVIDED IN THIS SECTION COMMENCING WITH THE  ASSESSMENT  ROLL
PREPARED ON THE BASIS OF THE TAXABLE STATUS DATE REFERRED TO IN SUBDIVI-
SION  THREE OF THIS SECTION. THE ASSESSED VALUE OF ANY EXEMPTION GRANTED
PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESS-
MENT ROLL WITH THE TAXABLE PROPERTY, WITH THE AMOUNT  OF  THE  EXEMPTION
SHOWN IN A SEPARATE COLUMN.
  5. FOR THE PURPOSES OF THIS SECTION, AN OWNER OCCUPIED MULTIPLE DWELL-
ING  BUILDING SHALL MEAN ANY BUILDING OR STRUCTURE DESIGNED AND OCCUPIED
AS THE TEMPORARY OR PERMANENT RESIDENCE OR HOME OF TWO OR MORE FAMILIES,
INCLUDING THE OWNER OF SUCH BUILDING.
  6. IN THE EVENT THAT A BUILDING GRANTED AN EXEMPTION PURSUANT TO  THIS
SECTION  CEASES  TO  BE USED PRIMARILY FOR RESIDENTIAL PURPOSES OR TITLE
THERETO IS TRANSFERRED TO OTHER THAN THE HEIRS OR  DISTRIBUTEES  OF  THE
OWNER, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
  7. (A) THE ENACTMENT OF A LOCAL LAW IN SUCH CITY MAY:
  (I) REDUCE THE PERCENT OF EXEMPTION OTHERWISE ALLOWED PURSUANT TO THIS
SECTION;
  (II)  LIMIT  ELIGIBILITY  FOR  THE  EXEMPTION TO THOSE FORMS OF RECON-
STRUCTION, ALTERATIONS OR IMPROVEMENTS AS ARE PRESCRIBED IN  SUCH  LOCAL
LAW OR RESOLUTION;
  (III)  PROVIDE  THAT  THE  EXEMPTION SHALL BE APPLICABLE ONLY TO THOSE
IMPROVEMENTS WHICH WOULD OTHERWISE RESULT IN AN INCREASE IN THE ASSESSED
VALUATION OF THE REAL PROPERTY BUT WHICH CONSIST OF AN ADDITION,  REMOD-
ELING  OR MODERNIZATION TO AN EXISTING OWNER OCCUPIED MULTIPLE RESIDENCE
STRUCTURE TO PREVENT PHYSICAL  DETERIORATION  OF  THE  STRUCTURE  OR  TO
COMPLY WITH APPLICABLE BUILDING, SANITARY, HEALTH AND/OR FIRE CODES.
  (B)  NO  SUCH  LOCAL  LAW  SHALL REDUCE OR REPEAL AN EXEMPTION GRANTED
PURSUANT TO THIS SECTION UNTIL THE EXPIRATION OF THE  PERIOD  FOR  WHICH
SUCH EXEMPTION WAS GRANTED.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

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