S T A T E   O F   N E W   Y O R K
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                                  3761

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2015
                               ___________

Introduced  by M. of A. RA -- read once and referred to the Committee on
  Real Property Taxation

AN ACT to amend the real property tax law, in relation to exempting real
  property purchased by first-time homebuyers from real  property  taxa-
  tion

  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 457-a to read as follows:
  S  457-A.  EXEMPTION FOR FIRST-TIME HOMEBUYERS. 1. PRIMARY RESIDENTIAL
PROPERTY PURCHASED BY ONE OR MORE PERSONS, EACH OF WHOM IS A  FIRST-TIME
HOMEBUYER  AND  HAS  NOT  BEEN MARRIED TO A HOMEOWNER IN THE THREE YEARS
PRIOR TO APPLYING FOR THIS FIRST-TIME  HOMEOWNERS  EXEMPTION,  SHALL  BE
EXEMPT  FROM  TAXATION LEVIED BY OR ON BEHALF OF ANY COUNTY, CITY, TOWN,
VILLAGE OR  SCHOOL  DISTRICT  IN  WHICH  SUCH  RESIDENTIAL  PROPERTY  IS
LOCATED,  PROVIDED THE LEGISLATIVE BODY OR GOVERNING BOARD OF SUCH COUN-
TY, CITY, TOWN OR VILLAGE, AFTER PUBLIC HEARING, ADOPTS A LOCAL LAW,  OR
A  SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT TO WHICH ARTICLE FIFTY-
TWO OF THE EDUCATION LAW APPLIES, ADOPTS A RESOLUTION  PROVIDING  THERE-
FOR.  THE  LENGTH OF SUCH EXEMPTION SHALL BE SET FORTH IN SUCH LOCAL LAW
OR RESOLUTION, BUT  IN  NO  EVENT  SHALL  IT  EXCEED  FIVE  YEARS.  SUCH
EXEMPTION SHALL BE COMPUTED IN ACCORDANCE WITH THE FOLLOWING TABLE:

          YEAR OF EXEMPTION             PERCENTAGE ASSESSED
                                        VALUATION EXEMPT FROM TAX
          1                             40
          2                             30
          3                             25
          4                             25
          5                             10
          6 OR MORE                     0

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04233-01-5
              

A. 3761                             2

  A  COPY  OF  SUCH  LOCAL  LAWS  OR RESOLUTIONS SHALL BE FILED WITH THE
COMMISSIONER AND THE ASSESSOR OF SUCH COUNTY, CITY, TOWN, OR VILLAGE WHO
PREPARES THE ASSESSMENT ROLL ON WHICH THE TAXES OF  SUCH  COUNTY,  CITY,
TOWN, VILLAGE OR SCHOOL DISTRICT ARE LEVIED.
  2. (A) ANY PRIMARY RESIDENTIAL REAL PROPERTY WITHIN THE PURCHASE PRICE
LIMITS  DEFINED  BY  THE  STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST
RATE MORTGAGE PROGRAM IN THE NON-TARGET, ONE FAMILY NEW CATEGORY FOR THE
COUNTY WHERE SUCH PROPERTY IS LOCATED AND IN EFFECT ON THE CONTRACT DATE
FOR THE PURCHASE AND SALE OF SUCH PROPERTY, SHALL BE  ELIGIBLE  FOR  THE
EXEMPTION ALLOWED PURSUANT TO THIS SECTION.
  (B) A FIRST-TIME HOMEBUYER SHALL NOT QUALIFY FOR THE EXEMPTION AUTHOR-
IZED  PURSUANT  TO  THIS  SECTION IF THE HOUSEHOLD INCOME EXCEEDS INCOME
LIMITS DEFINED BY THE STATE OF NEW YORK  MORTGAGE  AGENCY  LOW  INTEREST
RATE  MORTGAGE  PROGRAM  IN THE NON-TARGET, ONE AND TWO PERSON HOUSEHOLD
CATEGORY FOR THE COUNTY WHERE SUCH PROPERTY IS LOCATED AND IN EFFECT  ON
THE CONTRACT DATE FOR THE PURCHASE AND SALE OF SUCH PROPERTY.
  (I)  THE  TERM  "HOUSEHOLD INCOME" AS USED HEREIN SHALL MEAN THE TOTAL
COMBINED INCOME OF ALL THE OWNERS, AND OF ANY OWNERS'  SPOUSES  RESIDING
ON  THE  PREMISES,  FOR THE INCOME TAX YEAR PRECEDING THE DATE OF MAKING
APPLICATION FOR THE EXEMPTION.
  (II) THE TERM "INCOME" AS USED HEREIN SHALL MEAN THE  "ADJUSTED  GROSS
INCOME"  FOR  FEDERAL INCOME TAX PURPOSES AS REPORTED ON THE APPLICANT'S
LATEST AVAILABLE FEDERAL OR STATE  INCOME  TAX  RETURN  SUBJECT  TO  ANY
SUBSEQUENT  AMENDMENTS  OR  REVISIONS,  REDUCED BY DISTRIBUTIONS, TO THE
EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, RECEIVED FROM AN INDI-
VIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIREMENT ANNUITY; PROVIDED
THAT IF NO SUCH RETURN WAS FILED WITHIN THE ONE  YEAR  PERIOD  PRECEDING
TAXABLE  STATUS DATE, "INCOME" SHALL MEAN THE ADJUSTED GROSS INCOME THAT
WOULD HAVE BEEN SO REPORTED  IF  SUCH  A  RETURN  HAD  BEEN  FILED.  FOR
PURPOSES  OF  THIS SUBDIVISION, "LATEST AVAILABLE RETURN" SHALL MEAN THE
FEDERAL OR STATE INCOME TAX RETURN FOR THE  YEAR  IMMEDIATELY  PRECEDING
THE DATE OF MAKING APPLICATION, PROVIDED HOWEVER, THAT IF THE TAX RETURN
FOR SUCH TAX YEAR HAS NOT BEEN FILED, THEN THE INCOME TAX RETURN FOR THE
TAX  YEAR  TWO  YEARS  PRECEDING THE DATE OF MAKING APPLICATION SHALL BE
CONSIDERED THE LATEST AVAILABLE.
  3. PRIMARY RESIDENTIAL PROPERTY PURCHASED BY FIRST-TIME HOMEBUYERS  AT
A SALES PRICE GREATER THAN THE MAXIMUM ELIGIBLE SALES PRICE SHALL QUALI-
FY  FOR  THE EXEMPTION ALLOWED PURSUANT TO THIS SECTION FOR THAT PORTION
OF THE SALES PRICE OF SUCH NEWLY CONSTRUCTED PRIMARY RESIDENTIAL PROPER-
TY EQUAL TO THE MAXIMUM ELIGIBLE SALES PRICE,  PROVIDED,  HOWEVER,  THAT
ANY  NEWLY CONSTRUCTED PRIMARY RESIDENTIAL PROPERTY PURCHASED AT A SALES
PRICE GREATER THAN FIFTEEN PERCENT  ABOVE  THE  MAXIMUM  ELIGIBLE  SALES
PRICE SHALL NOT BE ALLOWED ANY EXEMPTION.
  4.  THE LEGISLATIVE BODY OR GOVERNING BOARD OF A COUNTY, CITY, TOWN OR
VILLAGE MAY ADOPT A LOCAL LAW, OR A SCHOOL DISTRICT, OTHER THAN A SCHOOL
DISTRICT TO WHICH ARTICLE FIFTY-TWO OF THE  EDUCATION  LAW  APPLIES  MAY
ADOPT  A RESOLUTION TO PROVIDE FOR AN INCREASE NOT TO EXCEED TWENTY-FIVE
PER CENTUM ON THE PURCHASE PRICE LIMIT  USED  FOR  ELIGIBILITY  FOR  THE
EXEMPTION PROVIDED FOR IN THIS SECTION.
  5.  NO  EXEMPTION  SHALL  BE  ALLOWED PURSUANT TO THIS SECTION FOR ANY
PRIMARY RESIDENTIAL PROPERTY PURCHASED BY A FIRST-TIME HOMEBUYER  ON  OR
AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, UNLESS SUCH PURCHASE
IS PURSUANT TO A BINDING WRITTEN CONTRACT ENTERED INTO PRIOR TO DECEMBER
THIRTY-FIRST,  TWO  THOUSAND  NINETEEN.    PROVIDED,  HOWEVER,  THAT ANY
FIRST-TIME HOMEBUYER WHO  IS  ALLOWED  AN  EXEMPTION  PURSUANT  TO  THIS

A. 3761                             3

SECTION  PRIOR  TO  SUCH  DATE  SHALL  CONTINUE  TO  BE  ALLOWED FURTHER
EXEMPTIONS PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
  6.  (A)  NO  PORTION  OF  A SINGLE FAMILY PRIMARY RESIDENTIAL PROPERTY
SHALL BE LEASED DURING THE PERIOD OF TIME WHEN THE FIRST-TIME  HOMEOWNER
EXEMPTION  SHALL  APPLY  TO  THE RESIDENCE. IF ANY PORTION OF THE SINGLE
FAMILY NEWLY CONSTRUCTED PRIMARY RESIDENTIAL PROPERTY IS FOUND TO BE THE
SUBJECT  OF  A  LEASE  AGREEMENT  THE  ASSESSOR  SHALL  DISCONTINUE  ANY
EXEMPTION GRANTED PURSUANT TO THIS SECTION.
  (B)  IN  THE  EVENT  THAT  A  PRIMARY  RESIDENTIAL PROPERTY GRANTED AN
EXEMPTION PURSUANT TO THIS SECTION CEASES TO BE USED PRIMARILY FOR RESI-
DENTIAL PURPOSES OR TITLE THERETO IS TRANSFERRED TO OTHER THAN THE HEIRS
OR DISTRIBUTEES OF THE OWNER, THE EXEMPTION  GRANTED  PURSUANT  TO  THIS
SECTION SHALL BE DISCONTINUED.
  (C)  UPON  DETERMINING  THAT  AN  EXEMPTION  GRANTED  PURSUANT TO THIS
SECTION SHOULD BE DISCONTINUED, THE ASSESSOR  SHALL  MAIL  A  NOTICE  SO
STATING  TO  THE  OWNER  OR OWNERS THEREOF AT THE TIME AND IN THE MANNER
PROVIDED BY SECTION FIVE HUNDRED TEN OF  THIS  CHAPTER.  SUCH  OWNER  OR
OWNERS  SHALL  BE ENTITLED TO SEEK ADMINISTRATIVE AND JUDICIAL REVIEW OF
SUCH ACTION IN THE MANNER PROVIDED BY  LAW,  PROVIDED  THAT  THE  BURDEN
SHALL  BE  ON  SUCH  OWNER  OR  OWNERS  TO ESTABLISH ELIGIBILITY FOR THE
EXEMPTION.
  7. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
OF  SUCH BUILDING ON A FORM PRESCRIBED BY THE COMMISSIONER. THE APPLICA-
TION SHALL BE FILED WITH THE ASSESSOR OF  THE  CITY,  TOWN,  VILLAGE  OR
COUNTY HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY, TOWN, VILLAGE AND COUNTY.
  8.  IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
PRIMARY RESIDENTIAL PROPERTY 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  SUBDIVISION  SEVEN 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.
  9.  FOR  PURPOSES  OF THIS SECTION: (A) "FIRST-TIME HOMEBUYER" MEANS A
PERSON WHO HAS NOT OWNED A  PRIMARY  RESIDENTIAL  PROPERTY  AND  IS  NOT
MARRIED  TO  A  PERSON  WHO  HAS OWNED A RESIDENTIAL PROPERTY DURING THE
THREE-YEAR PERIOD PRIOR TO HIS OR HER PURCHASE OF THE  PRIMARY  RESIDEN-
TIAL PROPERTY, AND WHO DOES NOT OWN A VACATION OR INVESTMENT HOME.
  (B)  "PRIMARY RESIDENTIAL PROPERTY" MEANS ANY ONE OR TWO FAMILY HOUSE,
TOWNHOUSE OR CONDOMINIUM LOCATED IN THIS STATE WHICH IS  OWNER  OCCUPIED
BY SUCH HOMEBUYER.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.