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

                                  1790

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 14, 2015
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax law, in  relation  to  residential
  investment exemptions in certain cities

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

  Section 1. Section 485-q of the real property tax  law,  as  added  by
chapter 405 of the laws of 2014, is amended to read as follows:
  S  485-q.  Residential investment exemption; certain cities. 1.  Resi-
dential real property constructed on or after the first day of July, two
thousand fourteen in cities with a population of not less than  thirteen
thousand five hundred and not more than fourteen thousand, DETERMINED IN
ACCORDANCE  WITH  THE  LATEST  DECENNIAL CENSUS, may be exempt from city
taxation and special ad valorem levies as provided in this section.
  2. (a) (i) Such real property shall be exempt for a period of one year
to the extent of fifty per centum of  the  increase  in  assessed  value
thereof  attributable  to such construction and for an additional period
of nine years provided, however, that the extent of such exemption shall
be decreased by five per centum each year during such additional  period
of  nine  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 ten year period follow-
ing the filing of an original application, except as provided in subpar-
agraph (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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07384-02-5
              

S. 1790                             2

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 the certif-
ication 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 incorrect-
ly, 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
tax exemption:

      Year of exemption                      Percentage of exemption
              1                                        50
              2                                        45
              3                                        40
              4                                        35
              5                                        30
              6                                        25
              7                                        20
              8                                        15
              9                                        10
             10                                         5

  (b) No such exemption shall be granted unless:
  (i) such construction was commenced on or after the first day of Janu-
ary,  two  thousand  fourteen  or such later date as may be specified by
local law;
  (ii) the residential real property is situate in a city with  a  popu-
lation of not less than thirteen thousand five hundred and not more than
fourteen  thousand,  DETERMINED  IN ACCORDANCE WITH THE LATEST DECENNIAL
CENSUS;
  (iii) the cost of such construction exceeds the sum of thirty thousand
dollars or such greater amount as may be specified by local law; and
  (iv) such construction is completed as may be evidenced by  a  certif-
icate of occupancy or other appropriate documentation as provided by the
owner.
  (c)  For  purposes  of  this  section  the term construction shall not
include ordinary maintenance and repairs.
  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 thirteen thousand five hundred and not more than  four-
teen  thousand,  DETERMINED  IN  ACCORDANCE  WITH  THE  LATEST DECENNIAL
CENSUS, on or before the appropriate taxable status date  of  such  city
and within one year from the date of completion of such construction.
  4.  If  the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the applica-
tion 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

S. 1790                             3

thirteen  thousand  five  hundred  and  not more than fourteen thousand,
DETERMINED IN ACCORDANCE WITH THE LATEST DECENNIAL 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. The provisions of this section shall apply to real property used as
the primary residence of the owner.
  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.
  7.  A  city  with a population of not less than thirteen thousand five
hundred and not more than fourteen thousand,  DETERMINED  IN  ACCORDANCE
WITH  THE  LATEST  DECENNIAL  CENSUS,  may, by local law, reduce the per
centum  of  exemption  otherwise  allowed  pursuant  to  this   section;
provided,  however,  that  a  project  in  course  of  construction  and
exemptions existing prior in time to passage of any such local law shall
not be subject to  any  such  reduction  so  effected.  Such  city  upon
reduction  of  the  per centum of exemption pursuant to this subdivision
may thereafter, by local law, increase the per centum of exemption up to
any per centum not exceeding the maximum allowed by subdivision  two  or
eleven of this section, whichever is applicable, provided, however, that
any such local law shall apply only to construction commenced subsequent
to  the  effective date of such local law. A copy of all such local laws
shall be filed with the commissioner and the assessor of the city.
  8. A city with a population of not less than  thirteen  thousand  five
hundred  and  not  more than fourteen thousand, DETERMINED IN ACCORDANCE
WITH THE LATEST DECENNIAL CENSUS, may, by local law,  establish  a  date
for  the  commencement of effectiveness of exemption offered pursuant to
this section and may provide that the provisions of this  section  shall
apply only to construction having a greater value than that specified by
subdivision  two  of  this  section, provided, however, that such amount
shall not exceed seventy thousand dollars.
  9. (a) A city with a population of not  less  than  thirteen  thousand
five  hundred and not more than fourteen thousand, DETERMINED IN ACCORD-
ANCE WITH THE LATEST DECENNIAL CENSUS, may, by local  law,  establish  a
board to be known as the residential incentive board. The membership and
composition of such board shall be set forth in the local law.
  (b) The residential incentive board shall present a plan to the legis-
lative  body of a city with a population of not less than thirteen thou-
sand five hundred and not more than  fourteen  thousand,  DETERMINED  IN
ACCORDANCE  WITH  THE  LATEST  DECENNIAL  CENSUS, concerning the various
types of residential real property which should be  granted  eligibility
for  an exemption pursuant to subdivision one of this section. Such plan
shall make a recommendation as to whether the exemption be  computed  as
provided in subdivision two or eleven of this section. In addition, such
plan   shall  identify  specific  geographic  areas  within  which  such
exemptions should be offered. In developing the plan  required  by  this
paragraph,  the  board  shall consider the planning objectives of a city
with a population of not less than thirteen thousand  five  hundred  and
not  more  than  fourteen  thousand,  DETERMINED  IN ACCORDANCE WITH THE
LATEST  DECENNIAL  CENSUS,  the  necessity  of  the  exemption  to   the
attraction  or  retention of home owners and the economic benefit to the
area of providing exemptions to home owners.

S. 1790                             4

  (c) In addition, the board may make recommendations to the legislative
body of a city with a population of not less than thirteen thousand five
hundred and not more than fourteen thousand,  DETERMINED  IN  ACCORDANCE
WITH  THE  LATEST  DECENNIAL  CENSUS,  with  respect to actions it deems
desirable to improve the economic climate therein.
  10.  If  a  city  with a population of not less than thirteen thousand
five hundred and not more than fourteen thousand, DETERMINED IN  ACCORD-
ANCE  WITH THE LATEST DECENNIAL CENSUS, establishes a residential incen-
tive board, pursuant to subdivision nine of this section, such city may,
by local law, restrict real property eligible to receive  the  exemption
to  real  property constructed for those purposes identified in the plan
presented by the board. Such local law shall restrict  the  availability
of  such  exemption  to  the specific geographic areas identified in the
plan presented by the board.
  11. Notwithstanding subdivision two of this section, where a city with
a population of not less than thirteen thousand  five  hundred  and  not
more  than  fourteen  thousand, DETERMINED IN ACCORDANCE WITH THE LATEST
DECENNIAL CENSUS, adopts restricted exemptions pursuant  to  subdivision
ten  of  this  section,  the  local law may provide that such exemptions
shall be  computed  pursuant  to  the  following  accelerated  strategic
exemption schedule:

      Year of exemption                      Percentage of exemption
              1                                        50
              2                                        45
              3                                        40
              4                                        35
              5                                        30
              6                                        25
              7                                        20
              8                                        15
              9                                        10
             10                                         5

  Provided however, that such local law shall:
  (i)  contain  findings that the adoption of this accelerated strategic
exemption schedule is necessary to encourage targeted residential devel-
opment, and that the value of the exemptions to be provided is justified
by the need to broaden the tax base; and
  (ii) limit the applicability of such schedule to  projects  where  the
cost  of  such construction exceeds the sum of seventy thousand dollars;
and
  (iii) provide that such exemptions are restricted by geographic  areas
as provided by subdivision ten of this section.
  S 2. This act shall take effect immediately.