S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3489
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2021
                                ___________
 
 Introduced by M. of A. GALEF, WALLACE, OTIS -- read once and referred to
   the Committee on Real Property Taxation
 
 AN  ACT to amend the real property tax law, in relation to a residential
   revaluation exemption
 
   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 485-v to read as follows:
   § 485-V. RESIDENTIAL REVALUATION EXEMPTION.  1.  APPLICABILITY.    THE
 GOVERNING  BODY  OF AN ASSESSING UNIT MAY, AFTER A PUBLIC HEARING, ADOPT
 THE PROVISIONS OF THIS SECTION BY LOCAL LAW IN THE FIRST YEAR OF A  FULL
 VALUE REVALUATION TO PROVIDE A RESIDENTIAL REVALUATION EXEMPTION. IF THE
 GOVERNING  BODY OF AN ASSESSING UNIT PASSES A LOCAL LAW PURSUANT TO THIS
 SUBDIVISION, SUCH EXEMPTION SHALL ALSO APPLY IN THE SAME MANNER  AND  TO
 THE  SAME  EXTENT  TO  EACH  VILLAGE, COUNTY, SPECIAL DISTRICT OR SCHOOL
 DISTRICT THAT LEVIES TAXES ON  THE  ASSESSMENT  ROLL  PREPARED  BY  SUCH
 ASSESSING  UNIT. A VILLAGE ASSESSING UNIT, WITHIN AN ASSESSING UNIT THAT
 HAS CONDUCTED A REVALUATION AND THAT CHOOSES  TO  ADOPT  THAT  ASSESSING
 UNIT'S LATEST FINAL ASSESSMENT ROLL IS PERMITTED TO ADOPT THE PROVISIONS
 OF THIS SECTION WITHIN TWO YEARS OF ITS IMPLEMENTATION.
   2.  ELIGIBILITY.  (A)  THE  ASSESSORS IN EACH ASSESSING UNIT THAT HAVE
 ADOPTED THE PROVISIONS OF THIS SECTION SHALL, IN THE FIRST YEAR IN WHICH
 REVALUATION ASSESSMENTS ARE TO BE ENTERED ON THE ASSESSMENT ROLL AND FOR
 THE NEXT SUCCEEDING YEAR, APPLY TO EACH ELIGIBLE RESIDENTIAL PROPERTY AN
 EXEMPTION AS PROVIDED IN SUBDIVISION THREE  OF  THIS  SECTION.  FOR  THE
 PURPOSE  OF  THIS  SECTION, TO BE AN "ELIGIBLE RESIDENTIAL PROPERTY" THE
 FOLLOWING CRITERIA MUST BE MET:
   (I) THE PROPERTY MUST BE A RESIDENTIAL PROPERTY, PROVIDED THAT  DWELL-
 ING  UNITS  HELD IN CONDOMINIUM FORM OF OWNERSHIP SHALL ONLY BE ELIGIBLE
 IF LOCATED IN AN APPROVED ASSESSING UNIT AND CLASSIFIED IN THE HOMESTEAD
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05412-01-1
              

 A. 3489                             2
 
 CLASS OR LOCATED IN A SPECIAL ASSESSING UNIT  AND  CLASSIFIED  IN  CLASS
 ONE;
   (II)  THE  PROPERTY  MUST  BE  ELIGIBLE  TO RECEIVE THE STAR EXEMPTION
 AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE  OF  THIS  TITLE  OR  THE
 OWNER  OR  OWNERS  MUST  BE  ELIGIBLE TO RECEIVE THE PERSONAL INCOME TAX
 SCHOOL TAX RELIEF  (STAR)  CREDIT  AUTHORIZED  BY  SUBSECTION  (EEE)  OF
 SECTION SIX HUNDRED SIX OF THE TAX LAW, FOR SUCH PROPERTY;
   (III)  IN  ANY GIVEN YEAR, THE OWNER OR OWNERS RECEIVING THE EXEMPTION
 PURSUANT TO THIS SECTION MUST BE THE SAME AS THE OWNER  OR  OWNERS  THAT
 APPEARED  ON  THE  ASSESSMENT  ROLL UPON WHICH THE REVALUATION IS IMPLE-
 MENTED; AND
   (IV) THE PROPERTY MUST NOT HAVE ANY DELINQUENT TAXES AS OF THE TAXABLE
 STATUS DATE FOR THE ROLL ON WHICH AN EXEMPTION IS APPLIED.
   (B) IN ADDITION TO THE CRITERIA PROVIDED  IN  PARAGRAPH  (A)  OF  THIS
 SUBDIVISION,  AN  ASSESSING  UNIT  MAY  FURTHER LIMIT THE ELIGIBILITY TO
 ELIGIBLE RESIDENTIAL PROPERTY WHOSE FULL VALUE INCREASE EXCEEDED  A  SET
 PERCENTAGE  THRESHOLD  AS  SPECIFIED  IN  THEIR  LOCAL  LAW ADOPTING THE
 PROVISIONS OF THIS SECTION.
   3. EXEMPTION CALCULATION. (A)(I) THE EXEMPTION SHALL BE COMPUTED  WITH
 RESPECT  TO  A  PERCENTAGE  OF  THE "EXEMPTION BASE." THE EXEMPTION BASE
 SHALL BE THE AMOUNT BY WHICH THE ASSESSED VALUE OF  A  PROPERTY  ON  THE
 ASSESSMENT  ROLL  UPON  WHICH THE REVALUATION IS IMPLEMENTED EXCEEDS THE
 PRIOR YEAR'S EQUALIZED ASSESSED VALUE,  AS  DETERMINED  IN  THE  INITIAL
 YEAR.  THE  PRIOR YEAR'S EQUALIZED ASSESSED VALUE SHALL BE DETERMINED BY
 APPLYING THE APPLICABLE CHANGE IN LEVEL  OF  ASSESSMENT  FACTOR  TO  THE
 PRIOR  YEAR'S  ASSESSED  VALUE.  SUCH  EXEMPTION  BASE SHALL NOT INCLUDE
 INCREASES DUE TO A PHYSICAL IMPROVEMENT OR A REMOVAL OR REDUCTION OF  AN
 EXEMPTION ON PROPERTY.
   (II)  ANY  INCREASE  IN  THE  ASSESSMENT OF A PROPERTY DUE TO PHYSICAL
 CHANGES IN THE YEAR FOLLOWING  THE  IMPLEMENTATION  ROLL  SHALL  NOT  BE
 ELIGIBLE FOR THE EXEMPTION. IN THE EVENT THAT ANY PORTION OF A PARCEL IS
 FULLY  OR  PARTIALLY REMOVED FROM THE ROLL DURING THE YEAR FOLLOWING THE
 IMPLEMENTATION ROLL BY REASON OF FIRE, DEMOLITION,  DESTRUCTION  OR  NEW
 EXEMPTION,  THE  ASSESSOR  SHALL  REDUCE THE EXEMPTION FOR ANY REMAINING
 PORTION IN THE SAME PROPORTION ASSESSMENT  IS  REDUCED  FOR  SUCH  FIRE,
 DEMOLITION,  DESTRUCTION  OR  NEW EXEMPTION. IF A PROPERTY'S REVALUATION
 ASSESSMENT IS REDUCED PURSUANT TO TITLE ONE-A OF ARTICLE FIVE, OR  TITLE
 ONE  OR  ONE-A  OF ARTICLE SEVEN OF THIS CHAPTER, THE EXEMPTION SHALL BE
 RECOMPUTED ACCORDINGLY.
   (B)(I) THE EXEMPTION SHALL BE TO THE EXTENT OF SIXTY-SIX PER CENTUM OF
 THE EXEMPTION BASE IN YEAR  ONE  AND  THIRTY-THREE  PER  CENTUM  OF  THE
 EXEMPTION BASE IN YEAR TWO.
   (II)  THE  FOLLOWING  TABLE  SHALL  ILLUSTRATE  THE COMPUTATION OF THE
 EXEMPTION:
           YEAR OF EXEMPTION        PERCENTAGE OF EXEMPTION
           1                        66% OF EXEMPTION BASE
           2                        33% OF EXEMPTION BASE
   4. GRANTING OF EXEMPTION. (A) SUCH EXEMPTION  SHALL  BE  GRANTED  ONLY
 UPON  APPLICATION BY THE OWNER OR OWNERS OF SUCH REAL PROPERTY ON A FORM
 PRESCRIBED BY THE COMMISSIONER. SUCH APPLICATION SHALL BE FILED WITH THE
 ASSESSOR ON OR BEFORE  THE  APPROPRIATE  TAXABLE  STATUS  DATE  FOR  THE
 ASSESSMENT ROLL UPON WHICH THE REVALUATION IS IMPLEMENTED.
   (B)  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 THE TAXABLE ASSESSED VALUE SHALL BE REDUCED BY  THE  EXEMPTION,
 AS IN THIS SECTION PROVIDED COMMENCING WITH THE ASSESSMENT ROLL PREPARED

 A. 3489                             3
 
 AFTER  THE  TAXABLE  STATUS  DATE.  THE  ASSESSED VALUE OF ANY EXEMPTION
 GRANTED PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE ASSESSOR ON THE
 ASSESSMENT ROLL WITH THE AMOUNT OF THE EXEMPTION  SHOWN  IN  A  SEPARATE
 COLUMN.
   (C)  IN  THE  EVENT THAT THE RESIDENTIAL PROPERTY GRANTED AN EXEMPTION
 PURSUANT TO THIS SECTION TRANSFERS OWNERSHIP OR OTHERWISE CEASES TO MEET
 THE ELIGIBILITY REQUIREMENTS OF THE EXEMPTION IN SUBDIVISION TWO OF THIS
 SECTION, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE DISCON-
 TINUED. 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.
   § 2. This act shall take effect immediately.