S T A T E O F N E W Y O R K
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931
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
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Introduced by M. of A. DelMONTE -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to establishing a
residential-commercial urban exemption and school tax exemption for
cities with a population of fifty-five thousand to fifty-six thousand
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-n to read as follows:
S 485-N. RESIDENTIAL-COMMERCIAL URBAN EXEMPTION; CERTAIN CITIES
PROGRAM. 1. DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "MUNICIPALITY" MEANS ANY CITY HAVING FIFTY-FIVE TO FIFTY-SIX THOU-
SAND INHABITANTS.
(B) "APPLICANT" MEANS ANY PERSON OBLIGATED TO PAY REAL PROPERTY TAXES
ON THE PROPERTY FOR WHICH AN EXEMPTION FROM REAL PROPERTY TAXES UNDER
THIS SECTION IS SOUGHT.
(C) "COMMERCIAL CONSTRUCTION WORK" MEANS THE MODERNIZATION, REHABILI-
TATION, EXPANSION OR OTHER IMPROVEMENT OF THE PORTION OF MIXED-USE PROP-
ERTY TO BE USED FOR COMMERCIAL PURPOSES.
(D) "COMMERCIAL PURPOSE OR USE" MEANS THE BUYING, SELLING OR OTHERWISE
PROVIDING OF GOODS OR SERVICES, INCLUDING HOTEL SERVICES, OR OTHER
LAWFUL BUSINESS OR COMMERCIAL ACTIVITIES PERMITTED IN MIXED-USE PROPER-
TY.
(E) "MIXED-USE PROPERTY" MEANS PROPERTY ON WHICH WILL EXIST, AFTER
COMPLETION OF RESIDENTIAL CONSTRUCTION WORK OR A COMBINATION OF RESIDEN-
TIAL CONSTRUCTION WORK AND COMMERCIAL CONSTRUCTION WORK, A BUILDING OR
STRUCTURE USED FOR BOTH RESIDENTIAL AND COMMERCIAL PURPOSES.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01081-01-9
A. 931 2
(F) "PERSON" MEANS AN INDIVIDUAL, CORPORATION, LIMITED LIABILITY
COMPANY, PARTNERSHIP, ASSOCIATION, AGENCY, TRUST, ESTATE, FOREIGN OR
DOMESTIC GOVERNMENT OR SUBDIVISION THEREOF, OR OTHER ENTITY.
(G) "RESIDENTIAL CONSTRUCTION WORK" MEANS THE CREATION, MODERNIZATION,
REHABILITATION, EXPANSION OR OTHER IMPROVEMENT OF DWELLING UNITS, OTHER
THAN DWELLING UNITS IN A HOTEL, IN THE PORTION OF MIXED-USE PROPERTY TO
BE USED FOR RESIDENTIAL PURPOSES.
2. ANY MUNICIPALITY MAY, BY LOCAL LAW, PROVIDE FOR THE EXEMPTION OF
REAL PROPERTY FROM TAXATION AS PROVIDED IN THIS SECTION. UPON THE
ADOPTION OF SUCH A LOCAL LAW, THE COUNTY IN WHICH SUCH MUNICIPALITY IS
LOCATED MAY, BY LOCAL LAW, AND ANY SCHOOL DISTRICT, ALL OR PART OF WHICH
IS LOCATED IN SUCH MUNICIPALITY, MAY, BY RESOLUTION, EXEMPT SUCH PROPER-
TY FROM ITS TAXATION IN THE SAME MANNER AND TO THE SAME EXTENT AS SUCH
MUNICIPALITY HAS DONE.
3. UPON THE ADOPTION OF SUCH A LOCAL LAW, NON-RESIDENTIAL REAL PROPER-
TY, UPON CONVERSION TO MIXED-USE PROPERTY, SHALL BE EXEMPT FROM TAXATION
AND SPECIAL AD VALOREM LEVIES AS PROVIDED FOR IN SUBDIVISION FOUR OF
THIS SECTION.
4. (A) (I) FOR A PERIOD OF TWELVE YEARS FROM THE APPROVAL OF AN APPLI-
CATION, THE INCREASE IN ASSESSED VALUE OF SUCH PROPERTY ATTRIBUTABLE TO
SUCH CONVERSION SHALL BE EXEMPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH. SUCH EXEMPTION SHALL BE COMPUTED WITH RESPECT TO THE
"EXEMPTION BASE". THE EXEMPTION BASE SHALL BE DETERMINED FOR EACH YEAR
IN WHICH THERE IS AN INCREASE IN ASSESSED VALUE SO ATTRIBUTABLE FROM
THAT OF THE PREVIOUS YEAR'S ASSESSED VALUE.
(II) THE FOLLOWING TABLE SHALL ILLUSTRATE THE COMPUTATION OF THE TAX
EXEMPTION:
YEAR OF EXEMPTION PERCENTAGE OF EXEMPTION
1 THROUGH 8 100% OF EXEMPTION BASE
9 80% OF EXEMPTION BASE
10 60% OF EXEMPTION BASE
11 40% OF EXEMPTION BASE
12 20% OF EXEMPTION BASE
(B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS
(I) SUCH CONVERSION WAS COMMENCED SUBSEQUENT TO THE DATE ON WHICH THE
MUNICIPALITY'S LOCAL LAW TOOK EFFECT; AND
(II) THE COST OF SUCH CONVERSION EXCEEDS THE SUM OF TEN THOUSAND
DOLLARS OR SUCH GREATER AMOUNT AS MAY BE SPECIFIED BY LOCAL LAW.
(C) FOR PURPOSES OF THIS SECTION THE TERM CONVERSION SHALL NOT INCLUDE
ORDINARY MAINTENANCE AND REPAIRS.
(D) NO SUCH EXEMPTION SHALL BE GRANTED CONCURRENT WITH OR SUBSEQUENT
TO ANY OTHER REAL PROPERTY TAX EXEMPTION GRANTED TO THE SAME IMPROVE-
MENTS TO REAL PROPERTY, EXCEPT, WHERE DURING THE PERIOD OF SUCH PREVIOUS
EXEMPTION, PAYMENTS IN LIEU OF TAXES OR OTHER PAYMENTS WERE MADE TO THE
LOCAL GOVERNMENT IN AN AMOUNT THAT WOULD HAVE BEEN EQUAL TO OR GREATER
THAN THE AMOUNT OF REAL PROPERTY TAXES THAT WOULD HAVE BEEN PAID ON SUCH
IMPROVEMENTS HAD SUCH PROPERTY BEEN GRANTED AN EXEMPTION PURSUANT TO
THIS SECTION. IN SUCH CASE, AN EXEMPTION SHALL BE GRANTED FOR A NUMBER
OF YEARS EQUAL TO THE TWELVE YEAR EXEMPTION GRANTED PURSUANT TO THIS
SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
EXEMPT FROM REAL PROPERTY TAXES.
5. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH REAL PROPERTY ON A FORM PRESCRIBED BY THE STATE BOARD. SUCH
A. 931 3
APPLICATION SHALL BE FILED WITH THE ASSESSOR OF THE MUNICIPALITY OR
COUNTY HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH MUNICIPALITY OR COUNTY.
6. 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 AS IN THIS SECTION PROVIDED COMMENCING WITH
THE ASSESSMENT ROLL PREPARED AFTER THE TAXABLE STATUS DATE REFERRED TO
IN SUBDIVISION FIVE 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.
7. REAL PROPERTY WHICH SATISFIES THE REQUIREMENTS OF THIS SECTION MAY
BE EXEMPT FROM TAXATION FOR SCHOOL PURPOSES AS PROVIDED HEREIN.
8. THERE SHALL BE AN EXEMPTION FOR PROPERTY OWNED BY PERSONS WHO HAVE
CONVERTED NON-RESIDENTIAL REAL PROPERTY TO MIXED-USE PROPERTY IN A MUNI-
CIPALITY AS DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION.
THE EXEMPTION MAY BE COMPUTED AS SET FORTH IN SUBDIVISION FOUR OF THIS
SECTION.
9. TO RECEIVE THE EXEMPTION PROVIDED FOR IN SUBDIVISION EIGHT OF THIS
SECTION, OWNERS OF QUALIFYING PROPERTY MUST FILE AN APPLICATION WITH
THEIR LOCAL ASSESSOR ON OR BEFORE THE APPLICABLE TAXABLE STATUS DATE ON
A FORM PRESCRIBED BY THE STATE BOARD.
10. THE EXEMPTION PROVIDED IN SUBDIVISION EIGHT OF THIS SECTION SHALL
BE GRANTED ONLY UPON APPLICATION BY THE OWNER OF SUCH REAL PROPERTY ON A
FORM PRESCRIBED BY THE STATE BOARD. SUCH APPLICATION SHALL BE FILED WITH
THE ASSESSOR OF THE MUNICIPALITY OR COUNTY HAVING THE POWER TO ASSESS
PROPERTY FOR TAXATION ON OR BEFORE THE APPROPRIATE TAXABLE STATUS DATE
OF SUCH MUNICIPALITY OR COUNTY.
11. IF THE ASSESSOR IS SATISFIED THAT THE APPLICANT IS ENTITLED TO AN
EXEMPTION PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION, HE OR SHE SHALL
APPROVE THE APPLICATION AND SUCH REAL PROPERTY SHALL THEREAFTER BE
EXEMPT FROM SCHOOL TAXATION AS PROVIDED IN THIS SECTION, COMMENCING WITH
THE ASSESSMENT ROLL PREPARED AFTER THE TAXABLE STATUS DATE REFERRED TO
IN SUBDIVISION FIVE OF THIS SECTION. THE ASSESSED VALUE OF ANY EXEMPTION
GRANTED PURSUANT TO SUBDIVISION EIGHT OF 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.
S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided that effective immediately, the
state board of real property services is authorized to promulgate any
and all rules and regulations and take any other measures necessary to
implement this act on or before its effective date.