Assembly Bill A11356

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

                                  11356

                          I N  A S S E M B L Y

                              June 4, 2010
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Burling) --
  read once and referred to the Committee on Real Property Taxation

AN ACT to amend the real property tax law, in relation to establishing a
  residential-commercial exemption  program  in  certain  counties;  and
  providing for the repeal of such provisions upon the expiration there-
  of

  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 EXEMPTION PROGRAM. 1. DEFINITIONS. AS
USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
INGS:
  (A)  "APPLICANT" MEANS ANY PERSON OBLIGATED TO PAY REAL PROPERTY TAXES
ON REAL PROPERTY FOR WHICH AN EXEMPTION FROM TAXES UNDER THIS SECTION IS
SOUGHT.
  (B) "BENEFIT AREA" MEANS THE AREA WITHIN A MUNICIPALITY, DESIGNATED BY
LOCAL LAW, TO WHICH AN EXEMPTION, ESTABLISHED PURSUANT TO THIS  SECTION,
APPLIES.
  (C)  "COMMERCIAL CONSTRUCTION WORK" MEANS THE MODERNIZATION, REHABILI-
TATION, EXPANSION OR OTHER IMPROVEMENT OF COMMERCIAL USE PROPERTY OR THE
PORTION OF MIXED-USE PROPERTY 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 UPON MIXED-USE PROP-
ERTY.
  (E) "COMMERCIAL USE PROPERTY" MEANS REAL PROPERTY ON WHICH WILL EXIST,
AFTER COMPLETION OF COMMERCIAL CONSTRUCTION WORK, A  BUILDING  USED  FOR
COMMERCIAL PURPOSES OR USE.
  (F)  "MIXED-USE  PROPERTY"  MEANS  REAL  PROPERTY ON WHICH WILL EXIST,
AFTER COMPLETION OF RESIDENTIAL CONSTRUCTION WORK OR  A  COMBINATION  OF
RESIDENTIAL CONSTRUCTION WORK AND COMMERCIAL CONSTRUCTION WORK, A BUILD-
ING 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.
                                                           LBD16836-02-0
              

A. 11356                            2

  (G) "MUNICIPALITY" MEANS ANY TOWN, CITY, VILLAGE OR OTHER TAXING ENTI-
TY  LOCATED  IN A COUNTY HAVING A POPULATION OF NOT LESS THAN SIXTY-FOUR
THOUSAND THREE HUNDRED  AND  NOT  MORE  THAN  SIXTY-FOUR  THOUSAND  FOUR
HUNDRED  AS  DETERMINED BY THE FEDERAL DECENNIAL CENSUS FOR THE YEAR TWO
THOUSAND.
  (H) "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. A MUNICIPALITY MAY, BY LOCAL LAW, PROVIDE FOR THE EXEMPTION OF REAL
PROPERTY  IN A DESIGNATED BENEFIT AREA 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 PROPERTY 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 THE COMMERCIAL USE PROPERTY
OR MIXED-USE PROPERTY THAT WAS CONVERTED, CREATED, MODERNIZED, REHABILI-
TATED, EXPANDED OR OTHERWISE IMPROVED, 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 FOLLOWING THE APPROVAL OF AN
APPLICATION, THE INCREASE IN ASSESSED VALUE OF SUCH  PROPERTY  ATTRIBUT-
ABLE TO SUCH CONVERSION, CREATION, MODERNIZATION, REHABILITATION, EXPAN-
SION  OR  OTHER  IMPROVEMENT 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  SHALL  DETERMINE  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, CREATION, MODERNIZATION, REHABILITATION, EXPAN-
SION OR OTHER IMPROVEMENT 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,  CREATION,
MODERNIZATION, REHABILITATION, EXPANSION OR OTHER IMPROVEMENT" 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
MUNICIPALITY 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

A. 11356                            3

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 REAL PROPERTY ON A FORM PRESCRIBED BY THE STATE BOARD. SUCH  APPLICA-
TION  SHALL  BE  FILED  WITH  THE ASSESSOR OF THE MUNICIPALITY OR COUNTY
HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE APPRO-
PRIATE 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 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 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 immediately, and shall expire  and  be
deemed repealed twelve years after such date.