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

                                  1214

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by M. of A. DESTITO -- read once and referred to the Commit-
  tee on Real Property Taxation

AN ACT to amend the real property tax law, in relation to authorizing  a
  residential investment exemption in certain towns

  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 INVESTMENT EXEMPTION; CERTAIN TOWNS.  1. RESIDEN-
TIAL  REAL  PROPERTY  CONSTRUCTED  ON  OR  AFTER  THE FIRST DAY OF APRIL
FOLLOWING THE EFFECTIVE DATE OF THIS SECTION IN TOWNS WITH A  POPULATION
OF EIGHTEEN THOUSAND SIX HUNDRED THIRTY-FIVE BASED UPON THE TWO THOUSAND
FEDERAL  CENSUS  MAY BE EXEMPT FROM TOWN 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  STATE BOARD, 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

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

                                                           LBD03549-01-9

A. 1214                             2

ASSESSMENT ROLL), AND THE  DENOMINATOR  OF  WHICH  SHALL  BE  THE  TOTAL
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 INCOR-
RECTLY, 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 TOWN
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 APRIL
FOLLOWING  THE  EFFECTIVE DATE OF THIS SECTION OR SUCH LATER DATE AS MAY
BE SPECIFIED BY LOCAL LAW;
  (II) THE RESIDENTIAL REAL PROPERTY IS SITUATE IN A TOWN WITH  A  POPU-
LATION  OF  EIGHTEEN THOUSAND SIX HUNDRED THIRTY-FIVE BASED UPON THE TWO
THOUSAND FEDERAL CENSUS;
  (III) THE COST OF SUCH CONSTRUCTION EXCEEDS THE SUM OF  SEVENTY  THOU-
SAND  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 STATE BOARD. SUCH
APPLICATION SHALL BE FILED WITH THE ASSESSOR OF SUCH TOWN ON  OR  BEFORE
THE  APPROPRIATE  TAXABLE  STATUS  DATE OF SUCH TOWN 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 TOWN WITH A POPULATION OF EIGHTEEN THOU-
SAND SIX HUNDRED THIRTY-FIVE BASED UPON THE TWO THOUSAND FEDERAL  CENSUS

A. 1214                             3

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 TOWN WITH A POPULATION OF EIGHTEEN THOUSAND SIX HUNDRED  THIRTY-
FIVE  BASED  UPON  THE  TWO  THOUSAND  FEDERAL 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 TOWN 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 OF
THIS SECTION, 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  STATE
BOARD AND THE ASSESSOR OF THE TOWN.
  8.   A TOWN WITH A POPULATION OF EIGHTEEN THOUSAND SIX HUNDRED THIRTY-
FIVE BASED UPON THE TWO THOUSAND  FEDERAL  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.
  9. (A) A TOWN WITH A POPULATION OF EIGHTEEN THOUSAND SIX HUNDRED THIR-
TY-FIVE BASED UPON THE TWO THOUSAND FEDERAL 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  A  TOWN
WITH  A  POPULATION  OF  EIGHTEEN THOUSAND SIX HUNDRED THIRTY-FIVE BASED
UPON THE TWO THOUSAND FEDERAL CENSUS CONCERNING  THE  VARIOUS  TYPES  OF
RESIDENTIAL  REAL  PROPERTY  WHICH  SHOULD BE GRANTED ELIGIBILITY FOR AN
EXEMPTION PURSUANT TO SUBDIVISION ONE 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 TOWN
WITH A POPULATION OF EIGHTEEN THOUSAND  SIX  HUNDRED  THIRTY-FIVE  BASED
UPON  THE TWO THOUSAND FEDERAL 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.
  (C)  IN  ADDITION, THE BOARD MAY MAKE RECOMMENDATIONS TO A TOWN WITH A
POPULATION OF EIGHTEEN THOUSAND SIX HUNDRED THIRTY-FIVE BASED  UPON  THE
TWO  THOUSAND  FEDERAL CENSUS WITH RESPECT TO ACTIONS IT DEEMS DESIRABLE
TO IMPROVE THE ECONOMIC CLIMATE THEREIN.
  10. IF A TOWN WITH A POPULATION OF EIGHTEEN THOUSAND SIX HUNDRED THIR-
TY-FIVE BASED UPON THE TWO THOUSAND FEDERAL CENSUS ESTABLISHES  A  RESI-
DENTIAL  INCENTIVE  BOARD, PURSUANT TO SUBDIVISION NINE OF THIS SECTION,
SUCH TOWN MAY, BY LOCAL LAW, RESTRICT REAL PROPERTY ELIGIBLE TO  RECEIVE
THE EXEMPTION TO REAL PROPERTY CONSTRUCTED FOR THOSE PURPOSES IDENTIFIED

A. 1214                             4

IN  THE  PLAN PRESENTED BY THE BOARD.  SUCH LOCAL LAW SHALL RESTRICT THE
AVAILABILITY OF SUCH EXEMPTION TO THE SPECIFIC GEOGRAPHIC AREAS  IDENTI-
FIED IN THE PLAN PRESENTED BY THE BOARD.
  11.  ANY TOWN WHICH ADOPTS AN EXEMPTION PURSUANT TO THIS SECTION SHALL
CAUSE INFORMATION  RELATING  TO  THE  AVAILABILITY  OF  SUCH  EXEMPTION,
INCLUDING REQUIREMENTS AND APPLICATION PROCEDURES, TO BE ATTACHED TO ALL
BUILDING  PERMIT  APPLICATIONS  AND  COPIES OF SUCH INFORMATION SHALL BE
POSTED IN A CONSPICUOUS LOCATION IN ANY OFFICE  OR  OFFICES  WHERE  SUCH
PERMITS AND APPLICATIONS FOR PERMITS ARE ISSUED AND PROCESSED.
  S 2. This act shall take effect immediately.