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.