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

                                  7577

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             April 16, 2009
                               ___________

Introduced by M. of A. BACALLES, O'MARA -- read once and referred to the
  Committee on Real Property Taxation

AN  ACT  to amend the real property tax law, in relation to exemption of
  capital improvements to multiple dwelling buildings in certain cities

  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 421-l to read as follows:
  S 421-L. EXEMPTION OF CAPITAL IMPROVEMENTS TO MULTIPLE DWELLING BUILD-
INGS WITHIN CERTAIN  CITIES.  1.  MULTIPLE  DWELLING  BUILDINGS,  RECON-
STRUCTED,  ALTERED,  CONVERTED  BACK  TO AN OWNER OCCUPIED SINGLE FAMILY
DWELLING OR ANY OWNER OCCUPIED MULTIPLE DWELLING  LOCATED  IN  ANY  CITY
HAVING  A  POPULATION  OF:    (A) MORE THAN THIRTY THOUSAND NINE HUNDRED
INHABITANTS BUT LESS THAN THIRTY-ONE THOUSAND INHABITANTS; (B) MORE THAN
NINE THOUSAND TEN INHABITANTS BUT LESS THAN NINE THOUSAND TWENTY  INHAB-
ITANTS;  OR  (C)  MORE THAN TEN THOUSAND EIGHT HUNDRED FORTY INHABITANTS
BUT LESS THAN TEN THOUSAND EIGHT HUNDRED FIFTY  INHABITANTS,  DETERMINED
IN  ACCORDANCE WITH THE LATEST FEDERAL DECENNIAL CENSUS, THAT IS REDUCED
TO AT MOST TWO UNITS BY SUCH RECONSTRUCTION SUBSEQUENT TO THE  EFFECTIVE
DATE  OF A LOCAL LAW PURSUANT TO THIS SECTION SHALL BE EXEMPT FROM TAXA-
TION AND SPECIAL AD VALOREM LEVIES TO THE EXTENT  PROVIDED  HEREINAFTER.
AFTER  A  PUBLIC  HEARING,  THE GOVERNING BOARD OF SUCH CITY MAY ADOPT A
LOCAL LAW TO GRANT THE EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION.  A
COPY  OF  SUCH  LOCAL  LAW  SHALL  BE FILED WITH THE STATE BOARD AND THE
ASSESSOR OF SUCH CITY WHO PREPARES THE  ASSESSMENT  ROLL  ON  WHICH  THE
TAXES OF SUCH CITY ARE LEVIED.
  2. (A) SUCH BUILDINGS WITHIN SUCH CITY SHALL BE EXEMPT FOR A PERIOD OF
ONE  YEAR  TO  THE  EXTENT OF FIFTY PERCENT OF THE VALUE OF THE PROPERTY
AFTER THE COMPLETION OF SUCH RECONSTRUCTION, ALTERATION  OR  IMPROVEMENT
AND FOR AN ADDITIONAL PERIOD OF NINE YEARS SUBJECT TO THE FOLLOWING:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11041-01-9

              

A. 7577                             2

  (I) THE EXTENT OF SUCH EXEMPTION SHALL BE DECREASED BY FIVE PERCENT OF
THE  VALUE  OF THE PROPERTY AFTER THE COMPLETION OF SUCH RECONSTRUCTION,
ALTERATION OR IMPROVEMENT EACH YEAR DURING SUCH ADDITIONAL PERIOD.
  (II)  SUCH EXEMPTION SHALL BE LIMITED TO ONE HUNDRED THOUSAND DOLLARS,
BUT NOT LESS THAN TEN THOUSAND DOLLARS AS MAY BE PROVIDED BY  THE  LOCAL
LAW  OR RESOLUTION, OF THE VALUE OF THE PROPERTY AFTER THE COMPLETION OF
SUCH RECONSTRUCTION, ALTERATION OR IMPROVEMENT.
  (B) NO SUCH EXEMPTION SHALL BE GRANTED FOR RECONSTRUCTION, ALTERATIONS
OR IMPROVEMENTS UNLESS:
  (I) SUCH  RECONSTRUCTION,  ALTERATION  OR  CONVERTED  IMPROVEMENT  WAS
COMMENCED  SUBSEQUENT  TO  THE  EFFECTIVE  DATE OF THE LOCAL LAW ADOPTED
PURSUANT TO SUBDIVISION ONE OF THIS SECTION BY SUCH CITY; AND
  (II) THE VALUE  OF  SUCH  RECONSTRUCTION,  ALTERATION  OR  IMPROVEMENT
EXCEEDS FIVE THOUSAND DOLLARS; AND
  (III)  THE GREATER PORTION, AS SO DETERMINED BY SQUARE FOOTAGE, OF THE
BUILDING RECONSTRUCTED, ALTERED OR IMPROVED IS AT LEAST FIVE YEARS OLD.
  (C) FOR PURPOSES OF THIS SECTION THE TERMS RECONSTRUCTION,  ALTERATION
AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTENANCE AND REPAIRS.
  3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF  SUCH  BUILDING ON A FORM PRESCRIBED BY THE STATE BOARD. THE APPLICA-
TION SHALL BE FILED WITH THE ASSESSOR OF SUCH  CITY  ON  OR  BEFORE  THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY.
  4.  IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
BUILDING SHALL THEREAFTER BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM
LEVIES AS PROVIDED IN THIS SECTION COMMENCING WITH THE  ASSESSMENT  ROLL
PREPARED ON THE BASIS OF THE TAXABLE STATUS DATE REFERRED TO IN SUBDIVI-
SION  THREE OF THIS SECTION. THE ASSESSED VALUE OF ANY EXEMPTION GRANTED
PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESS-
MENT ROLL WITH THE TAXABLE PROPERTY, WITH THE AMOUNT  OF  THE  EXEMPTION
SHOWN IN A SEPARATE COLUMN.
  5. FOR THE PURPOSES OF THIS SECTION, AN OWNER OCCUPIED MULTIPLE DWELL-
ING  BUILDING SHALL MEAN ANY BUILDING OR STRUCTURE DESIGNED AND OCCUPIED
AS THE TEMPORARY OR PERMANENT RESIDENCE OR HOME OF TWO OR MORE FAMILIES,
INCLUDING THE OWNER OF SUCH BUILDING.
  6. IN THE EVENT THAT A BUILDING GRANTED AN EXEMPTION PURSUANT TO  THIS
SECTION  CEASES  TO  BE USED PRIMARILY FOR RESIDENTIAL PURPOSES OR TITLE
THERETO IS TRANSFERRED TO OTHER THAN THE HEIRS OR  DISTRIBUTEES  OF  THE
OWNER, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
  7. (A) THE ENACTMENT OF A LOCAL LAW IN SUCH CITY MAY:
  (I) REDUCE THE PERCENT OF EXEMPTION OTHERWISE ALLOWED PURSUANT TO THIS
SECTION;
  (II)  LIMIT  ELIGIBILITY  FOR  THE  EXEMPTION TO THOSE FORMS OF RECON-
STRUCTION, ALTERATIONS OR IMPROVEMENTS AS ARE PRESCRIBED IN  SUCH  LOCAL
LAW OR RESOLUTION.
  (B)  NO  SUCH  LOCAL  LAW  SHALL REDUCE OR REPEAL AN EXEMPTION GRANTED
PURSUANT TO THIS SECTION UNTIL THE EXPIRATION OF THE  PERIOD  FOR  WHICH
SUCH EXEMPTION WAS GRANTED.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.