NY State Senate Bill 2009-S4020

Senate Bill S4020

2009-2010 Legislative Session

Creates an exemption of capital improvements to multiple dwelling buildings in certain cities

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to housing, construction and community development
Apr 07, 2009	referred to housing, construction and community development

2009-S4020 (ACTIVE) - Details

See Assembly Version of this Bill:: A7577
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Tax Law
Laws Affected:: Add §421-l, RPT L

2009-S4020 (ACTIVE) - Summary

Partially exempts from taxation any multiple dwelling building converted to an owner occupied single family dwelling or that is reduced to at most two units within certain cities; such buildings 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 renovations, reduced by five percent per year for nine years.

2009-S4020 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4020

 TITLE OF BILL :
An act to amend the real property tax law, in relation to exemption of
capital improvements to multiple dwelling buildings in certain cities


 PURPOSE :
To authorize the cities of Elmira, Hornell and Corning to offer
incentives to property owners to make capital improvements to existing
buildings.

 SUMMARY OF PROVISIONS :
The bill authorizes the cities of Elmira, Hornell, and Corning, and at
each cities' option, to offer a real property tax incentive for former
multiple dwelling residences that are converted into single family
residences or two unit residences. The exemption covers the inevitable
rise of assessment values of such properties resulting from
reconstruction, alteration, and improvements.  The bill provides for
an exemption of 50% of the assessed value of the property subsequent
to the capital improvement for the first year.  The exemption will
then decrease 5% a year for 10 years.

 JUSTIFICATION :
When multiple dwelling residences are converted there is an inevitable
rise in the assessment of the building. This legislation will allow

for a tax exemption to be provided at each city's option to help ease
the financial burden on the individual owner.

The legislation is designed to give an absentee owner of a multiple
dwelling a monetary incentive to convert an investment property into
an owner occupied home. The benefit to the municipality is a
conversion of a transient neighborhood into a stabilized owner
occupied community. Owner occupied neighborhoods tend to require less
municipal services such as code enforcement, police enforcement, fire,
EMT services and sanitation services.

For example, the City of Elmira alone has estimated that some 273
parcels with 1,359 units could be eligible to participate in the
program. Of the 273 parcels, approximately 12% are owner occupied with
88% absentee ownership. Therefore legislation which encourages a
reduction in density as well as owner occupancy is very attractive and
could help change the face of these urban neighborhoods.

 LEGISLATIVE HISTORY :
2005: Similar law passed for City of Albany, Chapter 397
of the laws of 2005
2006: S.7031/A.10423 - passed senate/referred to corporations
2007: S.4325/A.7590 - passed senate/referred to real property taxation
2008: S.4325/A.7590 - passed senate/held for consideration in real
property taxation

 FISCAL IMPLICATIONS :
None to State.

 LOCAL FISCAL IMPLICATIONS :
Undetermined, dependent upon utilization.

 EFFECTIVE DATE :
January next succeeding enactment.

2009-S4020 (ACTIVE) - Bill Text download pdf

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

                                  4020

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 7, 2009
                               ___________

Introduced  by  Sen.  WINNER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

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

S. 4020                             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.

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