S T A T E O F N E W Y O R K
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3615--A
2011-2012 Regular Sessions
I N A S S E M B L Y
January 26, 2011
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Introduced by M. of A. BRENNAN, COLTON, CUSICK -- read once and referred
to the Committee on Real Property Taxation -- recommitted to the
Committee on Real Property Taxation in accordance with Assembly Rule
3, sec. 2 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to exemption of
certain private homes from local taxation in cities with a population
of one million or more
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 CERTAIN PRIVATE HOMES FROM LOCAL TAXATION. 1.
FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
ING MEANINGS:
(A) "COMMENCE CONSTRUCTION" SHALL MEAN THAT THE AGENCY OR DEPARTMENT
OF THE CITY HAVING JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION OF
A PRIVATE HOME AND SUCH WORK HAS BEGUN IN GOOD FAITH IN ACCORDANCE WITH
SUCH PERMIT.
(B) "COMPLETE CONSTRUCTION" SHALL MEAN THAT THE AGENCY OR THE DEPART-
MENT OF THE CITY HAVING JURISDICTION HAS ISSUED A TEMPORARY OR PERMANENT
CERTIFICATE OF OCCUPANCY FOR ALL RESIDENTIAL AREAS OF THE PRIVATE HOME.
(C) "ELIGIBLE PROJECT" SHALL MEAN A NEWLY CONSTRUCTED PRIVATE HOME,
INCLUDING BOTH LAND AND IMPROVEMENTS, TO BE OCCUPIED AS A RESIDENCE FOR
THE FIRST TIME, WHICH COMMENCES CONSTRUCTION ON OR AFTER JULY FIRST, TWO
THOUSAND TWELVE AND ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND
SEVENTEEN AND COMPLETES CONSTRUCTION NO LATER THAN DECEMBER
THIRTY-FIRST, TWO THOUSAND NINETEEN, AND WHICH IS DESIGNED AND OCCUPIED
EXCLUSIVELY FOR RESIDENTIAL PURPOSES.
(D) "EXEMPTION COMMENCEMENT DATE" SHALL MEAN THE FIRST TAXABLE STATUS
DATE AFTER THE LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05671-03-2
A. 3615--A 2
THE SALE TO THE INITIAL PURCHASER OR, IN THE CASE OF A PRIVATE HOME IN A
CONDOMINIUM FORM OF OWNERSHIP, THE FIRST TAXABLE STATUS DATE AFTER THE
LATER TO OCCUR OF THE COMPLETION OF SUCH CONSTRUCTION OR THE SALE TO THE
FIRST INITIAL PURCHASER OF A CONDOMINIUM DWELLING UNIT IN SUCH PRIVATE
HOME.
(E) "INITIAL PURCHASER" SHALL MEAN THE FIRST PURCHASER OF A NEWLY
CONSTRUCTED PRIVATE HOME OR, IN THE CASE OF A PRIVATE HOME IN A CONDO-
MINIUM FORM OF OWNERSHIP, THE FIRST PURCHASER OF EACH DWELLING UNIT IN
SUCH NEWLY CONSTRUCTED PRIVATE HOME.
(F) "LOCAL HOUSING AGENCY" SHALL MEAN AN "AGENCY" AS DEFINED PURSUANT
TO SECTION SIX HUNDRED NINETY-TWO OF THE GENERAL MUNICIPAL LAW.
(G) "MAXIMUM PURCHASE PRICE" SHALL MEAN A SALES PRICE TO THE INITIAL
PURCHASER, OR, IN THE CASE OF A PRIVATE HOME IN A CONDOMINIUM FORM OF
OWNERSHIP, AN AGGREGATE SALES PRICE TO ALL INITIAL PURCHASES, OF (I)
FIVE HUNDRED ONE THOUSAND TWO HUNDRED DOLLARS IN THE CASE OF A PRIVATE
HOME CONTAINING ONE DWELLING UNIT, (II) FIVE HUNDRED NINETY-FOUR THOU-
SAND SIX HUNDRED THREE DOLLARS IN THE CASE OF A PRIVATE HOME CONTAINING
TWO DWELLINGS UNITS, AND (III) SEVEN HUNDRED ELEVEN THOUSAND DOLLARS IN
THE CASE OF A PRIVATE HOME CONTAINING THREE DWELLING UNITS. THE MAXIMUM
PURCHASE PRICES PROVIDED IN SUBPARAGRAPHS (I), (II) AND (III) OF THIS
PARAGRAPH SHALL BE INCREASED BY THREE PERCENT, COMPOUNDED ANNUALLY, ON
EACH TAXABLE STATUS DATE FOLLOWING THE FIRST ANNIVERSARY OF THE EFFEC-
TIVE DATE OF THIS SECTION.
(H) "MULTIPLE DWELLING" SHALL MEAN A MULTIPLE DWELLING WITHIN THE
MEANING OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
(I) "PRIVATE HOME" SHALL MEAN AN OWNER OCCUPIED PRIVATE OR MULTIPLE
DWELLING CONTAINING NOT MORE THAN THREE DWELLING UNITS, AS INDICATED ON
THE CERTIFICATE OF OCCUPANCY FOR SUCH STRUCTURE.
2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AN
ELIGIBLE PROJECT SHALL BE EXEMPT FROM ALL LOCAL AND MUNICIPAL TAXES,
OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, DURING THE TAX YEAR OR
YEARS NEXT FOLLOWING THE EXEMPTION COMMENCEMENT DATE AS FOLLOWS: (I)
WITH RESPECT TO PRIVATE HOMES CONTAINING LESS THAN THREE DWELLING UNITS,
TWO YEARS OF EXEMPTION FROM ALL SUCH TAXES; FOLLOWED BY ONE YEAR OF
EXEMPTION FROM SEVENTY-FIVE PERCENT OF SUCH TAXES; FOLLOWED BY ONE YEAR
OF EXEMPTION FROM SIXTY-TWO AND ONE-HALF PERCENT OF SUCH TAXES; FOLLOWED
BY ONE YEAR OF EXEMPTION FROM FIFTY PERCENT OF SUCH TAXES; FOLLOWED BY
ONE YEAR OF EXEMPTION FROM THIRTY-SEVEN AND ONE-HALF PERCENT OF SUCH
TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM TWENTY-FIVE PERCENT OF
SUCH TAXES; AND FOLLOWED BY ONE YEAR OF EXEMPTION FROM TWELVE AND
ONE-HALF PERCENT OF SUCH TAXES, AND (II) WITH RESPECT TO PRIVATE HOMES
CONTAINING THREE DWELLING UNITS, ELEVEN YEARS OF EXEMPTION FROM ALL SUCH
TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM EIGHTY PERCENT OF SUCH
TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM SIXTY PERCENT OF SUCH
TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM FORTY PERCENT OF SUCH
TAXES; AND FOLLOWED BY ONE YEAR OF EXEMPTION FROM TWENTY PERCENT OF SUCH
TAXES.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, EXEMPTION FROM LOCAL AND MUNICIPAL TAXES UNDER THIS SECTION SHALL
NOT BE AVAILABLE TO THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH A
PRIVATE HOME IS CONSTRUCTED IF ANY PORTION OF SUCH TAX LOT (LAND AND
IMPROVEMENTS): (I) IS EXEMPT FROM LOCAL AND MUNICIPAL TAXES UNDER ANY
OTHER LAW; (II) CONTAINS A PRIVATE HOME THAT EXCEEDS THE MAXIMUM
PURCHASE PRICE, OR (III) PREVIOUSLY CONTAINED A PRIVATE OR MULTIPLE
DWELLING THAT HAS BEEN FULLY DEMOLISHED AND REMOVED AND LESS THAN THREE
YEARS HAVE ELAPSED BETWEEN THE DATE OF INSURANCE OF THE PERMIT AUTHORIZ-
A. 3615--A 3
ING SUCH DEMOLITION AND REMOVAL AND THE DATE THAT THE NEW PRIVATE HOME
COMMENCES CONSTRUCTION.
(C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, THE TAX LOT (LAND AND IMPROVEMENTS) UPON WHICH THE PRIVATE HOME IS
CONSTRUCTED SHALL AT ALL TIMES BE SUBJECT TO LOCAL AND MUNICIPAL TAXES
IN AN AMOUNT NOT LESS THAN THE AMOUNT OF LOCAL AND MUNICIPAL TAXES THAT
WOULD BE PAYABLE THEREON BASED UPON THE ASSESSED VALUATION OF THE LAND
APPEARING ON THE ASSESSMENT ROLL IN THE FIRST YEAR AFTER COMPLETION OF
CONSTRUCTION.
3. (A) BASED ON THE CERTIFICATION OF THE LOCAL HOUSING AGENCY PURSUANT
TO THIS SECTION CERTIFYING ELIGIBILITY FOR EXEMPTION PURSUANT TO THIS
SECTION, THE DEPARTMENT OF FINANCE OF THE CITY OF NEW YORK SHALL IMPLE-
MENT THE AMOUNT OF EXEMPTION FROM LOCAL AND MUNICIPAL TAXES.
(B) THE LOCAL HOUSING AGENCY MAY PROMULGATE RULES AND REGULATIONS TO
CARRY OUT THE PROVISIONS OF THIS SECTION MAY REQUIRE PAYMENT OF A
NON-REFUNDABLE FILING FEE IN THE AMOUNT OF TWO HUNDRED DOLLARS PER
DWELLING UNIT FOR EACH APPLICATION FOR TAX EXEMPTION PURSUANT TO THIS
SECTION.
(C) UPON A FINDING BY THE LOCAL HOUSING AGENCY OR BY ANOTHER AGENCY
DESIGNATED BY SUCH LOCAL HOUSING AGENCY THAT A PRIVATE HOME IS NOT BEING
USED FOR RESIDENTIAL PURPOSES, IS THE SUBJECT OF A VIOLATION FOR AN
ILLEGAL OCCUPANCY, IS NOT OWNER OCCUPIED OR HAS BEEN SOLD TO SOMEONE
OTHER THAN THE INITIAL PURCHASER, EXEMPTION FROM TAXATION UNDER THIS
SECTION SHALL BE REVOKED AND SHALL TERMINATE PROSPECTIVELY; PROVIDED,
HOWEVER, THAT IN THE CASE OF AN ILLEGAL OCCUPANCY, THE OWNER SHALL REPAY
ALL TAXES, WITH INTEREST, FROM WHICH SUCH PRIVATE HOME WAS EXEMPTED AND
SUCH AMOUNT, IF UNPAID, SHALL BECOME A TAX LIEN AGAINST THE PROPERTY.
S 2. This act shall take effect immediately.