S T A T E O F N E W Y O R K
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9474
I N A S S E M B L Y
March 5, 2012
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Introduced by M. of A. RA -- read once and referred to the Committee on
Real Property Taxation
AN ACT to amend the real property tax law, in relation to exempting real
property purchased by first-time homebuyers from real property taxa-
tion
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 457-a to read as follows:
S 457-A. EXEMPTION FOR FIRST-TIME HOMEBUYERS. 1. PRIMARY RESIDENTIAL
PROPERTY PURCHASED BY ONE OR MORE PERSONS, EACH OF WHOM IS A FIRST-TIME
HOMEBUYER AND HAS NOT BEEN MARRIED TO A HOMEOWNER IN THE THREE YEARS
PRIOR TO APPLYING FOR THIS FIRST-TIME HOMEOWNERS EXEMPTION, SHALL BE
EXEMPT FROM TAXATION LEVIED BY OR ON BEHALF OF ANY COUNTY, CITY, TOWN,
VILLAGE OR SCHOOL DISTRICT IN WHICH SUCH RESIDENTIAL PROPERTY IS
LOCATED, PROVIDED THE LEGISLATIVE BODY OR GOVERNING BOARD OF SUCH COUN-
TY, CITY, TOWN OR VILLAGE, AFTER PUBLIC HEARING, ADOPTS A LOCAL LAW, OR
A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT TO WHICH ARTICLE FIFTY-
TWO OF THE EDUCATION LAW APPLIES, ADOPTS A RESOLUTION PROVIDING THERE-
FOR. THE LENGTH OF SUCH EXEMPTION SHALL BE SET FORTH IN SUCH LOCAL LAW
OR RESOLUTION, BUT IN NO EVENT SHALL IT EXCEED FIVE YEARS. SUCH
EXEMPTION SHALL BE COMPUTED IN ACCORDANCE WITH THE FOLLOWING TABLE:
YEAR OF EXEMPTION PERCENTAGE ASSESSED
VALUATION EXEMPT FROM TAX
1 40
2 30
3 25
4 25
5 10
6 OR MORE 0
A COPY OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL BE FILED WITH THE
COMMISSIONER AND THE ASSESSOR OF SUCH COUNTY, CITY, TOWN, OR VILLAGE WHO
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14811-01-2
A. 9474 2
PREPARES THE ASSESSMENT ROLL ON WHICH THE TAXES OF SUCH COUNTY, CITY,
TOWN, VILLAGE OR SCHOOL DISTRICT ARE LEVIED.
2. (A) ANY PRIMARY RESIDENTIAL REAL PROPERTY WITHIN THE PURCHASE PRICE
LIMITS DEFINED BY THE STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST
RATE MORTGAGE PROGRAM IN THE NON-TARGET, ONE FAMILY NEW CATEGORY FOR THE
COUNTY WHERE SUCH PROPERTY IS LOCATED AND IN EFFECT ON THE CONTRACT DATE
FOR THE PURCHASE AND SALE OF SUCH PROPERTY, SHALL BE ELIGIBLE FOR THE
EXEMPTION ALLOWED PURSUANT TO THIS SECTION.
(B) A FIRST-TIME HOMEBUYER SHALL NOT QUALIFY FOR THE EXEMPTION AUTHOR-
IZED PURSUANT TO THIS SECTION IF THE HOUSEHOLD INCOME EXCEEDS INCOME
LIMITS DEFINED BY THE STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST
RATE MORTGAGE PROGRAM IN THE NON-TARGET, ONE AND TWO PERSON HOUSEHOLD
CATEGORY FOR THE COUNTY WHERE SUCH PROPERTY IS LOCATED AND IN EFFECT ON
THE CONTRACT DATE FOR THE PURCHASE AND SALE OF SUCH PROPERTY.
(I) THE TERM "HOUSEHOLD INCOME" AS USED HEREIN SHALL MEAN THE TOTAL
COMBINED INCOME OF ALL THE OWNERS, AND OF ANY OWNERS' SPOUSES RESIDING
ON THE PREMISES, FOR THE INCOME TAX YEAR PRECEDING THE DATE OF MAKING
APPLICATION FOR THE EXEMPTION.
(II) THE TERM "INCOME" AS USED HEREIN SHALL MEAN THE "ADJUSTED GROSS
INCOME" FOR FEDERAL INCOME TAX PURPOSES AS REPORTED ON THE APPLICANT'S
LATEST AVAILABLE FEDERAL OR STATE INCOME TAX RETURN SUBJECT TO ANY
SUBSEQUENT AMENDMENTS OR REVISIONS, REDUCED BY DISTRIBUTIONS, TO THE
EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, RECEIVED FROM AN INDI-
VIDUAL RETIREMENT ACCOUNT AND AN INDIVIDUAL RETIREMENT ANNUITY; PROVIDED
THAT IF NO SUCH RETURN WAS FILED WITHIN THE ONE YEAR PERIOD PRECEDING
TAXABLE STATUS DATE, "INCOME" SHALL MEAN THE ADJUSTED GROSS INCOME THAT
WOULD HAVE BEEN SO REPORTED IF SUCH A RETURN HAD BEEN FILED. FOR
PURPOSES OF THIS SUBDIVISION, "LATEST AVAILABLE RETURN" SHALL MEAN THE
FEDERAL OR STATE INCOME TAX RETURN FOR THE YEAR IMMEDIATELY PRECEDING
THE DATE OF MAKING APPLICATION, PROVIDED HOWEVER, THAT IF THE TAX RETURN
FOR SUCH TAX YEAR HAS NOT BEEN FILED, THEN THE INCOME TAX RETURN FOR THE
TAX YEAR TWO YEARS PRECEDING THE DATE OF MAKING APPLICATION SHALL BE
CONSIDERED THE LATEST AVAILABLE.
3. PRIMARY RESIDENTIAL PROPERTY PURCHASED BY FIRST-TIME HOMEBUYERS AT
A SALES PRICE GREATER THAN THE MAXIMUM ELIGIBLE SALES PRICE SHALL QUALI-
FY FOR THE EXEMPTION ALLOWED PURSUANT TO THIS SECTION FOR THAT PORTION
OF THE SALES PRICE OF SUCH NEWLY CONSTRUCTED PRIMARY RESIDENTIAL PROPER-
TY EQUAL TO THE MAXIMUM ELIGIBLE SALES PRICE, PROVIDED, HOWEVER, THAT
ANY NEWLY CONSTRUCTED PRIMARY RESIDENTIAL PROPERTY PURCHASED AT A SALES
PRICE GREATER THAN FIFTEEN PERCENT ABOVE THE MAXIMUM ELIGIBLE SALES
PRICE SHALL NOT BE ALLOWED ANY EXEMPTION.
4. THE LEGISLATIVE BODY OR GOVERNING BOARD OF A COUNTY, CITY, TOWN OR
VILLAGE MAY ADOPT A LOCAL LAW, OR A SCHOOL DISTRICT, OTHER THAN A SCHOOL
DISTRICT TO WHICH ARTICLE FIFTY-TWO OF THE EDUCATION LAW APPLIES MAY
ADOPT A RESOLUTION TO PROVIDE FOR AN INCREASE NOT TO EXCEED TWENTY-FIVE
PER CENTUM ON THE PURCHASE PRICE LIMIT USED FOR ELIGIBILITY FOR THE
EXEMPTION PROVIDED FOR IN THIS SECTION.
5. NO EXEMPTION SHALL BE ALLOWED PURSUANT TO THIS SECTION FOR ANY
PRIMARY RESIDENTIAL PROPERTY PURCHASED BY A FIRST-TIME HOMEBUYER ON OR
AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN, UNLESS SUCH PURCHASE
IS PURSUANT TO A BINDING WRITTEN CONTRACT ENTERED INTO PRIOR TO DECEMBER
THIRTY-FIRST, TWO THOUSAND SIXTEEN. PROVIDED, HOWEVER, THAT ANY
FIRST-TIME HOMEBUYER WHO IS ALLOWED AN EXEMPTION PURSUANT TO THIS
SECTION PRIOR TO SUCH DATE SHALL CONTINUE TO BE ALLOWED FURTHER
EXEMPTIONS PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
A. 9474 3
6. (A) NO PORTION OF A SINGLE FAMILY PRIMARY RESIDENTIAL PROPERTY
SHALL BE LEASED DURING THE PERIOD OF TIME WHEN THE FIRST-TIME HOMEOWNER
EXEMPTION SHALL APPLY TO THE RESIDENCE. IF ANY PORTION OF THE SINGLE
FAMILY NEWLY CONSTRUCTED PRIMARY RESIDENTIAL PROPERTY IS FOUND TO BE THE
SUBJECT OF A LEASE AGREEMENT THE ASSESSOR SHALL DISCONTINUE ANY
EXEMPTION GRANTED PURSUANT TO THIS SECTION.
(B) IN THE EVENT THAT A PRIMARY RESIDENTIAL PROPERTY GRANTED AN
EXEMPTION PURSUANT TO THIS SECTION CEASES TO BE USED PRIMARILY FOR RESI-
DENTIAL PURPOSES OR TITLE THERETO IS TRANSFERRED TO OTHER THAN THE HEIRS
OR DISTRIBUTEES OF THE OWNER, THE EXEMPTION GRANTED PURSUANT TO THIS
SECTION SHALL BE DISCONTINUED.
(C) UPON DETERMINING THAT AN EXEMPTION GRANTED PURSUANT TO THIS
SECTION SHOULD BE DISCONTINUED, THE ASSESSOR SHALL MAIL A NOTICE SO
STATING TO THE OWNER OR OWNERS THEREOF AT THE TIME AND IN THE MANNER
PROVIDED BY SECTION FIVE HUNDRED TEN OF THIS CHAPTER. SUCH OWNER OR
OWNERS SHALL BE ENTITLED TO SEEK ADMINISTRATIVE AND JUDICIAL REVIEW OF
SUCH ACTION IN THE MANNER PROVIDED BY LAW, PROVIDED THAT THE BURDEN
SHALL BE ON SUCH OWNER OR OWNERS TO ESTABLISH ELIGIBILITY FOR THE
EXEMPTION.
7. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH BUILDING ON A FORM PRESCRIBED BY THE COMMISSIONER. THE APPLICA-
TION SHALL BE FILED WITH THE ASSESSOR OF THE CITY, TOWN, VILLAGE OR
COUNTY HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY, TOWN, VILLAGE AND COUNTY.
8. IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
PRIMARY RESIDENTIAL PROPERTY 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 SUBDIVISION SEVEN 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.
9. FOR PURPOSES OF THIS SECTION: (A) "FIRST-TIME HOMEBUYER" MEANS A
PERSON WHO HAS NOT OWNED A PRIMARY RESIDENTIAL PROPERTY AND IS NOT
MARRIED TO A PERSON WHO HAS OWNED A RESIDENTIAL PROPERTY DURING THE
THREE-YEAR PERIOD PRIOR TO HIS OR HER PURCHASE OF THE PRIMARY RESIDEN-
TIAL PROPERTY, AND WHO DOES NOT OWN A VACATION OR INVESTMENT HOME.
(B) "PRIMARY RESIDENTIAL PROPERTY" MEANS ANY ONE OR TWO FAMILY HOUSE,
TOWNHOUSE OR CONDOMINIUM LOCATED IN THIS STATE WHICH IS OWNER OCCUPIED
BY SUCH HOMEBUYER.
S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2013.