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

                                 5557--A
    Cal. No. 168

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 1, 2011
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government -- recom-
  mitted to the Committee on Local Government in accordance with  Senate
  Rule  6,  sec. 8 -- reported favorably from said committee, ordered to
  first and second report, ordered  to  a  third  reading,  amended  and
  ordered reprinted, retaining its place in the order of third reading

AN  ACT to amend the real property tax law, in relation to a partial tax
  exemption for new residential construction or improvements  to  quali-
  fied residential structures 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 421-1 to read as follows:
  S 421-1. EXEMPTION OF NEW CONSTRUCTION AND IMPROVEMENTS TO RESIDENTIAL
BUILDINGS  IN  CERTAIN TOWNS. 1. RESIDENTIAL BUILDINGS SITUATED WITHIN A
TOWN WITH A POPULATION OF NOT LESS THAN SEVENTEEN THOUSAND FIVE  HUNDRED
NINETY-FOUR  AND  NOT MORE THAN SEVENTEEN THOUSAND SIX HUNDRED FOURTEEN,
SITUATED IN A COUNTY WITH A POPULATION OF NOT  LESS  THAN  NINE  HUNDRED
FORTY-NINE  THOUSAND  TWO  HUNDRED  SIXTY-FIVE  AND  NOT  MORE THAN NINE
HUNDRED FIFTY-ONE THOUSAND TWO HUNDRED SIXTY-FIVE, BASED  UPON  THE  TWO
THOUSAND  FEDERAL CENSUS THAT HOUSE ONE TO THREE FAMILIES AND WHICH HAVE
BEEN NEWLY CONSTRUCTED OR IMPROVED SUBSEQUENT TO THE EFFECTIVE DATE OF A
LOCAL LAW OR RESOLUTION PASSED BY THE GOVERNING BOARD OF SUCH TOWN AFTER
PUBLIC HEARING PURSUANT TO THIS SECTION SHALL BE  EXEMPT  FROM  TAXATION
AND SPECIAL AD VALOREM LEVIES TO THE EXTENT PROVIDED HEREINAFTER. A COPY
OF SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH THE COMMISSIONER AND
THE ASSESSOR OF SUCH TOWN.
  2.  SUCH RESIDENTIAL 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  OR  IMPROVEMENT  AND  FOR  AN
ADDITIONAL PERIOD OF FOUR YEARS SUBJECT TO THE FOLLOWING:

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

                                                           LBD11781-03-2

S. 5557--A                          2

  (I)  THE EXTENT OF SUCH EXEMPTION SHALL BE DECREASED BY TEN PER CENTUM
OF THE "EXEMPTION BASE" EACH YEAR DURING SUCH ADDITIONAL FOUR-YEAR PERI-
OD, SUCH THAT DURING YEAR TWO THERE SHALL BE AN EXEMPTION OF  FORTY  PER
CENTUM  OF  THE  INCREASE IN ASSESSED VALUE THEREOF ATTRIBUTABLE, DURING
YEAR  THREE  THERE  SHALL  BE  AN  EXEMPTION OF THIRTY PER CENTUM OF THE
INCREASE IN ASSESSED VALUE THEREOF  ATTRIBUTABLE,  IN  YEAR  FOUR  THERE
SHALL  BE  AN EXEMPTION OF TWENTY PER CENTUM OF THE INCREASE IN ASSESSED
VALUE THEREOF ATTRIBUTABLE AND IN YEAR FIVE THERE SHALL BE AN  EXEMPTION
OF  TEN  PER  CENTUM OF THE INCREASE IN ASSESSED VALUE THEREOF ATTRIBUT-
ABLE;
  (II) THE "EXEMPTION BASE" SHALL BE THE INCREASE IN ASSESSED VALUE  DUE
TO NEW CONSTRUCTION OR IMPROVEMENTS AS DETERMINED BY THE ASSESSOR IN THE
INITIAL  YEAR  OF  SUCH  FIVE-YEAR  PERIOD  FOLLOWING  THE  FILING OF AN
ORIGINAL APPLICATION;
  (III) A QUALIFIED IMPROVEMENT SHALL HAVE INCREASED THE ASSESSED  VALUE
OF  THE  REAL  PROPERTY BY AT LEAST TEN THOUSAND DOLLARS, WITH A MAXIMUM
PERMITTED EXEMPTION NOT TO EXCEED ONE HUNDRED  FIFTY  THOUSAND  DOLLARS;
AND
  (IV)  AN  EXEMPTION  FOR  NEW CONSTRUCTION SHALL APPLY TO THE ASSESSED
VALUE OF THE REAL PROPERTY IN EXCESS OF ONE  HUNDRED  THOUSAND  DOLLARS,
WITH A MAXIMUM PERMITTED EXEMPTION NOT TO EXCEED ONE HUNDRED FIFTY THOU-
SAND DOLLARS.
  3. FOR PURPOSES OF THIS SECTION, "CONSTRUCTION" OR "IMPROVEMENT" SHALL
NOT INCLUDE ORDINARY MAINTENANCE AND REPAIRS.
  4.  EXEMPTIONS  GRANTED  PURSUANT  TO THIS SECTION SHALL APPLY TO REAL
PROPERTY TAXES IMPOSED FOR TOWN, VILLAGE AND SCHOOL DISTRICT PURPOSES.
  5. ANY OWNER OF A ONE TO THREE FAMILY RESIDENCE WITHIN A TOWN  WITH  A
POPULATION  OF NOT LESS THAN SEVENTEEN THOUSAND FIVE HUNDRED NINETY-FOUR
AND NOT MORE THAN SEVENTEEN THOUSAND SIX HUNDRED FOURTEEN, SITUATED IN A
COUNTY WITH A POPULATION OF NOT LESS THAN NINE HUNDRED FORTY-NINE  THOU-
SAND  TWO  HUNDRED  SIXTY-FIVE  AND NOT MORE THAN NINE HUNDRED FIFTY-ONE
THOUSAND TWO HUNDRED SIXTY-FIVE, BASED UPON  THE  TWO  THOUSAND  FEDERAL
CENSUS  SHALL QUALIFY FOR AN EXEMPTION PURSUANT TO THIS SECTION, INCLUD-
ING OWNERS WHO DO NOT OCCUPY SUCH RESIDENCES, INDIVIDUALS,  PARTNERSHIPS
AND  LIMITED LIABILITY CORPORATIONS. EXEMPTIONS GRANTED PURSUANT TO THIS
SECTION ARE NOT TRANSFERABLE FROM OWNER TO ANOTHER IF THE REAL  PROPERTY
IS SOLD OR TRANSFERRED DURING THE EXEMPTION PERIOD.
  6. NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
  (A)  SUCH  NEW CONSTRUCTION OR IMPROVEMENT WAS COMMENCED SUBSEQUENT TO
THE EFFECTIVE DATE OF THE LOCAL LAW OR RESOLUTION ADOPTED BY  SUCH  TOWN
WITH A POPULATION OF NOT LESS THAN SEVENTEEN THOUSAND FIVE HUNDRED NINE-
TY-FOUR AND NOT MORE THAN SEVENTEEN THOUSAND SIX HUNDRED FOURTEEN, SITU-
ATED  IN A COUNTY WITH A POPULATION OF NOT LESS THAN NINE HUNDRED FORTY-
NINE THOUSAND TWO HUNDRED SIXTY-FIVE AND  NOT  MORE  THAN  NINE  HUNDRED
FIFTY-ONE  THOUSAND  TWO HUNDRED SIXTY-FIVE, BASED UPON THE TWO THOUSAND
FEDERAL CENSUS PURSUANT TO SUBDIVISION ONE OF THIS SECTION;
  (B) THE OWNER OF REAL PROPERTY APPLYING FOR SUCH EXEMPTION HAS  SATIS-
FIED ALL OUTSTANDING TOWN, COUNTY AND SCHOOL TAX OBLIGATIONS; AND
  (C)  SUCH  NEW CONSTRUCTION OR IMPROVEMENT IS DOCUMENTED BY A BUILDING
PERMIT, IF REQUIRED, FOR THE IMPROVEMENTS OR OTHER APPROPRIATE  DOCUMEN-
TATION AS REQUIRED BY THE TOWN ASSESSOR AND/OR CODE ENFORCEMENT OFFICER.
  7.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH REAL PROPERTY ON A FORM PRESCRIBED  BY  THE  COMMISSIONER.  SUCH
APPLICATION  SHALL BE FILED WITH THE ASSESSOR ON OR BEFORE THE APPROPRI-
ATE TAXABLE STATUS DATE OF SUCH TOWN AND WITHIN ONE YEAR AFTER THE  DATE
OF COMPLETION OF SUCH CONSTRUCTION OR IMPROVEMENT.

S. 5557--A                          3

  8.  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 BY THE TOWN 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  ASSESSOR  SHALL
ENTER  THE  ASSESSED  VALUE  OF  ANY  EXEMPTION GRANTED PURSUANT TO THIS
SECTION ON THE ASSESSMENT ROLL FOR THE TAXABLE PROPERTY, WITH THE AMOUNT
OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
  9. 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.
  10. SUCH TOWN SHALL BE PERMITTED BY LOCAL LAW TO REDUCE THE PERCENTAGE
OF EXEMPTION OTHERWISE ALLOWABLE BY SUBDIVISION TWO OF THIS  SECTION  OR
INCREASE  THE  REQUIRED  MINIMUM ASSESSED VALUES SET FORTH IN PARAGRAPHS
(III) AND (IV) OF SUBDIVISION TWO  OF  THIS  SECTION,  PROVIDED  THAT  A
PROJECT  IN  THE  COURSE  OF  CONSTRUCTION  OR  IMPROVEMENT SHALL NOT BE
SUBJECT TO SUCH AMENDMENTS.
  S 2. This act shall take effect immediately.

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

                                 5557--B
    Cal. No. 168

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 1, 2011
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government -- recom-
  mitted to the Committee on Local Government in accordance with  Senate
  Rule  6,  sec. 8 -- reported favorably from said committee, ordered to
  first and second report, ordered  to  a  third  reading,  amended  and
  ordered  reprinted,  retaining its place in the order of third reading
  --  passed by Senate and delivered to  the  Assembly,  recalled,  vote
  reconsidered,   restored   to   third  reading,  amended  and  ordered
  reprinted, retaining its place in the order of third reading

AN ACT to amend the real property tax law, in relation to a partial  tax
  exemption for reconstruction, alterations or improvements to qualified
  residential structures in certain municipalities

  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 RESIDENTIAL BUILDINGS IN
CERTAIN TOWNS. 1. RESIDENTIAL BUILDINGS DESIGNED AND OCCUPIED EXCLUSIVE-
LY  FOR  RESIDENTIAL  PURPOSES  BY NOT MORE THAN THREE FAMILIES THAT ARE
RECONSTRUCTED, ALTERED OR IMPROVED SUBSEQUENT TO THE EFFECTIVE DATE OF A
LOCAL LAW OR RESOLUTION PURSUANT TO THIS SECTION SHALL  BE  EXEMPT  FROM
TAXATION AND SPECIAL AD VALOREM LEVIES TO THE EXTENT PROVIDED HEREINAFT-
ER.   AFTER A PUBLIC HEARING, THE GOVERNING BOARD OF A TOWN WITH A POPU-
LATION OF NOT LESS THAN SIXTEEN THOUSAND THREE  HUNDRED  FIFTY  AND  NOT
MORE  THAN  SIXTEEN  THOUSAND  THREE HUNDRED SIXTY, SITUATED IN A COUNTY
WITH A POPULATION OF NOT LESS THAN NINE HUNDRED  NINETEEN  THOUSAND  AND
NOT MORE THAN NINE HUNDRED NINETEEN THOUSAND ONE HUNDRED, BASED UPON THE
TWO  THOUSAND  TEN  FEDERAL  CENSUS,  MAY ADOPT A LOCAL LAW TO GRANT THE
EXEMPTION  AUTHORIZED  PURSUANT  TO  THIS  SECTION.  SUBSEQUENT  TO  THE
ADOPTION  OF SUCH A LOCAL LAW, THE COUNTY IN WHICH SUCH TOWN IS LOCATED,
ANY VILLAGE LOCATED WITHIN SUCH TOWN AND ANY SCHOOL DISTRICT ALL OR PART

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

                                                           LBD11781-06-2

S. 5557--B                          2

OF WHICH IS LOCATED WITHIN SUCH TOWN MAY LIKEWISE EXEMPT  SUCH  PROPERTY
FROM  ITS TAXATION AND SPECIAL AD VALOREM LEVIES BY LOCAL LAW, OR IN THE
CASE OF A SCHOOL DISTRICT, BY RESOLUTION IN THE SAME MANNER AND  TO  THE
SAME EXTENT AS THE TOWN.  A COPY OF SUCH LOCAL LAWS OR RESOLUTIONS SHALL
BE FILED WITH THE COMMISSIONER AND APPROPRIATE ASSESSOR.
  2.  SUCH RESIDENTIAL 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 RECONSTRUCTION, ALTERATION  OR  IMPROVEMENT
AND FOR AN ADDITIONAL PERIOD OF FOUR YEARS SUBJECT TO THE FOLLOWING:
  (I)  THE EXTENT OF SUCH EXEMPTION SHALL BE DECREASED BY TEN PER CENTUM
OF THE "EXEMPTION BASE" EACH YEAR DURING SUCH ADDITIONAL FOUR-YEAR PERI-
OD, SUCH THAT DURING YEAR TWO THERE SHALL BE AN EXEMPTION OF  FORTY  PER
CENTUM  OF  THE  INCREASE IN ASSESSED VALUE THEREOF ATTRIBUTABLE, DURING
YEAR THREE THERE SHALL BE AN EXEMPTION  OF  THIRTY  PER  CENTUM  OF  THE
INCREASE  IN  ASSESSED  VALUE  THEREOF  ATTRIBUTABLE, IN YEAR FOUR THERE
SHALL BE AN EXEMPTION OF TWENTY PER CENTUM OF THE INCREASE  IN  ASSESSED
VALUE  THEREOF ATTRIBUTABLE AND IN YEAR FIVE THERE SHALL BE AN EXEMPTION
OF TEN PER CENTUM OF THE INCREASE IN ASSESSED  VALUE  THEREOF  ATTRIBUT-
ABLE;
  (II)  THE "EXEMPTION BASE" SHALL BE THE INCREASE IN ASSESSED VALUE DUE
TO RECONSTRUCTION, ALTERATIONS OR  IMPROVEMENTS  AS  DETERMINED  BY  THE
ASSESSOR  IN  THE  INITIAL  YEAR  OF SUCH FIVE-YEAR PERIOD FOLLOWING THE
FILING OF AN ORIGINAL APPLICATION; AND
  (III) A QUALIFIED RECONSTRUCTION, ALTERATION OR IMPROVEMENT SHALL HAVE
INCREASED THE ASSESSED VALUE OF THE REAL PROPERTY BY AT LEAST TEN  THOU-
SAND  DOLLARS,  WITH  A  MAXIMUM  PERMITTED  EXEMPTION NOT TO EXCEED ONE
HUNDRED FIFTY THOUSAND DOLLARS.
  3. FOR PURPOSES OF THIS  SECTION,  "RECONSTRUCTION",  "ALTERATION"  OR
"IMPROVEMENT" SHALL NOT INCLUDE ORDINARY MAINTENANCE AND REPAIRS.
  4.  ANY  OWNER  OF  A ONE TO THREE FAMILY RESIDENCE MAY QUALIFY FOR AN
EXEMPTION PURSUANT TO THIS SECTION, INCLUDING OWNERS WHO DO  NOT  OCCUPY
SUCH  RESIDENCES, INDIVIDUALS, PARTNERSHIPS AND LIMITED LIABILITY CORPO-
RATIONS. EXEMPTIONS GRANTED PURSUANT TO THIS SECTION ARE NOT  TRANSFERA-
BLE  FROM  OWNER  TO ANOTHER IF THE REAL PROPERTY IS SOLD OR TRANSFERRED
DURING THE EXEMPTION PERIOD.
  5. NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
  (A) SUCH  RECONSTRUCTION,  ALTERATION  OR  IMPROVEMENT  WAS  COMMENCED
SUBSEQUENT  TO THE EFFECTIVE DATE OF THE LOCAL LAW OR RESOLUTION ADOPTED
BY A TOWN, COUNTY, VILLAGE OR SCHOOL DISTRICT  PURSUANT  TO  SUBDIVISION
ONE OF THIS SECTION;
  (B)  THE OWNER OF REAL PROPERTY APPLYING FOR SUCH EXEMPTION HAS SATIS-
FIED ALL OUTSTANDING TOWN, COUNTY, VILLAGE AND SCHOOL  TAX  OBLIGATIONS;
AND
  (C)  SUCH RECONSTRUCTION, ALTERATION OR IMPROVEMENT IS DOCUMENTED BY A
BUILDING PERMIT, IF REQUIRED, FOR THE IMPROVEMENTS OR OTHER  APPROPRIATE
DOCUMENTATION  AS REQUIRED BY THE ASSESSOR AND/OR CODE ENFORCEMENT OFFI-
CER.
  6. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
OF  SUCH  REAL  PROPERTY  ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH
APPLICATION SHALL BE FILED WITH THE ASSESSOR ON OR BEFORE THE  APPROPRI-
ATE TAXABLE STATUS DATE AND WITHIN ONE YEAR AFTER THE DATE OF COMPLETION
OF SUCH RECONSTRUCTION, ALTERATION OR IMPROVEMENT.
  7.  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

S. 5557--B                          3

PREPARED ON THE BASIS OF THE TAXABLE STATUS DATE REFERRED TO IN SUBDIVI-
SION SIX OF THIS SECTION. THE ASSESSOR SHALL ENTER THE ASSESSED VALUE OF
ANY  EXEMPTION  GRANTED  PURSUANT TO THIS SECTION ON THE ASSESSMENT ROLL
FOR  THE  TAXABLE  PROPERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A
SEPARATE COLUMN.
  8. 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.
  9. SUCH TOWN, COUNTY, VILLAGE OR SCHOOL DISTRICT SHALL BE PERMITTED BY
LOCAL LAW TO REDUCE THE PERCENTAGE OF EXEMPTION OTHERWISE  ALLOWABLE  BY
SUBDIVISION  TWO  OF  THIS  SECTION  OR  INCREASE  THE  REQUIRED MINIMUM
ASSESSED VALUES SET FORTH IN PARAGRAPH (III) OF SUBDIVISION TWO OF  THIS
SECTION, PROVIDED THAT A PROJECT IN THE COURSE OF RECONSTRUCTION, ALTER-
ATION OR IMPROVEMENT SHALL NOT BE SUBJECT TO SUCH AMENDMENTS.
  S 2. This act shall take effect immediately.