S T A T E   O F   N E W   Y O R K
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                                 8323--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            December 18, 2013
                               ___________

Introduced  by M. of A. MAGEE -- 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
  capital improvements to multiple dwellings within 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-n to read as follows:
  S 421-N. 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 MORE THAN THIRTEEN THOUSAND FIVE HUNDRED INHABIT-
ANTS  BUT LESS THAN FOURTEEN THOUSAND INHABITANTS, DETERMINED IN ACCORD-
ANCE 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  TAXATION
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 COMMISSIONER 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  ONE  HUNDRED  PERCENT OF THE INCREASE IN
ASSESSED  VALUE  ATTRIBUTABLE  TO  SUCH  RECONSTRUCTION,  ALTERATION  OR
IMPROVEMENT  AND  FOR AN ADDITIONAL PERIOD OF SEVEN YEARS SUBJECT TO THE
FOLLOWING:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11995-02-4
              

A. 8323--A                          2

  (I) THE EXTENT OF SUCH EXEMPTION SHALL  BE  DECREASED  BY  TWELVE  AND
ONE-HALF  PERCENT  OF  THE  "EXEMPTION BASE" EACH YEAR DURING SUCH ADDI-
TIONAL PERIOD. THE "EXEMPTION BASE" SHALL BE THE  INCREASE  IN  ASSESSED
VALUE  AS  DETERMINED  IN THE INITIAL YEAR OF THE TERM OF THE EXEMPTION,
EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH.
  (II)  IN  ANY YEAR IN WHICH A CHANGE IN LEVEL OF ASSESSMENT OF FIFTEEN
PERCENT OR MORE IS CERTIFIED FOR A FINAL ASSESSMENT ROLL PURSUANT TO THE
RULES OF THE COMMISSIONER, THE EXEMPTION BASE SHALL BE MULTIPLIED  BY  A
FRACTION,  THE  NUMERATOR  OF WHICH SHALL BE THE TOTAL ASSESSED VALUE OF
THE PARCEL ON SUCH FINAL ASSESSMENT ROLL (AFTER ACCOUNTING FOR ANY PHYS-
ICAL OR QUANTITY CHANGES TO THE PARCEL SINCE THE  IMMEDIATELY  PRECEDING
ASSESSMENT  ROLL),  AND  THE  DENOMINATOR  OF  WHICH  SHALL BE THE TOTAL
ASSESSED VALUE OF THE PARCEL ON THE IMMEDIATELY PRECEDING FINAL  ASSESS-
MENT  ROLL.  THE  RESULT  SHALL BE THE NEW EXEMPTION BASE. THE EXEMPTION
SHALL THEREUPON BE RECOMPUTED TO TAKE INTO  ACCOUNT  THE  NEW  EXEMPTION
BASE,  NOTWITHSTANDING THE FACT THAT THE ASSESSOR RECEIVES CERTIFICATION
OF THE CHANGE IN LEVEL OF ASSESSMENT AFTER THE COMPLETION,  VERIFICATION
AND  FILING OF THE FINAL ASSESSMENT ROLL. IN THE EVENT THE ASSESSOR DOES
NOT HAVE CUSTODY OF THE ROLL WHEN SUCH CERTIFICATION  IS  RECEIVED,  THE
ASSESSOR  SHALL  CERTIFY  THE RECOMPUTED EXEMPTION TO THE LOCAL OFFICERS
HAVING CUSTODY AND CONTROL OF THE ROLL,  AND  SUCH  LOCAL  OFFICERS  ARE
HEREBY  DIRECTED AND AUTHORIZED TO ENTER THE RECOMPUTED EXEMPTION CERTI-
FIED BY THE ASSESSOR ON THE ROLL. THE ASSESSOR SHALL GIVE WRITTEN NOTICE
OF SUCH RECOMPUTED EXEMPTION TO THE PROPERTY OWNER, WHO MAY,  IF  HE  OR
SHE  BELIEVES THAT THE EXEMPTION WAS RECOMPUTED INCORRECTLY, APPLY FOR A
CORRECTION IN THE MANNER PROVIDED BY TITLE THREE OF ARTICLE FIVE OF THIS
CHAPTER FOR THE CORRECTION OF CLERICAL ERRORS.
  (III) SUCH EXEMPTION SHALL BE LIMITED TO ONE HUNDRED THOUSAND  DOLLARS
IN INCREASED MARKET VALUE, OR SUCH OTHER SUM LESS THAN ONE HUNDRED THOU-
SAND  DOLLARS, BUT NOT LESS THAN TEN THOUSAND DOLLARS AS MAY BE PROVIDED
BY THE LOCAL LAW OR RESOLUTION, OF THE  PROPERTY  ATTRIBUTABLE  TO  SUCH
RECONSTRUCTION,  ALTERATION  OR  IMPROVEMENT  AND ANY INCREASE IN MARKET
VALUE GREATER THAN SUCH AMOUNT SHALL NOT BE ELIGIBLE FOR  THE  EXEMPTION
PURSUANT  TO  THIS SECTION. FOR THE PURPOSES OF THIS SECTION, THE MARKET
VALUE OF THE RECONSTRUCTION, ALTERATION OR IMPROVEMENT SHALL BE EQUAL TO
THE INCREASED ASSESSED VALUE ATTRIBUTABLE TO SUCH RECONSTRUCTION, ALTER-
ATION OR IMPROVEMENT DIVIDED BY  THE  MOST  RECENTLY  ESTABLISHED  STATE
EQUALIZATION  RATE  FOR  SUCH CITY. WHERE THE STATE EQUALIZATION RATE OR
SPECIAL EQUALIZATION RATE EQUALS OR  EXCEEDS  NINETY-FIVE  PERCENT,  THE
INCREASE  IN  ASSESSED VALUE ATTRIBUTABLE TO SUCH RECONSTRUCTION, ALTER-
ATION OR IMPROVEMENT SHALL BE DEEMED TO EQUAL THE MARKET VALUE  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 COMMISSIONER. THE APPLICA-

A. 8323--A                          3

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;
  (III)  PROVIDE  THAT  THE  EXEMPTION SHALL BE APPLICABLE ONLY TO THOSE
IMPROVEMENTS WHICH WOULD OTHERWISE RESULT IN AN INCREASE IN THE ASSESSED
VALUATION OF THE REAL PROPERTY BUT WHICH CONSIST OF AN ADDITION,  REMOD-
ELING  OR MODERNIZATION TO AN EXISTING OWNER OCCUPIED MULTIPLE RESIDENCE
STRUCTURE TO PREVENT PHYSICAL  DETERIORATION  OF  THE  STRUCTURE  OR  TO
COMPLY WITH APPLICABLE BUILDING, SANITARY, HEALTH AND/OR FIRE CODES.
  (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 immediately.