S T A T E O F N E W Y O R K
________________________________________________________________________
2550
2015-2016 Regular Sessions
I N A S S E M B L Y
January 16, 2015
___________
Introduced by M. of A. MAGEE -- read once and referred to the Committee
on Real Property Taxation
AN ACT to amend the real property tax law, in relation to residential
investment exemptions in certain cities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 485-q of the real property tax law, as added by
chapter 405 of the laws of 2014, is amended to read as follows:
S 485-q. Residential investment exemption; certain cities. 1. Resi-
dential real property constructed on or after the first day of July, two
thousand fourteen in cities with a population of not less than thirteen
thousand five hundred and not more than fourteen thousand, DETERMINED IN
ACCORDANCE WITH THE LATEST DECENNIAL CENSUS, may be exempt from city
taxation and special ad valorem levies as provided in this section.
2. (a) (i) Such 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 and for an additional period
of nine years provided, however, that the extent of such exemption shall
be decreased by five per centum each year during such additional period
of nine years and such exemption shall be computed with respect to the
"exemption base". The exemption base shall be the increase in assessed
value as determined in the initial year of such ten year period follow-
ing the filing of an original application, except as provided in subpar-
agraph (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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07384-02-5
A. 2550 2
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 the certif-
ication 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 certified 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 incorrect-
ly, apply for a correction in the manner provided by title three of
article five of this chapter for the correction of clerical errors.
(iii) The following table shall illustrate the computation of the city
tax exemption:
Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5
(b) No such exemption shall be granted unless:
(i) such construction was commenced on or after the first day of Janu-
ary, two thousand fourteen or such later date as may be specified by
local law;
(ii) the residential real property is situate in a city with a popu-
lation of not less than thirteen thousand five hundred and not more than
fourteen thousand, DETERMINED IN ACCORDANCE WITH THE LATEST DECENNIAL
CENSUS;
(iii) the cost of such construction exceeds the sum of thirty thousand
dollars or such greater amount as may be specified by local law; and
(iv) such construction is completed as may be evidenced by a certif-
icate of occupancy or other appropriate documentation as provided by the
owner.
(c) For purposes of this section the term construction shall not
include ordinary maintenance and repairs.
3. 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 of a city with a population
of not less than thirteen thousand five hundred and not more than four-
teen thousand, DETERMINED IN ACCORDANCE WITH THE LATEST DECENNIAL
CENSUS, on or before the appropriate taxable status date of such city
and within one year from the date of completion of such construction.
4. If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the applica-
tion and such real property shall thereafter be exempt from taxation and
special ad valorem levies by a city with a population of not less than
A. 2550 3
thirteen thousand five hundred and not more than fourteen thousand,
DETERMINED IN ACCORDANCE WITH THE LATEST DECENNIAL CENSUS, as provided
in this section commencing with the assessment roll prepared after the
taxable status date referred to in subdivision three 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.
5. The provisions of this section shall apply to real property used as
the primary residence of the owner.
6. 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.
7. A city with a population of not less than thirteen thousand five
hundred and not more than fourteen thousand, DETERMINED IN ACCORDANCE
WITH THE LATEST DECENNIAL CENSUS, may, by local law, reduce the per
centum of exemption otherwise allowed pursuant to this section;
provided, however, that a project in course of construction and
exemptions existing prior in time to passage of any such local law shall
not be subject to any such reduction so effected. Such city upon
reduction of the per centum of exemption pursuant to this subdivision
may thereafter, by local law, increase the per centum of exemption up to
any per centum not exceeding the maximum allowed by subdivision two or
eleven of this section, whichever is applicable, provided, however, that
any such local law shall apply only to construction commenced subsequent
to the effective date of such local law. A copy of all such local laws
shall be filed with the commissioner and the assessor of the city.
8. A city with a population of not less than thirteen thousand five
hundred and not more than fourteen thousand, DETERMINED IN ACCORDANCE
WITH THE LATEST DECENNIAL CENSUS, may, by local law, establish a date
for the commencement of effectiveness of exemption offered pursuant to
this section and may provide that the provisions of this section shall
apply only to construction having a greater value than that specified by
subdivision two of this section, provided, however, that such amount
shall not exceed seventy thousand dollars.
9. (a) A city with a population of not less than thirteen thousand
five hundred and not more than fourteen thousand, DETERMINED IN ACCORD-
ANCE WITH THE LATEST DECENNIAL CENSUS, may, by local law, establish a
board to be known as the residential incentive board. The membership and
composition of such board shall be set forth in the local law.
(b) The residential incentive board shall present a plan to the legis-
lative body of a city with a population of not less than thirteen thou-
sand five hundred and not more than fourteen thousand, DETERMINED IN
ACCORDANCE WITH THE LATEST DECENNIAL CENSUS, concerning the various
types of residential real property which should be granted eligibility
for an exemption pursuant to subdivision one of this section. Such plan
shall make a recommendation as to whether the exemption be computed as
provided in subdivision two or eleven of this section. In addition, such
plan shall identify specific geographic areas within which such
exemptions should be offered. In developing the plan required by this
paragraph, the board shall consider the planning objectives of a city
with a population of not less than thirteen thousand five hundred and
not more than fourteen thousand, DETERMINED IN ACCORDANCE WITH THE
LATEST DECENNIAL CENSUS, the necessity of the exemption to the
attraction or retention of home owners and the economic benefit to the
area of providing exemptions to home owners.
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(c) In addition, the board may make recommendations to the legislative
body of a city with a population of not less than thirteen thousand five
hundred and not more than fourteen thousand, DETERMINED IN ACCORDANCE
WITH THE LATEST DECENNIAL CENSUS, with respect to actions it deems
desirable to improve the economic climate therein.
10. If a city with a population of not less than thirteen thousand
five hundred and not more than fourteen thousand, DETERMINED IN ACCORD-
ANCE WITH THE LATEST DECENNIAL CENSUS, establishes a residential incen-
tive board, pursuant to subdivision nine of this section, such city may,
by local law, restrict real property eligible to receive the exemption
to real property constructed for those purposes identified in the plan
presented by the board. Such local law shall restrict the availability
of such exemption to the specific geographic areas identified in the
plan presented by the board.
11. Notwithstanding subdivision two of this section, where a city with
a population of not less than thirteen thousand five hundred and not
more than fourteen thousand, DETERMINED IN ACCORDANCE WITH THE LATEST
DECENNIAL CENSUS, adopts restricted exemptions pursuant to subdivision
ten of this section, the local law may provide that such exemptions
shall be computed pursuant to the following accelerated strategic
exemption schedule:
Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5
Provided however, that such local law shall:
(i) contain findings that the adoption of this accelerated strategic
exemption schedule is necessary to encourage targeted residential devel-
opment, and that the value of the exemptions to be provided is justified
by the need to broaden the tax base; and
(ii) limit the applicability of such schedule to projects where the
cost of such construction exceeds the sum of seventy thousand dollars;
and
(iii) provide that such exemptions are restricted by geographic areas
as provided by subdivision ten of this section.
S 2. This act shall take effect immediately.