S T A T E O F N E W Y O R K
________________________________________________________________________
7520--A
2021-2022 Regular Sessions
I N A S S E M B L Y
May 13, 2021
___________
Introduced by M. of A. McDONALD -- read once and referred to the Commit-
tee on Real Property Taxation -- 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 a residential
and mixed-use investment exemption program in certain cities and
school districts
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 485-v to read as follows:
§ 485-V. RESIDENTIAL AND MIXED-USE INVESTMENT EXEMPTION; CERTAIN
CITIES AND SCHOOL DISTRICTS. 1. AS USED IN THIS SECTION: (A) "RESIDEN-
TIAL AND MIXED-USE REAL PROPERTY" MEANS ANY STRUCTURE CONTAINING ONE TO
FOUR UNITS OF WHICH ONE UNIT MAY BE FOR COMMERCIAL OR RETAIL USE, AND
THE REMAINING UNITS SHALL BE FOR RESIDENTIAL USE; AND
(B) "CONSTRUCTION" MEANS THE CREATION, MODERNIZATION, REHABILITATION,
EXPANSION OR OTHER IMPROVEMENT OF ANY STRUCTURE BUT SHALL NOT INCLUDE
ORDINARY MAINTENANCE OR REPAIRS.
2. RESIDENTIAL AND MIXED-USE REAL PROPERTY CONSTRUCTED ON OR AFTER THE
FIRST DAY OF JULY, TWO THOUSAND TWENTY-ONE LOCATED IN A CITY WITH A
POPULATION OF NOT LESS THAN FIFTY THOUSAND AND NOT MORE THAN FIFTY-ONE
THOUSAND, BASED UPON THE TWO THOUSAND TEN FEDERAL CENSUS, SHALL BE
EXEMPT FROM CITY, COUNTY AND SCHOOL TAXATION AS PROVIDED IN THIS
SECTION.
3. (A) (I) SUCH REAL PROPERTY SHALL BE EXEMPT FOR A PERIOD OF FOUR
YEARS TO THE EXTENT OF ONE HUNDRED PER CENTUM OF THE INCREASE IN
ASSESSED VALUE THEREOF ATTRIBUTABLE TO SUCH CONSTRUCTION AND FOR AN
ADDITIONAL PERIOD OF ELEVEN YEARS PROVIDED, HOWEVER, THAT THE EXTENT OF
SUCH EXEMPTION SHALL BE DECREASED BY TWENTY-FIVE PER CENTUM IN YEAR
FIVE, TEN PER CENTUM IN EACH YEAR SIX THROUGH YEAR NINE, AND FIVE PER
CENTUM EACH YEAR DURING SUCH ADDITIONAL PERIOD OF SIX YEARS AND SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11167-03-1
A. 7520--A 2
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 FIFTEEN-YEAR PERIOD FOLLOWING THE FILING OF AN
ORIGINAL APPLICATION, 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, EXCLUDING ANY ADDITIONAL VALUE
DERIVED FROM ANY PHYSICAL 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 ASSESSMENT 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 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 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
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) THE FOLLOWING TABLE SHALL ILLUSTRATE THE COMPUTATION OF THE
CITY, COUNTY AND SCHOOL DISTRICT TAX EXEMPTION:
YEAR OF EXEMPTION PERCENTAGE OF EXEMPTION
1 100%
2 100%
3 100%
4 100%
5 75%
6 65%
7 55%
8 45%
9 35%
10 30%
11 25%
12 20%
13 15%
14 10%
15 5%
(B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
(I) SUCH CONSTRUCTION WAS COMMENCED ON OR AFTER THE FIRST DAY OF JULY,
TWO THOUSAND TWENTY-ONE OR SUCH LATER DATE AS MAY BE SPECIFIED BY RESOL-
UTION;
(II) THE RESIDENTIAL AND MIXED-USE REAL PROPERTY IS SITUATED IN A CITY
WITH A POPULATION OF NOT LESS THAN FIFTY THOUSAND AND NOT MORE THAN
FIFTY-ONE THOUSAND, BASED UPON THE TWO THOUSAND TEN FEDERAL CENSUS;
(III) THE COST OF SUCH CONSTRUCTION EXCEEDS THE SUM OF SEVENTY THOU-
SAND DOLLARS;
A. 7520--A 3
(IV) THE PROPERTY IS LOCATED WITHIN THE ELIGIBILITY AREA, AS DESIG-
NATED BY BEING LOCATED WITHIN THE FOLLOWING U.S. CENSUS TRACTS:
(A) TRACT 401;
(B) TRACT 402;
(C) TRACT 403;
(D) TRACT 404;
(E) TRACT 405;
(F) TRACT 406;
(G) TRACT 409;
(H) TRACT 410; AND
(V) SUCH CONSTRUCTION IS COMPLETED AS EVIDENCED BY A CERTIFICATE OF
OCCUPANCY OR OTHER APPROPRIATE DOCUMENTATION AS PROVIDED BY THE OWNER.
4. 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 FIFTY THOUSAND AND NOT MORE THAN FIFTY-ONE THOUSAND,
BASED UPON THE TWO THOUSAND TEN FEDERAL CENSUS, ON OR BEFORE THE APPRO-
PRIATE TAXABLE STATUS DATE OF SUCH CITY AND WITHIN ONE YEAR FROM THE
DATE OF COMPLETION OF SUCH CONSTRUCTION.
5. 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 BY
THE CITY, AND TAXATION BY THE COUNTY IN WHICH SUCH CITY IS LOCATED IF
SUCH COUNTY PASSES A LOCAL LAW TO PROVIDE FOR SUCH EXEMPTION, AND TAXA-
TION BY ANY SCHOOL DISTRICT WHICH SERVES SUCH CITY IF SUCH SCHOOL
DISTRICT PASSES A RESOLUTION TO PROVIDE FOR SUCH EXEMPTION. THE
ASSESSED VALUE OF ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL
BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL WITH THE TAXABLE PROP-
ERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
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 TO BE APPLIED TO
THE PROPERTY COMMENCING WITH THE IMMEDIATELY FOLLOWING ASSESSMENT ROLL.
7. IN THE EVENT THAT THE REAL PROPERTY IS SOLD OR THE DEED IS TRANS-
FERRED TO A NEW OWNER OR OWNERSHIP ENTITY DIFFERING IN OWNERSHIP OR
MEMBERS, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE TO
BE APPLIED TO THE PROPERTY COMMENCING ON THE IMMEDIATELY FOLLOWING
ASSESSMENT ROLL.
8. THE EXEMPTION ESTABLISHED PURSUANT TO THIS SECTION SHALL NOT APPLY
TO SPECIAL ASSESSMENTS OR SPECIAL AD VALOREM LEVIES ON THE PROPERTY.
§ 2. This act shall take effect immediately and shall apply to assess-
ment rolls prepared on the basis of taxable status dates occurring on or
after January 1, 2022.