S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4855
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 16, 2021
                                ___________
 
 Introduced  by  Sen. REICHLIN-MELNICK -- read twice and ordered printed,
   and when printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in relation to a  residential
   revaluation exemption
 
   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  REVALUATION EXEMPTION. 1. APPLICABILITY.   THE
 GOVERNING BODY OF AN ASSESSING UNIT MAY, AFTER A PUBLIC  HEARING,  ADOPT
 THE  PROVISIONS OF THIS SECTION BY LOCAL LAW IN THE FIRST YEAR OF A FULL
 VALUE REVALUATION TO PROVIDE A RESIDENTIAL REVALUATION EXEMPTION. IF THE
 GOVERNING BODY OF AN ASSESSING UNIT PASSES A LOCAL LAW PURSUANT TO  THIS
 SUBDIVISION,  SUCH  EXEMPTION SHALL ALSO APPLY IN THE SAME MANNER AND TO
 THE SAME EXTENT TO EACH VILLAGE,  COUNTY,  SPECIAL  DISTRICT  OR  SCHOOL
 DISTRICT  THAT  LEVIES  TAXES  ON  THE  ASSESSMENT ROLL PREPARED BY SUCH
 ASSESSING UNIT. A VILLAGE ASSESSING UNIT, WITHIN AN ASSESSING UNIT  THAT
 HAS  CONDUCTED  A  REVALUATION  AND THAT CHOOSES TO ADOPT THAT ASSESSING
 UNIT'S LATEST FINAL ASSESSMENT ROLL IS PERMITTED TO ADOPT THE PROVISIONS
 OF THIS SECTION WITHIN TWO YEARS OF ITS IMPLEMENTATION.
   2. ELIGIBILITY. (A) THE ASSESSORS IN EACH  ASSESSING  UNIT  THAT  HAVE
 ADOPTED THE PROVISIONS OF THIS SECTION SHALL, IN THE FIRST YEAR IN WHICH
 REVALUATION ASSESSMENTS ARE TO BE ENTERED ON THE ASSESSMENT ROLL AND FOR
 THE NEXT SUCCEEDING YEAR, APPLY TO EACH ELIGIBLE RESIDENTIAL PROPERTY AN
 EXEMPTION  AS  PROVIDED  IN  SUBDIVISION  THREE OF THIS SECTION. FOR THE
 PURPOSE OF THIS SECTION, TO BE AN "ELIGIBLE  RESIDENTIAL  PROPERTY"  THE
 FOLLOWING CRITERIA MUST BE MET:
   (I)  THE PROPERTY MUST BE A RESIDENTIAL PROPERTY, PROVIDED THAT DWELL-
 ING UNITS HELD IN CONDOMINIUM FORM OF OWNERSHIP SHALL ONLY  BE  ELIGIBLE
 IF LOCATED IN AN APPROVED ASSESSING UNIT AND CLASSIFIED IN THE HOMESTEAD
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05412-01-1
              

 S. 4855                             2
 
 CLASS  OR  LOCATED  IN  A SPECIAL ASSESSING UNIT AND CLASSIFIED IN CLASS
 ONE;
   (II)  THE  PROPERTY  MUST  BE  ELIGIBLE  TO RECEIVE THE STAR EXEMPTION
 AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE  OF  THIS  TITLE  OR  THE
 OWNER  OR  OWNERS  MUST  BE  ELIGIBLE TO RECEIVE THE PERSONAL INCOME TAX
 SCHOOL TAX RELIEF  (STAR)  CREDIT  AUTHORIZED  BY  SUBSECTION  (EEE)  OF
 SECTION SIX HUNDRED SIX OF THE TAX LAW, FOR SUCH PROPERTY;
   (III)  IN  ANY GIVEN YEAR, THE OWNER OR OWNERS RECEIVING THE EXEMPTION
 PURSUANT TO THIS SECTION MUST BE THE SAME AS THE OWNER  OR  OWNERS  THAT
 APPEARED  ON  THE  ASSESSMENT  ROLL UPON WHICH THE REVALUATION IS IMPLE-
 MENTED; AND
   (IV) THE PROPERTY MUST NOT HAVE ANY DELINQUENT TAXES AS OF THE TAXABLE
 STATUS DATE FOR THE ROLL ON WHICH AN EXEMPTION IS APPLIED.
   (B) IN ADDITION TO THE CRITERIA PROVIDED  IN  PARAGRAPH  (A)  OF  THIS
 SUBDIVISION,  AN  ASSESSING  UNIT  MAY  FURTHER LIMIT THE ELIGIBILITY TO
 ELIGIBLE RESIDENTIAL PROPERTY WHOSE FULL VALUE INCREASE EXCEEDED  A  SET
 PERCENTAGE  THRESHOLD  AS  SPECIFIED  IN  THEIR  LOCAL  LAW ADOPTING THE
 PROVISIONS OF THIS SECTION.
   3. EXEMPTION CALCULATION. (A)(I) THE EXEMPTION SHALL BE COMPUTED  WITH
 RESPECT  TO  A  PERCENTAGE  OF  THE "EXEMPTION BASE." THE EXEMPTION BASE
 SHALL BE THE AMOUNT BY WHICH THE ASSESSED VALUE OF  A  PROPERTY  ON  THE
 ASSESSMENT  ROLL  UPON  WHICH THE REVALUATION IS IMPLEMENTED EXCEEDS THE
 PRIOR YEAR'S EQUALIZED ASSESSED VALUE,  AS  DETERMINED  IN  THE  INITIAL
 YEAR.  THE  PRIOR YEAR'S EQUALIZED ASSESSED VALUE SHALL BE DETERMINED BY
 APPLYING THE APPLICABLE CHANGE IN LEVEL  OF  ASSESSMENT  FACTOR  TO  THE
 PRIOR  YEAR'S  ASSESSED  VALUE.  SUCH  EXEMPTION  BASE SHALL NOT INCLUDE
 INCREASES DUE TO A PHYSICAL IMPROVEMENT OR A REMOVAL OR REDUCTION OF  AN
 EXEMPTION ON PROPERTY.
   (II)  ANY  INCREASE  IN  THE  ASSESSMENT OF A PROPERTY DUE TO PHYSICAL
 CHANGES IN THE YEAR FOLLOWING  THE  IMPLEMENTATION  ROLL  SHALL  NOT  BE
 ELIGIBLE FOR THE EXEMPTION. IN THE EVENT THAT ANY PORTION OF A PARCEL IS
 FULLY  OR  PARTIALLY REMOVED FROM THE ROLL DURING THE YEAR FOLLOWING THE
 IMPLEMENTATION ROLL BY REASON OF FIRE, DEMOLITION,  DESTRUCTION  OR  NEW
 EXEMPTION,  THE  ASSESSOR  SHALL  REDUCE THE EXEMPTION FOR ANY REMAINING
 PORTION IN THE SAME PROPORTION ASSESSMENT  IS  REDUCED  FOR  SUCH  FIRE,
 DEMOLITION,  DESTRUCTION  OR  NEW EXEMPTION. IF A PROPERTY'S REVALUATION
 ASSESSMENT IS REDUCED PURSUANT TO TITLE ONE-A OF ARTICLE FIVE, OR  TITLE
 ONE  OR  ONE-A  OF ARTICLE SEVEN OF THIS CHAPTER, THE EXEMPTION SHALL BE
 RECOMPUTED ACCORDINGLY.
   (B)(I) THE EXEMPTION SHALL BE TO THE EXTENT OF SIXTY-SIX PER CENTUM OF
 THE EXEMPTION BASE IN YEAR  ONE  AND  THIRTY-THREE  PER  CENTUM  OF  THE
 EXEMPTION BASE IN YEAR TWO.
   (II)  THE  FOLLOWING  TABLE  SHALL  ILLUSTRATE  THE COMPUTATION OF THE
 EXEMPTION:
           YEAR OF EXEMPTION        PERCENTAGE OF EXEMPTION
           1                        66% OF EXEMPTION BASE
           2                        33% OF EXEMPTION BASE
   4. GRANTING OF EXEMPTION. (A) SUCH EXEMPTION  SHALL  BE  GRANTED  ONLY
 UPON  APPLICATION BY THE OWNER OR OWNERS OF SUCH REAL PROPERTY ON A FORM
 PRESCRIBED BY THE COMMISSIONER. SUCH APPLICATION SHALL BE FILED WITH THE
 ASSESSOR ON OR BEFORE  THE  APPROPRIATE  TAXABLE  STATUS  DATE  FOR  THE
 ASSESSMENT ROLL UPON WHICH THE REVALUATION IS IMPLEMENTED.
   (B)  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 THE TAXABLE ASSESSED VALUE SHALL BE REDUCED BY  THE  EXEMPTION,
 AS IN THIS SECTION PROVIDED COMMENCING WITH THE ASSESSMENT ROLL PREPARED

 S. 4855                             3
 
 AFTER  THE  TAXABLE  STATUS  DATE.  THE  ASSESSED VALUE OF ANY EXEMPTION
 GRANTED PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE ASSESSOR ON THE
 ASSESSMENT ROLL WITH THE AMOUNT OF THE EXEMPTION  SHOWN  IN  A  SEPARATE
 COLUMN.
   (C)  IN  THE  EVENT THAT THE RESIDENTIAL PROPERTY GRANTED AN EXEMPTION
 PURSUANT TO THIS SECTION TRANSFERS OWNERSHIP OR OTHERWISE CEASES TO MEET
 THE ELIGIBILITY REQUIREMENTS OF THE EXEMPTION IN SUBDIVISION TWO OF THIS
 SECTION, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE DISCON-
 TINUED. 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.
   § 2. This act shall take effect immediately.