NY State Senate Bill 2021-S4265

Senate Bill S4265

2021-2022 Legislative Session

Relates to authorizing an exemption for class one capital improvements to residential buildings and certain new construction in a special assessing unit that is not a city

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to housing, construction and community development
Jun 10, 2021	committed to rules
Mar 17, 2021	amended on third reading 4265a
Mar 11, 2021	advanced to third reading
Mar 10, 2021	2nd report cal.
Mar 09, 2021	1st report cal.535
Feb 03, 2021	referred to housing, construction and community development

Votes

- Mar 9, 2021 - Housing, Construction And Community Development Committee Vote
  S4265
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Housing, Construction And Community Development Committee Vote: Mar 9, 2021
      
      aye (11)
      
      Boyle
      
      Brisport
      
      Helming
      
      Jackson
      
      Kavanagh
      
      Mannion
      
      Martucci
      
      Myrie
      
      Rivera
      
      Ryan
      
      Salazar

Bill Amendments

Original

A (Active)

2021-S4265 - Details

See Assembly Version of this Bill:: A2566
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Tax Law
Laws Affected:: Amd §421-f, RPT L
Versions Introduced in 2019-2020 Legislative Session:: S8436, A10649

2021-S4265 - Summary

Authorizes an exemption for class one capital improvements to residential buildings and certain new construction in a special assessing unit that is not a city.

2021-S4265 - Sponsor Memo

                                
 
BILL NUMBER: S4265

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to authorizing an
exemption for class one capital improvements to residential buildings
and certain new construction in a special assessing unit that is not a
city

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would amend the Real Property Tax Law ("RPTL") to provide
Nassau County class one homeowners an expanded exemption to transition
the increased value of capital improvements to residential buildings and
new construction up to $750,000 for assessment purposes.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends the heading of 421-f of the Real Property
Tax Law to "Exemption of capital improvements to residential buildings

and certain new construction."

Section two of the bill adds a new paragraph to 421-f of the Real Prop-
erty Tax Law expanding the exemption to new construction in Nassau for
class one properties. No application would be required to receive the
exemption.

Section three of the bill amends 421-f to include a new construction
exemption for Nassau class one homeowners. The exemption follows the
existing law's eight-year schedule, which provided for a 100% exemption
of the qualifying increased value in year one, followed by decreases of
12.5% per year cumulatively for seven years until all of the new value
is captured on the assessment roll. The amendment would also raise the
exemption limit in Nassau County for class one capital improvements and
physical improvements from $80,000 to $750,000 in increased market
value. Increases in market value for capital improvements and physical
improvements over $750,000 would not receive the benefit of the
exemption.

Section four of the bill amends other provisions of 421-f to conform to
the new exemption changes.

Section five of the bill provides that the changes would be effective
for Nassau County's 2020-2021 assessment roll and two subsequent rolls
and then sunsets, at which point the current law's provisions as applied
to Nassau county, would be restored, including the $80,000 market value
cap on the exemption and without application to new construction.

Section six is a severability clause.

Section seven is the effective date.

 
JUSTIFICATION:

Nassau County's nearly decade-long frozen roll that the prior County
administration instituted beginning in 2011 has greatly lessened the
affordability of new construction and capital inprovemnets in the Coun-

ty.  The cost of construction per square foor in Nassau is greater than
most, if not all, other suburban areas of the state.

Because the roll was frozen, the prior administration drastically cut
positions in the County Department of Assessment, which left the depart-
ment unable to add new construction timely to the roll. This left a
backlog that the current administration has been required to add to the
roll in the last year as part of its assessment reform program. These
delayed updates disproportionately impact many homeowners in the County
because of the effect on new construction of the five-year transitional
assessments that the County is applying to the 2020-2021 roll in
connection with its recent reassessment.

Transitioning the increase in a property's market value due to new
construction and physical improvements for the purposes of assessment
would address these inequities and strengthen the housing market in
Nassau. This would provide residents with protection from the immediate
impact of assessment increases similar to those provided under other
laws. Increasing and expanding the current exemption as provided in the
bill will make it more appropriate and meaningful in Nassau due to its
higher costs of construction.

The County has made great progress in promoting economic development to
ensure that businesses remain in, or relocate to the County, while at
the same time preserving the County's suburban identity. This legis-
lation will build on that success by preserving and generating jobs in
the construction industry during the recovery from the severe economic
impact of the coronavirus crisis.

 
PRIOR LEGISLATIVE HISTORY:

2020: S.8436 (Thomas) - Referred to Housing, Construction and Community
Development Committee/A.10649 Rules (Lavine) - Referred to Real Property
Taxation Committee.

 
FISCAL IMPLICATIONS:

None noted to the State.

 
EFFECTIVE DATE:
This act shall take effective immediately.

2021-S4265 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4265
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN ACT to amend the real property tax law, in relation to authorizing an
   exemption  for class one capital improvements to residential buildings
   and certain new construction in a special assessing unit that is not a
   city
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The section heading of section 421-f of the real property
 tax law, as amended by chapter 590 of the laws of 1994,  is  amended  to
 read as follows:
   Exemption of capital improvements to residential buildings AND CERTAIN
 NEW CONSTRUCTION.
   § 2. Section 421-f of the real property tax law is amended by adding a
 new subdivision 1-a to read as follows:
   1-A.  BUILDINGS  CLASSIFIED  AS CLASS ONE PROPERTY IN SECTION EIGHTEEN
 HUNDRED TWO OF THIS CHAPTER RECONSTRUCTED, ALTERED, IMPROVED,  OR  NEWLY
 CONSTRUCTED  IN  A  SPECIAL  ASSESSING  UNIT THAT IS NOT A CITY SHALL BE
 EXEMPT FROM TAXATION  AND  SPECIAL  AD  VALOREM  LEVIES  TO  THE  EXTENT
 PROVIDED  HEREINAFTER IN THE SAME MANNER AND TO THE SAME EXTENT TO COUN-
 TY, TOWN, SPECIAL DISTRICT AND  SCHOOL  DISTRICT  TAXES  LEVIED  ON  THE
 ASSESSMENT  ROLL  PREPARED  BY  SUCH  SPECIAL ASSESSING UNIT. ADDITIONAL
 BUILDINGS AND YARD IMPROVEMENTS SHALL BE EXCLUDED  FROM  RECEIVING  THIS
 EXEMPTION.    AN  APPLICATION  SHALL  NOT  BE  REQUIRED  TO  RECEIVE THE
 EXEMPTION.
   § 3. Subdivisions 2 and 3 of section 421-f of the  real  property  tax
 law, as amended by chapter 590 of the laws of 1994, subparagraph (ii) of
 paragraph  (a)  of subdivision 2 and subdivision 3 as further amended by
 subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
 2010, are amended to read as follows:

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

                                                            LBD06708-03-1

 S. 4265                             2
 
   2.  (a) Such buildings shall be exempt for a period of one year to the
 extent of one hundred per centum of the increase in assessed value ther-
 eof attributable to such reconstruction, alteration or improvement,  AND
 NEW  CONSTRUCTION PURSUANT TO SUBDIVISION ONE-A OF THIS SECTION, and for
 an additional period of seven years subject to the following:
   (i)  The  extent  of  such  exemption shall be decreased by twelve and
 one-half per centum 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] EXCEPT IN A SPECIAL ASSESSING UNIT THAT IS  NOT  A  CITY,
 SUCH  exemption shall be limited to eighty thousand dollars in increased
 market value, or such other sum less than eighty thousand  dollars,  but
 not  less than five 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.  IN  A SPECIAL ASSESSING UNIT THAT IS NOT A CITY, THE EXEMPTION
 SHALL BE LIMITED TO SEVEN HUNDRED FIFTY THOUSAND  DOLLARS  IN  INCREASED
 MARKET  VALUE. For the purposes of this section, the market value of the
 reconstruction,  alteration  or  improvement,  OR  NEW  CONSTRUCTION  AS
 AUTHORIZED  BY  SUBDIVISION ONE-A OF THIS SECTION, shall be equal to the
 increased assessed value attributable to such reconstruction, alteration
 [or], improvement OR NEW CONSTRUCTION divided by the class [I] ONE ratio
 in a special assessing unit  or  the  most  recently  established  state
 equalization  rate  or special equalization rate in the remainder of the
 state, except where the state equalization rate or special  equalization
 rate  equals  or exceeds ninety-five percent, in which case the increase
 in assessed value attributable to such reconstruction, alteration  [or],
 improvement  OR  NEW  CONSTRUCTION  shall  be deemed to equal the market
 value of such reconstruction, alteration or improvement.
   (b) [No] EXCEPT IN A SPECIAL ASSESSING UNIT THAT IS  NOT  A  CITY,  NO
 such  exemption  shall  be  granted  for  reconstruction, alterations or
 improvements unless:

 S. 4265                             3
 
   (i) such  reconstruction,  alteration  or  improvement  was  commenced
 subsequent  to the effective date of the local law or resolution adopted
 pursuant to subdivision one of this section; and
   (ii)  the  value  of  such  reconstruction,  alteration or improvement
 exceeds three 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] EXCEPT IN A SPECIAL ASSESSING UNIT THAT IS NOT A CITY,  SUCH
 exemption  shall  be  granted only upon application by the owner of such
 building on a form prescribed by the commissioner. The application shall
 be filed with the assessor of the city, town, village or  county  having
 the  power  to assess property for taxation on or before the appropriate
 taxable status date of such city, town, village or county.  IN A SPECIAL
 ASSESSING UNIT THAT IS NOT A CITY, THE EXEMPTION SHALL BE APPLIED  BASED
 UPON  THAT  COMPLETION OF RECONSTRUCTION, ALTERATION, IMPROVEMENT OR NEW
 CONSTRUCTION ON OR BEFORE THE APPLICABLE  TAXABLE  STATUS  DATE  OF  THE
 SPECIAL  ASSESSING  UNIT;  PROVIDED, HOWEVER THAT THE EXEMPTION FOR SUCH
 RECONSTRUCTION,  ALTERATION,  IMPROVEMENT  OR  NEW   CONSTRUCTION   THAT
 OCCURRED  AFTER  THE  TAXABLE STATUS DATE OF SUCH SPECIAL ASSESSING UNIT
 FOR THE TWO THOUSAND NINETEEN -- TWO  THOUSAND  TWENTY  ASSESSMENT  ROLL
 AND  ON OR BEFORE THE TAXABLE STATUS DATE OF SUCH SPECIAL ASSESSING UNIT
 FOR THE TWO THOUSAND TWENTY -- TWO THOUSAND TWENTY-ONE  ASSESSMENT  ROLL
 SHALL BE APPLIED BEGINNING WITH THE TWO THOUSAND TWENTY-ONE -- TWO THOU-
 SAND TWENTY-TWO ASSESSMENT ROLL.
   § 4. Subdivisions 5, 6 and 7 of section 421-f of the real property tax
 law,  as amended by chapter 590 of the laws of 1994, are amended to read
 as follows:
   5. For the purposes of this section, EXCEPT  IN  A  SPECIAL  ASSESSING
 UNIT  THAT IS NOT A CITY, a residential building shall mean any building
 or structure designed and occupied exclusively for residential  purposes
 by not more than two families.
   6.  In the event that a building granted an exemption pursuant to this
 section ceases to be used primarily for residential purposes [or], IS NO
 LONGER CLASSIFIED AS CLASS ONE PROPERTY IN A SPECIAL ASSESSING UNIT THAT
 IS NOT A CITY, OR title thereto is transferred to other than  the  heirs
 or distributees of the owner IN OTHER THAN A SPECIAL ASSESSING UNIT THAT
 IS  NOT  A  CITY,  the  exemption granted pursuant to this section shall
 cease.
   7. (a) [A] EXCEPT FOR A SPECIAL ASSESSING UNIT THAT IS NOT A  CITY,  A
 county, city, town or village may, by its local law, or school district,
 by its resolution:
   (i)  reduce  the per centum 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 residential structure  to  prevent
 physical  deterioration  of  the  structure or to comply with applicable
 building, sanitary, health and/or fire codes.

 S. 4265                             4
 
   (b) No such  local  law  or  resolution  shall  reduce  or  repeal  an
 exemption  granted  pursuant to this section until the expiration of the
 period for which such exemption was granted.
   §  5.  Applicability.  This act shall be applicable beginning with the
 two thousand twenty -- two thousand twenty-one assessment  roll  through
 and  including  the two thousand twenty-two -- two thousand twenty-three
 assessment roll.
   § 6. Severability. If any clause, sentence, paragraph, section or part
 of this act shall be adjudged by any court of competent jurisdiction  to
 be  invalid  and  after  exhaustion  of all further judicial review, the
 judgment shall not affect, impair or invalidate the  remainder  thereof,
 but  shall  be  confined in its operation to the clause, sentence, para-
 graph, section or part of this act directly involved in the  controversy
 in which the judgment shall have been rendered.
   § 7. This act shall take effect immediately.

2021-S4265A (ACTIVE) - Details

See Assembly Version of this Bill:: A2566
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Tax Law
Laws Affected:: Amd §421-f, RPT L
Versions Introduced in 2019-2020 Legislative Session:: S8436, A10649

2021-S4265A (ACTIVE) - Summary

Authorizes an exemption for class one capital improvements to residential buildings and certain new construction in a special assessing unit that is not a city.

2021-S4265A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4265A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to authorizing an
exemption for class one capital improvements to residential buildings
and certain new construction in a special assessing unit that is not a
city; and providing for the repeal of such provisions upon the expira-
tion thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would amend the Real Property Tax Law ("RPTL") to provide
Nassau County class one homeowners an expanded exemption to transition
the increased value of capital improvements to residential buildings and
new construction up to $750,000 for assessment purposes.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends the heading of 421-f of the Real Property

Tax Law to "Exemption of capital improvements to residential buildings
and certain new construction."

Section two of the bill adds a new paragraph to 421-f of the Real Prop-
erty Tax Law expanding the exemption to new construction in Nassau for
class one properties. No application would be required to receive the
exemption.

Section three of the bill amends 421-f to include a new construction
exemption for Nassau class one homeowners. The exemption follows the
existing law's eight-year schedule, which provided for a 100% exemption
of the qualifying increased value in year one, followed by decreases of
12.5% per year cumulatively for seven years until all of the new value
is captured on the assessment roll. The amendment would also raise the
exemption limit in Nassau County for class one capital improvements and
physical improvements from $80,000 to $750,000 in increased market
value. Increases in market value for capital improvements and physical
improvements over $750,000 would not receive the benefit of the
exemption. The exemption would be applied based upon the completion of
improvements and new construction on or before the applicable taxable
status date; provided, however, that improvements and new construction
appearing on the 2020-2021 assessment roll would be eligible for the
exemption beginning on the 2021-2022 assessment roll.

Section four of the bill amends other provisions of 421-f to conform to
the new exemption changes.

Section five of the bill provides that Nassau County shall not consider
property made exempt pursuant to this bill when calculating tax rates or
when apportioning taxes among classes under article eighteen of the real
property tax law.

Section six is a severability clause.

Section seven of the bill provides that the act would be effective for
Nassau County's 2021-2022 assessment roll and three subsequent rolls and
then sunsets, at which point the current law's provisions as applied to

Nassau county, would be restored, including the $80,000 market value cap
on the exemption and without application to new construction.

Section eight is the effective date.

 
JUSTIFICATION:

Nassau County's nearly decade-long frozen roll that the prior County
administration instituted beginning in 2011 has greatly lessened the
affordability of new construction and capital improvements in the Coun-
ty. The cost of construction per square foot in Nassau is greater than
most, if not all, other suburban areas of the state.

Because the roll was frozen, the prior administration drastically cut
positions in the County Department of Assessment, which left the depart-
ment unable to add new construction timely to the roll. This left a
backlog that the current administration has been required to add to the
roll in the last year as part of its assessment reform program. These
delayed updates disproportionately impact many homeowners in the County
because of the effect on new construction of the five-year transitional
assessments that the County is applying to the 2020-2021 roll in
connection with its recent reassessment.

Transitioning the increase in a property's market value due to new
construction and physical improvements for the purposes of assessment
would address these inequities and strengthen the housing market in
Nassau. This would provide residents with protection from the immediate
impact of assessment increases similar to those provided under other
laws.Increasing and expanding the current exemption as provided in the
bill will make it more appropriate and meaningful in Nassau due to its
higher costs of construction.

The County has made great progress in promoting economic development to
ensure that businesses remain in, or relocate to the County, while at
the same time preserving the County's suburban identity. This legis-
lation will build on that success by preserving and generating jobs in
the construction industry during the recovery from the severe economic
impact of the coronavirus crisis.

 
PRIOR LEGISLATIVE HISTORY:

2020: S.8436 (Thomas) - Referred to Housing, Construction and Community
Development Committee/A.10649 Rules (Lavine)Referred to Real Property
Taxation Committee.

 
FISCAL IMPLICATIONS:

None noted to the State.

 
EFFECTIVE DATE:
This act shall take effective immediately.

2021-S4265A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4265--A
     Cal. No. 535
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  --  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 authorizing an
   exemption for class one capital improvements to residential  buildings
   and certain new construction in a special assessing unit that is not a
   city; and providing for the repeal of such provisions upon the expira-
   tion thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The section heading of section 421-f of the  real  property
 tax  law,  as  amended by chapter 590 of the laws of 1994, is amended to
 read as follows:
   Exemption of capital improvements to residential buildings AND CERTAIN
 NEW CONSTRUCTION.
   § 2. Section 421-f of the real property tax law is amended by adding a
 new subdivision 1-a to read as follows:
   1-A. BUILDINGS CLASSIFIED AS CLASS ONE PROPERTY  IN  SECTION  EIGHTEEN
 HUNDRED  TWO  OF THIS CHAPTER RECONSTRUCTED, ALTERED, IMPROVED, OR NEWLY
 CONSTRUCTED IN A SPECIAL ASSESSING UNIT THAT IS  NOT  A  CITY  SHALL  BE
 EXEMPT  FROM  TAXATION  AND  SPECIAL  AD  VALOREM  LEVIES  TO THE EXTENT
 PROVIDED HEREINAFTER IN THE SAME MANNER AND TO THE SAME EXTENT TO  COUN-
 TY,  TOWN,  SPECIAL  DISTRICT  AND  SCHOOL  DISTRICT TAXES LEVIED ON THE
 ASSESSMENT ROLL PREPARED BY  SUCH  SPECIAL  ASSESSING  UNIT.  ADDITIONAL
 BUILDINGS  AND  YARD  IMPROVEMENTS SHALL BE EXCLUDED FROM RECEIVING THIS
 EXEMPTION.   AN  APPLICATION  SHALL  NOT  BE  REQUIRED  TO  RECEIVE  THE
 EXEMPTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06708-05-1

 S. 4265--A                          2
 
   §  3.  Subdivisions  2 and 3 of section 421-f of the real property tax
 law, as amended by chapter 590 of the laws of 1994, subparagraph (ii) of
 paragraph (a) of subdivision 2 and subdivision 3 as further  amended  by
 subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
 2010, are amended to read as follows:
   2.  (a) Such buildings shall be exempt for a period of one year to the
 extent of one hundred per centum of the increase in assessed value ther-
 eof attributable to such reconstruction, alteration or improvement,  AND
 NEW  CONSTRUCTION PURSUANT TO SUBDIVISION ONE-A OF THIS SECTION, and for
 an additional period of seven years subject to the following:
   (i) The extent of such exemption shall  be  decreased  by  twelve  and
 one-half  per centum 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]  EXCEPT  IN A SPECIAL ASSESSING UNIT THAT IS NOT A CITY,
 SUCH exemption shall be limited to eighty thousand dollars in  increased
 market  value,  or such other sum less than eighty thousand dollars, but
 not less than five 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. IN A SPECIAL ASSESSING UNIT THAT IS NOT A CITY,  THE  EXEMPTION
 SHALL  BE  LIMITED  TO SEVEN HUNDRED FIFTY THOUSAND DOLLARS IN INCREASED
 MARKET VALUE. For the purposes of this section, the market value of  the
 reconstruction,  alteration  or  improvement,  OR  NEW  CONSTRUCTION  AS
 AUTHORIZED BY SUBDIVISION ONE-A OF THIS SECTION, shall be equal  to  the
 increased assessed value attributable to such reconstruction, alteration
 [or], improvement OR NEW CONSTRUCTION divided by the class [I] ONE ratio
 in  a  special  assessing  unit  or  the most recently established state
 equalization rate or special equalization rate in the remainder  of  the
 state,  except where the state equalization rate or special equalization
 rate equals or exceeds ninety-five percent, in which case  the  increase
 in  assessed value attributable to such reconstruction, alteration [or],

 S. 4265--A                          3
 
 improvement OR NEW CONSTRUCTION shall be  deemed  to  equal  the  market
 value of such reconstruction, alteration or improvement.
   (b)  [No]  EXCEPT  IN  A SPECIAL ASSESSING UNIT THAT IS NOT A CITY, NO
 such exemption shall  be  granted  for  reconstruction,  alterations  or
 improvements unless:
   (i)  such  reconstruction,  alteration  or  improvement  was commenced
 subsequent to the effective date of the local law or resolution  adopted
 pursuant to subdivision one of this section; and
   (ii)  the  value  of  such  reconstruction,  alteration or improvement
 exceeds three 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] EXCEPT IN A SPECIAL ASSESSING UNIT THAT IS NOT A CITY,  SUCH
 exemption  shall  be  granted only upon application by the owner of such
 building on a form prescribed by the commissioner. The application shall
 be filed with the assessor of the city, town, village or  county  having
 the  power  to assess property for taxation on or before the appropriate
 taxable status date of such city, town, village or county.  IN A SPECIAL
 ASSESSING UNIT THAT IS NOT A CITY, THE EXEMPTION SHALL BE APPLIED  BASED
 UPON  THAT  COMPLETION OF RECONSTRUCTION, ALTERATION, IMPROVEMENT OR NEW
 CONSTRUCTION ON OR BEFORE THE APPLICABLE  TAXABLE  STATUS  DATE  OF  THE
 SPECIAL  ASSESSING  UNIT;  PROVIDED, HOWEVER THAT THE EXEMPTION FOR SUCH
 RECONSTRUCTION,  ALTERATION,  IMPROVEMENT  OR  NEW   CONSTRUCTION   THAT
 OCCURRED  AFTER  THE  TAXABLE STATUS DATE OF SUCH SPECIAL ASSESSING UNIT
 FOR THE TWO THOUSAND NINETEEN -- TWO  THOUSAND  TWENTY  ASSESSMENT  ROLL
 AND  ON OR BEFORE THE TAXABLE STATUS DATE OF SUCH SPECIAL ASSESSING UNIT
 FOR THE TWO THOUSAND TWENTY -- TWO THOUSAND TWENTY-ONE  ASSESSMENT  ROLL
 SHALL BE APPLIED BEGINNING WITH THE TWO THOUSAND TWENTY-ONE -- TWO THOU-
 SAND TWENTY-TWO ASSESSMENT ROLL.
   § 4. Subdivisions 5, 6 and 7 of section 421-f of the real property tax
 law,  as amended by chapter 590 of the laws of 1994, are amended to read
 as follows:
   5. For the purposes of this section, EXCEPT  IN  A  SPECIAL  ASSESSING
 UNIT  THAT IS NOT A CITY, a residential building shall mean any building
 or structure designed and occupied exclusively for residential  purposes
 by not more than two families.
   6.  In the event that a building granted an exemption pursuant to this
 section ceases to be used primarily for residential purposes [or], IS NO
 LONGER CLASSIFIED AS CLASS ONE PROPERTY IN A SPECIAL ASSESSING UNIT THAT
 IS NOT A CITY, OR title thereto is transferred to other than  the  heirs
 or distributees of the owner IN OTHER THAN A SPECIAL ASSESSING UNIT THAT
 IS  NOT  A  CITY,  the  exemption granted pursuant to this section shall
 cease.
   7. (a) [A] EXCEPT FOR A SPECIAL ASSESSING UNIT THAT IS NOT A  CITY,  A
 county, city, town or village may, by its local law, or school district,
 by its resolution:
   (i)  reduce  the per centum 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-

 S. 4265--A                          4
 
 eling or modernization to an existing residential 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  or  resolution  shall  reduce  or repeal an
 exemption granted pursuant to this section until the expiration  of  the
 period for which such exemption was granted.
   §  5. Effect of exemption. A special assessing unit that is not a city
 shall not consider  property  exempt  pursuant  to  subdivision  1-a  of
 section 421-f of the real property tax law when calculating tax rates or
 when apportioning taxes among classes under article 18 of the real prop-
 erty tax law.
   § 6. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall  not affect, impair or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   § 7. This act shall take effect immediately;  provided  however,  that
 subdivision  1-a  and  the  amendments  made  to the section heading and
 subdivisions 2, 3, 5, 6 and 7 of section 421-f of the real property  tax
 law  by  sections  one  through four of this act shall apply only to the
 2021-2022, 2022-2023, 2023-2024 and 2024-2025  assessment rolls  of  the
 county  of  Nassau,  and  shall expire and be deemed repealed January 1,
 2026.

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