S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3852
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2025
                                ___________
 
 Introduced by M. of A. WILLIAMS -- read once and referred to the Commit-
   tee on Real Property Taxation
 
 AN  ACT  to amend the real property tax law, in relation to exemption of
   capital improvements to residential buildings
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subparagraph  (iii)  of paragraph (a) of subdivision 2 of
 section 421-f of the real property tax law, as amended by section  3  of
 part  WW  of  chapter  55  of  the  laws  of 2021, is amended to read as
 follows:
   (iii) Except in a special assessing unit that  is  not  a  city,  such
 exemption  shall be limited to [eighty] ONE HUNDRED SIXTY-EIGHT thousand
 dollars in increased market value, or such other sum less than  [eighty]
 ONE-HUNDRED  SIXTY-EIGHT  thousand dollars, but not less than five thou-
 sand 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, alter-
 ation 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,  improvement  or  new
 construction  divided by the class 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  nine-
 ty-five  percent, in which case the increase in assessed value attribut-
 able to such reconstruction, alteration, improvement or new construction

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07307-01-5
 A. 3852                             2
              

 
 shall be deemed to equal the market value of such reconstruction, alter-
 ation or improvement.
   §  2.  Subparagraph (iii) of paragraph (a) of subdivision 2 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:
   (iii)  Such  exemption shall be limited to [eighty] ONE HUNDRED SIXTY-
 EIGHT thousand dollars in increased market value, or such other sum less
 than [eighty]  ONE HUNDRED SIXTY-EIGHT thousand dollars,  but  not  less
 than five thousand dollars as may be provided by the local law or resol-
 ution,  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, alteration or  improvement  divided
 by  the  class  I 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 recon-
 struction, alteration or improvement shall be deemed to equal the market
 value of such reconstruction, alteration or improvement.
   § 3. This act shall take effect immediately; provided that the  amend-
 ments  to  subparagraph    (iii)    of paragraph (a) of subdivision 2 of
 section 421-f of the real property tax law made by section one  of  this
 act shall be subject to the expiration and reversion of such subdivision
 when upon such date the provisions of section two of this act shall take
 effect.