§ 485-m. Residential investment exemption; certain school districts.
1. Residential real property constructed on or after the first day of
January, two thousand eight in school districts which serve a city with
a population of not less than thirty-four thousand and not more than
thirty-five thousand based upon the two thousand federal census may be
exempt from school district taxation 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
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 (after accounting for 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
school district 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
January, two thousand eight or such later date as may be specified by
resolution;

(ii) the residential real property is situate in a school district
which serves a city with a population of not less than thirty-four
thousand and not more than thirty-five thousand based upon the two
thousand federal census;

(iii) the cost of such construction exceeds the sum of seventy
thousand dollars or such greater amount as may be specified; and

(iv) such construction is completed as may be evidenced by a
certificate 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 school district which
serves a city with a population of not less than thirty-four thousand
and not more than thirty-five thousand based upon the two thousand
federal census on or before the appropriate taxable status date of such
school district 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
application and such real property shall thereafter be exempt from
taxation by a school district which serves a city with a population of
not less than thirty-four thousand and not more than thirty-five
thousand based upon the two thousand federal 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 school district which serves a city with a population of not less
than thirty-four thousand and not more than thirty-five thousand based
upon the two thousand federal census may, by resolution, 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 resolution
shall not be subject to any such reduction so effected. Such school
district upon reduction of the per centum of exemption pursuant to this
subdivision may thereafter, by resolution, 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 resolution shall apply only to
construction commenced subsequent to the effective date of such
resolution. A copy of all such resolutions shall be filed with the
commissioner and the assessor of the school district.

8. A school district which serves a city with a population of not less
than thirty-four thousand and not more than thirty-five thousand based
upon the two thousand federal census by resolution, 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 three hundred fifty thousand dollars.

9. (a) A school district which serves a city with a population of not
less than thirty-four thousand and not more than thirty-five thousand
based upon the two thousand federal census may, by resolution, establish
a board to be known as the residential incentive board. The membership
and composition of such board shall be set forth in the resolution.

(b) The residential incentive board shall present a plan to the board
of education of a school district which serves a city with a population
of not less than thirty-four thousand and not more than thirty-five
thousand based upon the two thousand federal 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 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
school district which serves a city with a population of not less than
thirty-four thousand and not more than thirty-five thousand based upon
the two thousand federal 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.

(c) In addition, the board may make recommendations to the school
board of a school district which serves a city with a population of not
less than thirty-four thousand and not more than thirty-five thousand
based upon the two thousand federal census with respect to actions it
deems desirable to improve the economic climate therein.

10. If a school district which serves a city with a population of not
less than thirty-four thousand and not more than thirty-five thousand
based upon the two thousand federal census establishes a residential
incentive board, pursuant to subdivision nine of this section, such
school district may, by resolution, restrict real property eligible to
receive the exemption to real property constructed for those purposes
identified in the plan presented by the board. Such resolution shall
restrict the availability of such exemption to the specific geographic
areas identified in the plan presented by the board.

11. Any school district which adopts an exemption pursuant to this
section shall cause information relating to the availability of such
exemption, including requirements and application procedures, to be
attached to all building permit applications and copies of such
information shall be posted in a conspicuous location in any office or
offices where such permits and applications for permits are issued and
processed.