Bill Text: NY A03889 | 2023-2024 | General Assembly | Introduced

---

Bill Title: Changes the amount of the exemption permitted for capital improvements to residential buildings to $200,000 where a local law or resolution is adopted on or after January 1, 2024.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to real property taxation [A03889 Detail]

Download: New_York-2023-A03889-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          3889

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 8, 2023
                                       ___________

        Introduced  by  M. of A. FAHY -- read once and referred to the Committee
          on Real Property Taxation

        AN ACT to amend the real property tax law, in relation to  changing  the
          amount of the exemption permitted for capital improvements to residen-
          tial buildings

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1.  Subparagraph (iii) of paragraph (a) of  subdivision  2  of
     2  section  421-f  of the real property tax law, as amended by section 3 of
     3  part WW of chapter 55 of the  laws  of  2021,  is  amended  to  read  as
     4  follows:
     5    (iii)  [Except]  For  exemptions  granted pursuant to this section and
     6  authorized by a local law or resolution adopted prior to January  first,
     7  two thousand twenty-four, except in a special assessing unit that is not
     8  a  city,  such  exemption shall be limited to eighty thousand dollars in
     9  increased market value, or such other  sum  less  than  eighty  thousand
    10  dollars,  but  not less than five thousand dollars as may be provided by
    11  the local law or resolution, of the property attributable to such recon-
    12  struction, alteration or improvement and any increase  in  market  value
    13  greater  than such amount shall not be eligible for the exemption pursu-
    14  ant to this section. In a special assessing unit that  is  not  a  city,
    15  [the  exemption shall be limited to seven hundred fifty thousand dollars
    16  in increased market value]  for  exemptions  granted  pursuant  to  this
    17  section  and authorized by a local law or resolution adopted on or after
    18  January first, two thousand twenty-four, such exemption shall be limited
    19  to two hundred thousand dollars in increased market value, or such other
    20  sum less than two hundred thousand dollars, but not less than five thou-
    21  sand dollars as may be provided by the local law or resolution,  of  the
    22  property  attributable to such reconstruction, alteration or improvement
    23  and any increase in market value greater than such amount shall  not  be
    24  eligible  for  the exemption pursuant to this section.  For the purposes

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03708-01-3
        A. 3889                             2

     1  of this section, the market value of the reconstruction,  alteration  or
     2  improvement,  or  new construction as authorized by subdivision one-a of
     3  this section, shall be equal to the increased assessed  value  attribut-
     4  able to such reconstruction, alteration, improvement or new construction
     5  divided  by  the class one ratio in a special assessing unit or the most
     6  recently established state equalization  rate  or  special  equalization
     7  rate  in the remainder of the state, except where the state equalization
     8  rate or special equalization rate equals or exceeds ninety-five percent,
     9  in which case the increase in assessed value attributable to such recon-
    10  struction, alteration, improvement or new construction shall  be  deemed
    11  to equal the market value of such reconstruction, alteration or improve-
    12  ment.
    13    §  2.  Subparagraph (iii) of paragraph (a) of subdivision 2 of section
    14  421-f of the real property tax law, as amended by  chapter  590  of  the
    15  laws of 1994, is amended to read as follows:
    16    (iii)  [Such]  For  exemptions  granted  pursuant  to this section and
    17  authorized by a local law or resolution adopted prior to January  first,
    18  two  thousand  twenty-four,  such  exemption  shall be limited to eighty
    19  thousand dollars in increased market value, or such other sum less  than
    20  eighty  thousand dollars, but not less than five thousand dollars as may
    21  be provided by the local law or resolution, of the property attributable
    22  to such reconstruction, alteration or improvement and  any  increase  in
    23  market  value  greater  than  such  amount shall not be eligible for the
    24  exemption pursuant to this section.  For exemptions granted pursuant  to
    25  this  section  and authorized by a local law or resolution adopted on or
    26  after January first, two thousand twenty-four, such exemption  shall  be
    27  limited  to  two  hundred thousand dollars in increased market value, or
    28  such other sum less than two hundred thousand dollars, but not less than
    29  five thousand dollars as may be provided by the local law or resolution,
    30  of the property  attributable  to  such  reconstruction,  alteration  or
    31  improvement  and  any  increase in market value greater than such amount
    32  shall not be eligible for the exemption pursuant to  this  section.  For
    33  the  purposes  of  this section, the market value of the reconstruction,
    34  alteration or improvement shall be equal to the increased assessed value
    35  attributable to such reconstruction, alteration or  improvement  divided
    36  by  the  class  I ratio in a special assessing unit or the most recently
    37  established state equalization rate or special equalization rate in  the
    38  remainder  of  the  state,  except  where the state equalization rate or
    39  special equalization rate equals  or  exceeds  ninety-five  percent,  in
    40  which  case  the  increase in assessed value attributable to such recon-
    41  struction, alteration or improvement shall be deemed to equal the market
    42  value of such reconstruction, alteration or improvement.
    43    § 3. This act shall take effect immediately; provided,  however,  that
    44  the  amendments  to  subdivision 2 of section 421-f of the real property
    45  tax law made by section one of this act shall be subject to the  expira-
    46  tion  and reversion of such subdivision pursuant to section 7 of part WW
    47  of chapter 55 of the laws of 2021, as amended, when upon such  date  the
    48  provisions of section two of this act shall take effect.