Bill Text: NY A05898 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Establishes a vacant residential investment exemption in cities with a population of not less than seven thousand fifty and not more than seven thousand sixty, determined in accordance with the two thousand twenty census.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed) 2024-06-06 - substituted by s5779e [A05898 Detail]

Download: New_York-2023-A05898-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5898--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 24, 2023
                                       ___________

        Introduced by M. of A. ANGELINO -- read once and referred to the Commit-
          tee  on  Real Property Taxation -- committee discharged, bill amended,
          ordered reprinted as amended and recommitted to said committee

        AN ACT to amend the real property tax law, in relation to establishing a
          residential investment exemption in certain cities

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

     1    Section  1.  The  real  property  tax  law  is amended by adding a new
     2  section 485-x to read as follows:
     3    § 485-x. Residential property improvement exemption;  certain  cities.
     4  1.  Construction  of improvements to residential real property initiated
     5  on or after the first day of January, two thousand  twenty-four  in  the
     6  cities  with  a population of not less than seven thousand fifty and not
     7  more than seven thousand sixty, determined in accordance  with  the  two
     8  thousand  twenty census, may be exempt from city taxation as provided in
     9  this section. Such real property shall be  designated  by  the  city  in
    10  which  it  is located as residential vacant land on such city's tax roll
    11  prior to the construction of improvements.
    12    2. (a)(i) Such real property shall be exempt for a period of  eighteen
    13  months or until a certificate of occupancy is issued, whichever is soon-
    14  er, on all city taxation.
    15    (ii)  (A)  Upon  the  termination  of the exemption provided for under
    16  subparagraph (i) of this paragraph, such real property shall  be  exempt
    17  for  a  period  of  one  year  to the extent of eighty per centum of the
    18  assessed value thereof and for  an  additional  period  of  three  years
    19  provided,  however, that the extent of such exemption shall be decreased
    20  by twenty per centum each year during such additional  period  of  three
    21  years  and  such  exemption  shall  be  computed  with  respect  to  the
    22  "exemption base". The exemption base shall  be  the  assessed  value  as
    23  determined  by the assessor in the initial year of such four-year period

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09064-02-3
        A. 5898--A                          2

     1  following the termination of the exemption provided for  under  subpara-
     2  graph (i) of this paragraph.
     3    (B)  The  following table shall illustrate the computation of the city
     4  tax exemption:
     5       Year of exemption        Percentage of exemption
     6          1                            80
     7          2                            60
     8          3                            40
     9          4                            20
    10    (C) Exemptions granted pursuant to this section shall  apply  to  real
    11  property taxes imposed for city purposes.
    12    (b)  No  such exemption shall be granted unless: (i) such construction
    13  of improvements was commenced on or after the first day of January,  two
    14  thousand  twenty-four  or  such  later date as may be specified by local
    15  law;
    16    (ii) the residential real property is situate in a city with  a  popu-
    17  lation  of  not  less  than seven thousand fifty and not more than seven
    18  thousand sixty, determined in accordance with the  two  thousand  twenty
    19  census; and
    20    (iii)  such  construction  is  documented  by  a  building  permit, if
    21  required, for the improvements, or other  appropriate  documentation  as
    22  required by the assessor.
    23    (c)  For  purposes of this section, the term "construction of improve-
    24  ments" shall mean the construction of a residential dwelling.
    25    3. Such exemption shall be granted only upon application by the  owner
    26  of  such  real  property  on a form prescribed by the commissioner. Such
    27  application shall be filed with the assessor of a city with a population
    28  of not less than seven thousand fifty and not more than  seven  thousand
    29  sixty,  determined in accordance with the two thousand twenty census, on
    30  or before the appropriate taxable status date of such  city  and  within
    31  one  year  from  the date of completion of such construction of improve-
    32  ments.
    33    4. If the assessor is satisfied that the applicant is entitled  to  an
    34  exemption  pursuant  to this section, they shall approve the application
    35  and such real property shall thereafter  be  exempt  from  taxation  and
    36  special  ad  valorem levies by a city with a population of not less than
    37  seven thousand fifty and not more than seven thousand sixty,  determined
    38  in  accordance  with the two thousand twenty census, as provided in this
    39  section commencing with the assessment roll prepared after  the  taxable
    40  status  date  referred  to  in  subdivision  three  of this section. The
    41  assessed value of any exemption granted pursuant to this  section  shall
    42  be entered by the assessor on the assessment roll with the taxable prop-
    43  erty, with the amount of the exemption shown in a separate column.
    44    5.  In  the  event that real property granted an exemption pursuant to
    45  this section ceases to be used  primarily  for  eligible  purposes,  the
    46  exemption granted pursuant to this section shall cease.
    47    6.  A city with a population of not less than seven thousand fifty and
    48  not more than seven thousand sixty, determined in  accordance  with  the
    49  two  thousand twenty census, may, by local law, establish a date for the
    50  commencement of effectiveness of the exemption offered pursuant to  this
    51  section.  A  copy of all such local laws shall be filed with the commis-
    52  sioner and the assessor of the city.
    53    § 2. This act shall take effect immediately.