Bill Text: NY S08436 | 2019-2020 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-05-29 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S08436 Detail]
Download: New_York-2019-S08436-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8436 IN SENATE May 29, 2020 ___________ 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: 1 Section 1. The section heading of section 421-f of the real property 2 tax law, as amended by chapter 590 of the laws of 1994, is amended to 3 read as follows: 4 Exemption of capital improvements to residential buildings and certain 5 new construction. 6 § 2. Section 421-f of the real property tax law is amended by adding a 7 new subdivision 1-a to read as follows: 8 1-a. Buildings classified as class one property in section eighteen 9 hundred two of this chapter reconstructed, altered, improved, or newly 10 constructed in a special assessing unit that is not a city shall be 11 exempt from taxation and special ad valorem levies in the same manner 12 and to the same extent as county, town, special district and school 13 district taxes levied on the assessment roll prepared by such special 14 assessing unit. An application shall not be required to receive the 15 exemption. 16 § 3. Subdivisions 2 and 3 of section 421-f of the real property tax 17 law, as amended by chapter 590 of the laws of 1994, subparagraph (ii) of 18 paragraph (a) of subdivision 2 and subdivision 3 as further amended by 19 subdivision (b) of section 1 of part W of chapter 56 of the laws of 20 2010, are amended to read as follows: 21 2. (a) Such buildings shall be exempt for a period of one year to the 22 extent of one hundred per centum of the increase in assessed value ther- 23 eof attributable to such reconstruction, alteration or improvement, and 24 new construction pursuant to subdivision one-a of this section, and for 25 an additional period of seven years subject to the following: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16543-02-0S. 8436 2 1 (i) The extent of such exemption shall be decreased by twelve and 2 one-half per centum of the "exemption base" each year during such addi- 3 tional period. The "exemption base" shall be the increase in assessed 4 value as determined in the initial year of the term of the exemption, 5 except as provided in subparagraph (ii) of this paragraph. 6 (ii) In any year in which a change in level of assessment of fifteen 7 percent or more is certified for a final assessment roll pursuant to the 8 rules of the commissioner, the exemption base shall be multiplied by a 9 fraction, the numerator of which shall be the total assessed value of 10 the parcel on such final assessment roll (after accounting for any phys- 11 ical or quantity changes to the parcel since the immediately preceding 12 assessment roll), and the denominator of which shall be the total 13 assessed value of the parcel on the immediately preceding final assess- 14 ment roll. The result shall be the new exemption base. The exemption 15 shall thereupon be recomputed to take into account the new exemption 16 base, notwithstanding the fact that the assessor receives certification 17 of the change in level of assessment after the completion, verification 18 and filing of the final assessment roll. In the event the assessor does 19 not have custody of the roll when such certification is received, the 20 assessor shall certify the recomputed exemption to the local officers 21 having custody and control of the roll, and such local officers are 22 hereby directed and authorized to enter the recomputed exemption certi- 23 fied by the assessor on the roll. The assessor shall give written notice 24 of such recomputed exemption to the property owner, who may, if he or 25 she believes that the exemption was recomputed incorrectly, apply for a 26 correction in the manner provided by title three of article five of this 27 chapter for the correction of clerical errors. 28 (iii) [Such] Except in a special assessing unit that is not a city, 29 such exemption shall be limited to eighty thousand dollars in increased 30 market value, or such other sum less than eighty thousand dollars, but 31 not less than five thousand dollars as may be provided by the local law 32 or resolution, of the property attributable to such reconstruction, 33 alteration or improvement and any increase in market value greater than 34 such amount shall not be eligible for the exemption pursuant to this 35 section. In a special assessing unit that is not a city, the exemption 36 shall be limited to seven hundred fifty thousand dollars in increased 37 market value. For the purposes of this section, the market value of the 38 reconstruction, alteration or improvement, or new construction as 39 authorized by subdivision one-a of this section, shall be equal to the 40 increased assessed value attributable to such reconstruction, alteration 41 [or], improvement or new construction divided by the class [I] one ratio 42 in a special assessing unit or the most recently established state 43 equalization rate or special equalization rate in the remainder of the 44 state, except where the state equalization rate or special equalization 45 rate equals or exceeds ninety-five percent, in which case the increase 46 in assessed value attributable to such reconstruction, alteration or 47 improvement shall be deemed to equal the market value of such recon- 48 struction, alteration or improvement. 49 (b) [No] Except in a special assessing unit that is not a city, no 50 such exemption shall be granted for reconstruction, alterations or 51 improvements unless: 52 (i) such reconstruction, alteration or improvement was commenced 53 subsequent to the effective date of the local law or resolution adopted 54 pursuant to subdivision one of this section; and 55 (ii) the value of such reconstruction, alteration or improvement 56 exceeds three thousand dollars; andS. 8436 3 1 (iii) the greater portion, as so determined by square footage, of the 2 building reconstructed, altered or improved is at least five years old. 3 (c) For purposes of this section the terms reconstruction, alteration 4 and improvement shall not include ordinary maintenance and repairs. 5 3. [Such] Except in a special assessing unit that is not a city, such 6 exemption shall be granted only upon application by the owner of such 7 building on a form prescribed by the commissioner. The application shall 8 be filed with the assessor of the city, town, village or county having 9 the power to assess property for taxation on or before the appropriate 10 taxable status date of such city, town, village or county. In a special 11 assessing unit that is not a city, the exemption shall be applied based 12 upon that completion of reconstruction, alteration, improvement, or new 13 construction on or before the taxable status date of the special assess- 14 ing unit. 15 § 4. Subdivisions 5, 6 and 7 of section 421-f of the real property tax 16 law, as amended by chapter 590 of the laws of 1994, are amended to read 17 as follows: 18 5. For the purposes of this section, except in a special assessing 19 unit that is not a city, a residential building shall mean any building 20 or structure designed and occupied exclusively for residential purposes 21 by not more than two families. 22 6. In the event that a building granted an exemption pursuant to this 23 section ceases to be used primarily for residential purposes or is no 24 longer classified as class one property in a special assessing unit that 25 is not a city, title thereto is transferred to other than the heirs or 26 distributees of the owner, the exemption granted pursuant to this 27 section shall cease. 28 7. (a) [A] Except for a special assessing unit that is not a city, a 29 county, city, town or village may, by its local law, or school district, 30 by its resolution: 31 (i) reduce the per centum of exemption otherwise allowed pursuant to 32 this section; 33 (ii) limit eligibility for the exemption to those forms of recon- 34 struction, alterations or improvements as are prescribed in such local 35 law or resolution; 36 (iii) provide that the exemption shall be applicable only to those 37 improvements which would otherwise result in an increase in the assessed 38 valuation of the real property but which consist of an addition, remod- 39 eling or modernization to an existing residential structure to prevent 40 physical deterioration of the structure or to comply with applicable 41 building, sanitary, health and/or fire codes. 42 (b) No such local law or resolution shall reduce or repeal an 43 exemption granted pursuant to this section until the expiration of the 44 period for which such exemption was granted. 45 § 5. Applicability. This act shall be applicable beginning with the 46 two thousand twenty -- two thousand twenty-one assessment roll through 47 and including the two thousand twenty-two -- two thousand twenty-three 48 assessment roll. 49 § 6. Severability. If any clause, sentence, paragraph, section or part 50 of this act shall be adjudged by any court of competent jurisdiction to 51 be invalid and after exhaustion of all further judicial review, the 52 judgment shall not affect, impair or invalidate the remainder thereof, 53 but shall be confined in its operation to the clause, sentence, para- 54 graph, section or part of this act directly involved in the controversy 55 in which the judgment shall have been rendered. 56 § 7. This act shall take effect immediately.
