Provides for an exemption from taxation for capital improvements to residential buildings to reduce carbon emissions where the governing board of the applicable county, city, town or village adopts a local law and a school district, other than a school district subject to article fifty-two of the education law, adopts a resolution to grant the exemption.
STATE OF NEW YORK
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10146
IN ASSEMBLY
May 10, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Barrett) --
read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to providing an
exemption from taxation for capital improvements to residential build-
ings to reduce carbon emissions
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 421-q to read as follows:
3 § 421-q. Exemption from taxation for capital improvements to residen-
4 tial buildings to reduce carbon emissions. 1. For the purposes of this
5 section, the following terms shall have the following meanings:
6 (a) "Eligible real property" means any owner-occupied building or
7 structure designed and occupied exclusively for residential purposes by
8 not more than two families.
9 (b) "Eligible improvements" shall be limited to categories of work
10 that result in a reduction of greenhouse gas emissions for the build-
11 ing, provided further that such work shall be in conformity with all
12 applicable state and local laws. Eligible improvements shall include,
13 but not be limited to, any of the following types of improvements:
14 (i) Replacement, repair or installation of new systems for heating or
15 cooling, including domestic hot water;
16 (ii) Installation of solar, energy storage, or other mechanisms to
17 offset use of energy from the electrical grid;
18 (iii) Replacement or installation of insulation in walls, roofs,
19 flooring, windows, eaves, and around pipes;
20 (iv) Replacement or installation of thermostats to control temperature
21 and building management systems;
22 (v) Installation of energy efficient appliances, fixtures, or light-
23 ing; and
24 (vi) Repair, replacement or modification of the electrical system,
25 and/or wiring associated therewith.
26 (c) "Exemption base" means the amount of increased assessed value on
27 eligible real property resulting from eligible improvements.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15548-01-4
A. 10146 2
1 2. Eligible real property reconstructed, altered or improved as a
2 result of eligible improvements subsequent to the effective date of this
3 section shall be exempt from taxation and special ad valorem levies to
4 the extent provided in this section, provided that after a public hear-
5 ing, the governing board of the applicable county, city, town or village
6 adopts a local law and a school district, other than a school district
7 subject to article fifty-two of the education law, adopts a resolution
8 to grant the exemption authorized pursuant to this section. A copy of
9 such local law or resolution shall be filed with the commissioner and
10 the assessor of such county, city, town or village who prepares the
11 assessment roll on which the taxes of such county, city, town, village
12 or school district are levied.
13 3. Eligible real property subject to eligible improvements shall be
14 exempt from taxation for a period of twenty years. For the first ten
15 years after the eligible improvements have been completed, one hundred
16 percent of the exemption base shall be exempt from taxation. Such
17 exemption shall decrease by ten percent annually over the subsequent
18 ten years.
19 4. The exemption established in this section shall be granted only
20 upon application by the owner of such building on a form prescribed by
21 the commissioner. The application shall be filed with the assessor of
22 the city, town, village or county having the power to assess the
23 applicable eligible real property for taxation on or before the appro-
24 priate taxable status date of such city, town, village or county.
25 5. If satisfied that the applicant is entitled to an exemption
26 pursuant to this section, the assessor shall approve the application and
27 such eligible real property shall thereafter be exempt from taxation
28 and special ad valorem levies as herein provided commencing with the
29 assessment roll prepared on the basis of the taxable status
30 date referred to in subdivision four of this section. The assessed value
31 of any exemption granted pursuant to this section shall be entered by
32 the assessor on the assessment roll with the eligible property,
33 with the amount of the exemption shown in a separate column.
34 6. In the event that eligible real property granted an exemption
35 pursuant to this section ceases to be used primarily for residen-
36 tial purposes or title thereto is transferred to other than the heirs or
37 distributees of the owner, the exemption granted pursuant to this
38 section shall cease.
39 7. (a) A county, city, town or village may, by its local law, or
40 school district, by its resolution may:
41 (i) reduce the per centum of exemption otherwise allowed pursuant to
42 this section; or
43 (ii) limit or expand eligible improvements eligible for exemption
44 pursuant to this section.
45 (b) No such local law or resolution shall reduce or repeal an
46 exemption granted pursuant to this section until the expiration of the
47 period for which such exemption was granted.
48 § 2. This act shall take effect immediately and shall apply to assess-
49 ment rolls based on taxable status dates occurring on or after such
50 effective date.
