Relates to authorizing a residential redevelopment inhibited property exemption; authorizes any city, town or village to, by local law, provide for a real property tax exemption for residential redevelopment inhibited property.
STATE OF NEW YORK
________________________________________________________________________
6460
IN SENATE
January 13, 2016
___________
Introduced by Sens. RANZENHOFER, SEWARD -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Local Govern-
ment
AN ACT to amend the real property tax law, in relation to authorizing a
residential redevelopment inhibited property exemption
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 485-r of the real property tax law, as added by
2 chapter 406 of the laws of 2015, is amended to read as follows:
3 § 485-r. Residential redevelopment inhibited property exemption[;
4 certain cities]. 1. As used in this section, the following terms shall
5 have the following meanings:
6 (a) "Redevelopment inhibited property" shall mean a residential prop-
7 erty that has been neglected or abandoned because of the local economic
8 conditions and/or conditions on the property that inhibit such property
9 from being redeveloped by the private sector. Redevelopment inhibited
10 property shall not include land that is undeveloped.
11 (b) "Gap financing costs" shall mean the total cost of the property's
12 redevelopment as approved by the [city] municipality minus the increase
13 in the full valuation of the property upon completion of the redevelop-
14 ment.
15 (c) "Base assessment" shall mean the assessed value of the property on
16 the day the [city] municipality designates the property as redevelopment
17 inhibited.
18 (d) "Increased assessment" shall mean the assessed value of the prop-
19 erty as determined by the assessor upon completion of the redevelopment.
20 (e) "Incremental increase in annual property taxes" shall mean the
21 taxes based on the increased assessment minus the taxes based on the
22 base assessment.
23 (f) ["City" shall mean cities with a population of not less than
24 fifteen thousand two hundred fifty and not more than fifteen thousand
25 five hundred as determined by the federal decennial census for the year
26 two thousand ten.] "Municipality" means any city, town or village.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13132-01-5
S. 6460 2
1 2. A [city] municipality may, by local law, provide for the exemption
2 of real property from taxation as provided in this section. Subsequent
3 to the adoption of such local law, the county in which such [city] muni-
4 cipality is located may after a public hearing and by local law, and any
5 school district, all or part of which is located in such [city] munici-
6 pality, may, by resolution, exempt such property from its taxation in
7 the same manner and to the same extent as the [city] municipality has
8 done.
9 3. A [city] municipality shall designate any property within the
10 [city] municipality's boundaries as a redevelopment inhibited property
11 if one or more of the following are met:
12 (a) the [city] municipality has acquired title to the property pursu-
13 ant to article nineteen-A of the real property actions and proceedings
14 law; or
15 (b) the property has been continuously vacant for a period of at least
16 three years; or
17 (c) the [city] municipality has acquired title to the property via
18 foreclosure for unpaid taxes pursuant to article eleven of this chapter;
19 or
20 (d) the property has outstanding zoning, housing, or uniform code
21 violations and the cost of remedying the violations exceeds the proper-
22 ty's value.
23 4. (a) Upon the adoption of such local law, redevelopment inhibited
24 property shall be exempt from taxation and special ad valorem levies to
25 the extent of any increase in value attributable to demolition, alter-
26 ation, rehabilitation, or remediation pursuant to the following require-
27 ments:
28 (i) the demolition, alterations, rehabilitation, and/or remediation
29 shall be permitted by the [city's] municipality's bureau of inspection
30 such that building or plumbing permits issued and said demolition,
31 alterations, rehabilitation, and/or remediation shall have met all
32 necessary approvals per the applicable New York state uniform fire
33 prevention and building code, the [city's] municipality's municipal code
34 and the [city's] municipality's bureau of inspection upon completion;
35 and
36 (ii) the property for which the exemption is sought shall be an
37 owner-occupied one-family residence; and
38 (iii) the owner of such property shall file annually an affidavit of
39 residency with the assessor of the [city] municipality on or before the
40 appropriate taxable status date of such [city] municipality, confirming
41 continued owner-occupancy of the property; and
42 (iv) the redevelopment inhibited property is exempt from taxation and
43 special ad valorem levies attributable to the increased assessment minus
44 the taxes and special ad valorem levies imposed on the base assessment.
45 Such exemption shall not apply to special assessments.
46 (b) In the event the property granted an exemption pursuant to this
47 section ceases to be owner-occupied and/or the affidavit of residency is
48 not filed annually for the approved exemption period, the exemption
49 granted pursuant to this section shall cease.
50 (c) In the event the property granted an exemption pursuant to this
51 section ceases to be a one-family dwelling, the exemption granted pursu-
52 ant to this section shall cease.
53 (d) In the event the owner of the property is convicted of a violation
54 or misdemeanor pursuant to New York state uniform fire prevention and
55 building code or the [city's] municipality's municipal code, the
56 exemption granted pursuant to this section shall cease.
S. 6460 3
1 5. (a) Such redevelopment inhibited property shall be exempt for a
2 period equal to the gap financing costs divided by the incremental
3 increase in annual property taxes resulting from such redevelopment. The
4 exemption period shall be rounded up to the nearest whole number and
5 shall not exceed twenty-five years.
6 (b) The extent of such exemption shall decrease the last eight years
7 of the exemption period by twelve and one-half percent of the increase
8 in assessment due to the redevelopment equaling a zero percent exemption
9 on the final year of the exemption period.
10 6. (a) Such exemption shall be granted only upon application by the
11 owner of such building for the residential redevelopment inhibited prop-
12 erty exemption, on a form prescribed by the [city] municipality. Such
13 application must be filed with the assessor of the [city] municipality
14 on or before the appropriate taxable status date of such [city] munici-
15 pality. The application must be filed with the assessor of the [city]
16 municipality within three years from the date of completing the demoli-
17 tion, alterations, rehabilitation, and/or remediation.
18 (b) The owner filing for such exemption shall not be required to be
19 the owner responsible for completing the demolition, alterations, reha-
20 bilitation, and/or remediation.
21 (c) If the assessor is satisfied that the applicant is entitled to an
22 exemption pursuant to this section, he or she shall approve the applica-
23 tion and such real property shall thereafter be exempt from taxation and
24 special ad valorem levies by the [city] municipality commencing with the
25 assessment roll prepared after the taxable status date referred to in
26 this subdivision. The assessed value of any exemption granted pursuant
27 to this section shall be entered by the assessor of the [city] munici-
28 pality on the assessment roll with the taxable property, with the amount
29 of the exemption shown in a separate column.
30 (d) Once granted, the residential redevelopment inhibited property
31 exemption runs with the land for the exemption period pursuant to this
32 section.
33 § 2. This act shall take effect immediately.
