STATE OF NEW YORK
________________________________________________________________________
3852
2025-2026 Regular Sessions
IN ASSEMBLY
January 30, 2025
___________
Introduced by M. of A. WILLIAMS -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to exemption of
capital improvements to residential 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 in a special assessing unit that is not a city, such
6 exemption shall be limited to [eighty] one hundred sixty-eight thousand
7 dollars in increased market value, or such other sum less than [eighty]
8 one-hundred sixty-eight thousand dollars, but not less than five thou-
9 sand dollars as may be provided by the local law or resolution, of the
10 property attributable to such reconstruction, alteration or improvement
11 and any increase in market value greater than such amount shall not be
12 eligible for the exemption pursuant to this section. In a special
13 assessing unit that is not a city, the exemption shall be limited to
14 seven hundred fifty thousand dollars in increased market value. For the
15 purposes of this section, the market value of the reconstruction, alter-
16 ation or improvement, or new construction as authorized by subdivision
17 one-a of this section, shall be equal to the increased assessed value
18 attributable to such reconstruction, alteration, improvement or new
19 construction divided by the class one ratio in a special assessing unit
20 or the most recently established state equalization rate or special
21 equalization rate in the remainder of the state, except where the state
22 equalization rate or special equalization rate equals or exceeds nine-
23 ty-five percent, in which case the increase in assessed value attribut-
24 able to such reconstruction, alteration, improvement or new construction
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07307-01-5
A. 3852 2
1 shall be deemed to equal the market value of such reconstruction, alter-
2 ation or improvement.
3 § 2. Subparagraph (iii) of paragraph (a) of subdivision 2 of section
4 421-f of the real property tax law, as amended by chapter 590 of the
5 laws of 1994, is amended to read as follows:
6 (iii) Such exemption shall be limited to [eighty] one hundred sixty-
7 eight thousand dollars in increased market value, or such other sum less
8 than [eighty] one hundred sixty-eight thousand dollars, but not less
9 than five thousand dollars as may be provided by the local law or resol-
10 ution, of the property attributable to such reconstruction, alteration
11 or improvement and any increase in market value greater than such amount
12 shall not be eligible for the exemption pursuant to this section. For
13 the purposes of this section, the market value of the reconstruction,
14 alteration or improvement shall be equal to the increased assessed value
15 attributable to such reconstruction, alteration or improvement divided
16 by the class I ratio in a special assessing unit or the most recently
17 established state equalization rate or special equalization rate in the
18 remainder of the state, except where the state equalization rate or
19 special equalization rate equals or exceeds ninety-five percent, in
20 which case the increase in assessed value attributable to such recon-
21 struction, alteration or improvement shall be deemed to equal the market
22 value of such reconstruction, alteration or improvement.
23 § 3. This act shall take effect immediately; provided that the amend-
24 ments to subparagraph (iii) of paragraph (a) of subdivision 2 of
25 section 421-f of the real property tax law made by section one of this
26 act shall be subject to the expiration and reversion of such subdivision
27 when upon such date the provisions of section two of this act shall take
28 effect.
