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A08324 Summary:

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A08324 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8324--A
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                    December 18, 2013
                                       ___________
 
        Introduced  by M. of A. MAGEE -- read once and referred to the Committee
          on Real Property Taxation -- recommitted  to  the  Committee  on  Real
          Property  Taxation  in  accordance  with  Assembly  Rule  3, sec. 2 --
          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 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-q to read as follows:
     3    § 485-q. Residential investment exemption; certain cities.   1.  Resi-
     4  dential real property constructed on or after the first day of July, two
     5  thousand  fourteen in cities with a population of not less than thirteen
     6  thousand five hundred and not more than fourteen thousand may be  exempt
     7  from  city  taxation  and  special ad valorem levies as provided in this
     8  section.

     9    2. (a) (i) Such real property shall be exempt for a period of one year
    10  to the extent of fifty per centum of  the  increase  in  assessed  value
    11  thereof  attributable  to such construction and for an additional period
    12  of nine years provided, however, that the extent of such exemption shall
    13  be decreased by five per centum each year during such additional  period
    14  of  nine  years and such exemption shall be computed with respect to the
    15  "exemption base". The exemption base shall be the increase  in  assessed
    16  value  as determined in the initial year of such ten year period follow-
    17  ing the filing of an original application, except as provided in subpar-
    18  agraph (ii) of this paragraph.

    19    (ii) In any year in which a change in level of assessment  of  fifteen
    20  percent or more is certified for a final assessment roll pursuant to the
    21  rules  of  the commissioner, the exemption base shall be multiplied by a
    22  fraction, the numerator of which shall be the total  assessed  value  of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11994-03-4
        A. 8324--A                          2
 
     1  the parcel on such final assessment roll (after accounting for any phys-
     2  ical  or  quantity changes to the parcel since the immediately preceding

     3  assessment roll), and the  denominator  of  which  shall  be  the  total
     4  assessed  value of the parcel on the immediately preceding final assess-
     5  ment roll. The result shall be the new  exemption  base.  The  exemption
     6  shall  thereupon  be  recomputed  to take into account the new exemption
     7  base, notwithstanding the fact that the assessor  receives  the  certif-
     8  ication  of  the  change  in  level  of assessment after the completion,
     9  verification and filing of the final assessment roll. In the  event  the
    10  assessor  does  not  have custody of the roll when such certification is
    11  received, the assessor shall certify the  recomputed  exemption  to  the
    12  local  officers  having  custody and control of the roll, and such local

    13  officers are hereby directed and  authorized  to  enter  the  recomputed
    14  exemption certified by the assessor on the roll. The assessor shall give
    15  written  notice  of such recomputed exemption to the property owner, who
    16  may, if he or she believes that the exemption was recomputed  incorrect-
    17  ly,  apply  for  a  correction  in the manner provided by title three of
    18  article five of this chapter for the correction of clerical errors.
    19    (iii) The following table shall illustrate the computation of the city
    20  tax exemption:
 
    21        Year of exemption                      Percentage of exemption
    22                1                                        50
    23                2                                        45

    24                3                                        40
    25                4                                        35
    26                5                                        30
    27                6                                        25
    28                7                                        20
    29                8                                        15
    30                9                                        10
    31               10                                         5
 
    32    (b) No such exemption shall be granted unless:
    33    (i) such construction was commenced on or after the first day of Janu-

    34  ary, two thousand fourteen or such later date as  may  be  specified  by
    35  local law;
    36    (ii)  the  residential real property is situate in a city with a popu-
    37  lation of not less than thirteen thousand five hundred and not more than
    38  fourteen thousand;
    39    (iii) the cost of such construction exceeds the sum of thirty thousand
    40  dollars or such greater amount as may be specified by local law; and
    41    (iv) such construction is completed as may be evidenced by  a  certif-
    42  icate of occupancy or other appropriate documentation as provided by the
    43  owner.
    44    (c)  For  purposes  of  this  section  the term construction shall not
    45  include ordinary maintenance and repairs.

    46    3. Such exemption shall be granted only upon application by the  owner
    47  of  such  real  property  on a form prescribed by the commissioner. Such
    48  application shall be filed with the assessor of a city with a population
    49  of not less than thirteen thousand five hundred and not more than  four-
    50  teen  thousand  on or before the appropriate taxable status date of such
    51  city  and  within  one  year  from  the  date  of  completion  of   such
    52  construction.
    53    4.  If  the assessor is satisfied that the applicant is entitled to an
    54  exemption pursuant to this section, he or she shall approve the applica-
        A. 8324--A                          3
 
     1  tion and such real property shall thereafter be exempt from taxation and

     2  special ad valorem levies by a city with a population of not  less  than
     3  thirteen  thousand  five  hundred and not more than fourteen thousand as
     4  provided  in  this  section commencing with the assessment roll prepared
     5  after the taxable status date referred to in subdivision three  of  this
     6  section.  The  assessed  value of any exemption granted pursuant to this
     7  section shall be entered by the assessor on the assessment roll with the
     8  taxable property, with the amount of the exemption shown in  a  separate
     9  column.
    10    5. The provisions of this section shall apply to real property used as
    11  the primary residence of the owner.
    12    6.  In  the  event that real property granted an exemption pursuant to

    13  this section ceases to be used  primarily  for  eligible  purposes,  the
    14  exemption granted pursuant to this section shall cease.
    15    7.  A  city  with a population of not less than thirteen thousand five
    16  hundred and not more than fourteen thousand may, by  local  law,  reduce
    17  the  per centum of exemption otherwise allowed pursuant to this section;
    18  provided,  however,  that  a  project  in  course  of  construction  and
    19  exemptions existing prior in time to passage of any such local law shall
    20  not  be  subject  to  any  such  reduction  so  effected. Such city upon
    21  reduction of the per centum of exemption pursuant  to  this  subdivision
    22  may thereafter, by local law, increase the per centum of exemption up to

    23  any  per  centum not exceeding the maximum allowed by subdivision two or
    24  eleven of this section, whichever is applicable, provided, however, that
    25  any such local law shall apply only to construction commenced subsequent
    26  to the effective date of such local law. A copy of all such  local  laws
    27  shall be filed with the commissioner and the assessor of the city.
    28    8.  A  city  with a population of not less than thirteen thousand five
    29  hundred and not more than fourteen thousand may, by local law, establish
    30  a date for the commencement of effectiveness of exemption offered pursu-
    31  ant to this section and may provide that the provisions of this  section
    32  shall apply only to construction having a greater value than that speci-

    33  fied  by  subdivision  two of this section, provided, however, that such
    34  amount shall not exceed seventy thousand dollars.
    35    9. (a) A city with a population of not  less  than  thirteen  thousand
    36  five  hundred  and  not  more  than fourteen thousand may, by local law,
    37  establish a board to be known as the residential  incentive  board.  The
    38  membership and composition of such board shall be set forth in the local
    39  law.
    40    (b) The residential incentive board shall present a plan to the legis-
    41  lative  body of a city with a population of not less than thirteen thou-
    42  sand five hundred and not more than  fourteen  thousand  concerning  the
    43  various  types  of  residential  real  property  which should be granted

    44  eligibility for  an  exemption  pursuant  to  subdivision  one  of  this
    45  section.  Such  plan  shall  make  a  recommendation  as  to whether the
    46  exemption be computed as provided in subdivision two or eleven  of  this
    47  section. In addition, such plan shall identify specific geographic areas
    48  within  which  such exemptions should be offered. In developing the plan
    49  required by this paragraph, the board shall consider the planning objec-
    50  tives of a city with a population of not  less  than  thirteen  thousand
    51  five  hundred  and not more than fourteen thousand, the necessity of the
    52  exemption to the attraction or retention of home owners and the economic
    53  benefit to the area of providing exemptions to home owners.

    54    (c) In addition, the board may make recommendations to the legislative
    55  body of a city with a population of not less than thirteen thousand five
        A. 8324--A                          4
 
     1  hundred and not more than fourteen thousand with respect to  actions  it
     2  deems desirable to improve the economic climate therein.
     3    10.  If  a  city  with a population of not less than thirteen thousand
     4  five hundred and not more than fourteen thousand establishes a  residen-
     5  tial incentive board, pursuant to subdivision nine of this section, such
     6  city  may,  by local law, restrict real property eligible to receive the
     7  exemption to real property constructed for those purposes identified  in

     8  the  plan  presented  by  the  board.  Such local law shall restrict the
     9  availability of such exemption to the specific geographic areas  identi-
    10  fied in the plan presented by the board.
    11    11. Notwithstanding subdivision two of this section, where a city with
    12  a  population  of  not  less than thirteen thousand five hundred and not
    13  more than fourteen thousand adopts  restricted  exemptions  pursuant  to
    14  subdivision  ten  of  this  section, the local law may provide that such
    15  exemptions shall be computed pursuant to the following accelerated stra-
    16  tegic exemption schedule:
 
    17        Year of exemption                      Percentage of exemption
    18                1                                        50

    19                2                                        45
    20                3                                        40
    21                4                                        35
    22                5                                        30
    23                6                                        25
    24                7                                        20
    25                8                                        15
    26                9                                        10
    27               10                                         5
 
    28    Provided however, that such local law shall:

    29    (i) contain findings that the adoption of this  accelerated  strategic
    30  exemption schedule is necessary to encourage targeted residential devel-
    31  opment, and that the value of the exemptions to be provided is justified
    32  by the need to broaden the tax base; and
    33    (ii)  limit  the  applicability of such schedule to projects where the
    34  cost of such construction exceeds the sum of seventy  thousand  dollars;
    35  and
    36    (iii)  provide that such exemptions are restricted by geographic areas
    37  as provided by subdivision ten of this section.
    38    § 2. This act shall take effect immediately.