STATE OF NEW YORK
________________________________________________________________________
1890
2011-2012 Regular Sessions
IN SENATE
January 13, 2011
___________
Introduced by Sens. OPPENHEIMER, DIAZ, PARKER, SAMPSON -- 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 exempting
certain construction, reconstruction, alteration or improvement of
multiple dwelling buildings within certain cities from taxation and
other assessments
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-l to read as follows:
3 § 421-l. Exemption of certain construction or improvements in certain
4 cities. 1. New construction of a multiple dwelling building, recon-
5 struction, alteration, or improvement of a preexisting multiple dwelling
6 building or structure which is to be occupied or is occupied as a resi-
7 dence or home and consists of no less than four units, whether such
8 dwelling is rented or owned as a cooperative or condominium, and is
9 located in any city having a population of more than fifty-three thou-
10 sand seventy but less than fifty-three thousand one hundred as deter-
11 mined by the two thousand federal decennial census shall be exempt from
12 taxation other than assessments for local improvements, to the extent
13 provided in this section. After a public hearing, the governing board of
14 such city may adopt a local law to grant the exemption authorized pursu-
15 ant to this section. A copy of such local law shall be filed with the
16 commissioner and the assessor of such city who prepares the assessment
17 roll on which the taxes of such city are levied.
18 2. (a) Except as otherwise provided herein, such buildings within such
19 city shall be exempt during the period of construction or for a period
20 of three years immediately following the commencement of construction,
21 whichever occurs earlier, and then for a period of eleven years there-
22 after, to the extent of one hundred percent of the increase in assessed
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06325-02-1
S. 1890 2
1 value attributable to such construction, reconstruction, alteration or
2 improvement, and for an additional period of four years as provided
3 below and, subject, in each case, to the following:
4 (i) following such eleven year period, the extent of such exemption
5 shall be decreased by twenty percent of the "exemption base" each year
6 during such additional four year period. The "exemption base" shall be
7 the increase in assessed value as determined in the initial year of the
8 term of the exemption, except as provided in subparagraph (ii) of this
9 paragraph.
10 (ii) in any year in which a change in level of assessment of fifteen
11 percent or more is certified for a final assessment roll pursuant to the
12 rules of the commissioner, the exemption base shall be multiplied by a
13 fraction, the numerator of which shall be the total assessed value of
14 the parcel on such final assessment roll (after accounting for any phys-
15 ical or quantity changes to the parcel since the immediately preceding
16 assessment roll), and the denominator of which shall be the total
17 assessed value of the parcel on the immediately preceding final assess-
18 ment roll. The result shall be the new exemption base. The exemption
19 shall thereupon be recomputed to take into account the new exemption
20 base, notwithstanding the fact that the assessor receives certification
21 of the change in level of assessment after the completion, verification
22 and filing of the final assessment roll. In the event the assessor does
23 not have custody of the roll when such certification is received, the
24 assessor shall certify the recomputed exemption to the local officers
25 having custody and control of the roll, and such local officers are
26 hereby directed and authorized to enter the recomputed exemption certi-
27 fied by the assessor on the roll. The assessor shall give written notice
28 of such recomputed exemption to the property owner, who may, if he or
29 she believes that the exemption was recomputed incorrectly, apply for a
30 correction in the manner provided by title three of article five of this
31 chapter for the correction of clerical errors.
32 (b) No such exemption shall be granted for construction, recon-
33 struction, alterations or improvements unless:
34 (i) such construction, reconstruction, alteration or improvement was
35 commenced subsequent to the effective date of the local law adopted
36 pursuant to subdivision one of this section by such city; and
37 (ii) the value of the construction, reconstruction, alteration or
38 improvement exceeds, on average, fifteen thousand dollars per dwelling
39 unit; and
40 (iii) the construction, reconstruction, alteration or improvement is
41 financed in whole or in part by the city, or, with the approval of the
42 governing body of the city, by the local urban renewal agency, the local
43 housing authority or another public benefit corporation; and
44 (iv) either the city, the local urban renewal agency, the local hous-
45 ing authority or another public benefit corporation has imposed a
46 requirement or has certified that twenty percent of the units be afford-
47 able to families of low and moderate income, for such period and under
48 such conditions as may be established from time to time by the city
49 pursuant to a local law.
50 (c) For purposes of this section the terms construction, recon-
51 struction, alteration and improvement shall not include ordinary mainte-
52 nance and repairs.
53 3. Such exemption shall be granted only upon application by the owner
54 of such building on a form prescribed by the commissioner. The applica-
55 tion shall be filed with the assessor of such city on or before the
56 appropriate taxable status date of such city.
S. 1890 3
1 4. If satisfied that the applicant is entitled to an exemption pursu-
2 ant to this section, the assessor shall approve the application and such
3 building shall thereafter be exempt from taxation as provided in this
4 section commencing with the assessment roll prepared on the basis of the
5 taxable status date referred to in subdivision three of this section.
6 The assessed value of any exemption granted pursuant to this section
7 shall be entered by the assessor on the assessment roll with the taxable
8 property, with the amount of the exemption shown in a separate column.
9 5. In the event that a building granted an exemption pursuant to this
10 section ceases to be used primarily for residential purposes or any
11 condition to the exemption established by a local law is no longer
12 satisfied, the exemption granted pursuant to this section shall cease.
13 6. In addition to the above payments, during any period in which a
14 full or partial exemption established above is still in effect, the
15 owner shall pay in each tax year in which such full or partial exemption
16 is in effect, real property taxes and assessments as follows:
17 (a) real property taxes on the assessed valuation of such land and any
18 improvements thereon in effect during the tax year preceding the
19 commencement of such construction without regard to any exemption or
20 abatement from real property taxation in effect prior to such
21 construction which real property taxes shall be calculated on the tax
22 rate in effect at the time such taxes are due; and
23 (b) all assessments for local improvements.
24 7. (a) The enactment of a local law in such city may:
25 (i) reduce the percent or period of exemption otherwise allowed pursu-
26 ant to this section;
27 (ii) limit eligibility for the exemption to those forms of
28 construction, reconstruction, alterations or improvements as are
29 prescribed in such law or resolution;
30 (iii) provide that the exemption shall be applicable only to those
31 improvements which would otherwise result in an increase in the assessed
32 valuation of the real property but which consist of an addition, remod-
33 eling or modernization to an existing owner occupied multiple residence
34 structure to prevent physical deterioration of the structure or to
35 comply with applicable building, sanitary, health and/or fire codes; and
36 (iv) provide terms and conditions under which the city, or, if author-
37 ized by a local law, a local urban renewal agency, may require the
38 recapture of the benefits conferred hereunder in whole or in part,
39 including requirements to maintain all or a portion of the building as
40 affordable units for families of low or moderate income for a period
41 which may exceed the period for which an exemption is granted.
42 (b) No such local law shall reduce or repeal an exemption granted
43 pursuant to this section until the expiration of the period for which
44 such exemption was granted.
45 8. (a) As used in this subdivision, the following terms shall have the
46 following meanings:
47 (i) "Building service employee" means any person who is regularly
48 employed at a building who performs work in connection with the care or
49 maintenance of such building. "Building service employee" includes, but
50 is not limited to watchman, guard, doorman, building cleaner, porter,
51 handyman, janitor, gardener, groundskeeper, elevator operator and start-
52 er, and window cleaner.
53 (ii) "Prevailing wage" means the wage determined by the fiscal officer
54 to be prevailing for the various classes of building service employees
55 in the locality pursuant to section two hundred thirty of the labor law.
S. 1890 4
1 (b) No exemption under this section shall be granted for any
2 construction, reconstruction, alterations, or improvements unless the
3 applicant agrees that all building service employees employed at the
4 building, whether employed directly by the applicant or its successors,
5 or through a property management company or a contractor, shall receive
6 the applicable prevailing wage for the duration of the building's tax
7 exemption.
8 9. No additional exemptions shall apply.
9 § 2. This act shall take effect immediately.
