Establishes an exemption from local taxation in cities having a population of one million or more for newly constructed housing with 3 or less dwelling units.
STATE OF NEW YORK
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4381--A
Cal. No. 1034
2011-2012 Regular Sessions
IN SENATE
April 1, 2011
___________
Introduced by Sens. YOUNG, LANZA, SAVINO -- read twice and ordered
printed, and when printed to be committed to the Committee on Housing,
Construction and Community Development -- reported favorably from said
committee, ordered to first report, amended on first report, ordered
to a second report and ordered reprinted, retaining its place in the
order of second report
AN ACT to amend the real property tax law, in relation to exemption of
newly constructed private homes from local taxation in cities with a
population of one million or more
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 private homes from local taxation. 1.
4 For purposes of this section, the following terms shall have the follow-
5 ing meanings:
6 (a) "Commence construction" shall mean that the agency or department
7 of the city having jurisdiction has issued a permit for construction of
8 a private home and such work has begun in good faith in accordance with
9 such permit on or before April first, two thousand fourteen.
10 (b) "Complete construction" shall mean that the agency or department
11 of the city having jurisdiction has issued a temporary or permanent
12 certificate of occupancy for all residential areas of the private home.
13 (c) "Eligible project" shall mean a newly constructed private home,
14 including both land and improvements, to be occupied as a residence for
15 the first time, which commences construction on or after July first, two
16 thousand ten and on or before December thirty-first, two thousand four-
17 teen, and completes construction no later than December thirty-first,
18 two thousand sixteen, and which is designed and occupied exclusively for
19 residential purposes.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10569-07-1
S. 4381--A 2
1 (d) "Exemption commencement date" shall mean the first taxable status
2 date after the later to occur of the completion of such construction or
3 the sale to the initial purchaser or, in the case of a private home in a
4 condominium form of ownership, the first taxable status date after the
5 later to occur of the completion of such construction or the sale to the
6 first initial purchaser of a condominium dwelling unit in such private
7 home.
8 (e) "Initial purchaser" shall mean the first purchaser of a newly
9 constructed private home or, in the case of a private home in a condo-
10 minium form of ownership, the first purchaser of each dwelling unit in
11 such newly constructed private home.
12 (f) "Local housing agency" shall mean an "agency" as defined pursuant
13 to section six hundred ninety-two of the general municipal law.
14 (g) "Purchase price" shall mean the actual purchase price to be paid
15 for the private home by the initial purchaser.
16 (h) "Maximum purchase price" shall mean the purchase price of a
17 private home which, if exceeded, will make any exemption pursuant to
18 this section unavailable.
19 (i) "Maximum purchase price limits" shall be as defined by the state
20 of New York mortgage agency low interest rate mortgage program in the
21 non-target category for the county where such property is located, or in
22 the case of an individual condominium unit, four hundred thousand
23 dollars.
24 (j) "Multiple dwelling" shall mean a multiple dwelling within the
25 meaning of section four of the multiple dwelling law.
26 (k) "Private home" shall mean an owner occupied private or multiple
27 dwelling containing not more than three dwelling units, as indicated on
28 the certificate of occupancy for such structure.
29 2. (a) Within a city having a population of one million or more, an
30 eligible project shall be exempt from all local and municipal taxes,
31 other than assessments for local improvements, during the tax year or
32 years next following the exemption commencement date as follows: with
33 respect to private homes containing less than four dwelling units, two
34 years of exemption from all such taxes; followed by one year of
35 exemption from seventy-five percent of such taxes; followed by one year
36 of exemption from sixty-two and one-half percent of such taxes; followed
37 by one year of exemption from fifty percent of such taxes; followed by
38 one year of exemption from thirty-seven and one-half percent of such
39 taxes; followed by one year of exemption from twenty-five percent of
40 such taxes; and followed by one year of exemption from twelve and one-
41 half percent of such taxes.
42 (b) Notwithstanding the provisions of paragraph (a) of this subdivi-
43 sion, exemption from local and municipal taxes under this section shall
44 not be available to the tax lot (land and improvements) upon which a
45 private home is constructed if any portion of such tax lot (land and
46 improvements): (i) is exempt from local and municipal taxes under any
47 other provision of law; or (ii) contains a private home that exceeds the
48 maximum purchase price or an individual condominium unit that exceeds a
49 purchase price of four hundred thousand dollars; or (iii) previously
50 contained a private or multiple dwelling that has been fully demolished
51 or removed, and less than three years have elapsed between the date of
52 issuance of the permit authorizing such demolition and removal and the
53 date that the new private home commences construction.
54 (c) Notwithstanding the provisions of paragraph (a) of this subdivi-
55 sion, the tax lot (land and improvements) upon which the private home is
56 constructed shall at all times be subject to local and municipal taxes
S. 4381--A 3
1 in an amount not less than the amount of local and municipal taxes that
2 would be payable thereon based upon the assessed valuation of the land
3 appearing on the assessment roll in the first year after completion of
4 construction.
5 3. (a) Based on the certification of the local housing agency pursuant
6 to this section certifying eligibility for exemption pursuant to this
7 section, the department of finance of the city of New York shall imple-
8 ment the amount of exemption from local and municipal taxes.
9 (b) The local housing agency may promulgate rules and regulations to
10 carry out the provisions of this section and may require payment of a
11 non-refundable filing fee in the amount of two hundred dollars per
12 dwelling unit for each application for tax exemption pursuant to this
13 section.
14 (c) Upon a finding by the local housing agency or by another agency
15 designated by such local housing agency that a private home is not being
16 used for residential purposes, is the subject of a violation for an
17 illegal occupancy, or not owner occupied, exemption from taxation under
18 this section shall be revoked and shall terminate prospectively;
19 provided, however, that in the case of an illegal occupancy, the owner
20 shall repay all taxes, with interest, from which such private home was
21 exempted and such amount, if unpaid, shall become a tax lien against the
22 property.
23 § 2. This act shall take effect immediately, and no exemption shall be
24 allowed pursuant to this act for any construction which is commenced
25 after April 1, 2014.
