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S05196 Summary:

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S05196 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5196--A
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                       May 7, 2015
                                       ___________
 
        Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
          when printed to be committed to the Committee on Local  Government  --
          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 authorizing  a
          residential  redevelopment  inhibited  property  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-r 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 minus the increase in the full
    13  valuation of the property upon completion of the redevelopment.
    14    (c) "Base assessment" shall mean the assessed value of the property on
    15  the day the city designates the property as redevelopment inhibited.
    16    (d) "Increased assessment" shall mean the assessed value of the  prop-
    17  erty as determined by the assessor upon completion of the redevelopment.
    18    (e)  "Incremental  increase  in  annual property taxes" shall mean the
    19  taxes based on the increased assessment minus the  taxes  based  on  the
    20  base assessment.
    21    (f)  "City"  shall  mean  cities  with  a  population of not less than
    22  fifteen thousand two hundred fifty and not more  than  fifteen  thousand
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10793-02-5
        S. 5196--A                          2
 
     1  five  hundred as determined by the federal decennial census for the year
     2  two thousand ten.
     3    2. A city may, by local law, provide for the exemption of real proper-
     4  ty from taxation as provided in this section. Subsequent to the adoption
     5  of  such local law, the county in which such city is located may after a
     6  public hearing and by local law, and any school district, all or part of
     7  which is located in such city, may, by resolution, exempt such  property
     8  from  its taxation in the same manner and to the same extent as the city
     9  has done.
    10    3. A city shall designate any property within the city boundaries as a
    11  redevelopment inhibited property if one or more  of  the  following  are
    12  met:
    13    (a)  the  city  has acquired title to the property pursuant to article
    14  nineteen-A of the real property actions and proceedings law; or
    15    (b) the property has been continuously vacant for a period of at least
    16  three years; or
    17    (c) the city has acquired title to the property  via  foreclosure  for
    18  unpaid taxes pursuant to article eleven of this chapter; or
    19    (d)  the  property  has  outstanding  zoning, housing, or uniform code
    20  violations and the cost of remedying the violations exceeds the  proper-
    21  ty's value.
    22    4.  (a)  Upon  the adoption of such local law, redevelopment inhibited
    23  property shall be exempt from taxation and special ad valorem levies  to
    24  the  extent  of any increase in value attributable to demolition, alter-
    25  ation, rehabilitation, or remediation pursuant to the following require-
    26  ments:
    27    (i) the demolition, alterations,  rehabilitation,  and/or  remediation
    28  shall be permitted by the city's bureau of inspection such that building
    29  or  plumbing  permits issued and said demolition, alterations, rehabili-
    30  tation, and/or remediation shall have met all  necessary  approvals  per
    31  the applicable New York state uniform fire prevention and building code,
    32  the  city's  municipal  code  and  the  city's bureau of inspection upon
    33  completion; and
    34    (ii) the property for which  the  exemption  is  sought  shall  be  an
    35  owner-occupied one-family residence; and
    36    (iii)  the  owner of such property shall file annually an affidavit of
    37  residency with the assessor of the city on  or  before  the  appropriate
    38  taxable  status  date of such city, confirming continued owner-occupancy
    39  of the property; and
    40    (iv) the redevelopment inhibited property is exempt from taxation  and
    41  special ad valorem levies attributable to the increased assessment minus
    42  the  taxes and special ad valorem levies imposed on the base assessment.
    43  Such exemption shall not apply to special assessments.
    44    (b) In the event the property granted an exemption  pursuant  to  this
    45  section ceases to be owner-occupied and/or the affidavit of residency is
    46  not  filed  annually  for  the  approved exemption period, the exemption
    47  granted pursuant to this section shall cease.
    48    (c) In the event the property granted an exemption  pursuant  to  this
    49  section ceases to be a one-family dwelling, the exemption granted pursu-
    50  ant to this section shall cease.
    51    (d) In the event the owner of the property is convicted of a violation
    52  or  misdemeanor  pursuant  to New York state uniform fire prevention and
    53  building code or the city's municipal code, the exemption granted pursu-
    54  ant to this section shall cease.
    55    5. (a) Such redevelopment inhibited property shall  be  exempt  for  a
    56  period  equal  to  the  gap  financing  costs divided by the incremental
        S. 5196--A                          3
 
     1  increase in annual property taxes resulting from such redevelopment. The
     2  exemption period shall be rounded up to the  nearest  whole  number  and
     3  shall not exceed twenty-five years.
     4    (b)  The  extent of such exemption shall decrease the last eight years
     5  of the exemption period by twelve and one-half percent of  the  increase
     6  in assessment due to the redevelopment equaling a zero percent exemption
     7  on the final year of the exemption period.
     8    6.  (a)  Such  exemption shall be granted only upon application by the
     9  owner of such building for the residential redevelopment inhibited prop-
    10  erty exemption, on a form prescribed by the city. Such application  must
    11  be  filed  with  the  assessor  of the city on or before the appropriate
    12  taxable status date of such city. The application must be filed with the
    13  assessor of the city within three years from the date of completing  the
    14  demolition, alterations, rehabilitation, and/or remediation.
    15    (b)  The  owner  filing for such exemption shall not be required to be
    16  the owner responsible for completing the demolition, alterations,  reha-
    17  bilitation, and/or remediation.
    18    (c)  If the assessor is satisfied that the applicant is entitled to an
    19  exemption pursuant to this section, he or she shall approve the applica-
    20  tion and such real property shall thereafter be exempt from taxation and
    21  special ad valorem levies by the city  commencing  with  the  assessment
    22  roll prepared after the taxable status date referred to in this subdivi-
    23  sion.  The  assessed  value  of  any  exemption granted pursuant to this
    24  section shall be entered by the assessor of the city on  the  assessment
    25  roll  with  the taxable property, with the amount of the exemption shown
    26  in a separate column.
    27    (d) Once granted, the  residential  redevelopment  inhibited  property
    28  exemption  runs  with the land for the exemption period pursuant to this
    29  section.
    30    § 2. This act shall take effect immediately.