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S05244 Summary:

S05244 Actions:

S05244 Committee Votes:

S05244 Floor Votes:

S05244 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5244--A
            Cal. No. 793
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                     March 16, 2017
                                       ___________
 
        Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
          printed to be committed  to  the  Committee  on  Local  Government  --
          reported  favorably  from  said committee, ordered to first and second
          report, ordered to a third reading,  amended  and  ordered  reprinted,
          retaining its place in the order of third reading

        AN  ACT  to amend the real property tax law, in relation to establishing
          an owner occupied residential property exemption  program  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-t to read as follows:
     3    §  485-t.  Owner  occupied  residential property exemption program. 1.
     4  Definitions. As used in this section, the following terms shall have the
     5  following meanings:
     6    (a) "Applicant" means any person obligated to pay real property  taxes
     7  on real property, which he or she owns and upon which he or she resides,
     8  or  will reside and for which an exemption from taxes under this section
     9  is sought.
    10    (b) "Municipality" means any city having a population of not less than
    11  thirty-one thousand one hundred forty and not more than thirty-one thou-
    12  sand one hundred fifty as determined by  the  latest  federal  decennial
    13  census.
    14    (c) "Residential construction work" means (i) the creation, moderniza-
    15  tion, rehabilitation, expansion or other improvement of single family or
    16  two  family  residential  property that is vacant, legally condemned and
    17  has outstanding state and local building and fire code violations, where
    18  the cost of remedying such violations exceeds the value of such  proper-
    19  ty; or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10546-07-7
        S. 5244--A                          2
 
     1    (ii)  the  construction of a new single or two family residence of not
     2  less than one thousand two hundred square feet on a parcel upon which  a
     3  prior structure was demolished.
     4    2.  A  municipality,  may,  by local law, provide for the exemption of
     5  owner occupied residential property, which has been subject to  residen-
     6  tial  construction  work,  from  taxation  as  provided in this section.
     7  Subsequent to the adoption of such a local law, the county in which such
     8  municipality is located may, by local law, and any school district,  all
     9  or  part  of  which is located in such municipality, may, by resolution,
    10  exempt such property from its taxation in the same  manner  and  to  the
    11  same extent as such municipality has done.
    12    3.  Upon  the adoption of such a local law the owner occupied residen-
    13  tial property that was created, modernized, rehabilitated,  expanded  or
    14  otherwise improved, shall be exempt from taxation and special ad valorem
    15  levies as provided for in subdivision four of this section.
    16    4.  (a)  (i) For a period of eleven years following the approval of an
    17  application, the increase in assessed value of such  property  attribut-
    18  able to such creation, modernization, rehabilitation, expansion or other
    19  improvement  shall  be  exempt  as provided in subparagraph (ii) of this
    20  paragraph.  Such  exemption  shall  be  computed  with  respect  to  the
    21  "exemption  base".  The exemption base shall be determined for each year
    22  in which there is an increase in assessed  value  so  attributable  from
    23  that of the previous year's assessed value.
    24    (ii)  The  following  shall  determine  the  computation  of  the  tax
    25  exemption:
 
    26  Year of exemption   Percentage of exemption
    27     1 through 3      100% of exemption base
    28     4 through 5      80% of exemption base
    29     6 through 7      60% of exemption base
    30     8 through 9      40% of exemption base
    31     10 through 11    20% of exemption base
 
    32    (b) No such exemption shall be granted unless:
    33    (i) such creation, modernization, rehabilitation, expansion  or  other
    34  improvement  was  commenced  subsequent to the date on which the munici-
    35  pality's local law took effect;
    36    (ii) the cost of such creation, modernization, rehabilitation,  expan-
    37  sion  or  other  improvement  exceeds the sum of ten thousand dollars or
    38  such greater amount as may be specified by local law;
    39    (iii) the building department has issued a  certificate  of  occupancy
    40  following the completion of the residential construction work; and
    41    (iv)  the  property complies with all applicable codes and zoning laws
    42  of the city.
    43    (c) For purposes of this section the  term  "creation,  modernization,
    44  rehabilitation,  expansion or other improvement" shall not include ordi-
    45  nary maintenance and repairs.
    46    (d) No such exemption shall be granted concurrent with  or  subsequent
    47  to  any  other  real property tax exemption granted to the same improve-
    48  ments to real property, except, where during the period of such previous
    49  exemption, payments in lieu of taxes or other payments were made to  the
    50  municipality  in an amount that would have been equal to or greater than
    51  the amount of real property taxes that would  have  been  paid  on  such
    52  improvements  had  such  property  been granted an exemption pursuant to
    53  this section. In such case, an exemption shall be granted for  a  number
    54  of  years  equal  to  the eleven year exemption granted pursuant to this
        S. 5244--A                          3
 
     1  section less the number of years the property would have been previously
     2  exempt from real property taxes.
     3    5.  (a)  Such  exemption  shall be granted only upon application by an
     4  owner who resides or certifies that he or she will reside  on  the  real
     5  property  on  a  form  prescribed  by the commissioner. Such application
     6  shall be filed with the assessor on or before  the  appropriate  taxable
     7  status date.
     8    (b) Such application must include information that discloses the scope
     9  of work to be undertaken and shall contain cost estimates and quotes for
    10  such  work  from  contractors,  plumbers and electricians licensed to do
    11  business within the municipality.
    12    (c) The application and the scope of work shall  be  reviewed  by  the
    13  municipal  housing code enforcement officer and the appropriate fire and
    14  building code enforcement officer who shall  ensure  that  all  proposed
    15  work  complies with the provisions of the New York state fire prevention
    16  and building code and all applicable municipal codes and ordinances.
    17    6. If the assessor is satisfied that the applicant is entitled  to  an
    18  exemption pursuant to this section, he or she shall approve the applica-
    19  tion and such real property shall thereafter be exempt from taxation and
    20  special  ad  valorem  levies as provided in this section commencing with
    21  the assessment roll prepared after the taxable status date  referred  to
    22  in  subdivision  five  of  this  section.    The  assessed  value of any
    23  exemption granted pursuant to this  section  shall  be  entered  by  the
    24  assessor  on  the  assessment  roll  with the taxable property, with the
    25  amount of the exemption shown in a separate column.
    26    § 2. This act shall take effect immediately.