S T A T E O F N E W Y O R K
________________________________________________________________________
3878
2017-2018 Regular Sessions
I N S E N A T E
January 27, 2017
___________
Introduced by Sens. RANZENHOFER, AKSHAR, CROCI, SERINO, SEWARD -- read
twice and ordered printed, and when printed to be committed to the
Committee on Local Government
AN ACT to amend the real property tax law, in relation to authorizing a
residential redevelopment inhibited property exemption
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 485-r of the real property tax law, as added by
chapter 406 of the laws of 2015 and paragraph (f) of subdivision 1 as
amended by chapter 28 of the laws of 2016, is amended to read as
follows:
§ 485-r. Residential redevelopment inhibited property exemption[;
certain cities]. 1. As used in this section, the following terms shall
have the following meanings:
(a) "Redevelopment inhibited property" shall mean a residential prop-
erty that has been neglected or abandoned because of the local economic
conditions and/or conditions on the property that inhibit such property
from being redeveloped by the private sector. Redevelopment inhibited
property shall not include land that is undeveloped.
(b) "Gap financing costs" shall mean the total cost of the property's
redevelopment as approved by the [city] MUNICIPALITY minus the increase
in the full valuation of the property upon completion of the redevelop-
ment.
(c) "Base assessment" shall mean the assessed value of the property on
the day the [city] MUNICIPALITY designates the property as redevelopment
inhibited.
(d) "Increased assessment" shall mean the assessed value of the prop-
erty as determined by the assessor upon completion of the redevelopment.
(e) "Incremental increase in annual property taxes" shall mean the
taxes based on the increased assessment minus the taxes based on the
base assessment.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07927-01-7
S. 3878 2
(f) ["City" shall mean a city with a population of not less than
fifteen thousand two hundred fifty and not more than fifteen thousand
five hundred as determined by the latest federal decennial census.]
"MUNICIPALITY" MEANS ANY CITY, TOWN OR VILLAGE.
2. A [city] MUNICIPALITY may, by local law, provide for the exemption
of real property from taxation as provided in this section. Subsequent
to the adoption of such local law, the county in which such [city] MUNI-
CIPALITY is located may after a public hearing and by local law, and any
school district, all or part of which is located in such [city] MUNICI-
PALITY, may, by resolution, exempt such property from its taxation in
the same manner and to the same extent as the [city] MUNICIPALITY has
done.
3. A [city] MUNICIPALITY shall designate any property within the
[city] MUNICIPALITY'S boundaries as a redevelopment inhibited property
if one or more of the following are met:
(a) the [city] MUNICIPALITY has acquired title to the property pursu-
ant to article nineteen-A of the real property actions and proceedings
law; or
(b) the property has been continuously vacant for a period of at least
three years; or
(c) the [city] MUNICIPALITY has acquired title to the property via
foreclosure for unpaid taxes pursuant to article eleven of this chapter;
or
(d) the property has outstanding zoning, housing, or uniform code
violations and the cost of remedying the violations exceeds the proper-
ty's value.
4. (a) Upon the adoption of such local law, redevelopment inhibited
property shall be exempt from taxation and special ad valorem levies to
the extent of any increase in value attributable to demolition, alter-
ation, rehabilitation, or remediation pursuant to the following require-
ments:
(i) the demolition, alterations, rehabilitation, and/or remediation
shall be permitted by the [city's] MUNICIPALITY'S bureau of inspection
such that building or plumbing permits issued and said demolition,
alterations, rehabilitation, and/or remediation shall have met all
necessary approvals per the applicable New York state uniform fire
prevention and building code, the [city's] MUNICIPALITY'S municipal code
and the [city's] MUNICIPALITY'S bureau of inspection upon completion;
and
(ii) the property for which the exemption is sought shall be an
owner-occupied one-family residence; and
(iii) the owner of such property shall file annually an affidavit of
residency with the assessor of the [city] MUNICIPALITY on or before the
appropriate taxable status date of such [city] MUNICIPALITY, confirming
continued owner-occupancy of the property; and
(iv) the redevelopment inhibited property is exempt from taxation and
special ad valorem levies attributable to the increased assessment minus
the taxes and special ad valorem levies imposed on the base assessment.
Such exemption shall not apply to special assessments.
(b) In the event the property granted an exemption pursuant to this
section ceases to be owner-occupied and/or the affidavit of residency is
not filed annually for the approved exemption period, the exemption
granted pursuant to this section shall cease.
(c) In the event the property granted an exemption pursuant to this
section ceases to be a one-family dwelling, the exemption granted pursu-
ant to this section shall cease.
S. 3878 3
(d) In the event the owner of the property is convicted of a violation
or misdemeanor pursuant to New York state uniform fire prevention and
building code or the [city's] MUNICIPALITY'S municipal code, the
exemption granted pursuant to this section shall cease.
5. (a) Such redevelopment inhibited property shall be exempt for a
period equal to the gap financing costs divided by the incremental
increase in annual property taxes resulting from such redevelopment. The
exemption period shall be rounded up to the nearest whole number and
shall not exceed twenty-five years.
(b) The extent of such exemption shall decrease the last eight years
of the exemption period by twelve and one-half percent of the increase
in assessment due to the redevelopment equaling a zero percent exemption
on the final year of the exemption period.
6. (a) Such exemption shall be granted only upon application by the
owner of such building for the residential redevelopment inhibited prop-
erty exemption, on a form prescribed by the [city] MUNICIPALITY. Such
application must be filed with the assessor of the [city] MUNICIPALITY
on or before the appropriate taxable status date of such [city] MUNICI-
PALITY. The application must be filed with the assessor of the [city]
MUNICIPALITY within three years from the date of completing the demoli-
tion, alterations, rehabilitation, and/or remediation.
(b) The owner filing for such exemption shall not be required to be
the owner responsible for completing the demolition, alterations, reha-
bilitation, and/or remediation.
(c) If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the applica-
tion and such real property shall thereafter be exempt from taxation and
special ad valorem levies by the [city] MUNICIPALITY commencing with the
assessment roll prepared after the taxable status date referred to in
this subdivision. The assessed value of any exemption granted pursuant
to this section shall be entered by the assessor of the [city] MUNICI-
PALITY on the assessment roll with the taxable property, with the amount
of the exemption shown in a separate column.
(d) Once granted, the residential redevelopment inhibited property
exemption runs with the land for the exemption period pursuant to this
section.
§ 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.
