S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10649
 
                           I N  A S S E M B L Y
 
                               June 17, 2020
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Lavine) --
   read once and referred to the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to authorizing an
   exemption for class one capital improvements to residential  buildings
   and certain new construction in a special assessing unit that is not a
   city

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The section heading of section 421-f of the  real  property
 tax  law,  as  amended by chapter 590 of the laws of 1994, is amended to
 read as follows:
   Exemption of capital improvements to residential buildings AND CERTAIN
 NEW CONSTRUCTION.
   § 2. Section 421-f of the real property tax law is amended by adding a
 new subdivision 1-a to read as follows:
   1-A. BUILDINGS CLASSIFIED AS CLASS ONE PROPERTY  IN  SECTION  EIGHTEEN
 HUNDRED  TWO  OF THIS CHAPTER RECONSTRUCTED, ALTERED, IMPROVED, OR NEWLY
 CONSTRUCTED IN A SPECIAL ASSESSING UNIT THAT IS  NOT  A  CITY  SHALL  BE
 EXEMPT  FROM  TAXATION  AND SPECIAL AD VALOREM LEVIES IN THE SAME MANNER
 AND TO THE SAME EXTENT AS COUNTY,  TOWN,  SPECIAL  DISTRICT  AND  SCHOOL
 DISTRICT  TAXES  LEVIED  ON THE ASSESSMENT ROLL PREPARED BY SUCH SPECIAL
 ASSESSING UNIT. AN APPLICATION SHALL NOT  BE  REQUIRED  TO  RECEIVE  THE
 EXEMPTION.
   §  3.  Subdivisions  2 and 3 of section 421-f of the real property tax
 law, as amended by chapter 590 of the laws of 1994, subparagraph (ii) of
 paragraph (a) of subdivision 2 and subdivision 3 as further  amended  by
 subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
 2010, are amended to read as follows:
   2. (a) Such buildings shall be exempt for a period of one year to  the
 extent of one hundred per centum of the increase in assessed value ther-
 eof  attributable to such reconstruction, alteration or improvement, AND
 NEW CONSTRUCTION PURSUANT TO SUBDIVISION ONE-A OF THIS SECTION, and  for
 an additional period of seven years subject to the following:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16543-02-0

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   (i)  The  extent  of  such  exemption shall be decreased by twelve and
 one-half per centum of the "exemption base" each year during such  addi-
 tional  period.  The  "exemption base" shall be the increase in assessed
 value as determined in the initial year of the term  of  the  exemption,
 except as provided in subparagraph (ii) of this paragraph.
   (ii)  In  any year in which a change in level of assessment of fifteen
 percent or more is certified for a final assessment roll pursuant to the
 rules of the commissioner, the exemption base shall be multiplied  by  a
 fraction,  the  numerator  of which shall be the total assessed value of
 the parcel on such final assessment roll (after accounting for any phys-
 ical or quantity changes to the parcel since the  immediately  preceding
 assessment  roll),  and  the  denominator  of  which  shall be the total
 assessed value of the parcel on the immediately preceding final  assess-
 ment  roll.  The  result  shall be the new exemption base. The exemption
 shall thereupon be recomputed to take into  account  the  new  exemption
 base,  notwithstanding the fact that the assessor receives certification
 of the change in level of assessment after the completion,  verification
 and  filing of the final assessment roll. In the event the assessor does
 not have custody of the roll when such certification  is  received,  the
 assessor  shall  certify  the recomputed exemption to the local officers
 having custody and control of the roll,  and  such  local  officers  are
 hereby  directed and authorized to enter the recomputed exemption certi-
 fied by the assessor on the roll. The assessor shall give written notice
 of such recomputed exemption to the property owner, who may,  if  he  or
 she  believes that the exemption was recomputed incorrectly, apply for a
 correction in the manner provided by title three of article five of this
 chapter for the correction of clerical errors.
   (iii) [Such] EXCEPT IN A SPECIAL ASSESSING UNIT THAT IS  NOT  A  CITY,
 SUCH  exemption shall be limited to eighty thousand dollars in increased
 market value, or such other sum less than eighty thousand  dollars,  but
 not  less than five thousand dollars as may be provided by the local law
 or resolution, of the  property  attributable  to  such  reconstruction,
 alteration  or improvement and any increase in market value greater than
 such amount shall not be eligible for the  exemption  pursuant  to  this
 section.  IN  A SPECIAL ASSESSING UNIT THAT IS NOT A CITY, THE EXEMPTION
 SHALL BE LIMITED TO SEVEN HUNDRED FIFTY THOUSAND  DOLLARS  IN  INCREASED
 MARKET  VALUE. For the purposes of this section, the market value of the
 reconstruction,  alteration  or  improvement,  OR  NEW  CONSTRUCTION  AS
 AUTHORIZED  BY  SUBDIVISION ONE-A OF THIS SECTION, shall be equal to the
 increased assessed value attributable to such reconstruction, alteration
 [or], improvement OR NEW CONSTRUCTION divided by the class [I] ONE ratio
 in a special assessing unit  or  the  most  recently  established  state
 equalization  rate  or special equalization rate in the remainder of the
 state, except where the state equalization rate or special  equalization
 rate  equals  or exceeds ninety-five percent, in which case the increase
 in assessed value attributable to  such  reconstruction,  alteration  or
 improvement  shall  be  deemed  to equal the market value of such recon-
 struction, alteration or improvement.
   (b) [No] EXCEPT IN A SPECIAL ASSESSING UNIT THAT IS  NOT  A  CITY,  NO
 such  exemption  shall  be  granted  for  reconstruction, alterations or
 improvements unless:
   (i) such  reconstruction,  alteration  or  improvement  was  commenced
 subsequent  to the effective date of the local law or resolution adopted
 pursuant to subdivision one of this section; and
   (ii) the value  of  such  reconstruction,  alteration  or  improvement
 exceeds three thousand dollars; and

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   (iii)  the greater portion, as so determined by square footage, of the
 building reconstructed, altered or improved is at least five years old.
   (c)  For purposes of this section the terms reconstruction, alteration
 and improvement shall not include ordinary maintenance and repairs.
   3. [Such] EXCEPT IN A SPECIAL ASSESSING UNIT THAT IS NOT A CITY,  SUCH
 exemption  shall  be  granted only upon application by the owner of such
 building on a form prescribed by the commissioner. The application shall
 be filed with the assessor of the city, town, village or  county  having
 the  power  to assess property for taxation on or before the appropriate
 taxable status date of such city, town, village or county.  IN A SPECIAL
 ASSESSING UNIT THAT IS NOT A CITY, THE EXEMPTION SHALL BE APPLIED  BASED
 UPON  THAT COMPLETION OF RECONSTRUCTION, ALTERATION, IMPROVEMENT, OR NEW
 CONSTRUCTION ON OR BEFORE THE TAXABLE STATUS DATE OF THE SPECIAL ASSESS-
 ING UNIT.
   § 4. Subdivisions 5, 6 and 7 of section 421-f of the real property tax
 law, as amended by chapter 590 of the laws of 1994, are amended to  read
 as follows:
   5.  For  the  purposes  of this section, EXCEPT IN A SPECIAL ASSESSING
 UNIT THAT IS NOT A CITY, a residential building shall mean any  building
 or  structure designed and occupied exclusively for residential purposes
 by not more than two families.
   6. In the event that a building granted an exemption pursuant to  this
 section  ceases  to  be used primarily for residential purposes or IS NO
 LONGER CLASSIFIED AS CLASS ONE PROPERTY IN A SPECIAL ASSESSING UNIT THAT
 IS NOT A CITY, title thereto is transferred to other than the  heirs  or
 distributees  of  the  owner,  the  exemption  granted  pursuant to this
 section shall cease.
   7. (a) [A] EXCEPT FOR A SPECIAL ASSESSING UNIT THAT IS NOT A  CITY,  A
 county, city, town or village may, by its local law, or school district,
 by its resolution:
   (i)  reduce  the per centum of exemption otherwise allowed pursuant to
 this section;
   (ii) limit eligibility for the exemption  to  those  forms  of  recon-
 struction,  alterations  or improvements as are prescribed in such local
 law or resolution;
   (iii) provide that the exemption shall be  applicable  only  to  those
 improvements which would otherwise result in an increase in the assessed
 valuation  of the real property but which consist of an addition, remod-
 eling or modernization to an existing residential structure  to  prevent
 physical  deterioration  of  the  structure or to comply with applicable
 building, sanitary, health and/or fire codes.
   (b) No such  local  law  or  resolution  shall  reduce  or  repeal  an
 exemption  granted  pursuant to this section until the expiration of the
 period for which such exemption was granted.
   § 5. Applicability. This act shall be applicable  beginning  with  the
 two  thousand  twenty -- two thousand twenty-one assessment roll through
 and including the two thousand twenty-two -- two  thousand  twenty-three
 assessment roll.
   § 6. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall  not affect, impair or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   § 7. This act shall take effect immediately.