S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3889
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2023
                                ___________
 
 Introduced  by  M. of A. FAHY -- read once and referred to the Committee
   on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to  changing  the
   amount of the exemption permitted for capital improvements to residen-
   tial buildings
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Subparagraph (iii) of paragraph (a) of  subdivision  2  of
 section  421-f  of the real property tax law, as amended by section 3 of
 part WW of chapter 55 of the  laws  of  2021,  is  amended  to  read  as
 follows:
   (iii)  [Except]  FOR  EXEMPTIONS  GRANTED PURSUANT TO THIS SECTION AND
 AUTHORIZED BY A LOCAL LAW OR RESOLUTION ADOPTED PRIOR TO JANUARY  FIRST,
 TWO THOUSAND TWENTY-FOUR, 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 recon-
 struction, alteration or improvement and any increase  in  market  value
 greater  than such amount shall not be eligible for the exemption pursu-
 ant 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  EXEMPTIONS  GRANTED  PURSUANT  TO  THIS
 SECTION  AND AUTHORIZED BY A LOCAL LAW OR RESOLUTION ADOPTED ON OR AFTER
 JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, SUCH EXEMPTION SHALL BE LIMITED
 TO TWO HUNDRED THOUSAND DOLLARS IN INCREASED MARKET VALUE, OR SUCH OTHER
 SUM LESS THAN TWO HUNDRED THOUSAND DOLLARS, BUT NOT LESS THAN FIVE THOU-
 SAND 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.  For the purposes
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03708-01-3
              

 A. 3889                             2
 
 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  attribut-
 able to such reconstruction, alteration, improvement or new construction
 divided  by  the class 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 recon-
 struction, alteration, improvement or new construction shall  be  deemed
 to equal the market value of such reconstruction, alteration or improve-
 ment.
   §  2.  Subparagraph (iii) of paragraph (a) of subdivision 2 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:
   (III)  [Such]  FOR  EXEMPTIONS  GRANTED  PURSUANT  TO THIS SECTION AND
 AUTHORIZED BY A LOCAL LAW OR RESOLUTION ADOPTED PRIOR TO JANUARY  FIRST,
 TWO  THOUSAND  TWENTY-FOUR,  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.  FOR EXEMPTIONS GRANTED PURSUANT  TO
 THIS  SECTION  AND AUTHORIZED BY A LOCAL LAW OR RESOLUTION ADOPTED ON OR
 AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, SUCH EXEMPTION  SHALL  BE
 LIMITED  TO  TWO  HUNDRED THOUSAND DOLLARS IN INCREASED MARKET VALUE, OR
 SUCH OTHER SUM LESS THAN TWO HUNDRED 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.  For
 the  purposes  of  this section, the market value of the reconstruction,
 alteration or improvement shall be equal to the increased assessed value
 attributable to such reconstruction, alteration or  improvement  divided
 by  the  class  I 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 recon-
 struction, alteration or improvement shall be deemed to equal the market
 value of such reconstruction, alteration or improvement.
   § 3. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  subdivision 2 of section 421-f of the real property
 tax law made by section one of this act shall be subject to the  expira-
 tion  and reversion of such subdivision pursuant to section 7 of part WW
 of chapter 55 of the laws of 2021, as amended, when upon such  date  the
 provisions of section two of this act shall take effect.