S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7285
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 8, 2025
                                ___________
 
 Introduced  by  Sen. S. RYAN -- 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  the  applica-
   bility  of  the residential redevelopment inhibited property exemption
   to all localities in the state

   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 485-r of the real property
 tax law, as added by chapter 406 of the laws of 2015, is amended to read
 as follows:
   Residential  redevelopment  inhibited  property  exemption[;   certain
 cities].
   §  2.  Subdivision 1 of section 485-r of the real property tax law, as
 added by chapter 406 of the laws of 2015 and paragraph (f) as amended by
 chapter 28 of the laws of 2016, is amended to read as follows:
   1. As used in this section, the following terms shall have the follow-
 ing 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 AS DESCRIBED IN SUBDIVISION
 THREE  OF  THIS  SECTION.  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,  TOWN,  OR VILLAGE minus the
 increase in the full valuation of the property upon  completion  of  the
 redevelopment.
   (c) "Base assessment" shall mean the assessed value of the property on
 the day the city, TOWN, OR VILLAGE designates the property as redevelop-
 ment inhibited.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10643-01-5
 S. 7285                             2
              

 
   (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.
   [(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.]
   §  3.  Subdivision 2 of section 485-r of the real property tax law, as
 added by chapter 406 of the laws of 2015, is amended to read as follows:
   2. A city, TOWN, OR  VILLAGE  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,  TOWN,  OR  VILLAGE  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,  TOWN,  OR VILLAGE, may, by resolution, exempt such property
 from its taxation in the same manner and to the same extent as the city,
 TOWN, OR VILLAGE has done.
   § 4. Subdivision 3 of section 485-r of the real property tax  law,  as
 added by chapter 406 of the laws of 2015, is amended to read as follows:
   3.  A LOCAL LAW ADOPTED BY A city, TOWN, OR VILLAGE PURSUANT TO SUBDI-
 VISION TWO OF THIS SECTION shall designate  any  property  within  [the]
 SUCH  city,  TOWN,  OR VILLAGE'S boundaries as a redevelopment inhibited
 property if one or more of the following are met:
   (a) the city, TOWN, OR VILLAGE has  acquired  title  to  the  property
 pursuant  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 COUNTY, city, TOWN OR VILLAGE IN WHICH THE PROPERTY IS LOCATED
 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.
   §  5.  Subdivision 4 of section 485-r of the real property tax law, as
 added by chapter 406 of the laws of 2015, is amended to read as follows:
   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] APPLICABLE bureau of inspection  such
 that  building  or  plumbing  permits issued and said demolition, alter-
 ations, 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] APPLICABLE municipal code and  the  [city's]
 APPLICABLE bureau of inspection upon completion; and
   (ii)  the  property  for  which  the  exemption is sought shall be [an
 owner-occupied one-family residence] A ONE TO  FOUR-UNIT  RESIDENCE  AND
 OCCUPIED AS THE PRIMARY RESIDENCE OF THE OWNER OR A TENANT; and
   (iii)  the  owner of such property shall file annually an affidavit of
 residency with the assessor of the city, TOWN, OR VILLAGE on  or  before
 the appropriate taxable status date [of such city], confirming continued
 S. 7285                             3
 
 [owner-occupancy]  OCCUPANCY of the property BY THE OWNER OR A TENANT AS
 THEIR PRIMARY RESIDENCE; 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] OCCUPIED AS THE PRIMARY  RESIDENCE
 OF  THE  OWNER  OR TENANT and/or the affidavit of residency is not filed
 annually for the approved exemption period, the exemption granted pursu-
 ant to this section shall cease.
   (c) In the event the property granted an exemption  pursuant  to  this
 section  ceases  to  be  a  [one-family]  ONE TO FOUR-UNIT dwelling, the
 exemption granted pursuant to this section shall cease.
   (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] APPLICABLE municipal code, the exemption
 granted pursuant to this section shall cease.
   § 6. Subdivision 6 of section 485-r of the real property tax  law,  as
 added by chapter 406 of the laws of 2015, is amended to read as follows:
   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, TOWN, OR VILLAGE. Such
 application must be filed with  the  assessor  of  the  city,  TOWN,  OR
 VILLAGE on or before the appropriate taxable status date [of such city].
 The  application  must  be filed with the assessor of the city, TOWN, OR
 VILLAGE within three years from the date of completing  the  demolition,
 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]  SUCH  ASSESSOR  shall
 approve  the  application  and  such  real  property shall thereafter be
 exempt from taxation and special ad valorem levies by the city, TOWN, OR
 VILLAGE 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, TOWN, OR VILLAGE 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.
   §  7.  This  act shall take effect on the thirtieth day after it shall
 have become a law.