* § 421-o. Exemption of capital improvements to multiple dwelling
buildings within certain cities. 1. Multiple dwelling buildings,
reconstructed, altered, converted back to an owner occupied single
family dwelling located in any city having a population of more than
eight thousand inhabitants but fewer than nine thousand inhabitants,
that is located in a county having a population of more than
ninety-seven thousand inhabitants but fewer than ninety-nine thousand
inhabitants, determined in accordance with the latest federal decennial
census, that are reconstructed, altered or improved subsequent to the
effective date of a local law or resolution pursuant to this section
shall be exempt from taxation and special ad valorem levies to the
extent provided hereinafter. After a public hearing, the governing board
of such city may adopt a local law to grant the exemption authorized
pursuant to this section. A copy of such local law shall be filed with
the commissioner and the assessor of such city who prepares the
assessment roll on which the taxes of such city are levied.

2. (a) Such buildings within such city shall be exempt for a period of
one year to the extent of one hundred percent of the increase in
assessed value attributable to such reconstruction, alteration or
improvement and for an additional period of eleven years subject to the
following:

(i) The extent of such exemption shall be decreased by eight and
one-third percent of the "exemption base" each year during such
additional 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
physical 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
assessment 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 certified 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 exemption shall be limited to one hundred thousand dollars
in increased market value, or such other sum less than one hundred
thousand dollars, but not less than ten 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 most recently
established state equalization rate for such city. Where the state
equalization rate or special equalization rate equals or exceeds
ninety-five percent, the increase in assessed value attributable to such
reconstruction, alteration or improvement shall be deemed to equal the
market value of such reconstruction, alteration or improvement.

(b) No such exemption shall be granted for reconstruction, alterations
or improvements unless:

(i) such reconstruction, alteration or converted improvement was
commenced subsequent to the effective date of the local law adopted
pursuant to subdivision one of this section by such city;

(ii) the value of such reconstruction, alteration or improvement
exceeds five thousand dollars; and

(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 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 such city on or before
the appropriate taxable status date of such city.

4. If satisfied that the applicant is entitled to an exemption
pursuant to this section, the assessor shall approve the application and
such building shall thereafter be exempt from taxation and special ad
valorem levies as provided in this section commencing with the
assessment roll prepared on the basis of the taxable status date
referred to in subdivision three of this section. The assessed value of
any exemption granted pursuant to this section shall be entered by the
assessor on the assessment roll with the taxable property, with the
amount of the exemption shown in a separate column.

5. For purposes of this section, an owner occupied single family
dwelling shall mean any building or structure designed and occupied as
the temporary or permanent residence or home of one family.

6. In the event that a building granted an exemption pursuant to this
section ceases to be used primarily for residential purposes or 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) The enactment of a local law in such city may:

(i) reduce the percent of exemption otherwise allowed pursuant to this
section;

(ii) limit eligibility for the exemption to those forms of
reconstruction, 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,
remodeling or modernization to an existing residence building 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 shall reduce or repeal an exemption granted
pursuant to this section until the expiration of the period for which
such exemption was granted.

* NB There are 2 § 421-o's