Legislation
SECTION 485-I
Residential investment exemption; certain school districts
Real Property Tax (RPT) CHAPTER 50-A, ARTICLE 4, TITLE 2
* § 485-i. Residential investment exemption; certain school districts.
1. Residential real property constructed on or after the first day of
July, two thousand three in school districts which serve a city with a
population of not less than thirty-one thousand and not more than
thirty-two thousand may be exempt from school district taxation as
provided in this section.
2. (a) (i) Such real property shall be exempt for a period of one year
to the extent of fifty per centum of the increase in assessed value
thereof attributable to such construction and for an additional period
of nine years provided, however, that the extent of such exemption shall
be decreased by five per centum each year during such additional period
of nine years and such exemption shall be computed with respect to the
"exemption base". The exemption base shall be the increase in assessed
value as determined in the initial year of such ten year period
following the filing of an original application, 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 the
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) The following table shall illustrate the computation of the
school district tax exemption:
Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5
(b) No such exemption shall be granted unless:
(i) such construction was commenced on or after the first day of
January, two thousand three or such later date as may be specified by
resolution;
(ii) the residential real property is situate in a school district
which serves a city with a population of not less than thirty-one
thousand and not more than thirty-two thousand;
(iii) the cost of such construction exceeds the sum of thirty thousand
dollars or such greater amount as may be specified; and
(iv) such construction is completed as may be evidenced by a
certificate of occupancy or other appropriate documentation as provided
by the owner.
(c) For purposes of this section the term construction shall not
include ordinary maintenance and repairs.
3. Such exemption shall be granted only upon application by the owner
of such real property on a form prescribed by the commissioner. Such
application shall be filed with the assessor of a school district which
serves a city with a population of not less than thirty-one thousand and
not more than thirty-two thousand on or before the appropriate taxable
status date of such school district and within one year from the date of
completion of such construction.
4. If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the
application and such real property shall thereafter be exempt from
taxation by a school district which serves a city with a population of
not less than thirty-one thousand and not more than thirty-two thousand
as provided in this section commencing with the assessment roll prepared
after 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. The provisions of this section shall apply to real property used as
the primary residence of the owner.
6. In the event that real property granted an exemption pursuant to
this section ceases to be used primarily for eligible purposes, the
exemption granted pursuant to this section shall cease.
7. A school district which serves a city with a population of not less
than thirty-one thousand and not more than thirty-two thousand may, by
resolution, reduce the per centum of exemption otherwise allowed
pursuant to this section; provided, however, that a project in course of
construction and exemptions existing prior in time to passage of any
such resolution shall not be subject to any such reduction so effected.
Such school district upon reduction of the per centum of exemption
pursuant to this subdivision may thereafter, by resolution, increase the
per centum of exemption up to any per centum not exceeding the maximum
allowed by subdivision two or eleven of this section, whichever is
applicable, provided, however, that any such resolution shall apply only
to construction commenced subsequent to the effective date of such
resolution. A copy of all such resolutions shall be filed with the
commissioner and the assessor of the school district.
8. A school district which serves a city with a population of not less
than thirty-one thousand and not more than thirty-two thousand may, by
resolution, establish a date for the commencement of effectiveness of
exemption offered pursuant to this section and may provide that the
provisions of this section shall apply only to construction having a
greater value than that specified by subdivision two of this section,
provided, however, that such amount shall not exceed seventy thousand
dollars.
9. (a) A school district which serves a city with a population of not
less than thirty-one thousand and not more than thirty-two thousand may,
by resolution, establish a board to be known as the residential
incentive board. The membership and composition of such board shall be
set forth in the resolution.
(b) The residential incentive board shall present a plan to the board
of education of a school district which serves a city with a population
of not less than thirty-one thousand and not more than thirty-two
thousand concerning the various types of residential real property which
should be granted eligibility for an exemption pursuant to subdivision
one of this section. Such plan shall make a recommendation as to whether
the exemption be computed as provided in subdivision two or eleven of
this section. In addition, such plan shall identify specific geographic
areas within which such exemptions should be offered. In developing the
plan required by this paragraph, the board shall consider the planning
objectives of a school district which serves a city with a population of
not less than thirty-one thousand and not more than thirty-two thousand,
the necessity of the exemption to the attraction or retention of home
owners and the economic benefit to the area of providing exemptions to
home owners.
(c) In addition, the board may make recommendations to the school
board of a school district which serves a city with a population of not
less than thirty-one thousand and not more than thirty-two thousand with
respect to actions it deems desirable to improve the economic climate
therein.
10. If a school district which serves a city with a population of not
less than thirty-one thousand and not more than thirty-two thousand
establishes a residential incentive board, pursuant to subdivision nine
of this section, such school district may, by resolution, restrict real
property eligible to receive the exemption to real property constructed
for those purposes identified in the plan presented by the board. Such
resolution shall restrict the availability of such exemption to the
specific geographic areas identified in the plan presented by the board.
11. Notwithstanding subdivision two of this section, where a school
district which serves a city with a population of not less than
thirty-one thousand and not more than thirty-two thousand adopts
restricted exemptions pursuant to subdivision ten of this section, the
resolution may provide that such exemptions shall be computed pursuant
to the following accelerated strategic exemption schedule:
Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5
Provided however, that such resolution shall:
(i) contain findings that the adoption of this accelerated strategic
exemption schedule is necessary to encourage targeted residential
development, and that the value of the exemptions to be provided is
justified by the need to broaden the tax base; and
(ii) limit the applicability of such schedule to projects where the
cost of such construction exceeds the sum of seventy thousand dollars;
and
(iii) provide that such exemptions are restricted by geographic areas
as provided by subdivision ten of this section.
* NB There are 2 § 485-i's
1. Residential real property constructed on or after the first day of
July, two thousand three in school districts which serve a city with a
population of not less than thirty-one thousand and not more than
thirty-two thousand may be exempt from school district taxation as
provided in this section.
2. (a) (i) Such real property shall be exempt for a period of one year
to the extent of fifty per centum of the increase in assessed value
thereof attributable to such construction and for an additional period
of nine years provided, however, that the extent of such exemption shall
be decreased by five per centum each year during such additional period
of nine years and such exemption shall be computed with respect to the
"exemption base". The exemption base shall be the increase in assessed
value as determined in the initial year of such ten year period
following the filing of an original application, 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 the
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) The following table shall illustrate the computation of the
school district tax exemption:
Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5
(b) No such exemption shall be granted unless:
(i) such construction was commenced on or after the first day of
January, two thousand three or such later date as may be specified by
resolution;
(ii) the residential real property is situate in a school district
which serves a city with a population of not less than thirty-one
thousand and not more than thirty-two thousand;
(iii) the cost of such construction exceeds the sum of thirty thousand
dollars or such greater amount as may be specified; and
(iv) such construction is completed as may be evidenced by a
certificate of occupancy or other appropriate documentation as provided
by the owner.
(c) For purposes of this section the term construction shall not
include ordinary maintenance and repairs.
3. Such exemption shall be granted only upon application by the owner
of such real property on a form prescribed by the commissioner. Such
application shall be filed with the assessor of a school district which
serves a city with a population of not less than thirty-one thousand and
not more than thirty-two thousand on or before the appropriate taxable
status date of such school district and within one year from the date of
completion of such construction.
4. If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the
application and such real property shall thereafter be exempt from
taxation by a school district which serves a city with a population of
not less than thirty-one thousand and not more than thirty-two thousand
as provided in this section commencing with the assessment roll prepared
after 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. The provisions of this section shall apply to real property used as
the primary residence of the owner.
6. In the event that real property granted an exemption pursuant to
this section ceases to be used primarily for eligible purposes, the
exemption granted pursuant to this section shall cease.
7. A school district which serves a city with a population of not less
than thirty-one thousand and not more than thirty-two thousand may, by
resolution, reduce the per centum of exemption otherwise allowed
pursuant to this section; provided, however, that a project in course of
construction and exemptions existing prior in time to passage of any
such resolution shall not be subject to any such reduction so effected.
Such school district upon reduction of the per centum of exemption
pursuant to this subdivision may thereafter, by resolution, increase the
per centum of exemption up to any per centum not exceeding the maximum
allowed by subdivision two or eleven of this section, whichever is
applicable, provided, however, that any such resolution shall apply only
to construction commenced subsequent to the effective date of such
resolution. A copy of all such resolutions shall be filed with the
commissioner and the assessor of the school district.
8. A school district which serves a city with a population of not less
than thirty-one thousand and not more than thirty-two thousand may, by
resolution, establish a date for the commencement of effectiveness of
exemption offered pursuant to this section and may provide that the
provisions of this section shall apply only to construction having a
greater value than that specified by subdivision two of this section,
provided, however, that such amount shall not exceed seventy thousand
dollars.
9. (a) A school district which serves a city with a population of not
less than thirty-one thousand and not more than thirty-two thousand may,
by resolution, establish a board to be known as the residential
incentive board. The membership and composition of such board shall be
set forth in the resolution.
(b) The residential incentive board shall present a plan to the board
of education of a school district which serves a city with a population
of not less than thirty-one thousand and not more than thirty-two
thousand concerning the various types of residential real property which
should be granted eligibility for an exemption pursuant to subdivision
one of this section. Such plan shall make a recommendation as to whether
the exemption be computed as provided in subdivision two or eleven of
this section. In addition, such plan shall identify specific geographic
areas within which such exemptions should be offered. In developing the
plan required by this paragraph, the board shall consider the planning
objectives of a school district which serves a city with a population of
not less than thirty-one thousand and not more than thirty-two thousand,
the necessity of the exemption to the attraction or retention of home
owners and the economic benefit to the area of providing exemptions to
home owners.
(c) In addition, the board may make recommendations to the school
board of a school district which serves a city with a population of not
less than thirty-one thousand and not more than thirty-two thousand with
respect to actions it deems desirable to improve the economic climate
therein.
10. If a school district which serves a city with a population of not
less than thirty-one thousand and not more than thirty-two thousand
establishes a residential incentive board, pursuant to subdivision nine
of this section, such school district may, by resolution, restrict real
property eligible to receive the exemption to real property constructed
for those purposes identified in the plan presented by the board. Such
resolution shall restrict the availability of such exemption to the
specific geographic areas identified in the plan presented by the board.
11. Notwithstanding subdivision two of this section, where a school
district which serves a city with a population of not less than
thirty-one thousand and not more than thirty-two thousand adopts
restricted exemptions pursuant to subdivision ten of this section, the
resolution may provide that such exemptions shall be computed pursuant
to the following accelerated strategic exemption schedule:
Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5
Provided however, that such resolution shall:
(i) contain findings that the adoption of this accelerated strategic
exemption schedule is necessary to encourage targeted residential
development, and that the value of the exemptions to be provided is
justified by the need to broaden the tax base; and
(ii) limit the applicability of such schedule to projects where the
cost of such construction exceeds the sum of seventy thousand dollars;
and
(iii) provide that such exemptions are restricted by geographic areas
as provided by subdivision ten of this section.
* NB There are 2 § 485-i's