* § 485-j. Residential investment exemption; certain cities. 1.
Residential real property constructed on or after the first day of July,
two thousand six in cities with a population of not less than eighteen
thousand and not more than eighteen thousand five hundred based upon the
two thousand federal census may be exempt from city taxation and special
ad valorem levies 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 city
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
April, two thousand six or such later date as may be specified by local
law;

(ii) the residential real property is situate in a city with a
population of not less than eighteen thousand and not more than eighteen
thousand five hundred based upon the two thousand federal census;

(iii) the cost of such construction exceeds the sum of seventy
thousand dollars or such greater amount as may be specified by local
law; 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 city with a population
of not less than eighteen thousand and not more than eighteen thousand
five hundred based upon the two thousand federal census on or before the
appropriate taxable status date of such city 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 and special ad valorem levies by a city with a population of
not less than eighteen thousand and not more than eighteen thousand five
hundred based upon the two thousand federal census 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 city with a population of not less than eighteen thousand and not
more than eighteen thousand five hundred based upon the two thousand
federal census may, by local law, 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 local law shall not be subject to any such
reduction so effected. Such city upon reduction of the per centum of
exemption pursuant to this subdivision may thereafter, by local law,
increase the per centum of exemption up to any per centum not exceeding
the maximum allowed by subdivision two of this section, provided,
however, that any such local law shall apply only to construction
commenced subsequent to the effective date of such local law. A copy of
all such local laws shall be filed with the commissioner and the
assessor of the city.

8. A city with a population of not less than eighteen thousand and not
more than eighteen thousand five hundred based upon the two thousand
federal census may, by local law, 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 three hundred fifty thousand dollars.

9. (a) A city with a population of not less than eighteen thousand and
not more than eighteen thousand five hundred based upon the two thousand
federal census may, by local law, establish a board to be known as the
residential incentive board. The membership and composition of such
board shall be set forth in the local law.

(b) The residential incentive board shall present a plan to the
legislative body of a city with a population of not less than eighteen
thousand and not more than eighteen thousand five hundred based upon the
two thousand federal census concerning the various types of residential
real property which should be granted eligibility for an exemption
pursuant to subdivision one 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 city with a
population of not less than eighteen thousand and not more than eighteen
thousand five hundred based upon the two thousand federal census, 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 legislative
body of a city with a population of not less than eighteen thousand and
not more than eighteen thousand five hundred based upon the two thousand
federal census with respect to actions it deems desirable to improve the
economic climate therein.

10. If a city with a population of not less than eighteen thousand and
not more than eighteen thousand five hundred based upon the two thousand
federal census establishes a residential incentive board, pursuant to
subdivision nine of this section, such city may, by local law, restrict
real property eligible to receive the exemption to real property
constructed for those purposes identified in the plan presented by the
board. Such local law shall restrict the availability of such exemption
to the specific geographic areas identified in the plan presented by the
board.

11. Any city which adopts an exemption pursuant to this section shall
cause information relating to the availability of such exemption,
including requirements and application procedures, to be attached to all
building permit applications and copies of such information shall be
posted in a conspicuous location in any office or offices where such
permits and applications for permits are issued and processed.

* NB There are 5 § 485-j's