* § 485-j. Residential investment exemption; certain cities and school
districts. 1. Residential real property constructed on or after the
first day of July, two thousand five located in a city or a school
district which serves a city with a population of not less than thirteen
thousand one hundred twenty-one and not more than thirteen thousand one
hundred forty-one, based upon the two thousand federal census, may be
exempt from city and 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 city
and 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 five or such later date as may be specified by
resolution;

(ii) the residential real property is situate in a city, or a school
district which serves a city, with a population of not less than
thirteen thousand one hundred twenty-one and not more than thirteen
thousand one hundred forty-one, based upon the two thousand federal
census;

(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 city with a population
of not less than thirteen thousand one hundred twenty-one and not more
than thirteen thousand one hundred forty-one, based upon the two
thousand federal census, or with the local assessor if such property is
located in a school district which serves such city, but is not located
within such city, 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 by a city with a population of not less than thirteen thousand
one hundred twenty-one and not more than thirteen thousand one hundred
forty-one, based upon the two thousand federal census, and by any school
district which serves such city 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 thirteen thousand one
hundred twenty-one and not more than thirteen thousand one hundred
forty-one, based upon the two thousand federal census, may, by local
law, and any school district which serves such city, 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 city or
school district, upon reduction of the per centum of exemption pursuant
to this subdivision, may thereafter by local law or resolution, 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 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
city, and to the assessor of any locality containing real property to
which the provisions of this section may apply.

8. A city with a population of not less than thirteen thousand one
hundred twenty-one and not more than thirteen thousand one hundred
forty-one, based upon the two thousand federal census, may, by local
law, and any school district which serves such city, 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 city with a population of not less than thirteen thousand one
hundred twenty-one and not more than thirteen thousand one hundred
forty-one, 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 city
council of a city with a population of not less than thirteen thousand
one hundred twenty-one and not more than thirteen thousand one hundred
forty-one, 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. The exemption shall be computed as provided in subdivision two
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 the school district which serves such city,
and 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 city
council of a city with a population of not less than thirteen thousand
one hundred twenty-one and not more than thirteen thousand one hundred
forty-one, 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 thirteen thousand one
hundred twenty-one and not more than thirteen thousand one hundred
forty-one, 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.

* NB There are 5 § 485-j's