* § 485-l. Residential investment exemption; certain school districts.
1. Residential real property constructed on or after the first day of
July, two thousand seven in school districts which serve a city with a
population of not less than eighteen thousand and not more than eighteen
thousand five hundred may be exempt from school district taxation as
provided in this section, provided that the governing board of such
school district after a public hearing adopts a resolution providing
therefor.

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 July,
two thousand seven 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 eighteen thousand
and not more than eighteen thousand five hundred;

(iii) the cost of such construction exceeds the sum of seventy
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 appropriate assessor within the
school district which serves a city with a population of not less than
eighteen thousand and not more than eighteen thousand five hundred 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 eighteen thousand and not more than eighteen thousand five
hundred 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 eighteen thousand and not more than eighteen thousand five hundred
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 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 school
district.

8. A school district which serves a city with a population of not less
than eighteen thousand and not more than eighteen thousand five hundred
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 three hundred fifty thousand dollars.

9. (a) A school district which serves a city with a population of not
less than eighteen thousand and not more than eighteen thousand five
hundred 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 eighteen thousand and not more than eighteen thousand
five hundred 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
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 eighteen thousand and not more than eighteen
thousand five hundred, 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 eighteen thousand and not more than eighteen thousand five
hundred 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 eighteen thousand and not more than eighteen thousand five
hundred 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. Any school district 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
forwarded to each municipality which issues building permit applications
in which it is available and copies of such information shall be posted
in a conspicuous location in the office or offices where such permits
and applications are issued and processed.

* NB There are 2 § 485-l's