§ 485-y. Vacant residential real property improvement exemption;
certain cities. 1. Construction of improvements to residential real
property, provided that such real property was continuously vacant for a
period of at least three years prior to such construction, initiated on
or after January first, two thousand twenty-five in a city with a
population of not less than seven thousand fifty and not more than seven
thousand sixty, determined in accordance with the two thousand twenty
census, may be exempt from city taxation as provided in this section.

2. (a)(i) During the construction period, such real property shall be
fully exempt from city taxation, up to a period of eighteen months or
until a certificate of occupancy is issued, whichever is sooner, on all
city taxation. For the purposes of this section, the term "construction
period" shall mean the period of time beginning on the date which the
actual construction of improvements to vacant residential real property,
pursuant to subdivision one of this section, lawfully begins in good
faith and ending on the date a certificate of occupancy has been issued.

(ii) (A) Upon the termination of the exemption provided for under
subparagraph (i) of this paragraph, such real property shall be exempt
for a period of one year to the extent of eighty per centum of the
assessed value thereof and for an additional period of three years,
provided, however, that the extent of such exemption shall decrease by
twenty per centum each year during such additional period of three years
and such exemption shall be computed with respect to the "exemption
base". For the purposes of this section, the term "exemption base" shall
mean the assessed value as determined by the assessor in the initial
year of such four-year period following the termination of the exemption
provided for under subparagraph (i) of this paragraph.

(B) The following table shall illustrate the computation of the city
tax exemption:

Year of exemption Percentage of exemption

1 80

2 60

3 40

4 20

(C) Exemptions granted pursuant to this section shall apply to real
property taxes imposed for city purposes.

(b) No such exemption shall be granted unless: (i) such construction
of improvements was commenced on or after the first day of January, two
thousand twenty-five 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 seven thousand fifty and not more than seven
thousand sixty, determined in accordance with the two thousand twenty
census; and

(iii) such construction is documented by a building permit, if
required, for the improvements, or other appropriate documentation as
required by the assessor.

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 seven thousand fifty and not more than seven thousand
sixty, determined in accordance with the two thousand twenty census, on
or before the appropriate taxable status date of such city and within
one year from the date of completion of such construction of
improvements.

4. If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, they 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
seven thousand fifty and not more than seven thousand sixty, determined
in accordance with the two thousand twenty 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. 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.

6. A city with a population of not less than seven thousand fifty and
not more than seven thousand sixty, determined in accordance with the
two thousand twenty census, may, by local law, establish a date for the
commencement of effectiveness of the exemption offered pursuant to this
section. A copy of all such local laws shall be filed with the
commissioner and the assessor of the city.