In accordance with § 421-f of the New York State Real
Property Tax Law, improvements to one- and two-family houses resulting
in changes in the assessed valuation of at least $3,000 shall be,
upon application, eligible for an exemption of Town of Potsdam property
taxes per the terms of this article, such abatement not to exceed
$50,000.
The intent of this article is to encourage property owners to
make improvements to one- and two-family houses to improve the quality
of housing in the community and to preserve and expand the tax base
of the Town of Potsdam.
The improvements to residential buildings reconstructed, altered
or improved subsequent to the effective date of this article for residential
purposes shall be exempt from taxation to the extent provided hereinafter.
For the purposes of the article, a "residential building" shall mean
any building or structure designed and occupied exclusively for residential
purposes by not more than two families.
The improvements to such buildings shall be exempt for a period
of one year to the extent of 100% of the increase in assessed value
thereof attributable to such reconstruction, alteration or improvement
and for an additional period of seven years; provided, however, that
the extent of such exemption shall be decreased by 12 1/2% of
the initial exemption each year during such additional period; and
provided, further, that such exemption shall be limited to $50,000
in increased market value of the property attributable to such reconstruction,
alteration or improvement, and any increase in market value greater
than such amount shall not be eligible for the exemption pursuant
to this section. For the purposes of this section, the market value
of the reconstruction, alteration or improvement shall be equal to
the increased assessed value attributable to such reconstruction,
alteration or improvement divided by the most recently established
state equalization rate.
An exemption granted pursuant to this article shall cease in
the event that a building granted an exemption ceases to be used primarily
for residential purposes or in the event that title thereto is transferred
to other than the heirs or distributees of the owner. Properties currently
receiving an exemption or abatement under other sections of the Real
Property Tax Law (such as § 485-e) shall continue under
the previous exemption or abatement.
If any section or subsection, paragraph, clause, phrase or provision
of this article shall be adjudged invalid or held unconstitutional
by any court of competent jurisdiction, such adjudication shall not
affect the validity of this article as a whole or any part thereof
other than the part or provision so adjudged to be invalid or unconstitutional.
The Town Clerk is hereby instructed to file a certified copy
of this article with the State Board of Equalization and Assessment.
This article shall take effect upon filing with the Secretary
of State pursuant to the Municipal Home Rule Law. However, the implementation
of this article will not go into effect until after the next taxable
status date, and the establishment of the property tax roll.