[Adopted 5-13-2002 by L.L. No. 1-2002; amended in its entirety 10-10-2017 by L.L. No. 3-2017]
[1]
Editor's Note: Former Art. V, Exemption for Multiple-Dwelling
Improvements, adopted 5-13-1985 by L.L. No. 5-1985, was repealed 5-11-1998
by L.L. No. 1-1998.
The purpose of this article is to provide partial exemption
from taxation and special ad valorem levies for owner-occupied, primary
residential property that is newly constructed or reconstructed under
certain conditions set forth below.
As used in this article, the following terms, phrases, words
and their derivations shall have the following meanings:
An individual or individuals who have not owned, and are
not married to a person who has owned, a primary residential property
during the three-year period prior to their purchase of the primary
residential property for which this exemption is sought, and do not
own a vacation or investment home.
The adjusted gross income for federal income tax purposes
as reported on the applicant's latest available federal or state income
tax return, subject to any subsequent amendments or revisions, reduced
by distributions, to the extent included in federal adjusted gross
income, received from an individual retirement account or an individual
retirement annuity; provided that if no such return was filed within
the one-year period preceding taxable status date, "income" means
the adjusted gross income that would have been so reported if such
a return had been filed.
The federal or state income tax return for the tax year immediately
preceding the date of making application for the exemption; provided,
however, that if the tax return for such year has not been filed,
then the income tax return for the tax year two years preceding the
date of making application will be considered the latest available
return.
An improvement to real property which was constructed as
a one- or two-family house, townhouse or condominium, which has never
been occupied and was constructed after November 28, 2001, but on
or before December 31, 2028. "Newly constructed" shall also mean that
portion of a one- or two-family house, townhouse or condominium that
is altered, improved or reconstructed.
[Amended 2-27-2023 by L.L. No. 2-2023]
Any one- or two-family house, townhouse, or condominium located
in this state which is owner-occupied by such homeowner.
The following ownership eligibility requirements must be met
in order to qualify for the first-time homebuyer exemption:
A.Â
The property must be owned by a first-time homebuyer or homebuyers
and used as their primary residence. If title to the property is transferred
to someone other than the heirs or distributees of the homebuyer(s)
during the term of the exemption, the exemption will be discontinued.
B.Â
The combined income of all the owners, and of any of the owners'
spouses residing on the property, for the income tax year immediately
preceding the date of application for exemption may not exceed the
income limits defined by the State of New York mortgage agency low
interest rate mortgage program in the non-target, one- and two-person
household category for the county where such property is located and
in effect on the contract date for the purchase and sale of such property.
The following property use requirements must be met in order
to qualify for the first-time homebuyer exemption:
A.Â
The property must be a newly constructed or reconstructed one- or
two-family house, townhouse or condominium that is owner-occupied.
B.Â
Other than for reconstruction projects, the home must never have
been occupied previously.
C.Â
No portion of an otherwise eligible single-family home may be leased
for any purpose, or used primarily for nonresidential purposes, during
the time the exemption applies. In either case, the exemption shall
be discontinued.
The maximum sales price of an eligible newly constructed residence
must not exceed the purchase-price limits defined by the State of
New York mortgage agency low interest rate mortgage program in the
non-target, one-family new category for the county where such property
is located and in effect on the contract date for the purchase and
sale of such property to qualify for exemption. Newly constructed
residences purchased by first-time homebuyers at a sales price greater
than the maximum eligible sales price shall qualify for exemption
for that portion of the sales price equal to the maximum eligible
sales price; provided, however, that any newly constructed residence
purchased at a sales price greater than 15% above the maximum eligible
sales price shall not be allowed any exemption.
The exemption for reconstructed, altered or improved residential
property is limited solely to the increase in assessed value attributable
to such reconstruction, alteration or improvement, provided that the
total market value of the property after the project completion does
not exceed 15% above the maximum eligible sales price. To be eligible
for this exemption on existing homes, the first-time homebuyer must
have provided for such reconstruction, alteration or improvement as
part of the sale contract of the home or entered into a written contract
for such work within 90 days of the purchase of the property. The
value of such reconstruction, alteration or improvement must be greater
than $3,000 and cannot include the value of ordinary maintenance and
repairs.
[Amended 2-27-2023 by L.L. No. 2-2023]
Property must be constructed or reconstructed by a first-time
homebuyer on or before December 31, 2028, unless such purchase is
made pursuant to a binding written contract entered into on or before
such date, and after November 28, 2001. First-time homebuyers who
first received this exemption prior to December 31, 2028, will continue
to receive the exemption according to the established schedule 0below.
First-time homebuyers of existing homes seeking the exemption on the
basis of reconstruction, alteration or improvement of the property
must either have provided for such work in their purchase contract
or enter into a written contract for such work within 90 days after
the purchase of the home.
Such exemption shall be granted only upon application by the
owner on a form prescribed by the State Board of the Office of Real
Property Services to the City of Newburgh Assessor, submitted on or
before the appropriate taxable status date and approval of such application
by the Assessor.
