[Adopted 11-28-1983 by L.L. No. 8-1983]
[Amended 11-19-1990 by L.L. No. 1990; 12-2-1991 by L.L. No. 5-1991; 11-16-1992 by L.L. No. 8-1992; 5-19-1997 by L.L. No. 3-1997; 1-16-2001 by L.L. No. 2-2001; 11-18-2002 by L.L. No. 8-2002; 2-20-2007 by L.L. No. 4-2007; 2-6-2023 by L.L. No. 3-2023]
Pursuant to § 467 of the Real Property Tax Law, the percentage of the assessed valuation of real property which is exempt from taxation will be determined on the basis of annual income in accordance with the graduated schedule set forth below. "Annual income" refers to the income of the owner or the combined income of all of the owners for the income tax year immediately preceding the date that the application is filed. Where title of the property is vested in either a husband or wife, annual income is the combined income of the husband and wife. In computing net rental income or net income from self-employment, no depreciation deduction shall be allowed for the exhaustion or wear and tear of real or personal property held for the production of income. Such income shall include social security and retirement benefits, interest, dividends, total gains from the sale of or exchange of a capital asset in the same tax year, net rental income, salary or earnings, and net income from self-employment, but shall not include a return of capital, gifts, or inheritances received during the twelve-month period, veteran's disability payments and medical and prescription drug expenses that are not reimbursed or paid by insurance.
Annual Income Effective July 1, 2023
Percentage of Assessed Valuation Exempt from Taxation
Less than $50,000
50%
$50,000 but less than $51,000
45%
$51,000 but less than $52,000
40%
$52,000 but less than $53,000
35%
$53,000 but less than $53,900
30%
$53,900 but less than $54,800
25%
$54,800 but less than $55,700
20%
$55,700 but less than $56,600
15%
$56,600 but less than $57,500
10%
$57,500 but less than $58,400
5%
The real property tax exemption provided herein on real property owned by husband and wife, one of whom is 65 years of age or over, once granted, shall not be rescinded solely because of the death of the older spouse so long as the surviving spouse is at least 62 years of age.
No exemption shall be granted:
A. 
If the income of the owner or combined income of the owners of the property for the income tax year immediately preceding the date of making application for exemption exceeds the sum of $28,900, consistent with the schedule set forth in § 244-20 herein. "Income tax year" shall mean the twelve-month period for which the owner or owners filed a federal personal income tax return or, if no such return is filed, the calendar year. Where title is vested in either the husband or the wife, their combined income may not exceed such sum, except where the husband or wife, or ex-husband or ex-wife, is absent from the property as provided in Real Property Tax Law § 467(3)(d)(ii), then only the income of the spouse or ex-spouse residing on the property shall be considered and may not exceed such sum. Such income shall include social security and retirement benefits, interest, dividends, total gain from the sale or exchange of a capital asset which may be offset by a loss from the sale or exchange of a capital asset in the same income tax year, net rental income, salary or earnings and net income from self-employment, but shall not include a return of capital, gifts, inheritances, payments made to individuals because of their status as victims of Nazi persecution, as defined in P.L. 103-286, or moneys earned through employment in the federal foster grandparent program, and any such income shall be offset by all medical and prescription drug expenses actually paid which were not reimbursed or paid for by insurance, if the governing board of a municipality, after a public hearing, adopts a local law, ordinance or resolution providing therefor. The provisions of this subsection notwithstanding, such income shall not include veterans disability compensation, as defined in Title 38 of the United States Code, provided that the governing board of such municipality, after public hearing, adopts a local law, ordinance or resolution providing therefor. In computing net rental income and net income from self-employment, no depreciation deduction shall be allowed for the exhaustion, wear and tear of real or personal property held for the production of income.
[Amended 12-2-1991 by L.L. No. 5-1991; 11-16-1992 by L.L. No. 8-1992; 1-16-2001 by L.L. No. 2-2001]
B. 
Unless the title of the property shall have been vested in the owner or one of the owners of the property for at least 24 consecutive months prior to the date of making application for exemption; provided, however, that in the event of the death of either a husband or wife in whose name the title of the property shall have been vested at the time of death which then becomes vested solely in the survivor by virtue of devise by or descent from the deceased husband or wife, the time of ownership of the property by the deceased husband or wife shall be deemed also a time of ownership by the survivor, and such ownership shall be deemed continuous for the purposes of computing such period of 24 consecutive months. In the event of a transfer by either a husband or wife to the other spouse of all or part of the title to the property, the time of ownership of the property by the transferor spouse shall be deemed also a time of ownership by the transferee spouse, and such ownership shall be deemed continuous for the purposes of computing such period of 24 consecutive months. Where property of the owner or owners has been acquired to replace property formerly owned by such owner or owners and taken by eminent domain or other involuntary proceeding, except a tax sale, the period of ownership of the former property shall be combined with the period of ownership of the property for which application is made for exemption, and such periods of ownership shall be deemed to be consecutive for purposes of this section. Where a residence is sold and replaced with another within one year and is in the same assessing unit or municipality, the period of ownership of the former property shall be combined with the period of ownership of the replacement residence and deemed consecutive for exemption from taxation by each such assessing unit or municipality. Where a residence is sold and replaced with another within one year and both residences are within the state, the period of ownership of both properties shall be deemed consecutive for the purposes of the exemption from taxation by a municipality within the state granting such exemption.
C. 
Unless the property is used exclusively for residential purposes.
D. 
Unless the real property is the legal residence of and is occupied in whole or in part by the owner or by all of the owners of the property.
Application for such exemption must be made by the owner or all of the owners of the property on forms to be furnished by the Assessor's office and shall furnish the information and be executed in the manner required or prescribed in such forms and shall be filed in such Assessor's office on or before January 1 of each year.
On or before the first day of November, the Assessor shall mail to each person who was granted exemption pursuant to this Article on the latest completed assessment roll an application or a notice that such application must be filed on or before the first day of January and be approved in order for the exemption to be granted. The assessing authority shall, within three days of the completion and filing of the tentative assessment roll, notify by mail any applicant who has included with his application at least one self-addressed, prepaid envelope of the approval or denial of the application; provided, however, that the assessing authority shall, upon the receipt and filing of the application, send by mail notification of receipt to any applicant who has included two of such envelopes with the application. Where a applicant is entitled to a notice of denial pursuant to this section, such notice shall be on a form prescribed by the State Board of Equalization and Assessment and shall state the reason for such denial and shall further state that the applicant may have such determination reviewed in the manner provided by law. Failure to mail any such application form or notice or failure of such person to receive any of the same shall not prevent the levy, collection and enforcement of the payment of the taxes on property owned by such person.
Any person convicted of having made a willful false statement in an application for such exemption shall be subject to a fine of not more than $100 and shall be disqualified from any farther exemption for a period of five years.
Notwithstanding any inconsistent provisions of this Article, the collection of any amount of tax erroneously exempted due to an incorrect statement in an application for exemption shall be enforceable in the same manner provided for the collection of delinquent taxes pursuant to the provisions of Article 10 of the Real Property Tax Law.