City of North Tonawanda, NY Article XIV First-Time Homebuyer Tax Exemption

[Adopted 6-1-2010 by L.L. No. 3-2010]

§ 73-30 Exemption granted; newly constructed homes.

Newly constructed primary residential property purchased by one or more persons, each of whom is a first-time homebuyer, and has not been married to a homeowner in the three years prior to applying for this first-time homeowners exemption, shall be exempt from taxation levied by or on behalf of the City of North Tonawanda, School District of North Tonawanda or the County of Niagara, in which such newly constructed residential property is located. The length of such exemption shall not exceed five years, in accordance with the table below:

Year of Exemption	Percentage Assessed Valuation Exempt from Tax
1	50%
2	40%
3	30%
4	20%
5	10%
6	0%

A. Any newly constructed primary residential real property within 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 of Niagara, and in effect on the contract date for the purchase and sale of such property, shall be eligible for the exemption allowed pursuant to this section.

B. A first-time homebuyer who, either as part of the written contract for sale of the primary residential property, or who enters into a written contract within 90 days after closing of the sale of the primary residence for reconstruction, alteration or improvements, the value of which exceeds $3,000, to the primary residential property shall be exempt from taxation to the extent provided by this section. Such exemption shall apply solely to the increase in assessed value thereof attributable to such reconstruction, alteration or improvement, provided that the assessed value after reconstruction, alteration or 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.

§ 73-31 Definitions.

As used in this article, the following terms shall have the meanings indicated:

FIRST-TIME HOMEBUYER

A person who has not owned a primary residential property and is not married to a person who has owned a residential property during the three-year period prior to his or her purchase of the primary residential property, and who does not own a vacation or investment home.

HOUSEHOLD INCOME

The total combined income of all the owners, and of any owners' spouses residing on the premises, for the income tax year preceding the date of making application for the exemption.

INCOME

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 and an individual retirement annuity; provided that if no such return was filed within the one-year period preceding taxable status date, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed. For purposes of this subdivision, "latest available return" shall mean the federal or state income tax return for the year immediately preceding the date of making application; provided, however, that if the tax return for such tax year has not been filed, then the income tax return for the tax year two years preceding the date of make application shall be considered the latest available.

NEWLY CONSTRUCTED

Any improvement to real property which was constructed as a primary residential property, and which has never been occupied, and was constructed after the effective date of this section. "Newly constructed" shall also mean that portion of a primary residential property that is altered, improved or reconstructed.

PRIMARY RESIDENTIAL PROPERTY

Any one- or two-family house or townhouse located in the State of New York which is owner-occupied by such homebuyer. In no event shall a condominium or townhouse be considered "primary residential property" for the purposes of this chapter.

§ 73-32 Restrictions.

A. Newly constructed primary residential property purchased by first-time homebuyers at a sale price greater than the maximum eligible sales price shall qualify for the exemption allowed pursuant to this section for that portion of the sales price of such newly constructed primary residential property equal to the maximum eligible sales price; provided, however, that any newly constructed primary residential property purchased at a sales price greater than 15% above the maximum eligible sales price shall not be allowed any exemption.

B. In the event that a primary residential property granted an exemption pursuant to this section ceases to be used primarily for residential purposes, or title thereto is transferred to other than the heirs or distributes of the owner, the exemption granted pursuant to this section shall be discontinued.

C. Upon determining that an exemption granted pursuant to this section should be discontinued, the assessor shall mail a notice so stating to the owner or owners thereof at the time, and in the manner provided by § 510 of the Real Property Tax Law. Such owner or owners shall be entitled to seek administrative and judicial review of such action in the manner provided by law, provided that the burden shall be on such owner or owners to establish eligibility for the exemption.

D. Such exemption shall be granted only upon application by the owner of such building on a form filed with the Assessor of North Tonawanda, having the power to assess property for taxation on or before the appropriate taxable status date of the City of North Tonawanda.

E. If satisfied that the applicant is entitled to an exemption pursuant to this section, the Assessor shall approve the application and such primary residential property shall thereafter be exempt from taxation and special ad valorem levies as provided in this actions, commencing with the assessment roll prepared on the basis of the taxable status date referred to in Subsection E 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.

§ 73-33 When effective.

This article shall take effect immediately and shall apply to all assessment rolls prepared on the basis of taxable status dates occurring on or after the effective date of this article.