Residential buildings reconstructed, altered or improved subsequent
to the effective date of this article shall be exempt from taxation
and special ad valorem levies to the extent provided hereinafter.
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 subject to the following:
The extent of such exemption shall be decreased by 12 1/2% of the exemption base each year during such additional period. The exemption base shall be the increase in assessed value as determined in the initial year of the term of the exemption, except as provided in Subsection A(2) of this section.
In any year in which a change in level of assessment of 15% or more
is certified for a final assessment roll pursuant to the rules of
the State Board of Real Property Tax Services, the exemption base
shall be multiplied by a fraction, the numerator of which shall be
the total assessed value of the parcel on such final assessment roll
(after accounting for any physical or quantity changes to the parcel
since the immediately preceding assessment roll) and the denominator
of which shall be the total assessed value of the parcel on the immediately
preceding the final assessment roll. The result shall be the new exemption
base. The exemption shall thereupon be recomputed to take into account
the new exemption base, notwithstanding the fact that the Assessor
receives certification of the change in level of assessment after
the completion, verification and filing of the final assessment roll.
In the event that the Assessor does not have custody of the roll when
such certification is received, the Assessor shall certify the recomputed
exemption to the local officers having custody and control of the
roll, and such local officers are hereby directed and authorized to
enter the recomputed exemption certified by the Assessor on the roll.
The Assessor shall give written notice of such recomputed exemption
to the property owner, who may, if he or she believes that the exemption
was recomputed incorrectly, apply for a correction in the manner provided
by Title 3 of Article 5 of § 421 of the New York Real Property
Tax Law for the correction of clerical errors.
Such exemption shall be limited to $80,000 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 Class I ratio in a special assessing unit or the most
recently established state equalization rate or special equalization
rate in the remainder of the state, except where the state equalization
rate or special equalization rate equals or exceeds 95%, in which
case the increase in assessed value attributable to such reconstruction,
alteration, or improvement shall be deemed to equal the market value
of such reconstruction, alteration or improvement.
Such exemption shall be granted only upon application by the owner
of such building on a form prescribed by the State Board of Real Property
Tax Services. The application shall be filed with the Assessor of
the town or village having the power to assess property or taxation
on or before the appropriate taxable status date of such town or village.
If satisfied that the applicant is entitled to an exemption pursuant
to § 421-f, Subdivision 4, of the New York Real Property
Tax Law, the Assessor shall approve the application and such building
shall thereafter be exempt from taxation and special ad valorem levies
as herein provided commencing with the assessment roll prepared on
the basis of the taxable status date referred to in § 421-f,
Subdivision 3, of the New York Real Property Tax Law. 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.
For the purposes of this section, a "residential building" shall
mean any building or structure designed and occupied exclusively for
residential purposes by not more than two families.
In the event that a building 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 distributees of
the owner, the exemption granted pursuant to this article shall cease.