[Adopted 8-21-1997 by L.L. No. 1-1997]
This article shall be entitled "Residential Building Tax Exemption."
The purpose of this article is to enact a residential building tax exemption for capital improvements for owners of residential buildings in the Town of Lowville, which tax exemption is permitted by Real Property Tax Law § 421-f.
A. 
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 herein.
B. 
Such residential buildings shall be exempt for a period of one year to the extent of 100% of the increase and assessed value thereof attributable to such reconstruction, alteration or improvement.
C. 
Such residential buildings shall be exempt for an additional period of seven years subject to the following:
(1) 
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 C(2) of this section.
(2) 
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 Commissioner of Taxation and Finance, 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 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 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 the Real Property Tax Law for the correction of clerical errors.[1]
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
(3) 
Such exemption shall be limited to $80,000 in increased market value, but not less than $5,000 in increased market value, of the property attributable to such reconstruction, alteration or improvement and any increase in market value greater than such maximum amount shall not be eligible for the exemption. For the purpose of this article, 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, except where the state 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.
No such exemption shall be granted for reconstruction, alterations or improvements unless:
A. 
Such reconstruction, alteration or improvement was commenced subsequent to the effective date of this article;
B. 
The value of such reconstruction, alteration or improvement exceeds $3,000; and
C. 
The greater portion, as so determined by square footage, of the building reconstructed, altered or improved is at least five years old.
As used in this article, the following terms shall have the meanings indicated:
RECONSTRUCTION, ALTERATION AND IMPROVEMENT
Shall not include ordinary maintenance and repairs.
RESIDENTIAL BUILDING
Any building or structure designed and occupied exclusively for residential purposes by not more than two families.
The residential building tax exemption shall be granted only upon application by the owner of such building on a form prescribed by the Commissioner of Taxation and Finance. The application shall be filed with the Assessors of the Town on or before the taxable status date.
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
If satisfied that the applicant is entitled to an exemption pursuant to this article, the Assessors 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. The assessed value of any exemption granted pursuant to this article shall be entered by the Assessors on the assessment roll with the taxable property, with the amount of the exemption shown in a separate column.
In the event that a building granted an exemption pursuant to this article ceases to be used primarily for residential purposes, or title thereto is transferred to a person other than the heirs or distributees of the original owner, the exemption granted pursuant to this article shall cease, and the Assessors shall note the termination of the exemption upon the next assessment roll prepared after transfer of title.