[Adopted 11-12-2014 by L.L. No. 3-2014]
Real property in the City of Olean reconstructed, altered or improved subsequent to the effective date of this local law, for residential purpose shall be exempt from taxation and special ad valorem levies by the City of Olean; as provided by Real Property Tax Law Section 421-f and to the extent hereinafter provided.
(a) 
Such real property 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; provided, however, that the extent of such exemption shall be decreased by 12 1/2% for each year during such additional period of seven years and such exemption shall be computed with respect to the increase in assessed value as determined in the initial year of such eight-year period following the filing of an original application; provided further, that 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 granted therein. For the purpose of this section, the market value of the reconstruction, alteration or improvements 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 equal the market value of such reconstruction alteration or improvement.
(b) 
No such exemption shall be granted unless:
(1) 
Such reconstruction, alteration or improvement was commenced subsequent to the effective date of this section; and
(2) 
The value of such reconstruction, alteration or improvement exceeds $3,000;
(3) 
The greater portion, as so determined by square footage, of the building reconstructed, altered or improved is at least five years old; and
(4) 
Such reconstruction, alteration or improvements requires the issuance of a building permit; and either a certificate of occupancy or a certificate of compliance evidencing that the reconstruction, alteration or improvement is complete.
(c) 
For purposes of this section, the terms "reconstruction," "alteration" and "improvement" shall not include ordinary maintenance and repairs necessary to preserve the real property's current assessed value.
Such exemption shall be granted only upon application by the owner of such real property on a form prescribed by the State Board of Real Property Services, the original of which shall be filed with the City Assessor. Such original application shall be filed on or before the taxable status date in the year in which the certificate of occupancy or certificate of compliance was issued. A copy of said application shall also be filed with the State Board of Real Property Services.
If the Assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he/she shall approve the application and such real property shall thereafter be exempt from taxation and special ad valorem levies as herein provided commencing with the first assessment roll prepared after the taxable status date as provided in the City Charter. 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.
The provision of this article shall only apply to one- and two-family dwellings used exclusively for residential purposes.
In the event that real property granted an exemption pursuant to this article is sold or transferred other than to the heirs or distributees of the owner, the exemption granted hereunder shall cease.