[Adopted 2-13-2023 by L.L. No. 5-2023]
The purpose of this article is to grant a partial exemption
from taxation for capital improvements to residential buildings within
the Town of Ithaca as authorized by § 421-f of the New York
Real Property Tax Law.
This article shall be known as the "Town of Ithaca Capital Improvement
Exemption Law."
This article is enacted under the power granted to the Town
by New York Real Property Tax Law § 421-f.
For purposes of this article, the following terms shall be defined
as follows:
The exemption from taxation and special ad valorem levies
granted by this article.
Any building or structure designed and occupied exclusively
for residential purposes by not more than two families.
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.
A.
Subject to the provisions of § 421-f of the New York Real
Property Tax Law and this article, the increase in assessed value
attributable to a reconstruction, alteration or improvement which
qualifies for exemption shall receive the following exemption percentages:
|
Year
|
Exemption Percentage
|
|---|---|
|
1
|
100%
|
|
2
|
87.5%
|
|
3
|
75%
|
|
4
|
62.5%
|
|
5
|
50%
|
|
6
|
37.5%
|
|
7
|
25%
|
|
8
|
12.5%
|
B.
Such exemption shall be limited to $80,000 in increased market value
of the property attributable to such reconstruction, alteration or
improvement. Any increase in market value greater than $80,000 shall
not be eligible for the exemption pursuant to this article.
C.
The exemption base for each year shall be calculated pursuant to
and be subject to the provisions of New York Real Property Tax Law
§ 421-f.
A.
No such exemption shall be granted for reconstruction, alterations
or improvements unless:
(1)
Such reconstruction, alteration or improvement was commenced after
the effective date of this article;
(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 improvement consists of an addition,
remodeling or modernization to an existing residential structure to
prevent physical deterioration of the structure or to comply with
applicable building, sanitary, health and/or fire codes.
B.
For purpose of this section, the terms "reconstruction," "alteration"
and "improvement" shall not include ordinary maintenance and repairs.
C.
The exemption provisions of this article shall not apply to detached
garages or any other structures accessory to the principal residential
structure.
Such exemption shall be granted only upon timely application
by the owner of such building on a form prescribed by the New York
State Department of Taxation and Finance Commissioner or their delegate.
The original of such application shall be filed with the Tompkins
County Department of Assessment, on or before the appropriate tax
status date of the Town or other assessing entity. Application for
the exemption must be filed with the Tompkins County Department of
Assessment within one year after the date of the certificate of occupancy
issued by the Town of Ithaca.
Pursuant to New York Real Property Law § 421-f, if
the Tompkins County Assessment Department is satisfied that the applicant
is entitled to an exemption pursuant to this article, the Tompkins
County Assessment Department 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
Tompkins County Assessment Department 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 exclusively for residential purposes
or title thereto is transferred to any entity or person other than
the estate, heirs or distributees of the owner, the exemption granted
pursuant to this section shall cease and omitted taxes shall be computed
from the date of transfer.
The Town Clerk shall file a copy of this article with the New
York State Department of Taxation and Finance commissioner or their
delegate, and the Tompkins County Assessment Department.
Any amendment or rescission of this article shall not reduce
or repeal any exemption previously granted under it.
No reconstruction, alteration or improvement otherwise eligible
for exemption under this article shall receive such exemption unless
all building permits required by the Town of Ithaca shall have been
acquired prior to the start of such reconstruction, alteration or
improvement.
