In accordance with § 421-f of the
New York State Real Property Tax Law, improvements to one- and two-family
houses resulting in a change in the assessed valuation of at least
$3,000 shall be, upon application, eligible for an exemption of Village
of Potsdam property taxes per the terms of this article, such abatement
not to exceed $50,000.
The intent of this article is to encourage property
owners to make improvements to one- and two-family houses, to improve
the quality of housing in the community, and to preserve and expand
the tax base of the Village of Potsdam.
The improvements to residential buildings reconstructed,
altered or improved subsequent to the effective date of this article
for residential purposes shall be exempt from taxation to the extent
provided hereinafter. For the purposes of this article, a "residential
building" shall mean any building or structure designed and occupied
exclusively for residential purposes by not more than two families.
The improvements to 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; provided,
however, that the extent of such exemption shall be decreased by 12 1/2%
of the initial exemption each year during such additional period;
and provided, further, that such exemption shall be limited to $50,000
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 most recently established
state equalization rate.
An exemption granted pursuant to this article
shall cease in the event that a building granted an exemption ceases
to be used primarily for residential purposes or in the event that
title thereto is transferred to other than the heirs or distributes
of the owner. Properties currently receiving an exemption or abatement
under other sections of the Real Property Tax Law (such as § 485-e)
shall continue under the previous exemption or abatement.
If any section or subsection, paragraph, clause,
phrase or provision of this article shall be adjudged invalid or held
unconstitutional by any court of competent jurisdiction, such adjudication
shall not affect the validity of this article as a whole or any part
thereof other than the part or provision so adjudged to be invalid
or unconstitutional.
This article shall take effect upon filing with
the Secretary of State pursuant to the Municipal Home Rule Law. However,
the implementation of the law will not go into effect until after
the next taxable status date and the establishment of the property
tax roll.
The Village Clerk is hereby directed to file
a certified copy of this article with the State Board of Equalization
and Assessment.