The New York State Legislature recently enacted
§ 421-F of the Real Property Tax Law, authorizing local
legislation granting real property tax exemptions for increases in
value attributable to a capital improvement of residential dwellings.
The purpose of this legislation is to exercise this local power by
granting real property tax exemptions to persons who make capital
improvements to their property.
This legislation hereby provides that any reconstruction,
alteration or improvement of residential buildings exclusively designed
and occupied by not more than two families shall be exempt for a period
of one year to the extent of one hundred (100%) percent of the increase
in assessed value attributable to such reconstruction, alteration
or improvement and for an additional period of seven years. The extent
of such exemption for the additional period shall be decreased by
twelve and one-half (12 1/2%) percent of the initial exemption
each year. Such exemption shall be limited to eighty thousand ($80,000)
dollars in increased market value, but not less than five thousand
($5,000) dollars 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.
Such exemption shall be granted only upon application
by the owner of such real property on a form prescribed by the State
Board of Equalization and Assessment, the original of which shall
be filed with the Town Assessor. Such original application shall be
filed on or before the taxable status date and within one year from
the date of completion of such reconstruction, alteration or improvement.
A copy of said application shall also be filed with the State Board
of Equalization and Assessment.
The exemption shall cease or terminate when
title or equitable ownership is transferred to any persons other than
the issue of the owner or owners or distributees or devisees of the
owner or owners who shall take equitable title to the property through
a testamentary disposition, intestate or estate proceedings; the exemption
shall further cease and terminate if the property ceases to be used
primarily for residential purposes.
This Article shall be effective when the appropriate
certified copies are filed with the Secretary of State of the State
of New York.