City of Albany, NY
Albany County
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Table of Contents
Table of Contents
[Adopted 5-20-2002 by L.L. No. 3-2002[1]]
[1]
Editor's Note: This local law provided that it shall apply to assessment rolls prepared on the basis of taxable status dates occurring on and after 1-1-2003.
The purpose of this article is to afford and provide an exemption from general municipal taxes for first-time homebuyers of newly constructed or improved homes in accordance with § 457 of the Real Property Tax Law of the State of New York (RPTL).
A. 
Newly constructed primary residential property purchased by one or more persons, each of whom is a first-time homebuyer and has not been married to a homeowner in the three years prior to applying for this first-time homeowners' exemption, shall be exempt from taxation levied pursuant to § 457 of the NYS Real Property Tax Law. The length of said exemption shall be five years.
B. 
Such exemption shall be computed in accordance with the following table:
Year of Exemption
Percentage of Assessed Valuation Exempt From Tax
1
50%
2
40%
3
30%
4
20%
5
10%
6 or more
0%
A. 
Any newly constructed primary residential real property within a purchase price limit of $346,310 shall be eligible for the exemption allowed pursuant to this article.
[Amended 2-4-2013 by L.L. No. 1-2013; 5-18-2020 by L.L. No. 6-2020]
B. 
Newly constructed primary residential property purchased by first-time homebuyers at a sales price greater than the maximum eligible sales price shall qualify for the exemption allowed pursuant to this article for that portion of the sale price of such newly constructed primary residential property equal to the maximum eligible sales price; provided, however, that any newly constructed primary residential property purchased at a sales price greater than 15% above the maximum eligible sales price shall not be allowed any exemption.
A first-time homebuyer who either as part of the written contract for sale of the primary residential property, or who enters into a written contract within 90 days after closing of the sale of the primary residence for reconstruction, alteration, or improvements, the value of which exceeds $3,000, to the primary residential property shall be exempt from taxation to the extent provided by this article. Such exemption shall apply solely to the increase in assessed value thereof attributable to such reconstruction, alteration or improvement, provided that the assessed value after reconstruction, alteration, or improvement does not exceed 15% more than the purchase price limits as defined in Subsection A of § 333-126. For purposes of this article the terms "reconstruction," "alteration" and "improvement" shall not include ordinary maintenance and repairs.
[Amended 2-4-2013 by L.L. No. 1-2013; 5-18-2020 by L.L. No. 6-2020]
A first-time homebuyer shall not qualify for the exemption authorized pursuant to this section if the household income exceeds income limits defined by the State of New York mortgage agency low-interest-rate mortgage program in the nontarget, one- and two-person household category for Albany County and in effect on the contract date for the purchase and sale of such property.
A. 
The term "household income" as used herein shall mean the total combined income of all the owners, and of any owners’ spouses residing on the premises, for the income tax year preceding the date of making application for the exemption.
B. 
The term "income" as used herein shall mean the “adjusted gross income” for federal income tax purposes as reported on the applicant’s latest available federal or state income tax return, subject to any subsequent amendments or revisions, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retirement annuity; provided that if no such return was filed within the one-year period preceding taxable status date, "income" shall mean the adjusted gross income that would have been so reported if such a return had been filed. For purposes of this section, "latest available return" shall mean the federal or state income tax return for the year immediately preceding the date of making application; provided, however, that if the tax return for such tax year has not been filed, then the income tax return for the tax year two years preceding the date of making application shall be considered the latest available.
[Amended 5-18-2020 by L.L. No. 6-2020]
No exemption shall be allowed pursuant to this article for any newly constructed primary residential property purchased by a first-time homebuyer on or after December 31, 2022, unless such purchase is pursuant to a binding written contract entered into prior to December 31, 2022; provided, however, that any first-time homebuyer who is allowed an exemption pursuant to this article prior to such date shall continue to be allowed further exemptions pursuant to § 333-125 of this article.
A. 
No portion of a single-family newly constructed primary residential property shall be leased during the period of time when the first-time homeowner exemption shall apply to the residence. If any portion of the single-family newly constructed primary residential property is found to be the subject of a lease agreement, the Assessor shall discontinue any exemption granted pursuant to this article.
B. 
In the event that a primary residential property granted an exemption pursuant to this article ceases to be used primarily for residential purposes or title thereto is transferred to other than the heirs or distributees of the owner, the exemption granted pursuant to this article discontinued.
C. 
Upon determining that an exemption granted pursuant to this article should be discontinued, the Assessor shall mail a notice so stating to the owner or owners thereof at the time and in the manner provided by § 510 of the NYS Real Property Tax Law. Such owner or owners shall be entitled to seek administrative and judicial review of such action in the manner provided by law, provided that the burden shall be on such owner or owners to establish eligibility for the exemption.
Any exemption pursuant to this article shall be granted only upon application by the owner thereof on the form prescribed by the State Board. The application shall be filed with the Assessor of the City of Albany on or before the taxable status date of March 1 to be eligible for an exemption to be entered on the assessment roll prepared on the basis of said taxable status date.
The definitions of "income," "household income," "first-time homebuyer," "primary residential property," and "newly constructed" shall be those set forth in § 457 of the NYS Real Property Tax Law.