[Adopted 9-4-2003 by L.L. No. 5-2003]
Editor’s Note: This local law stated that it would apply to assessment rolls prepared on the basis of taxable status dates occurring on and after 1-1-2004.
The purpose of this article is to afford and provide an exemption from general municipal taxes for owners of residential buildings that are reconstructed, altered or improved in accordance with § 421-f of the Real Property Tax Law of the State of New York (RPTL).
Residential buildings that are reconstructed, altered or improved, pursuant to § 421-f of the NYS Real Property Tax Law shall be exempt from taxation and special ad valorem levies levied. Such buildings shall be exempt for a period of one year to the extent of one hundred per centum of the increase in assessed value thereof attributable to such reconstruction, alteration or improvement and for an additional period of seven years subject to the following:
The extent of such exemption shall be decreased by 12 1/2% of the exemption base each year during such additional period. The “exemption base” shall be the increase in assessed value as determined in the initial year of the term of the exemption, except as provided in Subsection B of this section.
In any year in which a change in level of assessment of 15% or more is certified for a final assessment roll pursuant to the rules of the State Board, the exemption base shall be multiplied by a fraction, the numerator of which shall be the total assessed value of the parcel on such final assessment roll (after accounting for any physical or quantity changes to the parcel since the immediately preceding assessment roll), and the denominator of which shall be the total assessed value of the parcel on the immediately preceding final assessment roll. The result shall be the new exemption base. The exemption shall thereupon be recomputed to take into account the new exemption base, notwithstanding the fact that the Assessor receives certification of the change in level of assessment after the completion, verification and filing of the final assessment roll. In the event the Assessor does not have custody of the roll when such certification is received, the Assessor shall certify the recomputed exemption to the local officers having custody and control of the roll, and such local officers are hereby directed and authorized to enter the recomputed exemption certified by the Assessor on the roll. The Assessor shall give written notice of such recomputed exemption to the property owner, who may, if he or she believes that the exemption was recomputed incorrectly, apply for a correction in the manner provided by Title 3 of Article 5 of this chapter for the correction of clerical errors.
See Real Property Tax Law, Chapter 50-a, Article 5, Title 3.
Such exemption shall be limited to $80,000 in increased market value, but not less than $5,000, 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 Class I ratio in a special assessing unit or the most recently established state equalization rate or special equalization rate in the remainder of the state, except where the state equalization rate or special equalization rate equals or exceeds 95%, in which case the increase in assessed value attributable to such reconstruction, alteration or improvement shall be deemed to equal the market value of such reconstruction, alteration or improvement.
No such exemption shall be granted for reconstruction, alterations or improvements unless:
The value of such reconstruction, alteration or improvement exceeds $3,000; and
The greater portion, as so determined by square footage, of the building reconstructed, altered or improved is at least five years old.
For purposes of this section the terms “reconstruction,“ “alteration” and “improvement” shall not include ordinary maintenance and repairs.
No such exemption shall be granted concurrent with or subsequent to any other real property tax exemption granted to the same improvements to real property, except where, during the period of such previous exemption, payments in lieu of taxes or other payments were made in an amount that would have been equal to or greater than the amount of real property taxes that would have been paid on such improvements had such property been granted an exemption pursuant to this article. In such case, an exemption shall be granted for a number of years equal to the twelve-year exemption granted pursuant to this article less the number of years the property would have been previously exempt from real property taxes.
In the event that a building 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 shall cease.
Such exemption shall be granted only upon application by the owner of such building on a 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. 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.
For the purpose of this section, “residential building” shall mean any building or structure designed and occupied exclusively for residential purposes by not more than two families.