[Adopted 10-17-2005 by L.L. No. 4-2005]
Editor's Note: Section 2 of this local law, as amended 12-5-2005 by L.L. No. 7-2005, stated that "This local law shall take effect upon final passage and filing with the Secretary of State and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on and after January 1, 2007."
The purpose of this article is to afford and provide an exemption from general municipal taxes for owners of multiple dwellings that are converted into single-family residences or two-unit residences in accordance with § 421-i of the Real Property Tax Law of the State of New York.
As used in this article, the following terms shall have the meanings indicated:
- OWNER-OCCUPIED MULTIPLE-DWELLING BUILDING
- Any building or structure designed and occupied as the temporary or permanent residence or home of two or more families, including the owner of such building.
The terms "reconstruction," "alteration" and "improvement" shall not include ordinary maintenance and repairs.
Multiple-dwelling buildings, reconstructed, altered, converted back to an owner-occupied single-family dwelling or any owner-occupied multiple dwelling that is reduced to at most two units by such reconstruction shall be exempt from taxation and special ad valorem levies to the extent provided hereinafter.
Such buildings shall be exempt for a period of one year to the extent of 100% of the increase in assessed value 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 12.5% 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(2) 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 the NYS Real Property Tax Law.
Such exemption shall be limited to $100,000 in increased market value, or such other sum less than $100,000, but not less than $10,000, 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 most recently established state equalization rate for such city. Where the state equalization rate or special equalization rate equals or exceeds 95%, 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:
Such reconstruction, alteration or converted improvement was commenced subsequent to the effective date of this article; and
The value of such reconstruction, alteration or improvement exceeds $5,000; and
The greater portion, as so determined by square footage, of the building reconstructed, altered or improved is at least five years old.
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 section 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.
If satisfied that the applicant is entitled to an exemption pursuant to this article, the Assessor shall approve the application and such building shall thereafter be exempt from taxation and special ad valorem levies as provided in this article commencing with the assessment roll prepared on the basis of the taxable status date of March 1. The assessed value of any exemption granted pursuant to this section shall be entered by the Assessor on the assessment roll with the taxable property, with the amount of the exemption shown in a separate column.