Creates a real property tax exemption for capital improvements to multiple dwellings in certain cities.
TITLE OF BILL: An act to amend the real property tax law, in relation to exemption of capital improvements to multiple dwelling buildings in certain cities
PURPOSE OR GENERAL IDEA OF BILL: This bill would create a new section 421-1 of the real property tax law in relation to an exemption on capital improvements to multiple dwellings in Troy, New York.
SUMMARY OF SPECIFIC PROVISIONS: The bill adds a new section 421-1 to the real property tax law to allow a real property tax exemption for capital improvements to multiple dwellings in the city of Troy. Such exemptions shall be applied to multiple dwellings reconstructed, altered, or converted back to owner occupied single family dwellings or dwellings with no more than two units. After a public hearing, the governing board of Troy may adopt a local law granting such exemption.
Such buildings shall be exempt for a period of one year to the extent of 100% of the increase in assessed value attributed to such reconstruction, alteration or improvement, and for an additional 7 years, decreasing by 12 1/2 percent of the "exemption base" for the term of such additional period. In the event that a change in assessment of 15% or more is certified for final assessment, a new "exemption base" shall be calculated and the assessor shall give written notice of such recomputed exemption to the property owner.
The value of such tax exemption shall be limited to not less than $10,000 nor more than $100,000 and shall apply to alterations, reconstructions and conversions subsequent to the effective date of the local law adopted for projects that exceed $5,000 in dwellings 5 years of age or older.
The owner must apply for such exemption with the assessor, and if satisfied, the assessor shall approve the application and grant the exemption. If a building that was granted an exemption pursuant to this section ceases to be used primarily for residential purposes or title is transferred to someone other than the heirs or distributees of the owner, the exemption granted shall cease.
The local law enacted in such city may reduce the percent of exemption allowed pursuant to this section, limit eligibility to those forms of reconstruction, alterations or improvements prescribed in such local law or resolution, and provide that the exemption shall apply only to those improvements resulting in an increase in the assessed valuation to the property. However, no such local law shall reduce or repeal an exemption granted until the expiration of the period for which the exemption was granted.
JUSTIFICATION: This legislation will allow the city of Troy to provide real property tax exemptions to the owners of multiple dwellings for significant
capital improvements to their property. Many cities are pursuing innovative ways to encourage growth and economic stability in their communities and have used tax exemptions to accomplish this. For example Peekskill and Cohoes are two cities which have benefited from offering tax exemptions for capital improvements. Extending this authority to Troy will go a long way in improving the housing stock in the city and increasing property values.
PRIOR LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 2499 2011-2012 Regular Sessions IN SENATE January 24, 2011 ___________Introduced by Sen. McDONALD -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the real property tax law, in relation to exemption of capital improvements to multiple dwelling buildings in certain cities THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property tax law is amended by adding a new section 421-l to read as follows: S 421-L. EXEMPTION OF CAPITAL IMPROVEMENTS TO MULTIPLE DWELLING BUILD- INGS WITHIN CERTAIN CITIES. 1. MULTIPLE DWELLING BUILDINGS, RECON- STRUCTED, ALTERED, CONVERTED BACK TO AN OWNER OCCUPIED SINGLE FAMILY DWELLING OR ANY OWNER OCCUPIED MULTIPLE DWELLING LOCATED IN ANY CITY HAVING A POPULATION OF MORE THAN FORTY-EIGHT THOUSAND NINE HUNDRED INHABITANTS BUT LESS THAN FORTY-NINE THOUSAND FOUR HUNDRED INHABITANTS, DETERMINED IN ACCORDANCE WITH THE LATEST FEDERAL DECENNIAL CENSUS, THAT IS REDUCED TO AT MOST TWO UNITS BY SUCH RECONSTRUCTION SUBSEQUENT TO THE EFFECTIVE DATE OF A LOCAL LAW PURSUANT TO THIS SECTION SHALL BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM LEVIES TO THE EXTENT PROVIDED HERE- INAFTER. AFTER A PUBLIC HEARING, THE GOVERNING BOARD OF SUCH CITY MAY ADOPT A LOCAL LAW TO GRANT THE EXEMPTION AUTHORIZED PURSUANT TO THIS SECTION. A COPY OF SUCH LOCAL LAW SHALL BE FILED WITH THE COMMISSIONER AND THE ASSESSOR OF SUCH CITY WHO PREPARES THE ASSESSMENT ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED. 2. (A) SUCH BUILDINGS WITHIN SUCH CITY SHALL BE EXEMPT FOR A PERIOD OF ONE YEAR TO THE EXTENT OF ONE HUNDRED PERCENT 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: (I) THE EXTENT OF SUCH EXEMPTION SHALL BE DECREASED BY TWELVE AND ONE-HALF PERCENT OF THE "EXEMPTION BASE" EACH YEAR DURING SUCH ADDI-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01576-02-1 S. 2499 2
TIONAL 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 SUBPARAGRAPH (II) OF THIS PARAGRAPH. (II) IN ANY YEAR IN WHICH A CHANGE IN LEVEL OF ASSESSMENT OF FIFTEEN PERCENT OR MORE IS CERTIFIED FOR A FINAL ASSESSMENT ROLL PURSUANT TO THE RULES OF THE COMMISSIONER, 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 PHYS- ICAL 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 ASSESS- MENT 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 CERTI- FIED 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 THREE OF ARTICLE FIVE OF THIS CHAPTER FOR THE CORRECTION OF CLERICAL ERRORS. (III) SUCH EXEMPTION SHALL BE LIMITED TO ONE HUNDRED THOUSAND DOLLARS IN INCREASED MARKET VALUE, OR SUCH OTHER SUM LESS THAN ONE HUNDRED THOU- SAND DOLLARS, BUT NOT LESS THAN TEN THOUSAND DOLLARS AS MAY BE PROVIDED BY THE LOCAL LAW OR RESOLUTION, 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, ALTER- ATION 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 NINETY-FIVE PERCENT, THE INCREASE IN ASSESSED VALUE ATTRIBUTABLE TO SUCH RECONSTRUCTION, ALTER- ATION OR IMPROVEMENT SHALL BE DEEMED TO EQUAL THE MARKET VALUE OF SUCH RECONSTRUCTION, ALTERATION OR IMPROVEMENT. (B) NO SUCH EXEMPTION SHALL BE GRANTED FOR RECONSTRUCTION, ALTERATIONS OR IMPROVEMENTS UNLESS: (I) SUCH RECONSTRUCTION, ALTERATION OR CONVERTED IMPROVEMENT WAS COMMENCED SUBSEQUENT TO THE EFFECTIVE DATE OF THE LOCAL LAW ADOPTED PURSUANT TO SUBDIVISION ONE OF THIS SECTION BY SUCH CITY; AND (II) THE VALUE OF SUCH RECONSTRUCTION, ALTERATION OR IMPROVEMENT EXCEEDS FIVE THOUSAND DOLLARS; AND (III) THE GREATER PORTION, AS SO DETERMINED BY SQUARE FOOTAGE, OF THE BUILDING RECONSTRUCTED, ALTERED OR IMPROVED IS AT LEAST FIVE YEARS OLD. (C) FOR PURPOSES OF THIS SECTION THE TERMS RECONSTRUCTION, ALTERATION AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTENANCE AND REPAIRS. 3. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER OF SUCH BUILDING ON A FORM PRESCRIBED BY THE STATE BOARD. THE APPLICA- TION SHALL BE FILED WITH THE ASSESSOR OF SUCH CITY ON OR BEFORE THE APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY.S. 2499 3
4. IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU- ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH BUILDING SHALL THEREAFTER BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM LEVIES AS PROVIDED IN THIS SECTION COMMENCING WITH THE ASSESSMENT ROLL PREPARED ON THE BASIS OF THE TAXABLE STATUS DATE REFERRED TO IN SUBDIVI- SION THREE OF THIS SECTION. THE ASSESSED VALUE OF ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESS- MENT ROLL WITH THE TAXABLE PROPERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN. 5. FOR THE PURPOSES OF THIS SECTION, AN OWNER OCCUPIED MULTIPLE DWELL- ING BUILDING SHALL MEAN 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. 6. IN THE EVENT THAT A BUILDING GRANTED AN EXEMPTION PURSUANT TO THIS SECTION 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. 7. (A) THE ENACTMENT OF A LOCAL LAW IN SUCH CITY MAY: (I) REDUCE THE PERCENT OF EXEMPTION OTHERWISE ALLOWED PURSUANT TO THIS SECTION; (II) LIMIT ELIGIBILITY FOR THE EXEMPTION TO THOSE FORMS OF RECON- STRUCTION, ALTERATIONS OR IMPROVEMENTS AS ARE PRESCRIBED IN SUCH LOCAL LAW OR RESOLUTION; (III) PROVIDE THAT THE EXEMPTION SHALL BE APPLICABLE ONLY TO THOSE IMPROVEMENTS WHICH WOULD OTHERWISE RESULT IN AN INCREASE IN THE ASSESSED VALUATION OF THE REAL PROPERTY BUT WHICH CONSIST OF AN ADDITION, REMOD- ELING OR MODERNIZATION TO AN EXISTING OWNER OCCUPIED MULTIPLE RESIDENCE STRUCTURE TO PREVENT PHYSICAL DETERIORATION OF THE STRUCTURE OR TO COMPLY WITH APPLICABLE BUILDING, SANITARY, HEALTH AND/OR FIRE CODES. (B) NO SUCH LOCAL LAW SHALL REDUCE OR REPEAL AN EXEMPTION GRANTED PURSUANT TO THIS SECTION UNTIL THE EXPIRATION OF THE PERIOD FOR WHICH SUCH EXEMPTION WAS GRANTED. S 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law.