New York Laws
Title 2 - Private Property
485-Q - Residential Investment Exemption; Certain Cities.

(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
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 the
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
three of article five of this chapter for the correction of clerical
errors.
(iii) The following table shall illustrate the computation of the city
tax exemption:

Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5
(b) No such exemption shall be granted unless:
(i) such construction was commenced on or after the first day of
January, two thousand fourteen or such later date as may be specified by
local law;
(ii) the residential real property is situate in a city with a
population of not less than thirteen thousand five hundred and not more
than fourteen thousand, determined in accordance with the latest
decennial census;
(iii) the cost of such construction exceeds the sum of thirty thousand
dollars or such greater amount as may be specified by local law; and
(iv) such construction is completed as may be evidenced by a
certificate of occupancy or other appropriate documentation as provided
by the owner.
(c) For purposes of this section the term construction shall not
include ordinary maintenance and repairs.
3. Such exemption shall be granted only upon application by the owner
of such real property on a form prescribed by the commissioner. Such
application shall be filed with the assessor of a city with a population
of not less than thirteen thousand five hundred and not more than
fourteen thousand, determined in accordance with the latest decennial
census, on or before the appropriate taxable status date of such city
and within one year from the date of completion of such construction.
4. If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the
application and such real property shall thereafter be exempt from
taxation and special ad valorem levies by a city with a population of
not less than thirteen thousand five hundred and not more than fourteen
thousand, determined in accordance with the latest decennial census, as
provided in this section commencing with the assessment roll prepared
after the taxable status date referred to in subdivision three of this
section. 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.
5. The provisions of this section shall apply to real property used as
the primary residence of the owner.
6. In the event that real property granted an exemption pursuant to
this section ceases to be used primarily for eligible purposes, the
exemption granted pursuant to this section shall cease.
7. A city with a population of not less than thirteen thousand five
hundred and not more than fourteen thousand, determined in accordance
with the latest decennial census, may, by local law, reduce the per
centum of exemption otherwise allowed pursuant to this section;
provided, however, that a project in course of construction and
exemptions existing prior in time to passage of any such local law shall
not be subject to any such reduction so effected. Such city upon
reduction of the per centum of exemption pursuant to this subdivision
may thereafter, by local law, increase the per centum of exemption up to
any per centum not exceeding the maximum allowed by subdivision two or
eleven of this section, whichever is applicable, provided, however, that
any such local law shall apply only to construction commenced subsequent
to the effective date of such local law. A copy of all such local laws
shall be filed with the commissioner and the assessor of the city.
8. A city with a population of not less than thirteen thousand five
hundred and not more than fourteen thousand, determined in accordance
with the latest decennial census, may, by local law, establish a date
for the commencement of effectiveness of exemption offered pursuant to
this section and may provide that the provisions of this section shall
apply only to construction having a greater value than that specified by

subdivision two of this section, provided, however, that such amount
shall not exceed seventy thousand dollars.
9. (a) A city with a population of not less than thirteen thousand
five hundred and not more than fourteen thousand, determined in
accordance with the latest decennial census, may, by local law,
establish a board to be known as the residential incentive board. The
membership and composition of such board shall be set forth in the local
law.
(b) The residential incentive board shall present a plan to the
legislative body of a city with a population of not less than thirteen
thousand five hundred and not more than fourteen thousand, determined in
accordance with the latest decennial census, concerning the various
types of residential real property which should be granted eligibility
for an exemption pursuant to subdivision one of this section. Such plan
shall make a recommendation as to whether the exemption be computed as
provided in subdivision two or eleven of this section. In addition, such
plan shall identify specific geographic areas within which such
exemptions should be offered. In developing the plan required by this
paragraph, the board shall consider the planning objectives of a city
with a population of not less than thirteen thousand five hundred and
not more than fourteen thousand, determined in accordance with the
latest decennial census, the necessity of the exemption to the
attraction or retention of home owners and the economic benefit to the
area of providing exemptions to home owners.
(c) In addition, the board may make recommendations to the legislative
body of a city with a population of not less than thirteen thousand five
hundred and not more than fourteen thousand, determined in accordance
with the latest decennial census, with respect to actions it deems
desirable to improve the economic climate therein.
10. If a city with a population of not less than thirteen thousand
five hundred and not more than fourteen thousand, determined in
accordance with the latest decennial census, establishes a residential
incentive board, pursuant to subdivision nine of this section, such city
may, by local law, restrict real property eligible to receive the
exemption to real property constructed for those purposes identified in
the plan presented by the board. Such local law shall restrict the
availability of such exemption to the specific geographic areas
identified in the plan presented by the board.
11. Notwithstanding subdivision two of this section, where a city with
a population of not less than thirteen thousand five hundred and not
more than fourteen thousand, determined in accordance with the latest
decennial census, adopts restricted exemptions pursuant to subdivision
ten of this section, the local law may provide that such exemptions
shall be computed pursuant to the following accelerated strategic
exemption schedule:

Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5

Provided however, that such local law shall:
(i) contain findings that the adoption of this accelerated strategic
exemption schedule is necessary to encourage targeted residential
development, and that the value of the exemptions to be provided is
justified by the need to broaden the tax base; and
(ii) limit the applicability of such schedule to projects where the
cost of such construction exceeds the sum of seventy thousand dollars;
and
(iii) provide that such exemptions are restricted by geographic areas
as provided by subdivision ten of this section.

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