New York Laws
Title 2 - Private Property
485-T - Owner Occupied Residential Property Exemption Program.

(a) "Applicant" means any person obligated to pay real property taxes
on real property, which he or she owns and upon which he or she resides,
or will reside and for which an exemption from taxes under this section
is sought.
(b) "Municipality" means any city having a population of not less than
thirty-one thousand one hundred forty and not more than thirty-one
thousand one hundred fifty as determined by the latest federal decennial
census.
(c) "Residential construction work" means (i) the creation,
modernization, rehabilitation, expansion or other improvement of single
family or two family residential property that is vacant, legally
condemned and has outstanding state and local building and fire code
violations, where the cost of remedying such violations exceeds the
value of such property; or
(ii) the construction of a new single or two family residence of not
less than one thousand two hundred square feet on a parcel upon which a
prior structure was demolished.
2. A municipality, may, by local law, provide for the exemption of
owner occupied residential property, which has been subject to
residential construction work, from taxation as provided in this
section. Subsequent to the adoption of such a local law, the county in
which such municipality is located may, by local law, and any school
district, all or part of which is located in such municipality, may, by
resolution, exempt such property from its taxation in the same manner
and to the same extent as such municipality has done.
3. Upon the adoption of such a local law the owner occupied
residential property that was created, modernized, rehabilitated,
expanded or otherwise improved, shall be exempt from taxation and
special ad valorem levies as provided for in subdivision four of this
section.
4. (a) (i) For a period of eleven years following the approval of an
application, the increase in assessed value of such property
attributable to such creation, modernization, rehabilitation, expansion
or other improvement shall be exempt as provided in subparagraph (ii) of
this paragraph. Such exemption shall be computed with respect to the
"exemption base". The exemption base shall be determined for each year
in which there is an increase in assessed value so attributable from
that of the previous year's assessed value.
(ii) The following shall determine the computation of the tax
exemption:

Year of exemption Percentage of exemption
1 through 3 100% of exemption base
4 through 5 80% of exemption base
6 through 7 60% of exemption base
8 through 9 40% of exemption base
10 through 11 20% of exemption base
(b) No such exemption shall be granted unless:
(i) such creation, modernization, rehabilitation, expansion or other
improvement was commenced subsequent to the date on which the
municipality's local law took effect;
(ii) the cost of such creation, modernization, rehabilitation,
expansion or other improvement exceeds the sum of ten thousand dollars
or such greater amount as may be specified by local law;
(iii) the building department has issued a certificate of occupancy
following the completion of the residential construction work; and
(iv) the property complies with all applicable codes and zoning laws
of the city.
(c) For purposes of this section the term "creation, modernization,
rehabilitation, expansion or other improvement" shall not include
ordinary maintenance and repairs.
(d) 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 to the municipality 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 section. In such case, an exemption shall be granted
for a number of years equal to the eleven year exemption granted
pursuant to this section less the number of years the property would
have been previously exempt from real property taxes.
5. (a) Such exemption shall be granted only upon application by an
owner who resides or certifies that he or she will reside on the real
property on a form prescribed by the commissioner. Such application
shall be filed with the assessor on or before the appropriate taxable
status date.
(b) Such application must include information that discloses the scope
of work to be undertaken and shall contain cost estimates and quotes for
such work from contractors, plumbers and electricians licensed to do
business within the municipality.
(c) The application and the scope of work shall be reviewed by the
municipal housing code enforcement officer and the appropriate fire and
building code enforcement officer who shall ensure that all proposed
work complies with the provisions of the New York state fire prevention
and building code and all applicable municipal codes and ordinances.
6. 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 as provided in this section
commencing with the assessment roll prepared after the taxable status
date referred to in subdivision five 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.

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