Relates to authorizing a residential redevelopment inhibited property exemption; authorizes any city, town or village to, by local law, provide for a real property tax exemption for residential redevelopment inhibited property.
STATE OF NEW YORK
________________________________________________________________________
4450
2017-2018 Regular Sessions
IN ASSEMBLY
February 2, 2017
___________
Introduced by M. of A. SCHIMMINGER, McDONALD -- read once and referred
to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to authorizing a
residential redevelopment inhibited property exemption
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 485-r of the real property tax law, as added by
2 chapter 406 of the laws of 2015 and paragraph (f) of subdivision 1 as
3 amended by chapter 28 of the laws of 2016, is amended to read as
4 follows:
5 § 485-r. Residential redevelopment inhibited property exemption[;
6 certain cities]. 1. As used in this section, the following terms shall
7 have the following meanings:
8 (a) "Redevelopment inhibited property" shall mean a residential prop-
9 erty that has been neglected or abandoned because of the local economic
10 conditions and/or conditions on the property that inhibit such property
11 from being redeveloped by the private sector. Redevelopment inhibited
12 property shall not include land that is undeveloped.
13 (b) "Gap financing costs" shall mean the total cost of the property's
14 redevelopment as approved by the [city] municipality minus the increase
15 in the full valuation of the property upon completion of the redevelop-
16 ment.
17 (c) "Base assessment" shall mean the assessed value of the property on
18 the day the [city] municipality designates the property as redevelopment
19 inhibited.
20 (d) "Increased assessment" shall mean the assessed value of the prop-
21 erty as determined by the assessor upon completion of the redevelopment.
22 (e) "Incremental increase in annual property taxes" shall mean the
23 taxes based on the increased assessment minus the taxes based on the
24 base assessment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07927-01-7
A. 4450 2
1 (f) ["City" shall mean a city with a population of not less than
2 fifteen thousand two hundred fifty and not more than fifteen thousand
3 five hundred as determined by the latest federal decennial census.]
4 "Municipality" means any city, town or village.
5 2. A [city] municipality may, by local law, provide for the exemption
6 of real property from taxation as provided in this section. Subsequent
7 to the adoption of such local law, the county in which such [city] muni-
8 cipality is located may after a public hearing and by local law, and any
9 school district, all or part of which is located in such [city] munici-
10 pality, may, by resolution, exempt such property from its taxation in
11 the same manner and to the same extent as the [city] municipality has
12 done.
13 3. A [city] municipality shall designate any property within the
14 [city] municipality's boundaries as a redevelopment inhibited property
15 if one or more of the following are met:
16 (a) the [city] municipality has acquired title to the property pursu-
17 ant to article nineteen-A of the real property actions and proceedings
18 law; or
19 (b) the property has been continuously vacant for a period of at least
20 three years; or
21 (c) the [city] municipality has acquired title to the property via
22 foreclosure for unpaid taxes pursuant to article eleven of this chapter;
23 or
24 (d) the property has outstanding zoning, housing, or uniform code
25 violations and the cost of remedying the violations exceeds the proper-
26 ty's value.
27 4. (a) Upon the adoption of such local law, redevelopment inhibited
28 property shall be exempt from taxation and special ad valorem levies to
29 the extent of any increase in value attributable to demolition, alter-
30 ation, rehabilitation, or remediation pursuant to the following require-
31 ments:
32 (i) the demolition, alterations, rehabilitation, and/or remediation
33 shall be permitted by the [city's] municipality's bureau of inspection
34 such that building or plumbing permits issued and said demolition,
35 alterations, rehabilitation, and/or remediation shall have met all
36 necessary approvals per the applicable New York state uniform fire
37 prevention and building code, the [city's] municipality's municipal code
38 and the [city's] municipality's bureau of inspection upon completion;
39 and
40 (ii) the property for which the exemption is sought shall be an
41 owner-occupied one-family residence; and
42 (iii) the owner of such property shall file annually an affidavit of
43 residency with the assessor of the [city] municipality on or before the
44 appropriate taxable status date of such [city] municipality, confirming
45 continued owner-occupancy of the property; and
46 (iv) the redevelopment inhibited property is exempt from taxation and
47 special ad valorem levies attributable to the increased assessment minus
48 the taxes and special ad valorem levies imposed on the base assessment.
49 Such exemption shall not apply to special assessments.
50 (b) In the event the property granted an exemption pursuant to this
51 section ceases to be owner-occupied and/or the affidavit of residency is
52 not filed annually for the approved exemption period, the exemption
53 granted pursuant to this section shall cease.
54 (c) In the event the property granted an exemption pursuant to this
55 section ceases to be a one-family dwelling, the exemption granted pursu-
56 ant to this section shall cease.
A. 4450 3
1 (d) In the event the owner of the property is convicted of a violation
2 or misdemeanor pursuant to New York state uniform fire prevention and
3 building code or the [city's] municipality's municipal code, the
4 exemption granted pursuant to this section shall cease.
5 5. (a) Such redevelopment inhibited property shall be exempt for a
6 period equal to the gap financing costs divided by the incremental
7 increase in annual property taxes resulting from such redevelopment. The
8 exemption period shall be rounded up to the nearest whole number and
9 shall not exceed twenty-five years.
10 (b) The extent of such exemption shall decrease the last eight years
11 of the exemption period by twelve and one-half percent of the increase
12 in assessment due to the redevelopment equaling a zero percent exemption
13 on the final year of the exemption period.
14 6. (a) Such exemption shall be granted only upon application by the
15 owner of such building for the residential redevelopment inhibited prop-
16 erty exemption, on a form prescribed by the [city] municipality. Such
17 application must be filed with the assessor of the [city] municipality
18 on or before the appropriate taxable status date of such [city] munici-
19 pality. The application must be filed with the assessor of the [city]
20 municipality within three years from the date of completing the demoli-
21 tion, alterations, rehabilitation, and/or remediation.
22 (b) The owner filing for such exemption shall not be required to be
23 the owner responsible for completing the demolition, alterations, reha-
24 bilitation, and/or remediation.
25 (c) If the assessor is satisfied that the applicant is entitled to an
26 exemption pursuant to this section, he or she shall approve the applica-
27 tion and such real property shall thereafter be exempt from taxation and
28 special ad valorem levies by the [city] municipality commencing with the
29 assessment roll prepared after the taxable status date referred to in
30 this subdivision. The assessed value of any exemption granted pursuant
31 to this section shall be entered by the assessor of the [city] munici-
32 pality on the assessment roll with the taxable property, with the amount
33 of the exemption shown in a separate column.
34 (d) Once granted, the residential redevelopment inhibited property
35 exemption runs with the land for the exemption period pursuant to this
36 section.
37 § 2. This act shall take effect on the one hundred eightieth day after
38 it shall have become a law.
