Establishes a vacant residential investment exemption in cities with a population of not less than seven thousand fifty and not more than seven thousand sixty, determined in accordance with the two thousand twenty census.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5898E
SPONSOR: Angelino TITLE OF BILL:
An act to amend the real property tax law, in relation to establishing a
residential investment exemption in certain cities
PURPOSE OR GENERAL IDEA OF BILL:
Establishes a residential investment exemption in certain cities
SUMMARY OF PROVISIONS:
Section 1. The real property tax law is amended by adding a new section
485-y to read as follows: 485-y. Vacant residential real property
improvement exemption; certain cities. I. Construction of improvements
to residential real property, provided that such real property was
vacant prior to such construction, initiated on or after January first,
two thousand twenty-five in a city with a population of not less than
seven thousand fifty and not more than seven thousand sixty, determined
in accordance with the two thousand twenty census, may be exempt from
city taxation as provided in this section.
Section 2. (a) (i) During the construction period, such real property
shall be fully exempt from city taxation, up to a period of eighteen
months or until a certificate of occupancy is issued, whichever is soon-
er, on all city taxation.
JUSTIFICATION:
The City of Norwich requested this legislation to encourage development
of the vacant residential parcels along with increase the City's tax
base that will eventually add to the City of Norwich's taxable assessed
values. To be eligible, all parcels must be classified as code 311 Resi-
dential Vacant Land on the City's tax roll. Qualifying improvements will
be Residential dwellings only.
The City is only offering the incentive to residential dwellings not
commercial to provide additional housing within the City. The incentive
will allow the property owner to build the dwelling tax free for 18
months or until the Certificate of Occupancy is issued. After this time
the property will be fully assessed but the property owner will have 5
years on a sliding scale before they pay taxes on their full assessment.
Currently there is no specific site plan for each lot, but they must be
residential dwellings and must meet all code and zoning requirements.
There are approximately 70 residential vacant lots on the City's tax
roll, and they are located throughout the City limits. This. legis-
lation would assist the City of Norwich to provide an incentive for
these residential vacant lots to property owners along with improve the
housing stock within the City too.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5898--E
2023-2024 Regular Sessions
IN ASSEMBLY
March 24, 2023
___________
Introduced by M. of A. ANGELINO -- read once and referred to the Commit-
tee on Real Property Taxation -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee -- recommitted to the
Committee on Real Property Taxation in accordance with Assembly Rule
3, sec. 2 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- reported and referred to
the Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to establishing a
residential investment exemption in certain cities
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property tax law is amended by adding a new
2 section 485-y to read as follows:
3 § 485-y. Vacant residential real property improvement exemption;
4 certain cities. 1. Construction of improvements to residential real
5 property, provided that such real property was continuously vacant for a
6 period of at least three years prior to such construction, initiated on
7 or after January first, two thousand twenty-five in a city with a popu-
8 lation of not less than seven thousand fifty and not more than seven
9 thousand sixty, determined in accordance with the two thousand twenty
10 census, may be exempt from city taxation as provided in this section.
11 2. (a)(i) During the construction period, such real property shall be
12 fully exempt from city taxation, up to a period of eighteen months or
13 until a certificate of occupancy is issued, whichever is sooner, on all
14 city taxation. For the purposes of this section, the term "construction
15 period" shall mean the period of time beginning on the date which the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09064-11-4
A. 5898--E 2
1 actual construction of improvements to vacant residential real property,
2 pursuant to subdivision one of this section, lawfully begins in good
3 faith and ending on the date a certificate of occupancy has been issued.
4 (ii) (A) Upon the termination of the exemption provided for under
5 subparagraph (i) of this paragraph, such real property shall be exempt
6 for a period of one year to the extent of eighty per centum of the
7 assessed value thereof and for an additional period of three years,
8 provided, however, that the extent of such exemption shall decrease by
9 twenty per centum each year during such additional period of three years
10 and such exemption shall be computed with respect to the "exemption
11 base". For the purposes of this section, the term "exemption base" shall
12 mean the assessed value as determined by the assessor in the initial
13 year of such four-year period following the termination of the exemption
14 provided for under subparagraph (i) of this paragraph.
15 (B) The following table shall illustrate the computation of the city
16 tax exemption:
17 Year of exemptionPercentage of exemption
18 180
19 260
20 340
21 420
22 (C) Exemptions granted pursuant to this section shall apply to real
23 property taxes imposed for city purposes.
24 (b) No such exemption shall be granted unless: (i) such construction
25 of improvements was commenced on or after the first day of January, two
26 thousand twenty-five or such later date as may be specified by local
27 law;
28 (ii) the residential real property is situate in a city with a popu-
29 lation of not less than seven thousand fifty and not more than seven
30 thousand sixty, determined in accordance with the two thousand twenty
31 census; and
32 (iii) such construction is documented by a building permit, if
33 required, for the improvements, or other appropriate documentation as
34 required by the assessor.
35 3. Such exemption shall be granted only upon application by the owner
36 of such real property on a form prescribed by the commissioner. Such
37 application shall be filed with the assessor of a city with a population
38 of not less than seven thousand fifty and not more than seven thousand
39 sixty, determined in accordance with the two thousand twenty census, on
40 or before the appropriate taxable status date of such city and within
41 one year from the date of completion of such construction of improve-
42 ments.
43 4. If the assessor is satisfied that the applicant is entitled to an
44 exemption pursuant to this section, they shall approve the application
45 and such real property shall thereafter be exempt from taxation and
46 special ad valorem levies by a city with a population of not less than
47 seven thousand fifty and not more than seven thousand sixty, determined
48 in accordance with the two thousand twenty census, as provided in this
49 section commencing with the assessment roll prepared after the taxable
50 status date referred to in subdivision three of this section. The
51 assessed value of any exemption granted pursuant to this section shall
52 be entered by the assessor on the assessment roll with the taxable prop-
53 erty, with the amount of the exemption shown in a separate column.
54 5. In the event that real property granted an exemption pursuant to
55 this section ceases to be used primarily for eligible purposes, the
56 exemption granted pursuant to this section shall cease.
A. 5898--E 3
1 6. A city with a population of not less than seven thousand fifty and
2 not more than seven thousand sixty, determined in accordance with the
3 two thousand twenty census, may, by local law, establish a date for the
4 commencement of effectiveness of the exemption offered pursuant to this
5 section. A copy of all such local laws shall be filed with the commis-
6 sioner and the assessor of the city.
7 § 2. This act shall take effect immediately.
