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RPTL 421-f

§ 421-f. Exemption of capital improvements to residential buildings. 

    1. Residential buildings reconstructed, altered or improved subsequent
to the effective date of a local law or resolution pursuant to this
section shall be exempt from taxation and special ad valorem levies to
the extent provided hereinafter. After a public hearing, the governing
board of a county, city, town or village may adopt a local law and a
school district, other than a school district subject to article
fifty-two of the education law, may adopt a resolution to grant the
exemption authorized pursuant to this section. A copy of such local law
or resolution shall be filed with the state board and the assessor of
such county, city, town or village who prepares the assessment roll on
which the taxes of such county, city, town, village or school district
are levied. 
     2. (a) Such buildings shall be exempt for a period of one year to the
extent of one hundred per centum of the increase in assessed value
thereof 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 per centum of the "exemption base" each year during such
additional 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 state board, 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
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) Such exemption shall be limited to eighty thousand dollars in
increased market value, or such other sum less than eighty thousand
dollars, but not less than five 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,
alteration or improvement divided by the class I ratio in a special
assessing unit or the most recently established state equalization rate
or special equalization rate in the remainder of the state, except where
the state equalization rate or special equalization rate equals or
exceeds ninety-five percent, in which case the increase in assessed
value attributable to such reconstruction, alteration 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 improvement was commenced
subsequent to the effective date of the local law or resolution adopted
pursuant to subdivision one of this section; and 
             (ii) the value of such reconstruction, alteration or improvement
exceeds three 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
application shall be filed with the assessor of the city, town, village
or county having the power to assess property for taxation on or before
the appropriate taxable status date of such city, town, village or
county. 
     4. If satisfied that the applicant is entitled to an exemption
pursuant to this section, the assessor shall approve the application and
such building shall thereafter be exempt from taxation and special ad
valorem levies as herein provided commencing with the assessment roll
prepared on the basis of 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. For the purposes of this section, a residential building shall mean
any building or structure designed and occupied exclusively for
residential purposes by not more than two families. 
     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) A county, city, town or village may, by its local law, or
school district, by its resolution: 
             (i) reduce the per centum of exemption otherwise allowed pursuant to
this section; 
             (ii) limit eligibility for the exemption to those forms of
reconstruction, 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,
remodeling or modernization to an existing residential 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 or resolution shall reduce or repeal an
exemption granted pursuant to this section until the expiration of the
period for which such exemption was granted. 
     8. The provisions of this section shall not apply to a city with a
population of more than one million.

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