S T A T E O F N E W Y O R K
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10596
I N A S S E M B L Y
April 8, 2010
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Introduced by M. of A. CASTELLI, PAULIN -- read once and referred to the
Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to exempting
certain construction, reconstruction, alteration or improvement of
multiple dwelling buildings within certain cities from taxation and
other assessments
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The real property tax law is amended by adding a new
section 421-l to read as follows:
S 421-L. EXEMPTION OF CERTAIN CONSTRUCTION OR IMPROVEMENTS IN CERTAIN
CITIES. 1. NEW CONSTRUCTION OF A MULTIPLE DWELLING BUILDING, RECON-
STRUCTION, ALTERATION, OR IMPROVEMENT OF A PREEXISTING MULTIPLE DWELLING
BUILDING OR STRUCTURE WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS A RESI-
DENCE OR HOME AND CONSISTS OF NO LESS THAN FOUR UNITS, WHETHER SUCH
DWELLING IS RENTED OR OWNED AS A COOPERATIVE OR CONDOMINIUM, AND IS
LOCATED IN ANY CITY HAVING A POPULATION OF MORE THAN FIFTY-THREE THOU-
SAND SEVENTY BUT LESS THAN FIFTY-THREE THOUSAND ONE HUNDRED AS DETER-
MINED BY THE TWO THOUSAND FEDERAL DECENNIAL CENSUS SHALL BE EXEMPT FROM
TAXATION OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS, TO THE EXTENT
PROVIDED IN THIS SECTION. AFTER A PUBLIC HEARING, THE GOVERNING BOARD OF
SUCH CITY MAY ADOPT A LOCAL LAW TO GRANT THE EXEMPTION AUTHORIZED PURSU-
ANT TO THIS SECTION. A COPY OF SUCH LOCAL LAW SHALL BE FILED WITH THE
STATE BOARD AND THE ASSESSOR OF SUCH CITY WHO PREPARES THE ASSESSMENT
ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
2. (A) EXCEPT AS OTHERWISE PROVIDED HEREIN, SUCH BUILDINGS WITHIN SUCH
CITY SHALL BE EXEMPT DURING THE PERIOD OF CONSTRUCTION OR FOR A PERIOD
OF THREE YEARS IMMEDIATELY FOLLOWING THE COMMENCEMENT OF CONSTRUCTION,
WHICHEVER OCCURS EARLIER, AND THEN FOR A PERIOD OF ELEVEN YEARS THERE-
AFTER, TO THE EXTENT OF ONE HUNDRED PERCENT OF THE INCREASE IN ASSESSED
VALUE ATTRIBUTABLE TO SUCH CONSTRUCTION, RECONSTRUCTION, ALTERATION OR
IMPROVEMENT, AND FOR AN ADDITIONAL PERIOD OF FOUR YEARS AS PROVIDED
BELOW AND, SUBJECT, IN EACH CASE, TO THE FOLLOWING:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03529-06-0
A. 10596 2
(I) FOLLOWING SUCH ELEVEN YEAR PERIOD, THE EXTENT OF SUCH EXEMPTION
SHALL BE DECREASED BY TWENTY PERCENT OF THE "EXEMPTION BASE" EACH YEAR
DURING SUCH ADDITIONAL FOUR YEAR 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 PHYS-
ICAL 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 ASSESS-
MENT 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 CERTI-
FIED 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.
(B) NO SUCH EXEMPTION SHALL BE GRANTED FOR CONSTRUCTION, RECON-
STRUCTION, ALTERATIONS OR IMPROVEMENTS UNLESS:
(I) SUCH CONSTRUCTION, RECONSTRUCTION, ALTERATION OR IMPROVEMENT WAS
COMMENCED SUBSEQUENT TO THE EFFECTIVE DATE OF THE LOCAL LAW ADOPTED
PURSUANT TO SUBDIVISION ONE OF THIS SECTION BY SUCH CITY; AND
(II) THE VALUE OF THE CONSTRUCTION, RECONSTRUCTION, ALTERATION OR
IMPROVEMENT EXCEEDS, ON AVERAGE, FIFTEEN THOUSAND DOLLARS PER DWELLING
UNIT; AND
(III) THE CONSTRUCTION, RECONSTRUCTION, ALTERATION OR IMPROVEMENT IS
FINANCED IN WHOLE OR IN PART BY THE CITY, OR, WITH THE APPROVAL OF THE
GOVERNING BODY OF THE CITY, BY THE LOCAL URBAN RENEWAL AGENCY, THE LOCAL
HOUSING AUTHORITY OR ANOTHER PUBLIC BENEFIT CORPORATION; AND
(IV) EITHER THE CITY, THE LOCAL URBAN RENEWAL AGENCY, THE LOCAL HOUS-
ING AUTHORITY OR ANOTHER PUBLIC BENEFIT CORPORATION HAS IMPOSED A
REQUIREMENT OR HAS CERTIFIED THAT TWENTY PERCENT OF THE UNITS BE AFFORD-
ABLE TO FAMILIES OF LOW AND MODERATE INCOME, FOR SUCH PERIOD AND UNDER
SUCH CONDITIONS AS MAY BE ESTABLISHED FROM TIME TO TIME BY THE CITY
PURSUANT TO A LOCAL LAW.
(C) FOR PURPOSES OF THIS SECTION THE TERMS CONSTRUCTION, RECON-
STRUCTION, ALTERATION AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTE-
NANCE 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 APPLICA-
TION SHALL BE FILED WITH THE ASSESSOR OF SUCH CITY ON OR BEFORE THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY.
4. IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
BUILDING SHALL THEREAFTER BE EXEMPT FROM TAXATION AS PROVIDED IN THIS
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SECTION 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. IN THE EVENT THAT A BUILDING GRANTED AN EXEMPTION PURSUANT TO THIS
SECTION CEASES TO BE USED PRIMARILY FOR RESIDENTIAL PURPOSES OR ANY
CONDITION TO THE EXEMPTION ESTABLISHED BY A LOCAL LAW IS NO LONGER
SATISFIED, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
6. IN ADDITION TO THE ABOVE PAYMENTS, DURING ANY PERIOD IN WHICH A
FULL OR PARTIAL EXEMPTION ESTABLISHED ABOVE IS STILL IN EFFECT, THE
OWNER SHALL PAY IN EACH TAX YEAR IN WHICH SUCH FULL OR PARTIAL EXEMPTION
IS IN EFFECT, REAL PROPERTY TAXES AND ASSESSMENTS AS FOLLOWS:
(A) REAL PROPERTY TAXES ON THE ASSESSED VALUATION OF SUCH LAND AND ANY
IMPROVEMENTS THEREON IN EFFECT DURING THE TAX YEAR PRECEDING THE
COMMENCEMENT OF SUCH CONSTRUCTION WITHOUT REGARD TO ANY EXEMPTION OR
ABATEMENT FROM REAL PROPERTY TAXATION IN EFFECT PRIOR TO SUCH
CONSTRUCTION WHICH REAL PROPERTY TAXES SHALL BE CALCULATED ON THE TAX
RATE IN EFFECT AT THE TIME SUCH TAXES ARE DUE; AND
(B) ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
7. (A) THE ENACTMENT OF A LOCAL LAW IN SUCH CITY MAY:
(I) REDUCE THE PERCENT OR PERIOD OF EXEMPTION OTHERWISE ALLOWED PURSU-
ANT TO THIS SECTION;
(II) LIMIT ELIGIBILITY FOR THE EXEMPTION TO THOSE FORMS OF
CONSTRUCTION, RECONSTRUCTION, ALTERATIONS OR IMPROVEMENTS AS ARE
PRESCRIBED IN SUCH 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, REMOD-
ELING OR MODERNIZATION TO AN EXISTING OWNER OCCUPIED MULTIPLE RESIDENCE
STRUCTURE TO PREVENT PHYSICAL DETERIORATION OF THE STRUCTURE OR TO
COMPLY WITH APPLICABLE BUILDING, SANITARY, HEALTH AND/OR FIRE CODES; AND
(IV) PROVIDE TERMS AND CONDITIONS UNDER WHICH THE CITY, OR, IF AUTHOR-
IZED BY A LOCAL LAW, A LOCAL URBAN RENEWAL AGENCY, MAY REQUIRE THE
RECAPTURE OF THE BENEFITS CONFERRED HEREUNDER IN WHOLE OR IN PART,
INCLUDING REQUIREMENTS TO MAINTAIN ALL OR A PORTION OF THE BUILDING AS
AFFORDABLE UNITS FOR FAMILIES OF LOW OR MODERATE INCOME FOR A PERIOD
WHICH MAY EXCEED THE PERIOD FOR WHICH AN EXEMPTION IS GRANTED.
(B) NO SUCH LOCAL LAW SHALL REDUCE OR REPEAL AN EXEMPTION GRANTED
PURSUANT TO THIS SECTION UNTIL THE EXPIRATION OF THE PERIOD FOR WHICH
SUCH EXEMPTION WAS GRANTED.
8. (A) AS USED IN THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
(I) "BUILDING SERVICE EMPLOYEE" MEANS ANY PERSON WHO IS REGULARLY
EMPLOYED AT A BUILDING WHO PERFORMS WORK IN CONNECTION WITH THE CARE OR
MAINTENANCE OF SUCH BUILDING. "BUILDING SERVICE EMPLOYEE" INCLUDES, BUT
IS NOT LIMITED TO WATCHMAN, GUARD, DOORMAN, BUILDING CLEANER, PORTER,
HANDYMAN, JANITOR, GARDENER, GROUNDSKEEPER, ELEVATOR OPERATOR AND START-
ER, AND WINDOW CLEANER.
(II) "PREVAILING WAGE" MEANS THE WAGE DETERMINED BY THE FISCAL OFFICER
TO BE PREVAILING FOR THE VARIOUS CLASSES OF BUILDING SERVICE EMPLOYEES
IN THE LOCALITY PURSUANT TO SECTION TWO HUNDRED THIRTY OF THE LABOR LAW.
(B) NO EXEMPTION UNDER THIS SECTION SHALL BE GRANTED FOR ANY
CONSTRUCTION, RECONSTRUCTION, ALTERATIONS, OR IMPROVEMENTS UNLESS THE
APPLICANT AGREES THAT ALL BUILDING SERVICE EMPLOYEES EMPLOYED AT THE
BUILDING, WHETHER EMPLOYED DIRECTLY BY THE APPLICANT OR ITS SUCCESSORS,
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OR THROUGH A PROPERTY MANAGEMENT COMPANY OR A CONTRACTOR, SHALL RECEIVE
THE APPLICABLE PREVAILING WAGE FOR THE DURATION OF THE BUILDING'S TAX
EXEMPTION.
9. NO ADDITIONAL EXEMPTIONS SHALL APPLY.
S 2. This act shall take effect immediately.