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Assessor's Manual, Volume 4, ExemptionAdministration

Exemption Administration Manual - Part 1
Residential - Other Than Multiple Dwellings

Section 4.01 - RPTL Section 421-h, 421-i, 421-j, 421-k, 421-n

Multiple Dwellings Converted to
Owner-Occupied Residences in Certain Cities

Exemption Code(s): 44233

Year Originally Enacted:   Statute   
2003 RPTL §421-h (Lockport (Niagara County)
and Peekskill (Westchester County))
2005 RPTL §421-h (Albany (Albany County))
2006 RPTL §421-i (Buffalo (Erie County))
2006 RPTL §421-j (Cohoes (Albany County))
2007 RPTL §421-k (Auburn (Cayuga County) and City of Newburgh (Orange County))
2014 RPTL §421-n (City of Oneonta (Otsego County))

Related Statutes: None

SUMMARY: To the extent allowed by local option, multiple dwellings that are located in certain cities and improved under certain conditions (see below) are partially exempt from city taxes, but are liable for county and school district taxes, county special ad valorem levies, and special assessments. The amount of the exemption is limited to a percentage of the increase in assessed value attributable to the reconstruction, alteration, or improvement. The duration of the exemption is limited to 8 years. Qualified cities may limit the types of construction projects eligible for exemption and the percentages of exemption. (This exemption is currently applicable only upon adoption by the following cities: Lockport (Niagara County) and Peekskill (Westchester County) (§ 421-h), Albany (Albany County) (§ 421-i), Buffalo (Erie County) (§ 421-i), Cohoes (Albany County) (§ 421-j): and cities of Auburn (Cayuga County), Newburgh (Orange County) (§ 421-k) and Oneonta (Otsego County) (§ 421-n).

ELIGIBILITY REQUIREMENTS:

  1. Ownership Requirements: Property must be owned by a private individual or organization. If title to the property is transferred to someone other than the heirs or distributees of the owner, the exemption must cease.
     
  2. Property Location Requirements: The property must be located in a city that meets the following population requirements:
     
    § 421-h     Property must be located in cities having a population of more than 22,000, but less than 23,000, as determined by the latest federal census. Based on the latest census, i.e. 2010, only Lockport (Niagara County) and Peekskill (Westchester County) currently satisfy this criterion.
    § 421-i Property must be located in cities having a population of more than 90,000, but less than 100,000, as determined by the latest federal census. Based on the latest census, i.e. 2010, only Albany (Albany County) currently satisfies this criterion.
    § 421-i Property must be located in cities having a population of more than 290,000, but less than 295,000, as determined by the latest federal census. Based on the latest census, i.e., 2010, only Buffalo (Erie County) currently satisfies this criterion.
    § 421-j Property must be located in cities having a population of more than 15,500, but less than 16,000, as determined by the latest federal census. Based on the latest census, i.e., 2010, only Cohoes (Albany County) currently satisfies this criterion.
    §421-k Property must be located in cities having a population of more than 28,500 inhabitants but less than 29,000 inhabitants, as determined by the latest federal census. Based on the latest federal census, i.e., 2010, only Auburn (Cayuga County) and Newburgh (Orange County) currently satisfy this criterion.
    §421-n Property must be located in cities having a population of more than 13,500 inhabitants but less than 14,000 inhabitants, as determined by the latest federal census.  Based on the latest federal census, i.e., 2010, only the city of Oneonta (Otsego County) satisfies this criterion.

     
  3. Property Use Requirements: Property that was not previously owner-occupied must be used as an owner-occupied single-family residence. However, property that was previously owner-occupied must be used as an owner-occupied residence for not more than two families. The value of the construction project must exceed $5,000 and must be of the type allowed exemption by the taxing jurisdiction (see Local Option below); the project may not be one of ordinary maintenance or repairs. The greater portion of the property, as measured by the square footage of both the original property and the improvement, must be at least five years old.
     
  4. Certification by State or Local Government: None required.
     
  5. Required Construction Start Date or Other Time Requirement:  Reconstruction, alteration, or improvement of the property must have commenced after the effective date of the local law or resolution allowing the exemption.
     

B.  LOCAL OPTION: Yes, local taxing jurisdictions are allowed several choices:

  1. Exemption -- A city meeting the population requirements may choose whether or not to allow the exemption. The option to exempt must be exercised by the city through the adoption of a local law after a public hearing has been held.
     
  2. Percentage of Exemption -- A qualified city allowing the exemption may reduce the percentage of exemption allowed in each year by state law (see Calculation of Exemption below).
     
  3. Maximum Value of Improvement -- State law limits the exemption to a maximum of $100,000 in increased market value. Qualified cities may reduce this maximum to any amount less than $100,000, but not less than $10,000.
     
  4. Type of Improvement -- In its local law allowing the exemption, a qualified city may limit the forms of eligible reconstruction, alteration, or improvement eligible. It may further limit exemption to improvements that would otherwise result in an increase in the assessed value of the property, but that consist of addition to or remodeling or modernization of an existing residence to prevent physical deterioration or to comply with applicable building, sanitary, health, or fire codes.
     

C.  LIMITATION ON EXEMPTION:

 

  General
Municipal
Taxes
School
District
Taxes
Special
Ad Valorem
Levies
Special
Assessments
1. Amount Yes No
exemption
allowed
No
exemption
allowed
No
exemption
allowed
2. Duration 8 years* No
exemption
allowed
No
exemption
allowed
No
exemption
allowed
3. Taxing Jurisdiction
a. County or
County

Special Districts
Tax NA Tax Tax
b. City Ex** NA NA Tax
c. Town or Town
Special District
Tax NA Tax Tax
d. Village Tax NA NA Tax
e. School District NA Tax NA NA
Ex - Exempt          Tax - Taxable          NA - Not Applicable

* See Calculation of Exemption below.
** If allowed by local option.

D.  PAYMENTS IN LIEU OF TAXES:   None required.
 

        E.  CALCULATION OF EXEMPTION:

  1.  
    1. General Municipal and School District Taxes: This exemption is for city taxes only. The extent of the exemption is determined by the "exemption base" and the percentage of that base allowed as exempt each year. The exemption base is defined as the increase in assessed value as determined in the initial year of the term of exemption, except as follows. In any year in which a change in level of assessment of 15% or more is certified for a final assessment roll pursuant to the rules of the State Office of Real Property Tax Services, the exemption base must be multiplied by the following fraction:

      Total assessed value of parcel
          on final assessment roll*   
      Total assessed value of parcel
      on immediately preceding
      final assessment roll

* After accounting for physical or quantity changes to parcel since immediately preceding assessment roll.

Unless limited by local law, the exemption equals the base exemption, or the base exemption adjusted as described above, multiplied by one of the following percentages:

 

Year of
Exemption
Percentage of
Exemption Base
1
2
3
4
5
6
7
8
100.0
  87.5
 75.0
 62.5
 50.0
 37.5
 25.0
 12.5

Qualified cities may reduce the percentage of exemption for any year.

The maximum exemption allowed by state law is $100,000 in increased market value due to the improvement. The market value of the new construction is calculated by dividing the increase in assessed value attributable to the construction by the latest state equalization rate or special equalization rate, unless such rate is 95% or more, in which case the increased assessed value is to be considered equal to the market value. Qualified cities may reduce the maximum exemption allowed to any amount less than $100,000, but that amount may not be less than $10,000.

2.Special Ad Valorem Levies and Special Assessments: No exemption allowed.
 

F. CODING OF EXEMPTION ON ASSESSMENT ROLL:

 

Code

44233  

Description of Alternative Codes Possible

§ 421-h (Lockport (Niagara County) and Peekskill (Westchester County))

§ 421-i (Albany (Albany County))

§ 421-i (Buffalo (Erie County))

§ 421-j (Cohoes (Albany County))

§ 421-k (Auburn (Cayuga County)) and City of Newburgh (Orange County))

§421-n (Oneonta (Otsego County))

Assessment Roll Section(s): Taxable (RPS Section 1).

NOTE: This code should not be used to identify property that is exempt under any of the statutes listed under Similar Exemptions below. For coding of such property, see the Exemption Profile for the statute that applies.

G.  FILING REQUIREMENTS (Owner or Occupant of Property):

§421-h Lockport (Niagara County) and Peekskill (Westchester County)
Form RP-421-h [Lockport/Peekskill]  -- Application for Real Property Tax Exemption for Capital Improvements to Multiple Dwelling Buildings within Certain Cities

§421-i Albany (Albany County)
Form RP 421-i [Albany]  - Application for Real Property Tax Exemption for Capital Improvements to Multiple Dwelling buildings within Certain Cities
 
§421-i Buffalo (Erie County)
Form RP-421-i [Buffalo] -- Application for Real Property Tax Exemption for Capital Improvements to Multiple Dwelling Buildings within Certain Cities
 
§421-j Cohoes (Albany County)
Form RP-421-j [Cohoes]  -- Application for Real Property Tax Exemption for Capital Improvements to Multiple Dwelling Buildings within Certain Cities
 
§421-k Auburn (Cayuga County) and City of Newburgh (Orange County)
Form RP-421-k [Auburn, City of Newburgh]  -- Application for Real Property Tax Exemption for Capital Improvements to Multiple Dwelling Buildings within Certain Cities

§421-n Oneonta (Otsego County) 

Form RP-421-n [City of Oneonta] -- Application for Real Property Tax Exemption for Capital Improvements to Multiple Dwelling Buildings within Certain Cities


 

H.  REPORTING REQUIREMENTS (Assessor): None.
 

I. SIMILAR EXEMPTIONS:

 

Subject Statute
Capital investment in multiple dwellings in certain cities RPTL § 421-j
 
Certain living quarters constructed to be occupied by a
  senior citizen or disabled individual
RPTL § 467-d
 
First-time homebuyers of newly constructed homes RPTL § 457
 
Home improvements RPTL § 421-f
 
New residential property in certain cities RPTL § 485-m
 
Private one- and two-family dwellings
  and certain multiple dwellings in New York City
RPTL § 421-b
 
Residential investment in certain municipalities RPTL § 485-h, 485-i, 485-j, 485-k,
485-l, 485-m, 485-q
 
Residential property improvements in certain cities RPTL § 485-j
 
Residential property improvements in certain towns RPTL § 485-l

Exemption Application Forms and Instructions: Available at property tax forms website.  

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