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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 469

Living Quarters for Parent or Grandparent

Exemption Code(s):   4182_

Year Originally Enacted:   2000

Related Statutes:   None

SUMMARY: If allowed by local option, residential property that is constructed or reconstructed as an auxiliary dwelling unit for a parent or grandparent 62 years of age or older is exempt from taxation to the extent of any increase in assessed value attributable to such construction or reconstruction. Such improvements are exempt, for general municipal and school district taxes, and special ad valorem levies, but are liable for special assessments.

  1. ELIGIBILITY REQUIREMENTS
    1. Ownership Requirements: None.
       
    2. Property Location Requirements: The property must be within a geographic area in which such construction or reconstruction is permitted.
       
    3. Property Use Requirements: The property must be the owner's principal place of residence. Improvements to the property must be made for the purpose of providing living quarters for a parent or grandparent 62 years or more. For purposes of this exemption, the term parent or grandparent includes the natural or adopted grandparents and parents of the owner or the spouse of the owner. The exemption applies only during the taxable years in which such living quarters are a primary residence of the eligible parent or grandparent.
       
    4. Certification by State or Local Government: None required.
       
    5. Required Construction Start Date or Other Time Requirement: Exemption applies only to construction or reconstruction which occurred after August 30, 2000.
       
  2. LOCAL OPTION: Yes -- Each county, city, town, village, and school district may choose whether or not to allow the exemption. The option must be exercised by a county, city, town, or village through adoption of a local law and by a school district through adoption of a resolution. In all cases, a public hearing must be held prior to adoption of the local law or resolution.
     
  3. LIMITATION ON EXEMPTION:

     

         

    General
    Municipal
    Taxes
    School
    District
    Taxes
    Special
    Ad Valorem
    Levies

    Special
    Assessments
    1. Amount Yes* Yes* Yes* No
    exemption
    allowed
    2. Duration No
    limit
    No
    limit
    No
    limit
    No
    exemption
    allowed
    3. Taxing Jurisdiction a. County or County
    Special Districts
    Ex** NA Ex** Tax
    b. City Ex** NA Ex** Tax
    c. Town or Town
    Special District
    Ex** NA Ex** Tax
    d. Village Ex** NA NA Tax
    e. School District NA Ex** NA NA
    Ex-Exempt      Tax-Taxable      NA - Not Applicable

    * Amount is limited to the increase in assessed value attributable to the eligible
      improvement. See Calculation of Exemption.

    ** If allowed by local option.


     
  4. PAYMENTS IN LIEU OF TAXES: None Required.
     
  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes: Exemption is limited to the increase in value of the residential property attributable to construction or reconstruction for the purpose of providing living quarters to a qualified parent or grandparent.

      The exemption may not exceed the lesser of (1) the increase in assessed value resulting from construction or reconstruction of such property, (2) 20 percent of the total assessed value of such property as improved, or (3) 20 percent of the median sale price of residential property as reported in the most recent Statistical Sales Summary, published by the Office of Real Property Tax Services, for the county in which the property is located.

    2. Special Ad Valorem Levies and Special Assessments: See Calculation of Exemption, General Municipal and School District Taxes above, in the case of special ad valorem levies. No exemption allowed for special assessments.
       
  6. CODING OF EXEMPTION ON ASSESSMENT ROLL:

    Code Description of Alternative Codes Possible
    4182_

    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.

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

    Form RP-469 -- Application for Partial Real Property Tax Exemption of Living Quarters for Parent or Grandparent

  8. REPORTING REQUIREMENTS (Assessor): None.
     
  9. SIMILAR EXEMPTIONS:
    Subject Statute
    Certain living quarters constructed to be
    occupied by a senior citizen or disabled individual
    RPTL  467-d
    Home improvements RPTL  421-f
    Multiple dwellings converted to owner-occupied residences in certain cities RPTL  421-h, 421-i, 421-j, 421-k
    New residential property in certain cities RPTL  485-m
    Residential investment in certain municipalities RPTL   485-h, 485-i, 485-j, 485-k, 485-l, 485-m

Exemption Application Form:   RP-469

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