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Department of Taxation and Finance

Assessor's Manual, Volume 4, Exemption Administration

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

Section 4.01 - RPTL Section 421-o

Multiple Dwellings Converted to Owner occupied Residences in Certain Cities RPTL Section 421-o
Exemption Code(s):

Year Originally Enacted:    

                    §421-o City of Corning         2016

                    §421-o City of Hornell          2016

Related Statutes:    RPTL §421-h, i, j, k, n

SUMMARY: To the extent allowed by local option, multiple dwelling buildings that are located in certain cities and reconstructed, altered, or improved back to a single family dwelling under certain conditions (see below) are partially exempt from city taxes and special ad valorem levies, 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 12 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: Corning (Steuben County) and Horning (Steuben County). 

  1. 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:

       Property must be located in cities having a population of more than 8,000, but less than 9,000 persons, that is located in a county with a population of greater than 97,000 but less than 99,000, as determined by the latest federal census. Based on the latest census, i.e. 2010, only the City of Hornell (Steuben County) currently satisfies this criterion.

       Property must be located in cities having a population of more than 10,000, but less than 12,000 persons, that is located in a county with a population of greater than 97,000 but less than 99,000, as determined by the latest federal census. Based on the latest census, i.e. 2010, only the City of Corning (Steuben County) currently satisfies this criterion.

    3. Property Use Requirements: Property must be used as an owner-occupied single-family residence. 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 allowing the exemption.


       
  2. 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.

     
  3. LIMITATION ON EXEMPTION:
       General
    Municipal
    Taxes
    School
    District
    Taxes
    Special
    Ad Valorem
    Levies
    Special
    Assessments
    1. Amount


    Yes*

    No
    exemption
    allowed
    Yes* No
    exemption
    allowed
    2. Duration 12 years* No
    exemption
    allowed
    12 years* No
    exemption
    allowed
    3. Taxing Jurisdiction
    a. County or County
    Special Districts
    Tax NA Tax Tax
    b. City
    NA NA NA 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


     

  4. PAYMENTS IN LIEU OF TAXES: None required.

  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes:  The exemption amount shall be equal to a percentage of the exemption base.  The exemption base is the amount by which the assessed value of the property on the assessment roll upon which a revaluation has been implemented exceeds the equalized assessed value on the previous year’s assessment roll.  Any increase due to physical change or the removal or reduction of an exemption should not be included.

                                               Exemption Year                 Exemption Amount

                                                      1                                  66% of exemption base

                                                      2                                  33% of exemption base

       

      If any part of a parcel is fully or partially removed due to fire, demolition, destruction, or new exemption, the exemption amount must be reduced proportionally.

      If the revaluation assessment of a property is reduced due to a Small Claims or Tax Certiorari action, the exemption amount should be recomputed accordingly.

    2. Special Ad Valorem Levies and Special Assessments: For special ad valorem levies see Calculation of Exemption, General Municipal and School District taxes above. No exemption is allowed for special assessments.


  6. CODING OF EXEMPTION ON ASSESSMENT ROLL:
    Code Description of Alternative Codes Possible
    4010_ Town of Greenburgh
    4011_ Town of Ossining

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

    NOTE: These codes 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): Applicants for exemption on the 2016 assessment roll in the Towns of Ossining and Greenburgh apply by the date prescribed in the locality adopting the exemption using a form developed by the applicable town.  If another full value revaluation is conducted after 2016 and the town opts to authorize the exemption again, the application will be made on a form prescribed by the Commissioner.

     

  8. REPORTING REQUIREMENTS (Assessor): None.
     
  9. SIMILAR EXEMPTIONS: None

 

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