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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 485-u

RPTL section 485-s Exemption codes
Residential Property In Certain Counties RPTL Section 485-u
Exemption Code(s)
Exemption Code(s): 40120

Year Originally Enacted: 2019

Related Statutes: RPTL §485-s

Summary:  

If allowed by local option, in a special assessing unit that is not a city, Class One property is partially exempt from county, town, school, and special district taxes levied on the assessment roll prepared by the special assessing unit beginning with the 2020-21 assessment roll and continuing on the subsequent four assessment rolls.  The amount of the exemption is limited to a declining percentage of the amount by which the assessment on the 2020-21 assessment roll exceeds the equalized assessment on the 2019-2020 assessment roll, exclusive of any increase due to physical change or the removal or reduction of an exemption.

Eligibility requirements:

Ownership requirements:

None.
                                 

Property location requirements:

The property must be located in a special assessing unit that is not a city.  Currently, only Nassau County meets this requirement.

Property use requirements:

The property must be a Class One property.

Certification by state or local government: 

None.

Required construction start date or other time requirement:

The exemption begins with the 2020-21 assessment roll and continues for the four subsequent assessment rolls.

 

Local option: 

Yes -The exemption must be adopted through passage of a local law by the special assessing unit.

Limitation on exemption:

Limitation on exemption by amount, duration, and taxing jurisdiction
Taxing jurisdiction Amount* Duration Special ad valorem levies Special assessments
County or county special district

decreasing percentage of exemption base
see Calculation of exemption

5 years Taxable Taxable
City decreasing percentage of exemption base
see Calculation of exemption
5 years Not applicable Taxable
Town or town special district decreasing percentage of exemption base
see Calculation of exemption
Not applicable Taxable Taxable
Village decreasing percentage of exemption base
see Calculation of exemption
5 years Not applicable Taxable
School district

decreasing percentage of exemption base
see Calculation of exemption

5 years

Not applicable Not applicable


 

Payments in lieu of taxes:

None required.

Calculation of exemption:

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 2020-2021 assessment roll exceeds the equalized assessment on the 2019-2020 assessment roll.  Any increase due to physical change or the removal or reduction of an exemption should not be included.

 Calculation of exemption
Final assessment roll Exemption amount
2020-2021 80% of exemption base
2021-2022 60% of exemption base
2022-2023 40% of exemption base
2023-2024 20% of exemption base
2024-2025  0% 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.

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.


Coding of exemption on assessment roll:

Coding of exemption on assessment roll
Code Description of alternative codes possible
40120 Class One Reassessment

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.

Filing requirements (owner or occupant of property): 

None.

 

Reporting requirements (assessor):

None.
 

Similar exemptions: 

RPTL §485-s

 

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