Assessor's Manual, Exemption Administration—Part 2: Chapter 470 of the Laws of 2014
Section 4.06 - Chapter 470 of the Laws of 2014: Southampton Hospitality Business Investment Property
Year originally enacted: 2014
Related statutes: RPTL §485-b
To the extent allowed by local option, real property used primarily for hospitality business activity that is located in a town having a population between 56,700 and 56,800, according to the latest federal census, that is constructed, altered, installed or improved after January, 2015 (or some later date set by the taxing jurisdiction) at a cost exceeding $100,000 (or some higher minimum chosen by the taxing unit) is partially exempt from taxation and special ad valorem levies, but is liable for special assessments. However, such property is liable for special ad valorem levies established for fire district, fire protection district, and fire alarm district purposes. The exemption may be granted only after the construction or improvement project has been completed.
State law allows the exemption to be granted to facilities used primarily for the commercial furnishing of accommodations to transient overnight guests.
Application for the exemption must be filed within one year of the date of completion of the construction or improvement project.
Facility must be owned or operated by a private individual or organization.
Property location requirements:
Property must be located a town having a population between 56,700 and 56,800 according to the latest federal census. Based upon the latest federal census, i.e., 2010, only the Town of Southampton in Suffolk County satisfies this criterion
Property use requirements:
As prescribed by state law, property must be used primarily for hospitality business activity. Hospitality business is the commercial furnishing of accommodations to transient overnight guests. Transient guests are those whose stay on such property is daily or weekly, not to exceed thirty one days in any calendar year. The cost of the construction or improvement project must exceed $100,000 or any higher amount set by the local taxing unit. (See also Local Option below.) For purposes of this exemption the terms construction, alteration, installation and improvement all exclude ordinary maintenance and repairs
Certification by state or local government:
Completion of the construction or improvement project must be demonstrated by a certificate of occupancy or other appropriate document.
Required construction start date or other time requirement:
Construction or improvement must begin after January 1, 2015, or any later date chosen by the taxing jurisdiction.
Yes—Each county, town, and school district has several options under the law.
Extent of exemption
The exemption is available to county, town, school district, and special district (except for fire district, fire protection district, and fire alarm district purposes) taxing jurisdictions, which may reduce the percentage of exemption authorized by state law. The option to disallow or reduce the exemption must be exercised by counties, and towns through enactment of a local law and by school districts through adoption of a resolution.
Construction start date
With respect to the basic exemption, the taxing jurisdiction may specify in its local law or resolution any date after January 1, 2015 as the date after which construction must have begun for the property to be eligible for exemption.
For the basic exemption, the taxing jurisdiction may, in its local law or resolution, increase the required minimum cost of construction from any amount in excess of $100,000 to any greater amount.
Limitation on exemption
|Type of limitation||General municipal taxes||School district taxes||Special ad valorem levies||Special assessments|
|Amount||Yes*||Yes*||Yes*||No exemption allowed|
|Duration||10 years**||10 years**||10 years**||No exemption allowed|
|Taxing jurisdiction: county or county special district||Exempt||Not applicable||Exempt**||Taxable|
|Taxing jurisdiction: city||Taxable||Not applicable||Not applicable||Taxable|
|Taxing jurisdiction: town or town special district||Exempt||Not applicable||Exempt**||Taxable|
|Taxing jurisdiction: village||Taxable||Not applicable||Taxable||Taxable|
|Taxing jurisdiction: school district||Not applicable||Exempt||Not applicable||Not applicable|
*Basic Exemption: Amount of exemption is limited, in the first year, to 50% of increase in assessed value attributable to the construction or improvement; in each succeeding year, the amount of exemption is decreased by 5%. Local option may reduce the annual percentage of exemption allowed by state law.
**Exemptions are liable for special ad valorem levies established for fire district, fire protection district, and fire alarm district purposes
Payments in lieu of taxes
Calculation of exemption
General municipal and school district taxes:
The schedule to be followed in calculating the exemption depends on which of the two types of exemption available the taxing jurisdiction has chosen to grant: the basic exemption or the accelerated strategic exemption.
Unless reduced by local law or resolution, the following percentages of the increase in assessed value resulting from the construction or improvement should be applied:
|Year of Exemption||Percentage of Exemption|
Special ad valorem levies and special assessments
Special ad valorem levies:
See General Municipal and School District Taxes above. However, initial exemptions granted are liable for special ad valorem levies established for fire district, fire protection district, and fire alarm district purposes.
No exemption allowed.
Coding of exemption on assessment roll
Assessment roll section
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)
Form RP-4736, Application for Real Property Tax Exemption for Southampton Hospitality Business Investment Property
Application required first year only. Application must be filed within one year of the date of completion of the construction or improvement project.
Reporting requirements (assessor)
|Business Investment Property Outside of New York City||RPTL §485-b|
|Branch Banks In Banking development Districts||RPTL §485-f|
|Commercial Properties In Designated Areas of Manhattan||RPTL §499-b|
- Exemption Application Forms: Available at property tax forms website.
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