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Department of Taxation and Finance

Assessor's Manual, Exemption Administration: RPTL Section 485-f

Exemption Administration Manual—Part 2: Industrial, Commercial, and Public Service

Section 4.06, RPTL Section 485-f: Branch Banks in Banking Development Districts

Exemption code:

4769_

Year originally enacted: 1997, extended 2016

Related statutes: Bnkg §96-d

Summary:

If allowed by local option, real property that (1) is altered, constructed, installed, or improved for use as a branch of a bank, trust company or national bank (excluding ordinary maintenance and repairs) and (2) is located in an area designated as a banking development district by the NYS Superintendent of Banks pursuant to Banking Law §96-d is partially exempt from taxation and special ad valorem levies for 10 years, but is liable for special assessments.

The amount of the exemption is limited to a percentage of the increase in assessed value attributable to the alteration, construction, installation, or improvement as determined in the first year of the exemption. The increase in assessed value ("exemption base") used to calculate the amount of the exemption remains constant throughout the term of the exemption, except (1) where there is subsequent alteration, construction, installation, or improvement during the term of the exemption or (2) where there occurs in the assessing unit an overall change in the level of assessment of 15% or more; in either case the exemption base must be adjusted.

Eligibility requirements

Ownership requirements:

Property must be owned by a bank, trust company, or national bank. For purposes of this exemption a bank, trust company or national bank includes a savings bank, savings and loan association, federal savings and loan association or federal savings bank, provided, however, that a savings bank, savings and loan association or federal savings bank are not granted eligibility to accept municipal or public funds or municipal or public moneys other than for the purposes specified in Banking L §96-d.

Property location requirements:

Property must be located in a banking development district designated by the NYS Superintendent of Banks pursuant to Bank L §96-d.

Property use requirements:

Property must be used as a branch of a bank, trust company, or national bank.

Certification by state or local government:

Each banking development district must be designated by the NYS Superintendent of Banks. Upon approval of the application, the Superintendent must file notice of such approval with officials of the municipalities and school districts in which the banking development district is located.

Required construction start date or other time requirement:

The alteration, construction, installation, or improvement must have commenced on or after either the date the banking development district was designated or, if provided, the effective date established by the local law, ordinance, or resolution which authorized the exemption. The provisions in Banking L §96-d which extend eligibility to branch banks owned by a savings bank, savings and loan association, federal savings bank or federal savings and loan association in a designated banking development district are in effect until January 1, 2023. However, any such branch bank established prior to that date and which meets all other eligibility requirements will remain eligible for this exemption.

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 through adoption of a local law, ordinance, or resolution after a public hearing.

Limitation on exemption

Limitation on exemption by amount, duration, and taxing jurisdiction
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 Exempt** Not applicable Not applicable Taxable
Taxing jurisdiction: town or town special district Exempt** Not applicable Exempt** Taxable
Taxing jurisdiction: village Exempt** Not applicable Not applicable Taxable
Taxing jurisdiction: school district Exempt** Not applicable Not applicable Not applicable

*See Calculation of Exemption below.

**If allowed by local option.

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

The following percentages of the increase in assessed value attributable to the alteration, construction, installation, or improvement should be applied:

Percentages of the increase in assessed value
Year of exemption Percentage of exemption
1 50
2 45
3 40
4 35
5 30
6 25
7 20
8 15
9 10
10 5

The exempt amount for each year is to be calculated on the basis of the "exemption base," defined as the increase in assessed value in the first year of the 10-year period, unless (1) there is subsequent alteration, construction, installation, or improvement during the term of the exemption, in which case the exemption base is revised to include the increase in assessed value resulting from such alteration, construction, installation, or improvement; (2) there has occurred in any year a change in level of assessment of 15% or more, for a final assessment roll, in which case the exemption must be adjusted. See Reporting requirements (asssessor).

Special ad valorem levies and special assessments:

Special ad valorem levies: See General municipal and school district taxes above.

Special assessments: No exemption allowed.

Coding of exemption on assessment roll

Code: 4769_

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.

Assessment roll section

Taxable (RPS Section 1)

Filing requirements (Owner or occupant of property)

Form RP-485-f, Application for Real Property Tax Exemption for Real Property in a banking development district (see sample form and instructions following Exemption Profile).

Application required first year only. Application must be filed within one year of the date of completion of the project.

Reporting requirements (assessor)

Where the exemption base is adjusted because of a change in the assessing unit's level of assessment of 15% or more (see Calculation of Exemption above), the assessor must provide written notice of such exemption adjustment to the property owner. The owner may apply for a correction as provided under RPTL § §553, 554, or 556, if he or she believes the adjustment was calculated incorrectly.

Similar exemptions

Enter heading
Subject Statute
Business investment property outside New York City RPTL §485-b
Economic transformation areas RPTL §485-p
Industrial and commercial properties in New York City (project certified by NYC Department of Finance) RPTL §489-bbbb
Industrial and commercial properties in New York City (project certified by NYC Department of Finance after June 30, 2008) RPTL §489-bbbbbb
Mixed-use properties in certain municipalities RPTL §485-a
Mixed-use properties in New York City RPTL §489-bbbbb
Municipal industrial development agencies RPTL §412-a & Gen Muny L §874
NYS Urban Development Corporation (Industrial project) McK U Con L §6272
Property improvements in empire zones RPTL §485-e
Residential-commercial properties in certain counties RPTL §485-n

Exemption application forms

Please send general questions or comments to ORPTS.

Updated: