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Department of Taxation and Finance

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

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

Section 4.06 - RPTL Section 485-g: Residential Subdivision Infrastructure

Exemption code:

4771 _

Year originally enacted: 1998

Related statutes: None.

Summary:

If allowed by local option, residential building lots located outside of New York City and which are part of a subdivision plat for residential development which includes infrastructure intended to be dedicated to a municipality or a special district thereof are exempt from taxation to the extent of the increased assessed value of such lots resulting from the addition of such infrastructure, but are liable for special ad valorem levies and special assessments. The duration of the exemption extends from the time the exemption is granted until the issuance of a certificate of occupancy, but in no event longer than three years following the granting of the exemption.

Eligibility requirements

Ownership requirements:

Property must be owned by a private individual or organization.

Property location requirements:

Property must be located outside of New York City. Property must be located on residential building lots which are part of a subdivision plat for residential development which includes infrastructure intended to be dedicated to the municipal corporation or a special district thereof.

Property use requirements:

Property must be used as infrastructure on residential building lots as described above. For purposes of this exemption infrastructure is comprised of the following public facilities which are intended to be dedicated to the municipal corporation or a special district thereof: streets, storm and sanitary sewers, drainage facilities and any other facilities required by the municipality to be installed in such residential subdivision as noted on the filed plat plan for such residential subdivision.

Certification by state or local government:

The owner of the subdivision must file a subdivision plat which shows the facilities which comprise the infrastructure eligible for this exemption.

Required construction start date or other time requirement:

None.

Local option

Yes—Each county, city, town, village, and school district may choose whether or not to allow the exemption. The option to exempt must be exercised through adoption of a local law 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* No exemption allowed No exemption allowed
Duration 3 years or less** 3 yearsor less** No exemption allowed No exemption allowed
Taxing jurisdiction: county or county special district Exempt*** Not applicable Taxable Taxable
Taxing jurisdiction: city Exempt*** Not applicable Not applicable Taxable
Taxing jurisdiction: town or town special district Exempt*** Not applicable Taxable Taxable
Taxing jurisdiction: village Exempt*** Not applicable Not applicable Taxable
Taxing jurisdiction: school district Not applicable Exempt*** Not applicable Not applicable

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

**Exemption terminates when certificate of occupancy is issued.

***If allowed by local option.

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

Increase in assessed value of the eligible property resulting from the addition of the infrastructure, and proportionately applied to each of the lots in the subdivision. No exemption should be applied to any such lot on which a certificate of occupancy has been issued.

Special ad valorem levies and special assessments:

No exemption allowed.

Coding of exemption on assessment roll

Code: 4771_

Assessment roll section

Taxable (RPS Section 1)

Filing requirements (owner or occupant of property)

Form RP-485-g, Application for Real Property Tax Exemption for Residential Subdivision Infrastructure (see sample form and instructions following Exemption Profile).

Application required first year only. Application must be filed on or before taxable status date in the assessing unit, and not later than one year of the date of completion of the infrastructure construction, installation, or improvement. If infrastructure is completed as of the effective date of a local law or resolution permitting this exemption, and if a certificate of occupancy has not been issued on approved subdivision lots, application must be filed within one year of the effective date of such local law or resolution.

Reporting requirements (assessor)

None.

Similar exemptions

None.

Exemption application form

RP-485-g, Application for Real Property Tax Exemption for Residential Subdivision Infrastructure

Please send general questions or comments to ORPTS.

Updated: