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Department of Taxation and Finance

Assessor's Manual, Volume 4, Exemption Administration

Exemption Administration Manual - Part 2
Industrial, Commercial, and Public Service

Section 4.06 - RPTL Section 485-s

Mixed-use Properties in certain Villages

Exemption Code(s): 4758_

Year Originally Enacted:   2016

Related Statutes:   RPTL section 485-a

SUMMARY:    If allowed by local option, property located in a village with a population greater than 5,500 and less than 5,600 based upon the latest decennial census that contains a newly constructed mixed use building or structure is partially exempt from taxation and special ad valorem levies, but liable for special assessments.  For such properties, 90% of the base amount attributable to the increase in assessed value due to the new construction is exempt during the first 2 years of the exemption, and then exempt according to a declining percentage of the base for an additional 18 years.  The eligible improvement cannot be receiving or have received other property tax exemptions unless PILOT or other payments were made that were equal to or greater than the amount of real property taxes that would have been paid if the property had been granted this exemption.

  1. ELIGIBILITY REQUIREMENTS:
    1. Ownership Requirements:   None.
       
    2. Property Location Requirements:  Property must be located in a village with a population greater than 5,500 and less than 5,600 based upon the latest decennial census.   Based upon 2010 census data, only the Village of Wappingers Falls in Dutchess County currently satisfies this population criterion.  

       
    3. Property Use Requirements:  The property must be used for both residential and commercial purposes (mixed use).
       
    4. Certification by State or Local Government:   None.
       
    5. Required Construction Start Date or Other Time Requirement:  Exemption applies only to new construction that commenced subsequent to the date on which the eligible village's local law has taken effect (see Local Option below).
       
  2. LOCAL OPTION: Yes -- an eligible village may choose to allow the exemption through the adoption of a local law.  Upon the village’s adoption of such a local law, the county and town in which the village is located may enact a local law allowing the exemption in the same manner and to the same extent as the village.  Likewise, any school district, all or part of which is located in such village, may pass a resolution allowing the exemption in the same manner and to the same extent as the village. 

     
  3. LIMITATION ON EXEMPTION:
      General
    Municipal
    Taxes
    School
    District
    Taxes
    Special
    Ad Valorem
    Tax
    Special
    Assessments
    1. Amount Yes* Yes* Yes* No
    exemption
    allowed
    2. Duration 20 years** 20 years** 20 years** No
    exemption
    allowed
    3. Taxing Jurisdiction
    a. County or County
    Special Districts
    Ex** NA Ex** Tax
    b. City Ex** 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


    *Amount is limited to the increase in assessed value attributable to newly constructed property for mixed residential and commercial use.

    **If allowed by local option (county, town, and school district options are conditional on city, town, or village adoption of exemption).

  4. PAYMENTS IN LIEU OF TAXES: None required.
     
  5. CALCULATION OF EXEMPTION:
    1. General Municipal and School District Taxes: The amount of the exemption is calculated as a percentage of the "exemption base," which is the increase in assessed value of the property attributable to conversion to a mixed-use property. This base should be determined for each year in which there is an increase in assessed value attributable to conversion from that of the previous year's assessed value. The exemption is computed as indicated below: 
        
      Year of
      Exemption
      Percentage of
      Exemption Base
      1-2 90
      3 80
      4 75
      5 70
      6 65
      7 60
      8 55
      9 50
      10 45
      11 40
      12 35
      13 30
      14 25
      15 20
      16 15
      17-18 10
      19-20 5

       
    2. Special Ad Valorem Levies and Special Assessments: See Calculation of Exemption, General Municipal and School District taxes above.  No exemption allowed for special assessments.

    Note: This exemption may not be granted concurrent with or subsequent to any other exemption granted to the same improvements to the property, except, where during the period of any such prior exemption, payments in lieu of taxes or other payments were made to the local government in an amount that would have been equal to or greater than the amount of real property taxes that would have paid on the improvements had the property received this exemption. In this particular situation, an exemption should be granted for 20 years less the number of years the property would have been previously exempt from taxation.

  6. CODING OF EXEMPTION ON ASSESSMENT ROLL:
    Code Description of Alternative Codes Possible
    4758_  

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

    NOTE: This code should not be used to identify property which is exempt under any of the statutes listed under Similar Exemptions below. For coding of such property, see the Exemption Profile for the statute which applies.

  7. FILING REQUIREMENTS (Owner or Occupant of Property):
    Form RP-485-s  Application for Partial Tax Exemption for Mixed Use Real Property In Certain Villages


  8. REPORTING REQUIREMENTS (Assessor): None.
     
  9. SIMILAR EXEMPTIONS:
    Subject Statute
    Mixed Use Property Outside New York City RPTL §485-a
    Mixed Use Property in New York City RPTL §489-bbbbb

Exemption Application Forms:

Form RP-485-s

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