[Adopted 2-27-2001 by L.L. No. 1-2001]
The Suffolk County Legislature enacted by local law an amendment to Chapter 458 (Taxation), Article XI, creating a targeted business investment real property tax exemption. Pursuant to the provisions of New York State Real Property Tax Law § 485-b(11), a Town may opt out of the restricted exemptions enacted by the county by local law. The Town Board of the Town of Babylon has determined that it is in the best interest of the Town to maintain the status quo and continue to utilize the business investment exemption pursuant to the schedule set forth in Real Property Tax Law § 485(b)(2)(a)(iii). In furtherance of this objective, the Town Board hereby enacts the following article pursuant to the authority provided under Real Property Tax Law § 485(b)(ii).
A.
Real property constructed, altered, installed or improved
subsequent to the first day of July, 1976 for the purpose of commercial,
business or industrial activity shall be exempt from taxation and
special ad valorem levies, except for special ad valorem levies for
fire district, fire protection district and fire alarm district purposes,
to the extent hereinafter provided.
B.
Computation; exceptions; applicability.
(1)
Computation of exemption.
(a)
Such real property shall be exempt for a period of one year to the extent of 50% of the increase in assessed value thereof attributable to such construction, alteration, installation or improvement and for an additional period of nine years; provided, however, that the extent of such exemption shall be decreased by 5% each year during such additional period of nine years, and such exemption shall be computed with respect to the exemption base. The "exemptions base" shall be the increase in assessed value as determined in the initial year of such ten-year period following the filing of an original application, except as provided in Subsection B(1)(b) of this subsection.
(b)
In any year in which a change in level of assessment
of 15% or more is certified for a final assessment roll pursuant to
the rules of the state board, the exemption base shall be multiplied
by a fraction, the numerator of which shall be the total assessed
value of the parcel on such final assessment roll (after accounting
for any physical or quantity changes to the parcel since the immediately
preceding assessment roll) and the denominator of which shall be the
total assessed value of the parcel on the immediately preceding final
assessment roll. The result shall be the new exemption base. The exemption
shall thereupon be recomputed to take into account the new exemption
base, notwithstanding the fact that the Assessor receives the certification
of the change in level of assessment after the completion, verification
and filing of the final assessment roll. In the event that the Assessor
does not have custody of the roll when such certification is received,
the Assessor shall certify the recomputed exemption to the local officers
having custody and control of the roll, and such local officers are
hereby directed and authorized to enter the recomputed exemption certified
by the Assessor on the roll. The assessor shall give written notice
of such recomputed exemption to the property owner, who may, if he
or she believes that the exemption was recomputed incorrectly, apply
for a correction in the manner provided by title three of article
five of the New York State Real Property Tax Law for the correction
of clerical errors.
(c)
The following table shall illustrate the computation
of the tax exemption:
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%
|
(2)
No such exemption shall be granted unless:
(a)
Such construction, alteration, installation
or improvement was commenced subsequent to the first day of January,
1976.
(b)
The cost of such construction, alteration, installation
or improvement exceeds the sum of $10,000.
(c)
Such construction, alteration, installation
or improvement is completed as may be evidenced by a certificate of
occupancy or other appropriate documentation as provided by the owner.
(3)
For purposes of this section the terms "construction,"
"alteration," "installation" and "improvement" shall not include ordinary
maintenance and repairs.
(4)
No such exemption shall be granted concurrent with
or subsequent to any other real property tax exemption granted to
the same improvements to real property except, where during the period
of such previous exemption, payments in lieu of taxes or other payments
were made to the local government in an amount that would have been
paid on such improvements had such property been granted an exemption
pursuant to this section. In such case, an exemption shall be granted
for a number of years equal to the ten-year exemption granted pursuant
to this section less the number of years the property would have been
previously exempt from real property taxes.
C.
Such exemption shall be granted only upon application
by the owner of such real property on a form prescribed by the state
board. Such application shall be filed with the Assessor of the Town
having the power to assess property for taxation on or before the
appropriate taxable status date of the Town or county and within one
year from the date of completion of such construction, alteration,
installation or improvement.
D.
If the Assessor is satisfied that the applicant is
entitled to an exemption pursuant to this section, he or she shall
approve the application and such real property shall thereafter be
exempt from taxation and special ad valorem levies, except for special
ad valorem levies for fire district, fire protection district and
fire alarm district purposes, as herein provided, commencing with
the assessment roll prepared after the taxable status date of March
1 of each year. The assessed value of any exemption granted pursuant
to this section shall be entered by the Assessor on the assessment
roll with the taxable property, with the amount of the exemption shown
in a separate column.
E.
The provisions of this section shall apply to real
property used primarily for the buying, selling, storing or developing
goods or services, the manufacture or assembly of goods or the processing
of raw materials. This section shall not apply to property used primarily
for the furnishing of dwelling space or accommodations to either residents
or transients other than hotels or motels.
F.
In the event that real property granted an exemption
pursuant to this section ceases to be used primarily for eligible
purposes, the exemption granted pursuant to this section shall cease.