[Adopted 5-13-2002 by L.L. No. 1-2002; amended in its entirety 10-10-2017 by L.L. No. 3-2017]
Editor's Note: Former Art. V, Exemption for Multiple-Dwelling Improvements, adopted 5-13-1985 by L.L. No. 5-1985, was repealed 5-11-1998 by L.L. No. 1-1998.
The purpose of this article is to provide partial exemption from taxation and special ad valorem levies for owner-occupied, primary residential property that is newly constructed or reconstructed under certain conditions set forth below.
As used in this article, the following terms, phrases, words and their derivations shall have the following meanings:
- FIRST-TIME HOMEBUYER
- An individual or individuals who have not owned, and are not married to a person who has owned, a primary residential property during the three-year period prior to their purchase of the primary residential property for which this exemption is sought, and do not own a vacation or investment home.
- The adjusted gross income for federal income tax purposes as reported on the applicant's latest available federal or state income tax return, subject to any subsequent amendments or revisions, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account or an individual retirement annuity; provided that if no such return was filed within the one-year period preceding taxable status date, "income" means the adjusted gross income that would have been so reported if such a return had been filed.
- LATEST AVAILABLE RETURN
- The federal or state income tax return for the tax year immediately preceding the date of making application for the exemption; provided, however, that if the tax return for such year has not been filed, then the income tax return for the tax year two years preceding the date of making application will be considered the latest available return.
- NEWLY CONSTRUCTED
- An improvement to real property which was constructed as a one- or two-family house, townhouse or condominium, which has never been occupied and was constructed after November 28, 2001, but on or before December 31, 2022. "Newly constructed" shall also mean that portion of a one- or two-family house, townhouse or condominium that is altered, improved or reconstructed.
- PRIMARY RESIDENTIAL PROPERTY
- Any one- or two-family house, townhouse, or condominium located in this state which is owner-occupied by such homeowner.
The following ownership eligibility requirements must be met in order to qualify for the first-time homebuyer exemption:
The property must be owned by a first-time homebuyer or homebuyers and used as their primary residence. If title to the property is transferred to someone other than the heirs or distributees of the homebuyer(s) during the term of the exemption, the exemption will be discontinued.
The combined income of all the owners, and of any of the owners' spouses residing on the property, for the income tax year immediately preceding the date of application for exemption may not exceed the income limits defined by the State of New York mortgage agency low interest rate mortgage program in the non-target, one- and two-person household category for the county where such property is located and in effect on the contract date for the purchase and sale of such property.
The following property use requirements must be met in order to qualify for the first-time homebuyer exemption:
The property must be a newly constructed or reconstructed one- or two-family house, townhouse or condominium that is owner-occupied.
Other than for reconstruction projects, the home must never have been occupied previously.
No portion of an otherwise eligible single-family home may be leased for any purpose, or used primarily for nonresidential purposes, during the time the exemption applies. In either case, the exemption shall be discontinued.
The maximum sales price of an eligible newly constructed residence must not exceed the purchase-price limits defined by the State of New York mortgage agency low interest rate mortgage program in the non-target, one-family new category for the county where such property is located and in effect on the contract date for the purchase and sale of such property to qualify for exemption. Newly constructed residences purchased by first-time homebuyers at a sales price greater than the maximum eligible sales price shall qualify for exemption for that portion of the sales price equal to the maximum eligible sales price; provided, however, that any newly constructed residence purchased at a sales price greater than 15% above the maximum eligible sales price shall not be allowed any exemption.
The exemption for reconstructed, altered or improved residential property is limited solely to the increase in assessed value attributable to such reconstruction, alteration or improvement, provided that the total market value of the property after the project completion does not exceed 15% above the maximum eligible sales price. To be eligible for this exemption on existing homes, the first-time homebuyer must have provided for such reconstruction, alteration or improvement as part of the sale contract of the home or entered into a written contract for such work within 90 days of the purchase of the property. The value of such reconstruction, alteration or improvement must be greater than $3,000 and cannot include the value of ordinary maintenance and repairs.
Property must be constructed or reconstructed by a first-time homebuyer on or before December 31, 2022, unless such purchase is made pursuant to a binding written contract entered into on or before such date, and after November 28, 2001. First-time homebuyers who first received this exemption prior to December 31, 2022, will continue to receive the exemption according to the established schedule below. First-time homebuyers of existing homes seeking the exemption on the basis of reconstruction, alteration or improvement of the property must either have provided for such work in their purchase contract or enter into a written contract for such work within 90 days after the purchase of the home.
Such exemption shall be granted only upon application by the owner on a form prescribed by the State Board of the Office of Real Property Services to the City of Newburgh Assessor, submitted on or before the appropriate taxable status date and approval of such application by the Assessor.