City of Newburgh, NY
Orange County
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Table of Contents
Table of Contents
[Adopted 5-23-2011 by L.L. No. 3-2011]
The City Council of the City of Newburgh encourages and promotes the conversion of numerous vacant and underutilized buildings in the City formerly used for industrial, warehouse, manufacturing and other commercial operations to mixed commercial and residential use by providing an exemption from general municipal taxes pursuant to § 485-a of the Real Property Tax Law of the State of New York.
As used in this article, the following terms shall have the following meanings:
APPLICANT
Any person obligated to pay real property taxes on the property for which an exemption from real property taxes under this article is sought.
COMMERCIAL CONSTRUCTION WORK
The modernization, rehabilitation, expansion or other improvement of the portion of the mixed-use property to be used for commercial purposes.
COMMERCIAL PURPOSE OR USE
The buying, selling or otherwise providing of goods of service, including hotel services, or other lawful business or commercial activities permitted in mixed-use property.
MIXED-USE PROPERTY
Property on which will exist, after completion of residential construction work or a combination of residential construction work and commercial construction work, a building or structure used for both residential and commercial purposes.
MUNICIPALITY
Any town, city or village except a city having more than 1,000,000 inhabitants.
PERSON
An individual, corporation, limited-liability company, partnership, association, agency, trust, estate, foreign or domestic government, or subdivision thereof, or other entity.
RESIDENTIAL CONSTRUCTION WORK
The creation, modernization, rehabilitation, expansion or other improvement of dwelling units, other than dwelling units in a hotel, in the portion of mixed-use property to be used for residential purposes.
Nonresidential real property, upon conversion to mixed-use property, shall be exempt from taxation and special ad valorem levies as provided in § 485-a of the New York State Real Property Tax Law. For a period of 12 years from the approval of an application, the increase in assessed value of such property attributable to such conversion shall be exempt as provided in the table below. Such exemption shall be computed with respect to the "exemption base." The exemption base shall be determined for each year in which there is an increase in assessed value so attributable from that of the previous year's assessed value. Such exemption shall be computed in accordance with the following table:
Year of Exemption
Percentage of Exemption
1 through 8
100%
9
80%
10
60%
11
40%
12
20%
A. 
No such exemption shall be granted unless such conversion was commenced subsequent to the date on which this article takes effect and the cost of such conversion exceeds the sum of $10,000.
B. 
For purposes of this section, the term "conversion" shall not include ordinary maintenance and repairs.
C. 
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 tax exemption, payments in lieu of taxes or other payments were made in an amount that would have been equal to or greater than the amount of real property taxes that would have been paid on such improvements had such property been granted an exemption pursuant to this article. In such case, an exemption shall be granted for a number of years equal to the twelve-year exemption granted pursuant to this article less the number of years the property would have been previously exempt from real property taxes.
Any exemption pursuant to this article shall be granted only upon application by the property owner on a form prescribed by the State Board of the Office of Real Property Tax Services. The application shall be filed with the Assessor of the City of Newburgh on or before the taxable status date of March 1 to be eligible for an exemption to be entered on the assessment roll prepared on the basis of said taxable status date.