[Adopted 8-13-2012 by L.L. No. 4-2012]
Editor's Note: This local law provided that it would apply to assessment rolls on the basis of taxable status dates occurring on or after January 1, 2013.
The City Council of the City of Newburgh encourages property owners of single- and two-family residential dwellings to invest in improvements to one- and two-family buildings used solely for residential purposes by providing an exemption from general municipal taxes pursuant to § 421-K 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:
- OWNER-OCCUPIED MULTIPLE-DWELLING BUILDING
- Any building or structure designed and occupied as the temporary or permanent residence or home of two or more families, including the owner of such building.
Multiple-dwelling buildings that are reconstructed, altered, improved and/or converted back to an owner-occupied single-family or any owner-occupied multiple dwelling that is reduced to at most two units by such reconstruction shall be exempt from taxation levied by the City of Newburgh on the increase in assessed value attributable to such conversion to the extent provided hereinafter pursuant to § 421-K of the New York State Real Property Tax Law. The length of said exemption shall be eight years, and it shall be computed in accordance with the following table:
Such buildings within the City of Newburgh shall be exempt for a period of one year to the extent of 100% of the increase in assessed value thereof attributable to such reconstruction, alteration or improvement and for an additional period of seven years, as shown in the table set forth in § 270-73, subject to the following:
The extent of such exemption shall be decreased by 12.5% of the exemption base each year during such additional period. The "exemption base" shall be the increase in assessed value as determined by the initial year of the term of the exemption, except as provided in Subsection A(2) of this section.
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 the immediately preceding 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, notwithstanding the fact that the Assessor receives certification of the change in level of assessment after the completion, verification and filing of the final assessment roll. In the event 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 3 of Article 5 of the New York State Real Property Tax Law.
Such exemption shall be limited to $100,000 in increased market value, but not less than $10,000, of the property attributable to such reconstruction, alteration or improvement; and any increase in market value greater than such amount shall not be eligible for the exemption pursuant to this section. For the purposes of this section, the market value of the reconstruction, alteration or improvement shall be equal to the increased assessed value attributable to such reconstruction, alteration or improvement divided by the Class I ratio in a special assessing unit or the most recently established state equalization rate or special equalization rate in the remainder of the state, except where the state equalization rate or special equalization rate equals or exceeds 95%, in which case the increase in assessed value attributable to such reconstruction, alteration or improvement shall be deemed to equal the market value of such reconstruction, alteration or improvement.
No such exemption shall be granted for reconstruction, alterations or improvements unless:
Such reconstruction, alteration or improvement was commenced subsequent to the date on which this article takes effect;
The value of such reconstruction, alteration or improvement exceeds $5,000; and
The greater portion, as so determined by square footage, of the building reconstructed, altered or improved is at least five years old.
For purposes of this section, the terms "reconstruction," "alteration" and "improvement" shall not include ordinary maintenance and repairs.
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 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.
If satisfied that the applicant is entitled to an exemption pursuant to this section, the Assessor shall approve the application, and such building shall thereafter be exempt from taxation and special ad valorem levies as provided in this article, commencing with the assessment roll prepared on the basis of the taxable status date referred to in § 270-76 of this article. The assessed value of any exemption granted pursuant to this article 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.
In the event that a building granted an exemption pursuant to this article ceases to be used primarily for residential purposes or title thereto is transferred to other than the heirs or distributes of the owner, the exemption granted pursuant to this article shall cease.