[Adopted 7-21-2014 by L.L. No. 2-2014]
In accordance with § 421-f of the New York State Real Property Tax Law, improvements to one- and two-family houses resulting in a change in the assessed valuation of at least $15,000 shall be, upon application, eligible for an exemption of Village of Delhi property taxes per the terms of this article, such abatement not to exceed $80,000.
The intent of this article is to encourage property owners to make improvements to one- and two-family houses, to improve the quality of housing in the community, and to preserve and expand the tax base of the Village of Delhi.
The improvements to residential buildings reconstructed, altered or improved subsequent to the effective date of this article for residential purposes shall be exempt from taxation to the extent provided hereinafter. For the purposes of this article, a "residential building" shall mean any building or structure designed and occupied exclusively for residential purposes by not more than two families.
The improvements to such buildings 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; provided, however, that the extent of such exemption shall be decreased by 12 1/2% of the initial exemption during such additional period, which shall be the increase in assessed value as determined in the initial year of the term of the exemption; provided, further, that such exemption shall be limited to $80,000 in increased market value 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 granted herein. 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 most recently established New York State equalization rate except where the state equalization rate equals or exceeds 95%, in which case the increase in assessed value attributable to such reconstruction, alteration or improvement shall equal the market value of such reconstruction, alteration or improvement.
Such reconstruction, alteration or improvement must be commenced subsequent to the effective date of this article.
The value of such reconstruction, alteration or improvement must exceed $15,000. The maximum exemption permitted under this article is $80,000.
For the purposes of this section, the terms "reconstruction," "alteration" and "improvements" shall not include ordinary maintenance and repairs. Swimming pools shall not be considered to constitute an alteration or improvement for the purpose of this article.
The greater portion, as so determined by square footage, of the buildings reconstructed, altered or improved must be at least five years old.
The owner of such building must make application on the form prescribed by the State Board on or before the taxable status date. A certificate of compliance or a certificate of occupancy issued in connection with the reconstruction, alteration or improvement must be submitted with the application.
If the Assessor is satisfied that an applicant is entitled to an exemption under the provisions of this article, the Assessor shall approve the application, and such building shall thereafter be exempt from taxation and special ad valorem levies as herein provided commencing with the next assessment roll. The assessed value of any exemption granted pursuant to this section shall be entered by the Assessor on the portion of the assessment roll provided for the property exempt from taxation.
Once an exemption has been granted, reapplication will not be necessary for the exemption after the initial year in order for the exemption to continue. However, in any year in which a change in level of assessment of 15% or more is certified for a final assessment roll, the exemption base shall be automatically recomputed.
An exemption granted pursuant to this article shall cease in the event that a building granted an exemption ceases to be used primarily for residential purposes or in the event that title thereto is transferred to other than the heirs or distributees of the owner. Properties currently receiving an exemption or abatement under other sections of the Real Property Tax Law (such as § 485-e) shall continue under the previous exemption or abatement.
If any section or subsection, paragraph, clause, phrase or provision of this article shall be adjudged invalid or held unconstitutional by any court of competent jurisdiction, such adjudication shall not affect the validity of this article as a whole or any part thereof other than the part or provision so adjudged to be invalid or unconstitutional.
This article shall take effect upon filing with the Secretary of State pursuant to the Municipal Home Rule Law. However, the implementation of the law will not go into effect until after the next taxable status date and the establishment of the property tax roll.
The Village Clerk is hereby directed to file a certified copy of this article with the State Board of Equalization and Assessment.