[Adopted 2-3-2015 by L.L. No. 4-2015]
The purpose of this article is to provide tax relief to those
property owners who construct, reconstruct or expand structures on
their property provided said property is used primarily for hospitality
business activity.
Construction of improvements to real property for purposes of
hospitality business activity shall be exempt from taxation to the
extent provided by this article.
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 five percent each year
during such additional period of nine years and such exemption shall
be computed with respect to the exemption base. The exemption 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.
The following table shall illustrate the computation of the tax exemption:
|
Hospitality Business Investment Tax Exemption
| |
|---|---|
|
Year
|
Exemption
|
|
1
|
50%
|
|
2
|
45%
|
|
3
|
40%
|
|
4
|
35%
|
|
5
|
30%
|
|
6
|
25%
|
|
7
|
20%
|
|
8
|
15%
|
|
9
|
10%
|
|
10
|
5%
|
A.Â
No such exemption shall be granted unless such construction of improvements
was commenced on or after the first day of January 2015; the cost
of such construction, alteration, installation or improvement exceeds
the sum of $100,000; and 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.
For the purposes of this chapter, the terms "construction," "alteration"
and "improvement" shall not include ordinary maintenance and repairs.
B.Â
Such exemption shall only be granted upon application by the owner
of such real property on a form prescribed by the New York State Commissioner
of Taxation and Finance. Such application shall be filed with the
Southampton Town Tax Assessor on or before the taxable status date
of the Town within one year from the date of completion of such construction,
alteration, installation or improvement. 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 as provided in this article commencing
with the assessment roll prepared after the taxable status date. 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.
C.Â
The provisions of this act shall only apply to real property within
the Town of Southampton used primarily for hospitality business activity.
For the purposes of this section, "hospitality business activity"
shall mean the commercial furnishing of accommodations to overnight
transient guests, including hotels, motels, and bed-and-breakfasts
but excluding private homes being rented pursuant to a Town rental
permit. A "transient guest" shall be defined as one whose stay on
such property is daily or weekly, but not to exceed 31 days in any
calendar year.
D.Â
In the event the real property granted an exemption pursuant to this
section ceases to be used primarily for the eligible purposes, the
exemption granted pursuant to this section shall cease.
