[Adopted 12-21-1993 by L.L. No. 3-1993]
The New York State Legislature recently enacted § 421-f to the Real Property Tax Law, authorizing local legislation granting real property tax exemptions for increases in value attributable to a capital improvement of residential dwellings. The purpose of this legislation is to exercise this local power by granting real property tax exemptions to persons who make capital improvements to their property.
This legislation hereby provides that any reconstruction, alteration or improvement of residential buildings exclusively designed and occupied by not more than two families shall be exempt for a period of one year to the extent of 100% of the increase in assessed value attributable to such reconstruction, alteration or improvement, and for an additional period of seven years. The extent of such exemption for the additional period shall be decreased by 12 1/2% of the initial exemption each year. Such exemption shall be limited to $80,000 in increased market value, but not less than $5,000 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.
Such exemption shall be granted only upon application by the owner of such real property on a form prescribed by the State Board of Equalization and Assessment, the original of which shall be filed with the Town Assessor. Such original application shall be filed on or before the taxable status date and within one year from the date of completion of such reconstruction, alteration or improvement. A copy of said application shall also be filed with the State Board of Equalization and Assessment.
In order to qualify for the exemption, the value of such reconstruction, alteration or improvement must exceed $3,000.
The greater portion of the reconstructed, altered or improved building, as determined by square footage, must be at least five years old.
For the purposes of this section, the terms "reconstruction," "alteration" and "improvements" shall not include ordinary maintenance and repairs.
Such reconstruction, alteration or improvement shall require the issuance of a building permit and is completed with the issuance of a certification of occupancy and/or other required documentation and permits by the Town.
If the Assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he shall approve the application and such real property shall thereafter be exempt from taxation and special ad valorem levies as herein provided commencing with the first 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 separation column.
The provisions of this section shall only apply to one- and two-family dwellings used exclusively for residential purposes.
No such exemption shall be granted for reconstruction, alterations or improvements commenced prior to the date of the enactment of this article.
The exemption shall cease or terminate when title or equitable ownership is transferred to any persons other than the issue of the owner or owners or distributees or devisees of the owner or owners who shall take equitable title to the property through a testamentary disposition, intestacy or estate proceedings; the exemption shall further cease and terminate if the property ceases to be used primarily for residential purposes.