[Adopted 6-18-2002 by Res. No. 15[1]]
[1]
Editor's Note: This local law superseded the
previous first-time homebuyers tax exemption adopted 2-26-2002 by
L.L. No. 2-2002.
Pursuant to § 457 of the Real Property
Tax Law of the State of New York, the Town Board of the Town of Babylon,
after due consideration, has provided for a partial real property
tax exemption for qualified first-time homeowners as specified below.
A.
Subject to the qualifications and regulation set forth
herein, a partial exemption from real property taxes is hereby granted
to qualified first-time homebuyers of primary residential property
within the Town of Babylon.
B.
Newly constructed primary residential property purchased
by one or more persons, each of whom is a first-time homebuyer and
has not been married to a homeowner in the three years prior to applying
for this first-time homeowners' exemption, shall be exempt from taxation
levied on behalf of the Town of Babylon, such exemption to be for
a period of five years, computed as follows:
|
Year of Exemption
|
Percentage of Assessed Valuation Exempt
from Tax
|
|---|---|
|
1
|
50%
|
|
2
|
40%
|
|
3
|
30%
|
|
4
|
20%
|
|
5
|
10%
|
|
6 or more
|
0%
|
C.
Eligibility; definitions.
(1)
Any newly constructed primary residential real property
within the purchase price limits as defined on January 1, 2001, by
the State of New York Mortgage Agency low-interest rate mortgage program
in the non-target, one-family new category for Suffolk County, increased
by 25%, shall be eligible for the exemption allowed pursuant to this
section.
(2)
A first-time homebuyer who either as part of the written contract for sale of the primary residential property or who enters into a written contract within 90 days after closing of the sale of the primary residence for reconstruction, alteration or improvements, the value of which exceeds three thousand dollars, to the primary residential property shall be exempt from taxation to the extent provided by this section. Such exemption shall apply solely to the increase in assessed value thereof attributable to such reconstruction, alteration or improvement, provided that the assessed value after reconstruction, alteration or improvements does not exceed 15% more than the purchase price limits as defined in Subsection (1) of this subsection. For the purposes of this section, the terms "reconstruction," "alteration" and "improvement" shall not include ordinary maintenance and repairs.
(3)
A first-time homebuyer shall not qualify for the exemption
authorized pursuant to this section if the household income exceeds
income limits as defined on January 1, 2006, by the State of New York
Mortgage Agency low-interest rate mortgage program in the nontarget
one- and two-person household category for Suffolk County.
[Amended 12-20-2006 by Res. No. 6]
(4)
The term "household income" as used herein shall mean
the total combined income of all the owners, and of any owners' spouses
residing on the premises, for the income tax year preceding the date
of making application for the exemption.
(5)
The term "income" as used herein shall mean the adjusted
gross income for federal income tax purposes as reported on the applicant's
latest available federal or state income tax return subject to any
subsequent amendments or revisions, reduced by distributions, to the
extent included in federal adjusted gross income, received from an
individual retirement account and an individual retirement annuity;
provided that if no such return was filed within the one-year period
preceding taxable status date, "income" shall mean the adjusted gross
income that would have been so reported if such a return had been
filed. For the purposes of this subsection, "latest available return"
shall mean the federal or state income tax return for the year immediately
preceding the date of making application; provided, however, that
if the tax return for such year has not been filed, then the income
tax returns for the tax year two years preceding the date of making
application shall be considered the latest available.
D.
Newly constructed primary residential property purchased
by first-time homebuyers at a sales price greater than the maximum
eligible sales price shall qualify for the exemption allowed pursuant
to this section for that portion of the sales price of such newly
constructed primary residential property equal to the maximum eligible
sales price; provided, however, that any newly constructed primary
residential property purchased at a sales price greater that 15% above
the maximum eligible sales price shall not be allowed any exemption.
E.
No exemption shall be allowed pursuant to this section for any newly constructed primary residential property purchased by a first-time homebuyer on or after December 31, 2028, unless such purchase is pursuant to a binding written contract entered into prior to December 31, 2028; provided, however that any first-time homebuyer who is allowed an exemption pursuant to this section prior to such date shall continue to be allowed further exemptions pursuant to Subsection B of this section.
[Amended 12-20-2006 by Res. No. 6; 9-13-2011 by L.L. No.
17-2011; 3-1-2017 by L.L. No. 1-2017; 12-5-2018 by L.L. No. 22-2018; 12-21-2022 by L.L. No. 2-2023]
F.
Restrictions.
(1)
No portion of a single-family newly constructed primary
residential property shall be leased during the period of time when
the first-time homeowner exemption shall apply to the residence. If
any portion of the single-family newly constructed primary residential
property is found to be the subject of a lease agreement, the Assessor
shall discontinue any exemption granted pursuant to this section.
(2)
In the event that a primary residential property granted
an exemption pursuant to this section ceases to be used primarily
for residential purposes or title thereto is transferred to other
than the heirs or distributees of the owner, the exemption granted
pursuant to this article shall be discontinued.
(3)
Upon determining that an exemption granted pursuant
to this article should be discontinued, the Assessor shall mail a
notice so stating to the owner or owners thereof at the time and in
the manner provided in Real Property Tax Law § 510. Such
owner or owners shall be entitled to seek administrative and judicial
review of such action in the manner provided by law, provided that
the burden shall be on such owner or owners to establish eligibility
for the exemption.
G.
Such exemption shall be granted only upon application
by the owner of such building on a form prescribed by the State Board.
The application shall be filed with Town Assessor on or before March
1, the taxable status date.
H.
If satisfied that the applicant is entitled to an exemption pursuant to this section, the Assessor shall approve the application and such primary residential property shall thereafter be exempt from taxation and special ad valorem levies as provided in this section commencing with the assessment roll prepared on the basis of the taxable status date referred to in Subsection G of this section. 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.
I.
FIRST-TIME HOMEBUYER
PRIMARY RESIDENTIAL PROPERTY
NEWLY CONSTRUCTED
For the purposes of this article, the following terms
shall have the meanings indicated:
A person who has not owned a primary residential property
and is not married to a person who has owned a residential property
during the three-year period prior to his or her purchase of the primary
residential property, and who does not own a vacation or investment
home.
Any one- or two-family house, townhouse or condominium located
in this state which is owner-occupied by such homebuyer.
An improvement to real property which was constructed as
a primary residential property, and which has never been occupied
and was constructed after the effective date of this section. "Newly
constructed" shall also mean that portion of a primary residential
property that is altered, improved or reconstructed.
J.
This exemption shall apply to taxable years beginning
on or after January 1, 2002.
If any clause, sentence, paragraph, subdivision,
section or other part of this article shall for any reason be adjudged
by any court of competent jurisdiction to be unconstitutional or otherwise
invalid, such judgment shall not affect, impair, or invalidate the
remainder of this article, and it shall be construed to have been
the legislative intent to enact this article without such unconstitutional
or invalid parts therein.
This article shall take effect immediately upon
filing in the Office of the Secretary of State of New York.
