Residential buildings reconstructed, altered or improved for residential purposes subsequent to the effective date of this Article shall be exempt from taxation and special ad valorem levies to the extent provided for herein.

Such buildings shall be exempt for a period of one year to the extent of one hundred per centum (100%) of the increase in assessed value thereof attributable to such reconstruction, alteration or improvement, except new construction, and for an additional period of four years; provided, however, that the extent of such exemption shall be decreased by twenty-five per centum (25%) of the initial exemption each year during such additional period; 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, except new construction, and any increase in market value greater than such amount shall not be eligible for the exemption, pursuant to this section. For the purpose of this section, the market value of the reconstruction, alteration or improvement, except new construction, shall be equal to the increased assessed value attributable to such reconstruction, alteration or improvement divided by the Class 1 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 ninety-five per centum (95%), then the increase in assessed value attributable to such reconstruction, alteration or improvement, except new construction, shall equal the market value of such reconstruction, alteration or improvement, except new construction.

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 such 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. The exemption shall thereupon be recomputed to take into account the new exemption base, notwithstanding the fact that the Assessor receives certification of the change in level of the assessment after the completion, verification and filing of the final assessment roll. In the event that 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.

No such exemption shall be granted for reconstruction, alteration or improvements unless:

For the purpose of this section, the terms "reconstruction," "alteration" or "improvement" shall not include ordinary maintenance and repair.

Such exemption shall be granted only upon application by the owner of such building on a form prescribed by the State Assessment Board, available from the Village Assessor. The original of such application shall be filed with the Village Assessor on or before the first day of January of each year, the appropriate taxable status date for the village. A copy thereof shall be filed with the State Board.

If the Assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he shall approve the application and such building shall thereafter be exempt from taxation and special ad valorem levies as herein provided commencing with the assessment roll prepared after the taxable status date referred to in § 124-3A of this Article. 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 property exempt from taxation.

In the event that a building granted an exemption pursuant to this section ceases to be used primarily for residential purposes or title thereto is transferred to other than heirs or distributees of the owner, the exemption granted pursuant to this section shall cease.

Real property constructed, altered, installed or improved subsequent to the effective date of this Article for the purpose of commercial, business or industrial activity shall be exempt from taxation and special ad valorem levies to the extent herein provided.

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 5% each year during such additional nine years, and such exemption shall be computed with respect to the increase in assessed value as determined in the initial year of such ten-year period following the filing of an original application; provided, however, that in any year in which a change in level of assessment of 15% or more is certified for an assessment roll pursuant to the rules of the State Board, the exemption shall be recomputed to take into account the increase in assessed value due to the change in level of assessment, notwithstanding the fact that the Assessor receives the certification after the completion, verification and filing of the final assessment roll. In the event that 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 following table shall illustrate the computation of the tax exemption:

No exemption shall be granted unless:

For the purposes of this section, the terms "construction," "alteration," "installation" or "improvement" shall not include ordinary maintenance and repairs.

No exemption shall be granted concurrent with or subsequent to any other real property tax exemption granted to the same improvements to real property, except where, during the period of such previous exemption, payments in lieu of taxes or other payments were made to the local government in an amount that would have been equal to or greater than the amount of real property taxes that would have been paid on such improvements had such property been granted an exemption pursuant to this section. In such case, an exemption shall be granted for a number of years equal to the ten-year exemption granted, pursuant to this section, less the number of years the property would have been previously exempt from real property taxes.

Such exemption shall be granted only upon application by the owner of such real property on a form prescribed by the State Board and available from the Village Assessor. Such application shall be filed with the Assessor of the village on or before January 1 of each year and within one year from the date of completion of such construction, alteration, installation or improvement. A copy of said application shall also be filed with the State Board.

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 assessment roll prepared after the taxable status date referred to in § 124-5A of this Article. 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.