[Adopted 7-24-2006 by L.L. No. 4-2006[1]]
[1]
Editor's Note: This local law also repealed
former Art. XII, Real Property Tax Exemption for First-Time Homebuyers
of Newly Constructed Homes, adopted 4-22-2002 by L.L. No. 2-2002.
Local Law No. 4-2006 stated that it was applicable beginning 1-1-2006.
The purpose of this article is to grant a partial
exemption from taxation for newly constructed homes purchased by first-time
homebuyers authorized by § 457 of the New York State Real
Property Tax Law.
A.
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 his or her first-time homeowner's exemption, shall be exempt from
taxation levied by or on behalf of the City of Schenectady. The length
of such exemption shall be five years.
B.
Such exemption shall be computed in accordance with
the following table:
|
Year of Exemption
|
Percentage of Assessed Valuation Exempt
From Tax
|
|---|---|
|
1
|
50%
|
|
2
|
40%
|
|
3
|
30%
|
|
4
|
20%
|
|
5
|
10%
|
|
6 or more
|
0%
|
A.
Any newly constructed primary residential real property
within the purchase price limits defined by the State of New York
Mortgage Agency low-interest-rate mortgage program in the nontarget,
one-family, new, category for the county where such property is located
and in effect on the contract date for the purchase and sale of such
property shall be eligible for the exemption allowed pursuant to this
section.
B.
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 the closing of the sale of the primary residence for reconstruction, alteration or improvements, the value of which exceeds $3,000, to the primary residential property shall be exempt from taxation to the extent provided by this section. Such exemptions 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 A of this section. For purposes of this section the terms "reconstruction," "alteration" or "improvement" shall not include ordinary maintenance and repairs.
C.
A first-time homebuyer shall not qualify for the exemption
pursuant to this section if the household income exceeds income limits
as defined by the State of New York Mortgage Agency low-interest-rate
mortgage program in the nontarget, one- and two-person-household category
for the county where such property is located and in effect on the
contract date for the purchase and sale of such property.
(1)
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.
(2)
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 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 tax year has not been filed, then the income
tax return for the tax year two years preceding the date of making
application shall be considered the latest available.
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 article 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 than
25% above the maximum eligible sales price shall not be allowed any
exemption.
No exemption shall be allowed pursuant to this article for any newly constructed primary residential property purchased by a first-time homebuyer on or after December 31, 2010, unless such purchase is pursuant to a binding written contract entered into prior to December 31, 2010; provided, however, that any first-time homebuyer who is allowed an exemption pursuant to this article prior to such date shall continue to be allowed further exemptions pursuant to § 234-39 of this article.
A.
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 article.
B.
In the event that a primary residential property granted
an exemption pursuant to this article 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.
C.
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 by § 510 of the Real Property Tax Law.
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.
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 the Assessor of the City, on or
before the appropriate taxable status date.
If satisfied that the applicant is entitled to an exemption pursuant to this article, 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 article commencing with the assessment roll prepared on the basis of the taxable status date referred to in § 234-44 of this article. The assessed value of any exemption granted pursuant to this article 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.
As used in 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.
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 article. "Newly
constructed" shall also mean that portion of a primary residential
property that is altered, improved or reconstructed.
Any one- or two-family house, townhouse or condominium located
in this state which is owner-occupied by such homebuyer.
