[Adopted 10-12-1993 as L.L. No. 8-1993]
This section shall be known and cited as "Graduated
Tax Exemption for Capital Improvements to One- and Two-Family Homes."
The Village of Spring Valley recognizes residential
rehabilitation subjects owners to additional tax liability for those
improvements through higher assessments. In its determination to encourage
residential rehabilitation, the Village of Spring Valley will assist
residents to increase the beautification of their neighborhood in
rehabilitating and improving their property by providing exemption
of capital improvements of residential buildings from taxation.
As used in this article, the following terms
shall have the meanings indicated:
Shall not include ordinary maintenance and repairs, but shall
include only that which would otherwise result in an increase in the
assessed valuation of the real property and which consists of an addition,
remodeling or modernization to an existing residential structure to
prevent physical deterioration of the structure or to comply with
applicable building, sanitary, health and/or fire codes.
Any building or structure designed and occupied exclusively
for residential purposes by not more than two families.
A.Â
Residential buildings reconstructed, altered or improved
for residential purposes shall be exempt from taxation and special
ad valorem levies for a period of one year to the extent of 100% of
the increase in assessed value thereof attributable to said reconstruction,
alteration or improvement; and, further, the extent of such exemption
shall thereafter be reduced for an additional period of seven years
by 12Â 1/2% of the initial exemption each year during such additional
period.
[Amended 4-11-1995 by L.L. No. 1-1995]
B.Â
Such exemption shall be limited to no more than $80,000
in increased market value or such other sum less than $80,000, but
not less than $5,000 of the property attributable to such reconstruction,
alteration or improvement.
C.Â
For the purposes of this article, the market value
of the reconstruction, alteration or improvement shall be equal to
the increased assessed value attributable to such reconstruction,
alteration or improvement divided by the Class I ratio in a special
assessing unit or the most recently established state equalization
rate in New York State or special equalization rate in the remainder
of the state, except where the state equalization rate or special
equalization rate equals or exceeds 95%, then the increase in assessed
value attributable to such reconstruction, alteration or improvement
shall equal the market value of such reconstruction, alteration or
improvement.
In order to be eligible for such exemption:
A.Â
The owner of said building must submit an application
on a State Board of Assessment prescribed form, filing the original
with the Village Assessor,[1] having the power to assess property for taxation, on or
before the appropriate taxable status date of said Village, and also
filing a copy of said application with the State Board of Assessment
and Review.
[1]
Editor’s Note: The position of Assessor in the Village
was abolished 11-30-2016 by L.L. No. 5-2016.
B.Â
The reconstruction, alteration or improvement must
be commenced subsequent to the date of the enactment of this article.
C.Â
The value of said reconstruction, alteration or improvement
must exceed $3,000.
D.Â
The greater portion of the building, as determined
by square footage of the building reconstructed, altered or improved,
is at least five years old.
Upon the Assessor[1] of the Village of Spring Valley being satisfied that the
applicant is entitled to an exemption pursuant to this article, the
Assessor shall approve the application, and such building shall thereafter
be exempt from taxation or special ad valorem levies commencing with
the assessment roll prepared after the taxable status date of said
Village. The Assessor shall enter in the portion of the assessment
roll for property exempt from taxation the assessed value of the exemption
granted pursuant to this article.
[1]
Editor’s Note: The position of Assessor in the Village
was abolished 11-30-2016 by L.L. No. 5-2016.
If a building granted an exemption under this
article 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 article shall cease
forthwith.
Where a one-family home by reconstruction, alteration
or improvement is converted to a two-family home, such exemption shall
not apply.
