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New York Real Property Tax Law Section 421-b - Exemption Of Certain Private Dwellings, Multiple Dwellings And Improvements From Local Taxation; Certain Cases.

Legal Research Home > New York Lawyer > Real Property Tax > New York Real Property Tax Law Section 421-b - Exemption Of Certain Private Dwellings, Multiple Dwellings And Improvements From Local Taxation; Certain Cases.

    § 421-b.  Exemption  of certain private dwellings, multiple dwellings
  and improvements from local taxation; certain cases.  1.  (a)  Within  a
  city having a population of one million or more, private dwellings (land
  and  improvements)  to  be  occupied  as a residence for the first time,
  whether newly constructed  or  resulting  from  the  conversion  of  any
  building  or  structure  to  a  private  dwelling,  and existing private
  dwellings previously occupied, reconstructed or improved to  the  extent
  of  at  least  forty  percent  of  their  assessed valuation without the
  improvement, shall be exempt from all local and municipal  taxes,  other
  than  assessments  for  local improvements, during the tax year or years
  next following the taxable status date or dates after  commencement  and
  before completion of construction, reconstruction or conversion thereof,
  but  for no more than two years after commencement of such construction,
  reconstruction or conversion, and shall be exempt from  such  local  and
  municipal  taxes  after  the earlier of completion of such construction,
  reconstruction or conversion or the end of  such  two  year  period,  as
  follows:  two  years  of  exemption from all such taxes; followed by one
  year of exemption from seventy-five percent of such taxes;  followed  by
  one year of exemption from sixty-two and one-half percent of such taxes;
  followed  by  one  year  of  exemption from fifty percent of such taxes;
  followed by one year of exemption from thirty-seven and one-half percent
  of such taxes; followed  by  one  year  of  exemption  from  twenty-five
  percent of such taxes; and followed by one year of exemption from twelve
  and  one-half  percent  of  such  taxes.  Notwithstanding  the foregoing
  provisions of this paragraph:  (i) exemption from  local  and  municipal
  taxes  under this section shall not be available to property exempt from
  such taxes under any other law; (ii) the tax lot (land and improvements)
  upon  which  the  private  dwelling  is  constructed,  reconstructed  or
  converted  shall at all times be subject to local and municipal taxes in
  an amount not less than the amount of local  and  municipal  taxes  that
  would  be  payable  thereon  based  upon  the  lesser  of  the  assessed
  valuation, during the tax year immediately preceding  the  tax  year  in
  which  such  construction,  reconstruction or conversion commenced or in
  the case of  new  construction,  the  assessed  valuation  of  the  land
  appearing  on  the assessment roll in the first year after completion of
  construction; and (iii) in the event that a  private  dwelling,  whether
  owner  occupied  or  not,  is  fully  demolished and removed on or after
  September first, two thousand four, the tax lot (land and  improvements)
  upon  which  such private dwelling was located shall not be eligible for
  exemption from local and municipal taxes under this section for a period
  of three years commencing upon the date of issuance  of  the  demolition
  and removal permit for such private dwelling.
    (b) Within a city having a population of one million or more, multiple
  dwellings (land and improvements) containing not more than four dwelling
  units  to  be  occupied as a residence for the first time, whether newly
  constructed  or  resulting  from  the  conversion  of  any  building  or
  structure  to  a  multiple  dwelling,  and  existing  multiple dwellings
  containing not  more  than  four  dwelling  units  previously  occupied,
  reconstructed  or  improved  to  the extent of at least forty percent of
  their assessed valuation without the improvement, shall be  exempt  from
  all  local  and  municipal  taxes,  other  than  assessments  for  local
  improvements, during the tax year or years next  following  the  taxable
  status  date  or  dates  after  commencement  and  before  completion of
  construction, reconstruction or conversion thereof, but for no more than
  two years after commencement of  such  construction,  reconstruction  or
  conversion,  and  shall  be  exempt  from such local and municipal taxes
  after the earlier of completion of such construction, reconstruction  or
  conversion  or the end of such two year period, as follows: two years of
  exemption from all such taxes; followed by one year  of  exemption  from
  seventy-five  percent  of  such taxes; followed by one year of exemption
  from sixty-two and one-half percent of such taxes; followed by one  year
  of  exemption  from fifty percent of such taxes; followed by one year of
  exemption from thirty-seven and one-half  percent  of  such  taxes;  and
  followed  by  one  year  of  exemption  from twenty-five percent of such
  taxes; and followed by one year of exemption from  twelve  and  one-half
  percent  of such taxes. Notwithstanding the foregoing provisions of this
  paragraph: (i) exemption from  local  and  municipal  taxes  under  this
  section  shall not be available to property exempt from such taxes under
  any other law; (ii) the tax lot (land and improvements) upon  which  the
  multiple  dwelling  is  constructed, reconstructed or converted shall at
  all times be subject to local and municipal taxes in an amount not  less
  than  the  amount  of  local  and  municipal taxes that would be payable
  thereon based upon the lesser of the assessed valuation, during the  tax
  year  immediately  preceding  the  tax  year in which such construction,
  reconstruction  or  conversion  commenced  or  in  the   case   of   new
  construction,  the  assessed  valuation  of  the  land  appearing on the
  assessment roll in the first  year  after  completion  of  construction;
  (iii)  multiple  dwellings (land and improvements) shall not be eligible
  for exemption from local and municipal taxes under this  section  unless
  such  multiple  dwellings  are  developed  in  a governmentally assisted
  project, as defined in rules promulgated by the  local  housing  agency;
  and  (iv)  such  multiple  dwellings  are  constructed, reconstructed or
  converted on real property that has been (A)  acquired  by  the  federal
  government  as  the result of the foreclosure of a mortgage loan insured
  by the federal government and (B) conveyed by the federal government  to
  an  owner  approved  by  the  local  housing  agency  for the purpose of
  rehabilitation in accordance with an agreement between the owner of  the
  real property and the federal government.
    2.  (a) For purposes of this section: "private dwelling" shall mean an
  owner occupied building or structure, with the land on which the same is
  constructed, intended for residential use and occupancy by one  or  more
  families  living  independently  of  each  other  with  separate cooking
  facilities, which is not a multiple dwelling within the meaning  of  the
  multiple   dwelling   law,   and  the  construction,  reconstruction  or
  conversion of which (i) is commenced after July first, nineteen  hundred
  seventy-eight  and before July first, nineteen hundred eighty-two and is
  completed no later than April first, nineteen hundred eighty-four;  (ii)
  is  commenced  on  or  after July first, nineteen hundred eighty-two and
  before July first, nineteen hundred eighty-six and is completed no later
  than July first, nineteen hundred eighty-eight; (iii) is commenced on or
  after July first, nineteen hundred eighty-six  and  before  July  first,
  nineteen  hundred  ninety  and  is  completed  no later than July first,
  nineteen hundred ninety-two; (iv) is commenced on or after  July  first,
  nineteen   hundred  ninety  and  before  July  first,  nineteen  hundred
  ninety-four and is completed no later than July first, nineteen  hundred
  ninety-six;  (v)  is  commenced on or after July first, nineteen hundred
  ninety-four and before July first, nineteen hundred ninety-eight and  is
  completed  no  later than July first, two thousand; (vi) is commenced on
  or after July first,  nineteen  hundred  ninety-eight  and  before  July
  first,  two  thousand two and is completed no later than July first, two
  thousand four; or (vii)  is  commenced  on  or  after  July  first,  two
  thousand two and before July first, two thousand six and is completed no
  later than July first, two thousand eight.
    (b)  For  purposes  of this section: "multiple dwelling" shall mean an
  owner occupied building or structure, with the land on which the same is
  constructed, which is a multiple dwelling within the meaning of  section
  four  of the multiple dwelling law, and the construction, reconstruction
  or conversion of which is commenced on or after July first, two thousand
  two and before July first, two thousand six and is  completed  no  later
  than July first, two thousand eight.
    (c)  Construction  or  reconstruction  of, or conversion to, a private
  dwelling or multiple dwelling shall be deemed to have commenced when the
  agency or department of the city having jurisdiction has issued a permit
  for construction  work  and  such  work  has  begun  in  good  faith  in
  accordance  with such permit; construction, reconstruction or conversion
  shall be deemed to have been completed when the agency or department  of
  the  city  having  jurisdiction  has  issued  a  temporary  or permanent
  certificate of occupancy under which occupancy of the  private  dwelling
  or  multiple  dwelling  for  residential  use  may lawfully begin or the
  reconstruction has been finally accepted and approved.
    (d) For the purposes of this section:  "local  housing  agency"  shall
  have  the  same  meaning as the term "agency" under section five hundred
  two of the general municipal law, except that the term  shall  mean  the
  department  of  housing  preservation and development if there is such a
  department in such city.
    (e) Upon issuance of a violation by an agency, department or bureau of
  the city of New York for an illegal occupancy,  the  finance  department
  shall revoke the tax exemption thereunder. The owner shall pay the city,
  with  interest,  the  amount  of  taxes  from  which such owner had been
  exempted. Such amount, if  unpaid,  shall  become  a  lien  against  the
  property.
    3.  (a)  Applications  for exemption under this section shall be filed
  with the assessors between February first and  March  fifteenth  of  the
  calendar  year  and,  based  on  the  certification of the local housing
  agency pursuant to this section, the  assessors  shall  certify  to  the
  collecting  officer  the  amount  of  exemption from local and municipal
  taxes. No such application shall be accepted  by  the  assessors  unless
  accompanied  by  a  certificate  of  the local housing agency certifying
  eligibility for exemption pursuant to this section.
    (b) The local housing agency may promulgate rules and  regulations  to
  carry  out  the  provisions of this section and may require payment of a
  reasonable filing fee, and in the case of  an  application  involving  a
  dwelling  which  has  been reconstructed or improved a fee not to exceed
  ten dollars for the certification of such  local  housing  agency  under
  this subdivision.
    (c) At any time after two years of exemption from taxation pursuant to
  this  section, the local housing agency may certify to the assessors and
  the collecting officer that a private dwelling or multiple  dwelling  is
  not  being  used  for  residential  purposes and upon the filing of such
  certification with the assessors and the collecting  officer,  exemption
  from taxation under this section shall terminate.

Last modified: August 26, 2006