Creates a real property tax exemption for capital improvements to multiple dwellings in certain cities

BILL NUMBER:S5875A

Title of bill

An act to amend the real property tax law, in relation to exemption of capital improvements to multiple dwelling buildings in certain cities

Purpose or general idea of bill

This bill would create a new section 421-1 of the real property tax law in relation to an exemption on capital improvements to multiple dwellings in Troy, New York.

Summary of specific provisions

The bill adds a new section 421-1 to the real property tax law to allow a real property tax exemption for capital improvements to multiple dwellings in the city of Troy. Such exemptions shall be applied to multiple dwellings reconstructed, altered, or converted back to owner occupied single family dwellings or dwellings with no more than two units. After a public hearing, the governing board of Troy may adopt a local law granting such exemption.

Such buildings shall be exempt for a period of one year to the extent of 100% of the increase in assessed value attributed to such reconstruction, alteration or improvement, and for an additional 7 years, decreasing by 12 1/2 percent of the "exemption base" for the term of such additional period. In the event that a change in assessment of 15% or more is certified for final assessment, a new "exemption base" shall be calculated and the assessor shall give written notice of such recomputed exemption to the property owner.

The value of such tax exemption shall be limited to not less than $10,000 nor more than $100,000 and shall apply to alterations, reconstructions and conversions subsequent to the effective date of the local law adopted for projects that exceed $5,000 in dwellings 5 years of age or older.

The owner must apply for such exemption with the assessor, and if satisfied, the assessor shall approve the application and grant the exemption. If a building that was granted an exemption pursuant to this section ceases to be used primarily for residential purposes or title is transferred to someone other than the heirs or distributees of the owner, the exemption granted shall cease.

The local law enacted in such city may reduce the percent of exemption allowed pursuant to this section, limit eligibility to those forms of reconstruction, alterations or improvements prescribed in such local law or resolution, and provide that the exemption shall apply only to those improvements resulting in an increase in the assessed valuation to the property. However, no such local law shall reduce or repeal an exemption granted until the expiration of the period for which the exemption was granted.

Justification

This legislation will allow the city of Troy to provide real property tax exemptions to the owners of multiple dwellings for significant capital improvements to their property. Many cities are pursuing innovative ways to encourage growth and economic stability in their

communities and have used tax exemptions to accomplish this. For example Peekskill and Cohoes are two cities which have benefited from offering tax exemptions for capital improvements. Extending this authority to Troy will go a long way in improving the housing stock in the city and increasing property values.

Prior legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law.