Extends the period of time during which certain real property tax exemptions apply

1 Co-sponsor

• Andrew J. Lanza

Title of bill

An act to amend the real property tax law, in relation to extending the deadline for exemptions for certain private dwellings

Purpose

This legislation extends for an additional year the ability to complete construction of a residence where construction was previously commenced to take advantage of the 421-b tax incentive program.

Summary of provisions

This bill amends the real property tax law to extend the date for completion of a residence until July 1, 2011 to be subject to the tax benefits under the 421-b program which sunset on July 1, 2009.

Justification

The 421-b tax incentive program currently applies to residences which commenced construction before July 1, 2006 and were completed by July 1, 2008. This program was not extended so its application has ceased with the exception of unfinished units which must obtain a certificate of occupancy by July 1, 2009. This program provides a tax year graduated phase-in of taxes on new home construction or substantial rehabilitation of a one- or two-family home. The crash of the housing market and the difficulty in obtaining construction financing has prevented some builders from completing approved projects which were commenced in compliance with the 421-b program but because of market circumstances are not able to complete the construction under the current time limitation. This bill would simply extend the time to complete construction to qualify for 421-b. This additional timeframe will enable those completed projects to finish.

Prior legislative history

154 of the laws of 2009 extended the 421-b program until July 1, 2010.

Fiscal implications to state

None to state, minimal to NYC because it is a continuation of the program.

Effective date

This Act shall take effect immediately.