Relates to a partial tax exemption for new residential reconstruction, alteration or improvement of residential structures in cities with a certain population

BILL NUMBER:S5208C

Title of bill

An act to amend the real property tax law, in relation to a partial tax exemption for reconstruction, alteration or improvement of residential structures in cities with a certain population

Purpose

To encourage growth and economic development by providing the city of Auburn to provide real property tax exemptions to vacant residential homes for capital improvements

Summary of provisions

Section 1 of the bill amends the real property tax law by adding a new section 421-ff to authorize an exemption for capital improvements to vacant residential buildings in cities with a population between twenty-seven thousand five hundred and twenty-eight thousand.

1. Provides that vacant residential buildings which have been newly renovated shall be exempt from certain taxation.

2. Provides that such buildings shall be exempt for two years for one hundred per centum of the increase in the assessed value attributed to the renovation. The exemption shall decrease by twenty per centum of the exemption base for the following additional four years.

3. Sets forth the percentage of the exemption based on the LEED certification classification {certified/silver, gold or platinum}. The percentages of exemptions are listed by the LEED certification classification.

4. Exemptions granted pursuant to this section shall apply to real property taxes imposed for city purposes.

5. Lists eligibility criteria for the exemption: (a) construction of improvements must commence as specified by local law; (b) project exceeds $7,500; and (c) proper documentation required.

6. Provides that an application for exemption shall be prescribed by the commissioner and filed with the assessor of the city.

7. Provides for the commencement of the exemption upon the approval of the assessor. The exemption will be effective after the taxable status date.

Section 2 of the bill provides for an immediate effective date.

Justification

This legislation allows city of Auburn to provide real property tax exemptions to vacant residential homes for capital improvements. Small cities are continually pursuing innovative ways to encourage growth and economic development and this legislation would be helpful in improving housing stock and raising property values. New York has become proactive in bolstering efforts to reduce greenhouse gas emissions by promoting energy efficiency in homes throughout the State. This legislation would promote "green" construction by granting an additional real property tax exemption for property improvements meeting LEED certification standards. This incentive would further build upon New York's efforts by encouraging more homeowners and businesses to go "green".

Legislative history

New bill.

Fiscal implications

None to State.

Local fiscal implications

Undetermined, dependent upon utilization.

Effective date

This act shall take effect immediately.