What's happening
This bill raises the maximum property tax exemption for residential capital improvements from $80,000 to $200,000 for new local laws after 2020.
Why it matters
Substantially raises the cap on property tax exemptions for residential improvements. By increasing the maximum exempted market value from $80,000 to $200,000 for local laws adopted after 2020, the bill allows homeowners to shield a much larger portion of their investment in renovations or additions from property taxes.
Could incentivize more significant home improvements and investments. With a higher exemption available, homeowners might be more willing to undertake larger or higher-cost projects, potentially improving housing quality, energy efficiency, and property values in their communities.
Local governments retain some flexibility. Municipalities can still set their own exemption limits below $200,000 (but not less than $5,000), allowing them to tailor the policy to local fiscal needs or housing markets.
May have budget implications for local services. By increasing the exemption, the bill could reduce the property tax base in areas that adopt the higher limit, potentially impacting funding for schools, infrastructure, and other municipal services unless offset by other revenue sources.
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Who cares
Headline styles
Raise Home Improvement Tax Exemption
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to real property taxation
- Referred to real property taxation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2563
2019-2020 Regular Sessions
IN ASSEMBLY
January 23, 2019
Introduced by M. of A. FAHY -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to increasing the amount of the exemption permitted for capital improvements to residential buildings
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (iii) of paragraph (a) of subdivision 2 of section 421-f of the real property tax law, as amended by chapter 590 of the laws of 1994, is amended to read as follows:
(iii) [Such] For exemptions granted pursuant to this section and authorized by a local law or resolution adopted prior to January first, two thousand twenty, such exemption shall be limited to eighty thousand dollars in increased market value, or such other sum less than eighty thousand dollars, but not less than five thousand dollars as may be provided by the local law or resolution, of the property attributable to such reconstruction, alteration or improvement and any increase in market value greater than such amount shall not be eligible for the exemption pursuant to this section. For exemptions granted pursuant to this section and authorized by a local law or resolution adopted on or after January first, two thousand twenty, such exemption shall be limited to two hundred thousand dollars in increased market value, or such other sum less than two hundred thousand dollars, but not less than five thousand dollars as may be provided by the local law or resolution, of the property attributable to such reconstruction, alteration or improvement and any increase in market value greater than such amount shall not be eligible for the exemption pursuant to this section. For the purposes of this section, 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02314-01-9
A. 2563 2
equalization rate or special equalization rate in the remainder of the state, except where the state equalization rate or special equalization rate equals or exceeds ninety-five percent, in which case the increase in assessed value attributable to such reconstruction, alteration or improvement shall be deemed to equal the market value of such reconstruction, alteration or improvement.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.