What's happening
This bill expands a property tax exemption for redeveloped, previously inhibited residential properties to all New York cities, towns, and villages.
Why it matters
Expands local government flexibility. By allowing any city, town, or village to adopt the exemption, the bill gives more local governments new tools to address blighted or abandoned residential properties, potentially revitalizing neighborhoods across the entire state, not just select cities.
Targets owner-occupied homes only. The exemption remains focused on people who redevelop abandoned or neglected properties for use as their primary residence, helping encourage stable homeownership and reducing absentee landlord issues in distressed areas.
Ties tax relief to actual redevelopment costs. The duration of the exemption is calculated based on the gap between redevelopment costs and increased property taxes, so tax relief is specifically tailored to offset the financial barriers that often prevent private investment in struggling residential properties.
Exemption is conditional and can be revoked. The property loses its exemption if it ceases to be owner-occupied, is converted from a single-family dwelling, or is found in violation of safety codes—helping ensure that the benefit is used as intended and maintaining community standards.
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Who cares
City, town and village governments
The bill would let any municipality adopt the redevelopment exemption by local law, replacing eligibility limited to cities within a narrow population range.
Owners of qualifying one-family homes
In participating municipalities, owner-occupants could receive an exemption on value added by qualifying redevelopment, subject to annual residency filings and other requirements.
County governments and school districts
After a municipality adopts the exemption, counties and school districts could choose to extend the same relief to their own property taxes.
Municipal assessors
Assessors in participating municipalities would review exemption applications, record approved exemptions on assessment rolls and receive annual owner-occupancy affidavits.
Headline styles
Tax Breaks for Home Redevelopment
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to local government
- Referred to local government
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4662
2019-2020 Regular Sessions
IN SENATE
March 20, 2019
Introduced by Sens. RANZENHOFER, AKSHAR, SERINO, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to authorizing a residential redevelopment inhibited property exemption
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 485-r of the real property tax law, as added by chapter 406 of the laws of 2015 and paragraph (f) of subdivision 1 as amended by chapter 28 of the laws of 2016, is amended to read as follows:
§ 485-r. Residential redevelopment inhibited property exemption[; certain cities]. 1. As used in this section, the following terms shall have the following meanings:
(a) "Redevelopment inhibited property" shall mean a residential property that has been neglected or abandoned because of the local economic conditions and/or conditions on the property that inhibit such property from being redeveloped by the private sector. Redevelopment inhibited property shall not include land that is undeveloped.
(b) "Gap financing costs" shall mean the total cost of the property's redevelopment as approved by the [city] municipality minus the increase in the full valuation of the property upon completion of the redevelopment.
(c) "Base assessment" shall mean the assessed value of the property on the day the [city] municipality designates the property as redevelopment inhibited.
(d) "Increased assessment" shall mean the assessed value of the property as determined by the assessor upon completion of the redevelopment.
(e) "Incremental increase in annual property taxes" shall mean the taxes based on the increased assessment minus the taxes based on the base assessment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10852-01-9
S. 4662 2
(f) ["City" shall mean a city with a population of not less than fifteen thousand two hundred fifty and not more than fifteen thousand five hundred as determined by the latest federal decennial census.] "Municipality" means any city, town or village.
2. A [city] municipality may, by local law, provide for the exemption of real property from taxation as provided in this section. Subsequent to the adoption of such local law, the county in which such [city] municipality is located may after a public hearing and by local law, and any school district, all or part of which is located in such [city] municipality, may, by resolution, exempt such property from its taxation in the same manner and to the same extent as the [city] municipality has done.
3. A [city] municipality shall designate any property within the [city] municipality's boundaries as a redevelopment inhibited property if one or more of the following are met:
(a) the [city] municipality has acquired title to the property pursuant to article nineteen-A of the real property actions and proceedings law; or
(b) the property has been continuously vacant for a period of at least three years; or
(c) the [city] municipality has acquired title to the property via foreclosure for unpaid taxes pursuant to article eleven of this chapter; or
(d) the property has outstanding zoning, housing, or uniform code violations and the cost of remedying the violations exceeds the property's value.
4. (a) Upon the adoption of such local law, redevelopment inhibited property shall be exempt from taxation and special ad valorem levies to the extent of any increase in value attributable to demolition, alteration, rehabilitation, or remediation pursuant to the following requirements:
(i) the demolition, alterations, rehabilitation, and/or remediation shall be permitted by the [city's] municipality's bureau of inspection such that building or plumbing permits issued and said demolition, alterations, rehabilitation, and/or remediation shall have met all necessary approvals per the applicable New York state uniform fire prevention and building code, the [city's] municipality's municipal code and the [city's] municipality's bureau of inspection upon completion; and
(ii) the property for which the exemption is sought shall be an owner-occupied one-family residence; and
(iii) the owner of such property shall file annually an affidavit of residency with the assessor of the [city] municipality on or before the appropriate taxable status date of such [city] municipality, confirming continued owner-occupancy of the property; and
(iv) the redevelopment inhibited property is exempt from taxation and special ad valorem levies attributable to the increased assessment minus the taxes and special ad valorem levies imposed on the base assessment. Such exemption shall not apply to special assessments.
(b) In the event the property granted an exemption pursuant to this section ceases to be owner-occupied and/or the affidavit of residency is not filed annually for the approved exemption period, the exemption granted pursuant to this section shall cease.
(c) In the event the property granted an exemption pursuant to this section ceases to be a one-family dwelling, the exemption granted pursuant to this section shall cease.
S. 4662 3
(d) In the event the owner of the property is convicted of a violation or misdemeanor pursuant to New York state uniform fire prevention and building code or the [city's] municipality's municipal code, the exemption granted pursuant to this section shall cease.
5. (a) Such redevelopment inhibited property shall be exempt for a period equal to the gap financing costs divided by the incremental increase in annual property taxes resulting from such redevelopment. The exemption period shall be rounded up to the nearest whole number and shall not exceed twenty-five years.
(b) The extent of such exemption shall decrease the last eight years of the exemption period by twelve and one-half percent of the increase in assessment due to the redevelopment equaling a zero percent exemption on the final year of the exemption period.
6. (a) Such exemption shall be granted only upon application by the owner of such building for the residential redevelopment inhibited property exemption, on a form prescribed by the [city] municipality. Such application must be filed with the assessor of the [city] municipality on or before the appropriate taxable status date of such [city] municipality. The application must be filed with the assessor of the [city] municipality within three years from the date of completing the demolition, alterations, rehabilitation, and/or remediation.
(b) The owner filing for such exemption shall not be required to be the owner responsible for completing the demolition, alterations, rehabilitation, and/or remediation.
(c) If the assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the application and such real property shall thereafter be exempt from taxation and special ad valorem levies by the [city] municipality commencing with the assessment roll prepared after the taxable status date referred to in this subdivision. The assessed value of any exemption granted pursuant to this section shall be entered by the assessor of the [city] municipality on the assessment roll with the taxable property, with the amount of the exemption shown in a separate column.
(d) Once granted, the residential redevelopment inhibited property exemption runs with the land for the exemption period pursuant to this section.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to authorizing a residential redevelopment inhibited property exemption
Purpose or general idea of bill
To authorize municipalities to institute a property tax exemption on the increased assessment associated with the repair and redevelopment of certain dilapidated residential properties to the extent that the assessment would appreciate as a result of the repair and redevelopment.
Summary of specific provisions
Section 1- amends Real Property Tax Law section 485-r to delete the reference to certain cities and makes the section applicable to any municipality. The section further defines "municipality" to mean any city, town or village.
Section 2- provides that the act shall take effect immediately.
Justification
In 2015, the Governor signed Chapter 406, which allowed certain munici- palities to implement, at its option, a new method of encouraging rede- velopment of dilapidated housing in the city. The city that fit the specific description, the City of Batavia in Genesee County, is faced with a large number of single family homes that are dilapidated and in need of extensive and costly repairs. These costs can exceed the value of the home when complete, and as a result, they sit unused. These homes reduce the values of the houses that surround them and their neighbor- hoods in general, and this bill will provide needed incentive to make necessary redevelopment occur.
The scenario faced by the City of Batavia is far from unique. In fact, cities, towns and villages across the state face this same problem. This bill will extend the same option to other municipalities who are struggling to redevelop blighted residential areas where the cost of purchase and renovation will exceed the value of the homes when complete. It is in everyone's interest to improve these areas. There is no actual cost for these incentives, since without them the properties will continue to languish with low values or off the tax rolls entirely, and surrounding values will continue to be depressed. More importantly, these neighborhoods will provide a better place for its residents to live.
INHIBITED PROPERTY TAX EXEMPTIONS
Prior legislative history
2015 -- S5196-A /A.7570-A - CH. 406 2016 -- S.6460/A.9226 - PASSED SENATE/Real Property Taxation 2017-18 -- S.3878/A.4450 - PASSED SENATE/Real Property Taxation
Fiscal implications
None to the state.
Effective date
This act shall take effect on the 180th day after it shall have become a law. INHIBITED PROPERTY TAX EXEMPTIONS Updated: 3/19/2019
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.