Assessor Manuals, Exemption Administration: RPTL Section 485-t
Exemption Administration Manual - Part 1: Residential - Other Than Multiple Dwellings
Section 4.01 - RPTL Section 485-t: Residential construction work in certain cities
Exemption Code:
4437_
Year originally enacted:
2017
Related statutes:
None.
Summary:
To the extent allowed by local option, one or two-family, owner-occupied, residential property that is vacant, legally condemned, and has outstanding state and local building and fire code violations, where the cost of remedying such violations exceeds the value of such property or one or two-family residential property of not less than twelve hundred square feet which is constructed on a parcel upon which a prior structure was demolished, and which is located in a city with a population of not less than 31,140 and not more than 31,150 as determined by the latest federal decennial census shall be partially exempt from city taxation and special ad valorem levies to the extent of any increase in value attributable to the creation, modernization, rehabilitation, expansion or other improvement that complies with all provisions of the New York State fire prevention and building code and all applicable municipal codes and ordinances. The cost of such creation, modernization, rehabilitation, expansion or other improvement must exceed $10,000 or such greater amount as specified in local law. The amount of the exemption is limited to a percentage of the increase in assessed value attributable to the creation, modernization, rehabilitation, expansion or other improvement. The duration of the exemption is limited to 11 years. Subsequent to adoption of the local law by the city, the county in which the city is located and any school district in which all or part of the city is located, may, by adoption of a local law or, in the case of a school district, a resolution, exempt such property in the same manner and to the same extent as the city.
Ownership requirements
Property must be owner occupied or it must be certified that the owner will reside on the property.
Property location requirements:
The property must be located in a city with a population of not less than 31,140 and not more than 31,150 as determined by the latest federal decennial census. Based upon 2010 census data, only the City of Jamestown in Chautauqua County meets this requirement.
Property use requirements:
The property must be an owner-occupied one or two-family dwelling. The value of the construction project must exceed $10,000 or such greater amount as specified in the local law
Certification by state or local government:
The property must be vacant, legally condemned, and have outstanding state and local building and fire code violations, where the cost to remedy such violations exceeds the value of the property; or new construction of a one or two-family residence of not less than 1200 square feet on a parcel upon which a prior structure was demolished.
All creation, modernization, rehabilitation, expansion or other improvements must comply with all provisions of the New York State fire prevention and building code and all applicable municipal codes, ordinances, and zoning laws.
The application and scope of work must be reviewed by the municipal housing code enforcement officer and the appropriate fire and building code enforcement officer.
The contractors, plumbers, and electricians supplying cost estimates and quotes must be licensed to do business within the municipality.
Required construction start date or other time requirement:
The creation, modernization, rehabilitation, expansion or other improvement must have been commenced subsequent to the effective date of the local municipal law.
Local option
Yes. A city meeting the population requirements may choose whether or not to offer the exemption. The option to exercise must be exercised by the city through the adoption of a local law. Subsequent to adoption of the local law by the city, the county in which the city is located and any school district of which all or part of the city is located, may, by adoption of a local law or, in the case of a school district, a resolution, exempt such property in the same manner and to the same extent as the city.
The municipality may, in its local law, increase the required minimum cost of construction from $10,000 to any greater amount.
Limitation on exemption
| Type of limitation | General municipal taxes | School district taxes | Special ad valorem levies | Special assessments |
|---|---|---|---|---|
| Amount | Yes* | Yes* | Yes* | No exemption allowed |
| Duration | 11 years | 11 years | 11 years | No exemption allowed |
| Taxing jurisdiction: county or county special district | Exempt* | Not applicable | Exempt* | Taxable |
| Taxing jurisdiction: city | Exempt** | Not applicable | Not applicable | Taxable |
| Taxing jurisdiction: town or town special district | Taxable | Not applicable | Taxable | Taxable |
| Taxing jurisdiction: village | Taxable | Not applicable | Not applicable | Taxable |
| Taxing jurisdiction: school district | Not applicable | Exempt* | Not applicable | Not applicable |
*If allowed by local option. See Local option above
Payments in lieu of taxes
None required.
Calculation of exemption
| Year of exemption | Percentage of exemption |
|---|---|
| 1-3 | 100% of exemption base |
| 4-5 | 80% of exemption base |
| 6-7 | 60% of exemption base |
| 8-9 | 40% of exemption base |
| 10-11 | 20% of exemption base |
Special ad valorem levies and special assessments:
Special ad valorem levies are calculated in the same manner as general municipal and school district taxes above. No exemption from special assessments is allowed.
Filing requirements (owner or occupant of property)
RP-485-t, Application for Partial Tax Exemption for Residential Construction Work in Certain Cities
Reporting requirements (assessor)
None.
Similar exemptions
| Subject | Statute |
|---|---|
| Residential investment in certain municipalities | RPTL §§485-h, 485-i,485-j, 485-k, 485-l, 485-m |
Exemption application forms
Form RP-485-t, Exemption application
A booklet on solar, farm waste and wind systems definitions and guidelines for purposes of this exemption is available at the Renewables Documents Library of the New York State Energy Research and Development Authority.
Please send general questions or comments to ORPTS.
