Exemption Administration Manual, Part 2: Industrial, Commercial, and Public Service—Section 4.06 - RPTL Section 470: Green buildings

Assessor Manuals

Section 4.06 - RPTL Section 470: Green buildings

Exemption code(s):

Year originally enacted:

2012

Related statutes:

None.

Summary:

If allowed by local option, construction of improvements which is commenced or after January 1, 2013 or such later date as may be specified in local law and which is certified as meeting one of three levels of energy efficiency and environmental standards is partially exempt from taxation but liable to special ad valorem levies and special assessments.  Such partial exemption is measured as the value added to the property by the improvements, and varies according to the level of certification standard which is met.

Eligibility requirements

Ownership requirements:

Property must be owned by an individual or individuals, or by a private organization. 

Property location requirements:

None. 

Property use requirements:

Property constructed or reconstructed must meet certification standards for green buildings (LEED or equivalent to certified/silver, gold or platinum), as determined by an accredited professional.  Such property must meet standards established by LEED, the Green Building Initiative's Green Globes rating system, the national green building standards as approved by the American National Standards Institute (ANSI), or substantially equivalent green building standards determined by the taxing jurisdiction. The certification of the property as meeting the applicable standard must be certified by a professional accredited with respect to the applicable rating system. 

The value of the construction or reconstruction project must be greater than $10,000, and may not be one of ordinary maintenance and repairs.

Certification by state or local government:

The construction or reconstruction project must be documented by a building permit or other documentation as required by the assessor, such as a certificate of occupancy.

Required construction start date or other time requirement:

Construction of improvements must commence on or after January 1, 2013, or such later date as may be specified in local law, ordinance or resolution. 

Local option

Yes. The taxing jurisdiction is allowed the following choices:

1. Adopt the Exemption: The governing board of a county, city, town or village must pass a local law or ordinance to adopt the exemption after a public hearing, or, in the case of a school district, a resolution.
2. Limit the Exempt Amount: the governing board of a county, city, town or village may establish a maximum exempt amount in its  local law or ordinance after a public hearing, or, in the case of a school district, a resolution.
3. Construction Start Date: The taxing jurisdiction may specify in its local law, ordinance or resolution any date after that required by state law (see Required Construction Date or Other Time Requirement above) as the date after which the construction or reconstruction project must have commenced for the property to be eligible for exemption.
4. Green Building standards:  The governing body of each taxing jurisdiction allowing the exemption may adopt standards for certification of green buildings, provided standards under such program are substantially equivalent to those certification standards established by LEED, the American National Standards Institute national green buildings standard,or the Green Buildings Initiative's Green Globe Rating System. (see Property Use Requirements above).

Limitation on exemption

* See Calculation of Exemption below.
** If allowed by local option.

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

The schedule to be followed in calculating the exemption depends on which exemption applies to the project that meets energy efficiency and environmental design standards in one of three categories specified in the LEED or equivalent program: certified/silver; gold; or platinum (standards for each category can be found at www.usgbc.org or their functional equivalents standards under the acceptable alternative programs, as certified by the accredited professional).  For all three exemption schedules below, the exempt amount for each year is calculated as a percentage of the increase in assessed value attributable to the construction or reconstruction meeting the LEED or equivalent standards in the initial year of the term of each exemption schedule.  The following percentages of such increase in assessed value should be applied as follows:

Special ad valorem levies and special assessments:

No exemption allowed. 

Coding of exemption on assessment roll

Note: these codes should not be used to identify property that is exempt under any of the statutes listed under Similar Exemptions below. For coding of such properties, see the exemption profile for the statutes that apply.

Filing requirements (owner or occupant of property)

Form RP-470 -- Application for Tax Exemption of Green Buildings

Reporting requirements (assessor)

None. 

Similar exemptions

Exemption Application Form and Instructions:

Available at Property tax forms - Exemptions.

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