2016 New York Laws
RPT - Real Property Tax
Article 4 - EXEMPTIONS
Title 2 - (420-A - 489) PRIVATE PROPERTY
485-N - Residential-commercial exemption program.

*   485-n.  Residential-commercial exemption program. 1. Definitions.
  As used in this section, the following terms shall  have  the  following
  meanings:
(a)  "Applicant" means any person obligated to pay real property taxes
  on real property for which an exemption from taxes under this section is
  sought.
(b) "Benefit area" means the area within a municipality, designated by
  local law, to which an exemption, established pursuant to this  section,
  applies.
(c)   "Commercial   construction   work"   means   the  modernization,
  rehabilitation,  expansion  or  other  improvement  of  commercial   use
  property  or the portion of mixed-use property to be used for commercial
  purposes.
(d) "Commercial purpose or use" means the buying, selling or otherwise
  providing of goods or  services,  including  hotel  services,  or  other
  lawful  business  or  commercial  activities  permitted  upon  mixed-use
  property.
(e) "Commercial use property" means real property on which will exist,
  after completion of commercial construction work, a  building  used  for
  commercial purposes or use.
(f)  "Mixed-use  property"  means  real  property on which will exist,
  after completion of residential construction work or  a  combination  of
  residential  construction  work  and  commercial  construction  work,  a
  building or structure used for both residential and commercial purposes.
(g) "Municipality" means any  town,  city,  village  or  other  taxing
  entity  located  in  a  county  having  a  population  of  not less than
  sixty-five thousand three hundred ninety and not  more  than  sixty-five
  thousand  four hundred as determined by the federal decennial census for
  the year two thousand ten or in a county having a population of not less
  than ninety-eight thousand nine hundred and not  more  than  ninety-nine
  thousand  as determined by the federal decennial census for the year two
  thousand ten.
(h) "Residential construction work" means the creation, modernization,
  rehabilitation, expansion or other improvement of dwelling units,  other
  than  dwelling units in a hotel, in the portion of mixed-use property to
  be used for residential purposes.
2. (a) A municipality, other than  a  county  or  school  district  as
  provided  in  this section, may, by local law, provide for the exemption
  of real property in a designated benefit area from taxation as  provided
  in  this  section.  Subsequent  to the adoption of such a local law, the
  county in which such municipality is located may, by local law, and  any
  school  district,  all or part of which is located in such municipality,
  may, by resolution, exempt such property from its taxation in  the  same
  manner and to the same extent as such municipality has done.
(b)   Such   local   law  shall  provide  for  the  appointment  of  a
  commercial/mixed use incentive board  which  shall  be  responsible  for
  designating  the  benefit area to be exempt from taxation as provided in
  this section. The membership and composition of such board shall be  set
  forth  in  local  law.  Such  board  shall  present  a plan to the local
  governing  body  concerning  the  various  types  of  commercial  and/or
  mixed-use  properties which may be granted an exemption pursuant to this
  section. In addition such plan shall identify designated benefit  areas,
  within  which such exemption may be offered. In developing such plan the
  commercial/mixed  use  incentive  board  shall  consider  the   planning
  objectives of the municipality and the necessity of the exemption to the
  attraction  of commercial and mixed use development as identified by the
  municipality  and  the  economic  benefit  to  the  area  of   providing
  exemptions  to commercial and mixed-use properties. In instances where a

  municipality has previously designed a business district encompassing  a
  defined  area  which was subject to public input and was approved by and
  received funding for economic development purposes from a state  agency,
  the  municipality  may utilize the defined boundaries of such previously
  defined area, or a combination of such boundaries subject to  review  by
  the commercial/mixed-use incentive board.
3.  Upon  the adoption of such a local law the commercial use property
  or  mixed-use  property  that  was   converted,   created,   modernized,
  rehabilitated,  expanded  or  otherwise  improved,  shall be exempt from
  taxation and special ad valorem levies as provided  for  in  subdivision
  four of this section.
4.  (a)  (i) For a period of twelve years following the approval of an
  application,  the  increase  in  assessed   value   of   such   property
  attributable    to    such    conversion,    creation,    modernization,
  rehabilitation, expansion  or  other  improvement  shall  be  exempt  as
  provided in subparagraph (ii) of this paragraph. Such exemption shall be
  computed  with respect to the "exemption base". The exemption base shall
  be determined for each year in which there is an  increase  in  assessed
  value so attributable from that of the previous year's assessed value.
(ii)  The  following  shall  determine  the  computation  of  the  tax
  exemption:
 
  Year of exemption   Percentage of exemption
 1 through 8      100% of exemption base
 9                80% of exemption base
 10               60% of exemption base
 11               40% of exemption base
 12               20% of exemption base
 
(b) No such exemption shall be granted unless:
(i)  such   conversion,   creation,   modernization,   rehabilitation,
  expansion  or  other improvement was commenced subsequent to the date on
  which the municipality's local law took effect; and
(ii) the cost of such conversion  exceeds  the  sum  of  ten  thousand
  dollars or such greater amount as may be specified by local law.
(c)  For  purposes  of  this  section  the term "conversion, creation,
  modernization, rehabilitation, expansion or other improvement" shall not
  include ordinary maintenance and repairs.
(d) No such exemption shall be granted concurrent with  or  subsequent
  to   any   other  real  property  tax  exemption  granted  to  the  same
  improvements to real property, except, where during the period  of  such
  previous  exemption,  payments  in  lieu of taxes or other payments were
  made to the municipality in an amount that would have been equal  to  or
  greater than the amount of real property taxes that would have been paid
  on  such  improvements  had  such  property  been  granted  an exemption
  pursuant to this section. In such case, an exemption  shall  be  granted
  for  a  number  of  years  equal  to  the  twelve year exemption granted
  pursuant to this section less the number of  years  the  property  would
  have been previously exempt from real property taxes.
5.  Such exemption shall be granted only upon application by the owner
  of real  property  on  a  form  prescribed  by  the  commissioner.  Such
  application  shall  be  filed  with  the assessor of the municipality or
  county having the power to assess property for taxation on or before the
  appropriate taxable status date of such municipality or county.
6. 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  as provided in this section

  commencing with the assessment roll prepared after  the  taxable  status
  date  referred  to  in  subdivision five of this section.   The assessed
  value of any exemption granted pursuant to this section shall be entered
  by  the  assessor on the assessment roll with the taxable property, with
  the amount of the exemption shown in a separate column.
* NB Repealed September 23, 2024