Assessor Manuals, Exemption Administration: RPTL Section 485-u
Exemption Administration Manual—Part 1: Residential—Other than multiple dwellings
Section 4.01 - RPTL Section 485-u: Residential Property In Certain Counties
Exemption code:
40120
Year Originally Enacted:
2019
Related Statutes:
RPTL §485-s
Summary:
If allowed by local option, in a special assessing unit that is not a city, Class One property is partially exempt from county, town, school, and special district taxes levied on the assessment roll prepared by the special assessing unit beginning with the 2020-21 assessment roll and continuing on the subsequent four assessment rolls. The amount of the exemption is limited to a declining percentage of the amount by which the assessment on the 2020-21 assessment roll exceeds the equalized assessment on the 2019-2020 assessment roll, exclusive of any increase due to physical change or the removal or reduction of an exemption.
Eligibility requirements
Ownership requirements:
None.
Property location requirements:
The property must be located in a special assessing unit that is not a city. Currently, only Nassau County meets this requirement.
Property use requirements:
The property must be a Class One property.
Certification by state or local government:
None.
Required construction start date or other time requirement:
The exemption begins with the 2020-21 assessment roll and continues for the four subsequent assessment rolls.
Local option
Yes. The exemption must be adopted through passage of a local law by the special assessing unit.
Limitation on exemption:
| Taxing jurisdiction | Amount* | Duration | Special ad valorem levies | Special assessments |
|---|---|---|---|---|
| County or county special district | decreasing percentage of exemption base see Calculation of exemption | 5 years | Taxable | Taxable |
| City | decreasing percentage of exemption base see Calculation of exemption | 5 years | Not applicable | Taxable |
| Town or town special district | decreasing percentage of exemption base see Calculation of exemption | Not applicable | Taxable | Taxable |
| Village | decreasing percentage of exemption base see Calculation of exemption | 5 years | Not applicable | Taxable |
| School district | decreasing percentage of exemption base see Calculation of exemption | 5 years | Not applicable | Not applicable |
Payments in lieu of taxes:
None required
Calculation of exemption:
General municipal and school district taxes:
The exemption amount shall be equal to a percentage of the exemption base. The exemption base is the amount by which the assessed value of the property on the 2020-2021 assessment roll exceeds the equalized assessment on the 2019-2020 assessment roll. Any increase due to physical change or the removal or reduction of an exemption should not be included.
| Final assessment roll | Exemption amount |
|---|---|
| 2020-2021 | 80% of exemption base |
| 2021-2022 | 60% of exemption base |
| 2022-2023 | 40% of exemption base |
| 2023-2024 | 20% of exemption base |
| 2024-2025 | 0% of exemption base |
If any part of a parcel is fully or partially removed due to fire, demolition, destruction, or new exemption, the exemption amount must be reduced proportionally.
Special ad valorem levies and special assessments:
For special ad valorem levies see Calculation of Exemption, General Municipal and School District taxes above. No exemption is allowed for special assessments.
Coding of exemption on assessment roll:
| Code | Description of alternative codes possible |
|---|---|
| 40120 | Class One Reassessment |
Assessment roll section(s)
Taxable (RPS Section 1).
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 property, see the Exemption Profile for the statute that applies.
Filing requirements (owner or occupant of property)
None.
Reporting requirements (assessor)
None.
Similar exemptions
RPTL §485-s
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