Assessor Manuals, Exemption Administration: RPTL Sections 485-w
Exemption Administration Manual—Part 1: Residential—Other than multiple dwellings
Section 4.01 - RPTL Sections 485-w: Newly Constructed Residential Property in Certain Villages
Exemption code(s):
44387
Year originally enacted:
2022
Related statutes:
None.
Summary:
To the extent allowed by local option, residential property that is constructed as the primary residence of the property owner and meets certain location requirements (see Property Location and Property Use requirements below) is partially exempt from village taxation (see Limitation on Exemption below), but is liable for county taxes, town taxes, county special ad valorem levies, and special assessments. The amount of the exemption is limited to a percentage of the increase in assessed value attributable to the construction. In addition, the village may impose a limit of $375,000 upon the amount of the assessed value increase that may qualify for the exemption. The duration of the exemption is limited to 5 years.
Eligibility requirements
Ownership requirements:
None.
Property location requirements:
Property must be located in villages having a population greater than 3,650 and less than 3,660, as determined by the latest federal decennial census. Based on the latest (meaning 2020) federal decennial census, only the villages of Minoa and Owego satisfy this criterion. Furthermore, the property must be constructed on vacant, predominantly vacant, or under-utilized land.
Property use requirements
The property must be used as the primary residence of the owner or owners.
Certification by State or local government:
None.
Required construction start date or other time requirement:
Construction must begin on or after the effective date of the local law adopting the exemption, but no later than August 17, 2027..
Local option:
Yes. Eligible municipality taxing jurisdictions are allowed certain choices:
Exemption
To allow the exemption, a municipality meeting the population requirements may choose whether or not to allow the exemption. The option to exempt must be exercised by the municipality through adoption of a local law, and in all cases, a public hearing must be held prior to adoption of the local law.
Percentage of exemption
None.
Construction start date
The municipality may specify by local law a date after which construction must commence in order for the property to be eligible for the exemption. (see Required Construction Date or Other Time Requirements above)
Construction cost
None.
Limitation of exemption
| General municipal taxes | School district taxes | Special ad valorem levies | Special assessments | |
|---|---|---|---|---|
| 1. Amount | Yes* | No exemption allowed | No exemption allowed | No exemption allowed |
| 2. Duration | 5 years | No exemption allowed | No exemption allowed | No exemption allowed |
| 3. Taxing Jurisdiction | ||||
| a. County or County Special Districts | Tax | NA | Tax | Tax |
| b. City | Tax | NA | NA | Tax |
| c. Town or Town Special District | Tax | NA | NA | NA |
| d. Village | Ex** | NA | NA | NA |
| e. School District | Tax | Tax | NA | NA |
| Ex-Exempt Tax-Taxable NA-Not Applicable | ||||
*See Calculation of Exemption below.
**If allowed by local option.
Payments in lieu of taxes
None required.
Calculation of exemption
General municipal taxes:
The following percentages of the increase in assessed value resulting from the construction should be applied:
| Year of exemption | Percentage of exemption |
|---|---|
| 1 | 25 |
| 2 | 20 |
| 3 | 15 |
| 4 | 10 |
| 5 | 5 |
Special ad valorem levies and special assessments:
Villages do not levy special ad valorem levies; no exemption from special assessments is allowed.
Coding of exemption on assessment roll:
| Code | Description of alternative codes possible |
|---|---|
| 44387 | § 485-w (Villages of Minoa and Owego) |
Assessment roll section(s):
Taxable (RPS Section 1).
Note: These codes should not be used to identify properties that are exempt under any of the statutes listed under similar exemptions below. For coding of such properties, see the exemption profile for the statute that apply.
Filing requirements (owner or occupant of property)
RP-485-w, Application for Newly Constructed Single-Family and Multi-Family Residential Properties: Certain Villages
Application is required in the first year only. Application must be filed within one year of the date of completion of the construction project.
Reporting requirements (assessor):
None.
Similar exemptions
| Subject | Statute |
|---|---|
| Residential construction work in certain cities | RPTL §485-t |
Exemption application forms
RP-485-w (Fill-in) Application for Newly Constructed Single-Family and Multi-Family Residential Properties: Certain Villages
RP-485-W-I Instructions for Form RP-485-W Application for Newly Constructed Single-Family and Multi-Family Residential Properties: Certain Villages
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