Exemption Administration Manual, Part 2: Industrial, Commercial, and Public Service—Section 4.06 - RPTL Section 485-v: Residential and mixed-use properties in certain cities and school districts

Assessor Manuals

Section 4.06 - RPTL Section 485-v: Residential and mixed-use properties in certain cities and school districts

Exemption code(s):

4757_

Year originally enacted:

2021

Related statutes:

RPTL section 485-a, RPTL section 485-s

Summary:

Property located in a city with a population no less than 50,000 and no more than 51,000 based upon the 2010 federal census and within certain census tracts (see Property Location Requirements) that contains a newly created, modernized, rehabilitated, expanded, or improved residential and mixed use building or structure is partially exempt from taxation, but liable for special ad valorem levies and special assessments.   The building must have 1-4 units of which no more than 1 may be used for commercial or retail purposes. The cost of construction must exceed $70,000.  For such properties, 100% of the base amount attributable to the increase in assessed value due to the creation, modernization, rehabilitation, expansion, or improvement is exempt during the first 4 years of the exemption, and then exempt according to a declining percentage of the base for an additional 11 years. 

Eligibility requirements

Ownership requirements:

None.

Property location requirements:

Property in a city with a population no less than 50,000 and no more than 51,000 based upon the 2010 federal census.

The property must be located within one of the following census tracts: 401, 402, 403, 404, 405, 406, 409, 410

Based upon 2010 census data, only the City of Troy in Rensselaer County currently satisfies this population criterion.  

Property use requirements:

The structure must contain one to four units, of which one unit may be for commercial or retail use.  The remaining units must be used for residential purposes.

Certification by state or local government:

Certificate of Occupancy or other appropriate documentation of construction completion.

Required construction start date or other time requirement:

Exemption applies only to construction commenced on or after July 1, 2021.

Local option

Yes.  The county in which the city is located and the school district which serves the city may choose to adopt the exemption through the passage of a local law or, in the case of a school district, a resolution.

Limitation on exemption

*Amount is limited to the increase in assessed value attributable to the creation, modernization, rehabilitation, expansion or other improvement of the residential and mixed-use property.

**Local option

Payments in lieu of taxes

None required.

Calculation of exemption

General municipal and school district taxes:

The amount of the exemption is calculated as a percentage of the “exemption base,” which is the increase in assessed value of the property attributable to creation, modernization, rehabilitation, expansion, or improvement of a residential and mixed-use property.  The exemption is computed as indicated below:

Special ad valorem levies and special assessments:

No exemption allowed for special ad valorem levies or special assessments.

Coding of exemption on assessment roll:

Assessment roll section(s):

Taxable (RPS Section 1).

Note: This code should not be used to identify property which is exempt under any of the statutes listed under Similar Exemptions below.  For coding of such property, see the Exemption Profile for the statute which applies.

Filing requirements (owner or occupant of property)

Form RP-485-v, Application for Residential and Mixed-Use Investment Real Property Tax Exemption: Certain Cities and School Districts.

Reporting requirements (assessor)

None.

Similar exemptions

Exemption application forms

Form RP-485-v

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