Bill Text: NY S02320 | 2025-2026 | General Assembly | Introduced

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Bill Title: Changes the amount of the exemption permitted for capital improvements to residential buildings to $200,000 where a local law or resolution is adopted on or after January 1, 2026.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-16 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S02320 Detail]

Download: New_York-2025-S02320-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2320

                               2025-2026 Regular Sessions

                    IN SENATE

                                    January 16, 2025
                                       ___________

        Introduced  by  Sen.  FAHY  --  read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development

        AN  ACT  to amend the real property tax law, in relation to changing the
          amount of the exemption permitted for capital improvements to residen-
          tial buildings

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.    Subparagraph (iii) of paragraph (a) of subdivision 2 of
     2  section 421-f of the real property tax law, as amended by section  3  of
     3  part  WW  of  chapter  55  of  the  laws  of 2021, is amended to read as
     4  follows:
     5    (iii) [Except] For exemptions granted pursuant  to  this  section  and
     6  authorized  by a local law or resolution adopted prior to January first,
     7  two thousand twenty-six, except in a special assessing unit that is  not
     8  a  city,  such  exemption shall be limited to eighty thousand dollars in
     9  increased market value, or such other  sum  less  than  eighty  thousand
    10  dollars,  but  not less than five thousand dollars as may be provided by
    11  the local law or resolution, of the property attributable to such recon-
    12  struction, alteration or improvement and any increase  in  market  value
    13  greater  than such amount shall not be eligible for the exemption pursu-
    14  ant to this section. In a special assessing unit that  is  not  a  city,
    15  [the  exemption shall be limited to seven hundred fifty thousand dollars
    16  in increased market value]  for  exemptions  granted  pursuant  to  this
    17  section  and authorized by a local law or resolution adopted on or after
    18  January first, two thousand twenty-six, such exemption shall be  limited
    19  to two hundred thousand dollars in increased market value, or such other
    20  sum less than two hundred thousand dollars, but not less than five thou-
    21  sand  dollars  as may be provided by the local law or resolution, of the
    22  property attributable to such reconstruction, alteration or  improvement
    23  and  any  increase in market value greater than such amount shall not be

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04819-01-5
        S. 2320                             2

     1  eligible for the exemption pursuant to this section.   For the  purposes
     2  of  this  section, the market value of the reconstruction, alteration or
     3  improvement, or new construction as authorized by subdivision  one-a  of
     4  this  section,  shall be equal to the increased assessed value attribut-
     5  able to such reconstruction, alteration, improvement or new construction
     6  divided by the class one ratio in a special assessing unit or  the  most
     7  recently  established  state  equalization  rate or special equalization
     8  rate in the remainder of the state, except where the state  equalization
     9  rate or special equalization rate equals or exceeds ninety-five percent,
    10  in which case the increase in assessed value attributable to such recon-
    11  struction,  alteration,  improvement or new construction shall be deemed
    12  to equal the market value of such reconstruction, alteration or improve-
    13  ment.
    14    § 2. Subparagraph (iii) of paragraph (a) of subdivision 2  of  section
    15  421-f  of  the  real  property tax law, as amended by chapter 590 of the
    16  laws of 1994, is amended to read as follows:
    17    (iii) [Such] For exemptions  granted  pursuant  to  this  section  and
    18  authorized  by a local law or resolution adopted prior to January first,
    19  two thousand twenty-six, such exemption shall be limited to eighty thou-
    20  sand dollars in increased market value, or  such  other  sum  less  than
    21  eighty  thousand dollars, but not less than five thousand dollars as may
    22  be provided by the local law or resolution, of the property attributable
    23  to such reconstruction, alteration or improvement and  any  increase  in
    24  market  value  greater  than  such  amount shall not be eligible for the
    25  exemption pursuant to this section.  For exemptions granted pursuant  to
    26  this  section  and authorized by a local law or resolution adopted on or
    27  after January first, two thousand twenty-six, such  exemption  shall  be
    28  limited  to  two  hundred thousand dollars in increased market value, or
    29  such other sum less than two hundred thousand dollars, but not less than
    30  five thousand dollars as may be provided by the local law or resolution,
    31  of the property  attributable  to  such  reconstruction,  alteration  or
    32  improvement  and  any  increase in market value greater than such amount
    33  shall not be eligible for the exemption pursuant to  this  section.  For
    34  the  purposes  of  this section, the market value of the reconstruction,
    35  alteration or improvement shall be equal to the increased assessed value
    36  attributable to such reconstruction, alteration or  improvement  divided
    37  by  the  class  I ratio in a special assessing unit or the most recently
    38  established state equalization rate or special equalization rate in  the
    39  remainder  of  the  state,  except  where the state equalization rate or
    40  special equalization rate equals  or  exceeds  ninety-five  percent,  in
    41  which  case  the  increase in assessed value attributable to such recon-
    42  struction, alteration or improvement shall be deemed to equal the market
    43  value of such reconstruction, alteration or improvement.
    44    § 3. This act shall take effect immediately; provided,  however,  that
    45  the  amendments  to  subdivision 2 of section 421-f of the real property
    46  tax law made by section one of this act shall be subject to the  expira-
    47  tion  and reversion of such subdivision pursuant to section 7 of part WW
    48  of chapter 55 of the laws of 2021, as amended, when upon such  date  the
    49  provisions of section two of this act shall take effect.