Section 485-I. Residential investment exemption; certain school districts

1.    Residential real property constructed on or after the first day of
  July, two thousand three in school districts which serve a city  with  a
  population  of  not  less  than  thirty-one  thousand  and not more than
  thirty-two thousand may be  exempt  from  school  district  taxation  as
  provided in this section.
    2. (a) (i) Such real property shall be exempt for a period of one year
  to  the  extent  of  fifty  per centum of the increase in assessed value
  thereof attributable to such construction and for an  additional  period
  of nine years provided, however, that the extent of such exemption shall
  be  decreased by five per centum each year during such additional period
  of nine years and such exemption shall be computed with respect  to  the
  "exemption  base".  The exemption base shall be the increase in assessed
  value as determined  in  the  initial  year  of  such  ten  year  period
  following  the  filing of an original application, except as provided in
  subparagraph (ii) of this paragraph.
    (ii) In any year in which a change in level of assessment  of  fifteen
  percent or more is certified for a final assessment roll pursuant to the
  rules  of  the  state board, the exemption base shall be multiplied by a
  fraction, the numerator of which shall be the total  assessed  value  of
  the  parcel  on  such  final  assessment  roll (after accounting for any
  physical or  quantity  changes  to  the  parcel  since  the  immediately
  preceding  assessment  roll),  and the denominator of which shall be the
  total assessed value of the parcel on the  immediately  preceding  final
  assessment  roll.  The  result  shall  be  the  new  exemption base. The
  exemption shall thereupon be recomputed to take  into  account  the  new
  exemption  base, notwithstanding the fact that the assessor receives the
  certification of the change in level of assessment after the completion,
  verification and filing of the final assessment roll. In the  event  the
  assessor  does  not  have custody of the roll when such certification is
  received, the assessor shall certify the  recomputed  exemption  to  the
  local  officers  having  custody and control of the roll, and such local
  officers are hereby directed and  authorized  to  enter  the  recomputed
  exemption certified by the assessor on the roll. The assessor shall give
  written  notice  of such recomputed exemption to the property owner, who
  may,  if  he  or  she  believes  that  the  exemption   was   recomputed
  incorrectly,  apply  for  a  correction  in the manner provided by title
  three of article five of this chapter for  the  correction  of  clerical
  errors.
    (iii)  The  following  table  shall  illustrate the computation of the
  school district tax exemption:
 
        Year of exemption                      Percentage of exemption
                1                                        50
                2                                        45
                3                                        40
                4                                        35
                5                                        30
                6                                        25
                7                                        20
                8                                        15
                9                                        10
               10                                         5
 
    (b) No such exemption shall be granted unless:
    (i) such construction was commenced on  or  after  the  first  day  of
  January,  two  thousand  three or such later date as may be specified by
  resolution;

    (ii) the residential real property is situate  in  a  school  district
  which  serves  a  city  with  a  population  of not less than thirty-one
  thousand and not more than thirty-two thousand;
    (iii) the cost of such construction exceeds the sum of thirty thousand
  dollars or such greater amount as may be specified; and
    (iv)  such  construction  is  completed  as  may  be  evidenced  by  a
  certificate of occupancy or other appropriate documentation as  provided
  by the owner.
    (c)  For  purposes  of  this  section  the term construction shall not
  include ordinary maintenance and repairs.
    3. Such exemption shall be granted only upon application by the  owner
  of  such  real  property  on  a form prescribed by the state board. Such
  application shall be filed with the assessor of a school district  which
  serves a city with a population of not less than thirty-one thousand and
  not  more  than thirty-two thousand on or before the appropriate taxable
  status date of such school district and within one year from the date of
  completion of such construction.
    4. 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  by  a school district which serves a city with a population of
  not less than thirty-one thousand and not more than thirty-two  thousand
  as provided in this section commencing with the assessment roll prepared
  after  the  taxable status date referred to in subdivision three 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.
    5. The provisions of this section shall apply to real property used as
  the primary residence of the owner.
    6. In the event that real property granted an  exemption  pursuant  to
  this  section  ceases  to  be  used primarily for eligible purposes, the
  exemption granted pursuant to this section shall cease.
    7. A school district which serves a city with a population of not less
  than thirty-one thousand and not more than thirty-two thousand  may,  by
  resolution,  reduce  the  per  centum  of  exemption  otherwise  allowed
  pursuant to this section; provided, however, that a project in course of
  construction and exemptions existing prior in time  to  passage  of  any
  such  resolution shall not be subject to any such reduction so effected.
  Such school district upon reduction  of  the  per  centum  of  exemption
  pursuant to this subdivision may thereafter, by resolution, increase the
  per  centum  of exemption up to any per centum not exceeding the maximum
  allowed by subdivision two or  eleven  of  this  section,  whichever  is
  applicable, provided, however, that any such resolution shall apply only
  to  construction  commenced  subsequent  to  the  effective date of such
  resolution. A copy of all such resolutions shall be filed with the state
  board and the assessor of the school district.
    8. A school district which serves a city with a population of not less
  than thirty-one thousand and not more than thirty-two thousand  may,  by
  resolution,  establish  a  date for the commencement of effectiveness of
  exemption offered pursuant to this section  and  may  provide  that  the
  provisions  of  this  section  shall apply only to construction having a
  greater value than that specified by subdivision two  of  this  section,
  provided,  however,  that  such amount shall not exceed seventy thousand
  dollars.
    9. (a) A school district which serves a city with a population of  not
  less than thirty-one thousand and not more than thirty-two thousand may,
  by  resolution,  establish  a  board  to  be  known  as  the residential

  incentive board. The membership and composition of such board  shall  be
  set forth in the resolution.
    (b)  The residential incentive board shall present a plan to the board
  of education of a school district which serves a city with a  population
  of  not  less  than  thirty-one  thousand  and  not more than thirty-two
  thousand concerning the various types of residential real property which
  should be granted eligibility for an exemption pursuant  to  subdivision
  one of this section. Such plan shall make a recommendation as to whether
  the  exemption  be  computed as provided in subdivision two or eleven of
  this section. In addition, such plan shall identify specific  geographic
  areas  within which such exemptions should be offered. In developing the
  plan required by this paragraph, the board shall consider  the  planning
  objectives of a school district which serves a city with a population of
  not less than thirty-one thousand and not more than thirty-two thousand,
  the  necessity  of  the exemption to the attraction or retention of home
  owners and the economic benefit to the area of providing  exemptions  to
  home owners.
    (c)  In  addition,  the  board  may make recommendations to the school
  board of a school district which serves a city with a population of  not
  less than thirty-one thousand and not more than thirty-two thousand with
  respect  to  actions  it deems desirable to improve the economic climate
  therein.
    10. If a school district which serves a city with a population of  not
  less  than  thirty-one  thousand  and  not more than thirty-two thousand
  establishes a residential incentive board, pursuant to subdivision  nine
  of  this section, such school district may, by resolution, restrict real
  property eligible to receive the exemption to real property  constructed
  for  those  purposes identified in the plan presented by the board. Such
  resolution shall restrict the availability  of  such  exemption  to  the
  specific geographic areas identified in the plan presented by the board.
    11.  Notwithstanding  subdivision  two of this section, where a school
  district which serves  a  city  with  a  population  of  not  less  than
  thirty-one  thousand  and  not  more  than  thirty-two  thousand  adopts
  restricted exemptions pursuant to subdivision ten of this  section,  the
  resolution  may  provide that such exemptions shall be computed pursuant
  to the following accelerated strategic exemption schedule:
 
        Year of exemption                      Percentage of exemption
                1                                        50
                2                                        45
                3                                        40
                4                                        35
                5                                        30
                6                                        25
                7                                        20
                8                                        15
                9                                        10
               10                                         5
 
    Provided however, that such resolution shall:
    (i) contain findings that the adoption of this  accelerated  strategic
  exemption  schedule  is  necessary  to  encourage  targeted  residential
  development, and that the value of the  exemptions  to  be  provided  is
  justified by the need to broaden the tax base; and
    (ii)  limit  the  applicability of such schedule to projects where the
  cost of such construction exceeds the sum of seventy  thousand  dollars;
  and

    (iii)  provide that such exemptions are restricted by geographic areas
  as provided by subdivision ten of this section.
    * NB There are 2 § 485-i's