A 3852: Increases the cap on the real property tax exemption of capital improvements to residential buildings.

  
  STATE OF NEW YORK ________________________________________________________________________ 3852 2025-2026 Regular Sessions  IN ASSEMBLY January 30, 2025 ___________ Introduced by M. of A. WILLIAMS -- read once and referred to the Commit- tee on Real Property Taxation AN ACT to amend the real property tax law, in relation to exemption of capital improvements to residential 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 in a special assessing unit that is not a city, such 6 exemption shall be limited to [eighty] one hundred sixty-eight thousand 7 dollars in increased market value, or such other sum less than [eighty] 8 one-hundred sixty-eight thousand dollars, but not less than five thou- 9 sand dollars as may be provided by the local law or resolution, of the 10 property attributable to such reconstruction, alteration or improvement 11 and any increase in market value greater than such amount shall not be 12 eligible for the exemption pursuant to this section. In a special 13 assessing unit that is not a city, the exemption shall be limited to 14 seven hundred fifty thousand dollars in increased market value. For the 15 purposes of this section, the market value of the reconstruction, alter- 16 ation or improvement, or new construction as authorized by subdivision 17 one-a of this section, shall be equal to the increased assessed value 18 attributable to such reconstruction, alteration, improvement or new 19 construction divided by the class one ratio in a special assessing unit 20 or the most recently established state equalization rate or special 21 equalization rate in the remainder of the state, except where the state 22 equalization rate or special equalization rate equals or exceeds nine- 23 ty-five percent, in which case the increase in assessed value attribut- 24 able to such reconstruction, alteration, improvement or new construction EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07307-01-5 
 A. 3852 2 1 shall be deemed to equal the market value of such reconstruction, alter- 2 ation or improvement. 3 § 2. Subparagraph (iii) of paragraph (a) of subdivision 2 of section 4 421-f of the real property tax law, as amended by chapter 590 of the 5 laws of 1994, is amended to read as follows: 6 (iii) Such exemption shall be limited to [eighty] one hundred sixty- 7 eight thousand dollars in increased market value, or such other sum less 8 than [eighty] one hundred sixty-eight thousand dollars, but not less 9 than five thousand dollars as may be provided by the local law or resol- 10 ution, of the property attributable to such reconstruction, alteration 11 or improvement and any increase in market value greater than such amount 12 shall not be eligible for the exemption pursuant to this section. For 13 the purposes of this section, the market value of the reconstruction, 14 alteration or improvement shall be equal to the increased assessed value 15 attributable to such reconstruction, alteration or improvement divided 16 by the class I ratio in a special assessing unit or the most recently 17 established state equalization rate or special equalization rate in the 18 remainder of the state, except where the state equalization rate or 19 special equalization rate equals or exceeds ninety-five percent, in 20 which case the increase in assessed value attributable to such recon- 21 struction, alteration or improvement shall be deemed to equal the market 22 value of such reconstruction, alteration or improvement. 23 § 3. This act shall take effect immediately; provided that the amend- 24 ments to subparagraph (iii) of paragraph (a) of subdivision 2 of 25 section 421-f of the real property tax law made by section one of this 26 act shall be subject to the expiration and reversion of such subdivision 27 when upon such date the provisions of section two of this act shall take 28 effect.