N.Y. Real Property Tax Law Section 421-B
Exemption of certain private dwellings, multiple dwellings and improvements from local taxation

  • certain cases

1.

(a) Within a city having a population of one million or more, private dwellings (land and improvements) to be occupied as a residence for the first time, whether newly constructed or resulting from the conversion of any building or structure to a private dwelling, and existing private dwellings previously occupied, reconstructed or improved to the extent of at least forty percent of their assessed valuation without the improvement, shall be exempt from all local and municipal taxes, other than assessments for local improvements, during the tax year or years next following the taxable status date or dates after commencement and before completion of construction, reconstruction or conversion thereof, but for no more than two years after commencement of such construction, reconstruction or conversion, and shall be exempt from such local and municipal taxes after the earlier of completion of such construction, reconstruction or conversion or the end of such two year period, as follows: two years of exemption from all such taxes; followed by one year of exemption from seventy-five percent of such taxes; followed by one year of exemption from sixty-two and one-half percent of such taxes; followed by one year of exemption from fifty percent of such taxes; followed by one year of exemption from thirty-seven and one-half percent of such taxes; followed by one year of exemption from twenty-five percent of such taxes; and followed by one year of exemption from twelve and one-half percent of such taxes. Notwithstanding the foregoing provisions of this paragraph:

(i)

exemption from local and municipal taxes under this section shall not be available to property exempt from such taxes under any other law;

(ii)

the tax lot (land and improvements) upon which the private dwelling is constructed, reconstructed or converted shall at all times be subject to local and municipal taxes in an amount not less than the amount of local and municipal taxes that would be payable thereon based upon the lesser of the assessed valuation, during the tax year immediately preceding the tax year in which such construction, reconstruction or conversion commenced or in the case of new construction, the assessed valuation of the land appearing on the assessment roll in the first year after completion of construction; and

(iii)

in the event that a private dwelling, whether owner occupied or not, is fully demolished and removed on or after September first, two thousand four, the tax lot (land and improvements) upon which such private dwelling was located shall not be eligible for exemption from local and municipal taxes under this section for a period of three years commencing upon the date of issuance of the demolition and removal permit for such private dwelling.

(b)

Within a city having a population of one million or more, multiple dwellings (land and improvements) containing not more than four dwelling units to be occupied as a residence for the first time, whether newly constructed or resulting from the conversion of any building or structure to a multiple dwelling, and existing multiple dwellings containing not more than four dwelling units previously occupied, reconstructed or improved to the extent of at least forty percent of their assessed valuation without the improvement, shall be exempt from all local and municipal taxes, other than assessments for local improvements, during the tax year or years next following the taxable status date or dates after commencement and before completion of construction, reconstruction or conversion thereof, but for no more than two years after commencement of such construction, reconstruction or conversion, and shall be exempt from such local and municipal taxes after the earlier of completion of such construction, reconstruction or conversion or the end of such two year period, as follows: two years of exemption from all such taxes; followed by one year of exemption from seventy-five percent of such taxes; followed by one year of exemption from sixty-two and one-half percent of such taxes; followed by one year of exemption from fifty percent of such taxes; followed by one year of exemption from thirty-seven and one-half percent of such taxes; and followed by one year of exemption from twenty-five percent of such taxes; and followed by one year of exemption from twelve and one-half percent of such taxes. Notwithstanding the foregoing provisions of this paragraph:

(i)

exemption from local and municipal taxes under this section shall not be available to property exempt from such taxes under any other law;

(ii)

the tax lot (land and improvements) upon which the multiple dwelling is constructed, reconstructed or converted shall at all times be subject to local and municipal taxes in an amount not less than the amount of local and municipal taxes that would be payable thereon based upon the lesser of the assessed valuation, during the tax year immediately preceding the tax year in which such construction, reconstruction or conversion commenced or in the case of new construction, the assessed valuation of the land appearing on the assessment roll in the first year after completion of construction;

(iii)

multiple dwellings (land and improvements) shall not be eligible for exemption from local and municipal taxes under this section unless such multiple dwellings are developed in a governmentally assisted project, as defined in rules promulgated by the local housing agency; and

(iv)

such multiple dwellings are constructed, reconstructed or converted on real property that has been (A) acquired by the federal government as the result of the foreclosure of a mortgage loan insured by the federal government and (B) conveyed by the federal government to an owner approved by the local housing agency for the purpose of rehabilitation in accordance with an agreement between the owner of the real property and the federal government.

2.

(a) For purposes of this section: “private dwelling” shall mean an owner occupied building or structure, with the land on which the same is constructed, intended for residential use and occupancy by one or more families living independently of each other with separate cooking facilities, which is not a multiple dwelling within the meaning of the multiple dwelling law, and the construction, reconstruction or conversion of which (i) is commenced after July first, nineteen hundred seventy-eight and before July first, nineteen hundred eighty-two and is completed no later than April first, nineteen hundred eighty-four;

(ii)

is commenced on or after July first, nineteen hundred eighty-two and before July first, nineteen hundred eighty-six and is completed no later than July first, nineteen hundred eighty-eight;

(iii)

is commenced on or after July first, nineteen hundred eighty-six and before July first, nineteen hundred ninety and is completed no later than July first, nineteen hundred ninety-two;

(iv)

is commenced on or after July first, nineteen hundred ninety and before July first, nineteen hundred ninety-four and is completed no later than July first, nineteen hundred ninety-six;

(v)

is commenced on or after July first, nineteen hundred ninety-four and before July first, nineteen hundred ninety-eight and is completed no later than July first, two thousand;

(vi)

is commenced on or after July first, nineteen hundred ninety-eight and before July first, two thousand two and is completed no later than July first, two thousand four; or

(vii)

is commenced on or after July first, two thousand two and before July first, two thousand six and is completed no later than July first, two thousand eleven.

(b)

For purposes of this section: “multiple dwelling” shall mean an owner occupied building or structure, with the land on which the same is constructed, which is a multiple dwelling within the meaning of Multiple Dwelling Law § 4 (Definitions)section four of the multiple dwelling law, and the construction, reconstruction or conversion of which is commenced on or after July first, two thousand two and before July first, two thousand six and is completed no later than July first, two thousand eight.

(c)

Construction or reconstruction of, or conversion to, a private dwelling or multiple dwelling shall be deemed to have commenced when the agency or department of the city having jurisdiction has issued a permit for construction work and such work has begun in good faith in accordance with such permit; construction, reconstruction or conversion shall be deemed to have been completed when the agency or department of the city having jurisdiction has issued a temporary or permanent certificate of occupancy under which occupancy of the private dwelling or multiple dwelling for residential use may lawfully begin or the reconstruction has been finally accepted and approved.

(d)

For the purposes of this section: “local housing agency” shall have the same meaning as the term “agency” under General Municipal Law § 502 (Definitions)section five hundred two of the general municipal law, except that the term shall mean the department of housing preservation and development if there is such a department in such city.

(e)

Upon issuance of a violation by an agency, department or bureau of the city of New York for an illegal occupancy, the finance department shall revoke the tax exemption thereunder. The owner shall pay the city, with interest, the amount of taxes from which such owner had been exempted. Such amount, if unpaid, shall become a lien against the property.

3.

(a) Applications for exemption under this section shall be filed with the assessors between February first and March fifteenth of the calendar year and, based on the certification of the local housing agency pursuant to this section, the assessors shall certify to the collecting officer the amount of exemption from local and municipal taxes. No such application shall be accepted by the assessors unless accompanied by a certificate of the local housing agency certifying eligibility for exemption pursuant to this section.

(b)

The local housing agency may promulgate rules and regulations to carry out the provisions of this section and may require payment of a reasonable filing fee, and in the case of an application involving a dwelling which has been reconstructed or improved a fee not to exceed ten dollars for the certification of such local housing agency under this subdivision.

(c)

At any time after two years of exemption from taxation pursuant to this section, the local housing agency may certify to the assessors and the collecting officer that a private dwelling or multiple dwelling is not being used for residential purposes and upon the filing of such certification with the assessors and the collecting officer, exemption from taxation under this section shall terminate.

Source: Section 421-B — Exemption of certain private dwellings, multiple dwellings and improvements from local taxation; certain cases, https://www.­nysenate.­gov/legislation/laws/RPT/421-B (updated Sep. 22, 2014; accessed Oct. 26, 2024).

420‑A
Nonprofit organizations 420‑B
Nonprofit organizations 420‑C
Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or ... 421‑A
Affordable New York Housing Program 421‑B
Exemption of certain private dwellings, multiple dwellings and improvements from local taxation 421‑C
Exemption of certain new multiple dwellings from local taxation 421‑D
Exemption of multiple dwellings financed by the New York state housing finance agency from local taxation 421‑E
Exemption of cooperative, condominium, homesteading and rental projects from local taxation 421‑F
Exemption of capital improvements to residential buildings and certain new construction 421‑FF
Exemption of capital improvements to residential buildings in cities with a population between twenty-seven thousand five hundred and twe... 421‑G
Exemption from local taxation of certain multiple dwellings 421‑H
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑H*2
Exemption of capital improvements to residential buildings 421‑I
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑I*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑J
Exemption of capital investment in multiple dwelling buildings within certain cities 421‑J*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑K
Exemption of certain multiple dwellings 421‑L
Exemption of capital improvements to residential buildings in certain towns 421‑M
Exemption of certain new or substantially rehabilitated multiple dwellings from local taxation 421‑N
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑O
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑O*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑P
Exemption of newly-constructed or converted rental multiple dwellings 421‑P*2
Exemption of capital improvements to residential new construction involving the creation of accessory dwelling units 422
Not-for-profit housing companies 423
Phase out of exemption for redevelopment company projects upon the cessation of the tax exemption granted pursuant to contract 424
Institute of arts and sciences 425
School tax relief (STAR) exemption 425‑A
Abatement of county taxes in special assessing units 426
Opera houses 427
Performing arts buildings 428
Fraternal organizations 429
Real property used for professional major league sports 430
Interdenominational centers 432
Theatrical corporations created by act of congress 434
Academies of music 436
Officers of religious denominations 438
Trustees of a hospital, playground and library 440
Infant homes 442
Soldiers monument corporations 444
Historical societies 444‑A
Historic property 446
Cemeteries 450
Agricultural societies 452
Veterans organizations 454
Indians 455
Exemption option 456
Municipal railroads 457
Exemption for first-time homebuyers of newly constructed homes 458
Veterans 458‑A
Veterans 458‑B
Exemption for Cold War veterans 458‑C
Improvements to property of severely injured members of the armed forces of the United States 459
Persons who are physically disabled 459‑A
Improvements to property made pursuant to the Americans with Disabilities Act of 1990 459‑B
Physically disabled crime victims 459‑C
Persons with disabilities and limited incomes 460
Clergy 462
Religious corporations 464
Incorporated associations of volunteer firefighters 466
Volunteer firefighters and fire companies in villages 466‑A
Volunteer firefighters and volunteer ambulance workers 466‑A*2
Volunteer firefighters and volunteer ambulance workers 466‑B
Volunteer firefighters and volunteer ambulance workers 466‑C
Volunteer firefighters and volunteer ambulance workers 466‑C*2
Volunteer firefighters and volunteer ambulance workers 466‑C*3
Volunteer firefighters and volunteer ambulance workers 466‑C*4
Volunteer firefighters and volunteer ambulance workers 466‑C*5
Volunteer firefighters and volunteer ambulance workers 466‑C*6
Volunteer firefighters and volunteer ambulance workers 466‑C*7
Volunteer firefighters and volunteer ambulance workers 466‑D
Volunteer firefighters and volunteer ambulance workers 466‑D*2
Volunteer firefighters and volunteer ambulance workers 466‑D*3
Volunteer firefighters and volunteer ambulance workers 466‑D*4
Volunteer firefighters and volunteer ambulance workers 466‑E
Volunteer firefighters and volunteer ambulance workers 466‑E*2
Volunteer firefighters and volunteer ambulance workers 466‑E*3
Volunteer firefighters and volunteer ambulance workers 466‑E*4
Volunteer firefighters and volunteer ambulance workers 466‑F
Volunteer firefighters and volunteer ambulance workers 466‑F*2
Volunteer firefighters and volunteer ambulance workers 466‑F*3
Volunteer firefighters and volunteer ambulance workers 466‑F*4
Volunteer firefighters and volunteer ambulance workers 466‑F*5
Un-remarried spouses of volunteer firefighters or volunteer ambulance workers killed in the line of duty 466‑G
Volunteer firefighters and volunteer ambulance workers 466‑G*2
Volunteer firefighters and volunteer ambulance workers 466‑H
Volunteer firefighters and volunteer ambulance workers 466‑H*2
Un-remarried spouses of deceased volunteer firefighters or volunteer ambulance workers 466‑I
Volunteer firefighters and volunteer ambulance workers 466‑J
Volunteer firefighters and volunteer ambulance workers 466‑K
Volunteer firefighters and volunteer ambulance workers 466‑L
Extension of benefits 467
Persons sixty-five years of age or over 467‑A
Partial tax abatement for residential real property held in the cooperative or condominium form of ownership in a city having a populatio... 467‑B
Tax abatement for rent-controlled and rent regulated property occupied by senior citizens or persons with disabilities 467‑C
Exemption for property owned by certain housing companies or sublessees of the battery park city authority and occupied by senior citizen... 467‑D
Assessment exemption for certain living quarters constructed to be occupied by a senior citizen or disabled individual 467‑E
Rebate for owners or tenant-stockholders of one, two or three family residences or residential property held in the condominium or cooper... 467‑F
Protective and safety devices tax abatement 467‑G
Rebate for owners of certain real property seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth of Octob... 467‑H
Partial abatement for certain rebuilt real property seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth... 467‑I
Real property tax abatement 467‑J
Exemption for certain residential properties located in certain counties 467‑K
Senior citizen longtime resident exemption 467‑K*2
Exemption for certain residential property required to participate in the federal flood insurance program 467‑L
Rebate for owners of certain real property in the city of New York 467‑M
Exemption from local real property taxation of certain multiple dwellings in a city having a population of one million or more 468
Fire patrol and salvage corps 469
Assessment exemption for living quarters for parent or grandparent 470
Exemption for improvements to real property meeting certification standards for green buildings 472
Pharmaceutical societies 474
Dental societies 476‑A
Railroad passenger stations 477
Tax exemption for industrial waste treatment facilities 477‑A
Tax exemption for air pollution control facilities 478
Tax exemption for off-street parking facilities providing underground shelters 479
Fallout shelter facilities 480
Forest and reforested lands 480‑A
Taxation of forest land 481
Taxation of land used for agricultural production 482
Quarantined lands 483
Exemption from taxation of structures and buildings essential to the operation of agricultural and horticultural lands 483‑A
Farm silos, farm feed grain storage bins, commodity sheds, bulk milk tanks and coolers, and manure storage and handling facilities 483‑B
Historic barns 483‑C
Temporary greenhouses 483‑D
Farm or food processing labor camps or commissaries 483‑E
Anaerobic digestion facilities 484
Urban redevelopment corporations and companies 485
Nuclear powered electric generating facilities 485‑A
Residential-commercial urban exemption program 485‑B
Business investment exemption 485‑C
Exemption from taxation of real property used in manufacture of steel in cities of fifty thousand or more persons 485‑D
Water-works corporations 485‑E
Empire zone exemption 485‑F
Banking development districts 485‑G
Infrastructure exemption 485‑H
Residential investment exemption 485‑I
Residential investment exemption 485‑I*2
Residential investment exemption 485‑J
Residential property improvement exemption 485‑J*2
Residential investment exemption 485‑J*3
Residential investment exemption 485‑J*4
Residential investment exemption 485‑J*5
Residential investment exemption 485‑K
Residential investment exemption 485‑L
Residential property improvement 485‑L*2
Residential investment exemption 485‑M
Residential investment exemption 485‑N
Residential-commercial exemption program 485‑O
New residential property exemption 485‑P
Economic transformation area exemption 485‑Q
Residential investment exemption 485‑R
Residential redevelopment inhibited property exemption 485‑S
Residential reassessment exemption 485‑S*2
Residential reassessment exemption 485‑S*3
Mixed use exemption program for villages 485‑T
Owner occupied residential property exemption program 485‑U
Class one reassessment exemption 485‑V
Residential revaluation exemption 485‑V*2
Residential and mixed-use investment exemption 485‑W
Newly constructed single-family and multi-family residential exemption 485‑X
Affordable neighborhoods for New Yorkers tax incentive 486
Non-profit medical and dental indemnity, or hospital service corporations 486‑A
Non-profit corporations operating as health maintenance organizations 487
Exemption from taxation for certain energy systems 487‑A
Exemption from taxation of conservation improvements to certain residential premises 488
Retirement systems 488‑A
Rehabilitation of certain class B multiple dwellings and class A multiple dwellings used for single room occupancy 489
Exemption from taxation of alterations and improvements to multiple dwellings to eliminate fire and health hazards
Green check means up to date. Up to date

Accessed:
Oct. 26, 2024

Last modified:
Sep. 22, 2014

§ 421-B’s source at nysenate​.gov

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