N.Y. Real Property Tax Law Section 423
Phase out of exemption for redevelopment company projects upon the cessation of the tax exemption granted pursuant to contract

(1)

After the expiration of any tax exemption granted a redevelopment project pursuant to Private Housing Finance Law § 125 (Tax exemptions)section one hundred twenty-five of the private housing finance law, which exemption is not extended pursuant to such law, that part of the value of the property which was exempt from certain taxation for local purposes by reason of such grant, shall thereafter be exempt from taxation for local purposes, other than assessments for local improvement, commencing upon the expiration of the tax exemption granted pursuant to such section as follows: during the first year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the last year of the grant of exemption plus one tenth of the difference between the taxes which were payable during such prior year and the taxes which would otherwise be payable during such first year absent this section; during the second year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the first year after such expiration plus one-ninth of the difference between the taxes which were payable during such first year and the taxes which would otherwise be payable during such second year absent this section; during the third year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the second year after such expiration plus one-eighth of the difference between the taxes which were payable during such second year and the taxes which would otherwise be payable during such third year absent this section; during the fourth year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the third year after such expiration plus one-seventh of the difference between the taxes which were payable during such third year and the taxes which would otherwise be payable during such fourth year absent this section; during the fifth year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the fourth year after such expiration plus one-sixth of the difference between the taxes which were payable during such fourth year and the taxes which would otherwise be payable during such fifth year absent this section; during the sixth year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the fifth year after such expiration plus one-fifth of the difference between the taxes which were payable during such fifth year and the taxes which would otherwise be payable during such sixth year absent this section; during the seventh year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the sixth year after such expiration plus one-fourth of the difference between the taxes which were payable during such sixth year and the taxes which would otherwise be payable during such seventh year absent this section; during the eighth year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the seventh year after such expiration plus one-third of the difference between the taxes which were payable during such seventh year and the taxes which would otherwise be payable during such eighth year absent this section; during the ninth year after such expiration, the taxes which shall be payable shall be the taxes which were payable during the eighth year after such expiration plus one-half of the difference between the taxes which were payable during such eighth year and the taxes which would otherwise be payable during such ninth year absent this section; during the tenth year after such expiration, the taxes which shall be payable shall be the taxes otherwise payable.

(2)

Any provision of law to the contrary notwithstanding, any local laws or ordinances in respect of the regulation and control of residential rents and evictions adopted pursuant to the local emergency housing rent control act shall be applicable to all dwelling accommodations in a property described in subdivision one throughout such additional exemption period whether or not such dwelling accommodations become vacant during such period, in the same manner that such local laws or ordinances would be applicable to dwelling accommodations which (i) were completed after February one, nineteen hundred forty-seven and for which a certificate of occupancy was obtained prior to March ten, nineteen hundred sixty-nine, and

(ii)

did not become vacant after the thirtieth day of June, nineteen hundred seventy-one, provided that the last rental set forth under a rental agreement in force relating to a dwelling accommodation in such project immediately prior to the expiration of the tax exemption granted pursuant to the private housing finance law, shall continue, and the owner of the property in which such accommodations are situate may increase such rentals. (a) in each year by an amount not more than the increases in taxes, payable on such project by such owner over those paid in the year prior to the expiration of the tax exemption granted pursuant to the private housing finance law, allocated to such dwelling accommodation on a per room basis based on the room count set forth in the contract with a municipality originally granting the tax exemption under the private housing finance law, and (b) by an amount not more than the difference between the average rental per room per month last authorized by the local legislative body pursuant to the private housing finance law, and the average rental per room per month actually collected during the last year such project was exempt under such law, multiplied by the room count for such dwelling accommodation as set forth in such contract with the municipality, as well as percentage increases thereon which percentages are the same as authorized under such local laws and ordinances and generally applicable to subsequent rental agreements in dwelling accommodations in other multiple dwellings as well as any other increases authorized by law.

(3)

Notwithstanding any provision of this section to the contrary, with respect to the real property of a mutual redevelopment project located in a city having a population of one million or more, the tax exemption provided in subdivision one of this section shall not apply in any year where the total period of tax exemption granted pursuant to section one hundred twenty-five of the private housing finance law and subdivision one of this section would exceed sixty years.

Source: Section 423 — Phase out of exemption for redevelopment company projects upon the cessation of the tax exemption granted pursuant to contract, https://www.­nysenate.­gov/legislation/laws/RPT/423 (updated Jun. 23, 2017; 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
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Accessed:
Oct. 26, 2024

Last modified:
Jun. 23, 2017

§ 423’s source at nysenate​.gov

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