N.Y. Real Property Tax Law Section 457
Exemption for first-time homebuyers of newly constructed homes


1.

Newly constructed primary residential property purchased by one or more persons, each of whom is a first-time homebuyer and has not been married to a homeowner in the three years prior to applying for this first-time homeowners exemption, shall be exempt from taxation levied by or on behalf of any county, city, town, village or school district in which such newly constructed residential property is located, provided the legislative body or governing board of such county, city, town or village, after public hearing, adopts a local law, or a school district, other than a school district to which article fifty-two of the education law applies, adopts a resolution providing therefor. The length of such exemption shall be set forth in such local law or resolution, but in no event shall it exceed five years. Such exemption shall be computed in accordance with the following table: Year of Exemption Percentage assessed Valuation exempt from tax 1 50 2 40 3 30 4 20 5 10 6 or more 0 A copy of such local laws or resolutions shall be filed with the commissioner and the assessor of such county, city, town, or village who prepares the assessment roll on which the taxes of such county, city, town, village or school district are levied.

2.

(a) Any newly constructed primary residential real property within the purchase price limits defined by the state of New York mortgage agency low interest rate mortgage program in the non-target, one family new category for the county where such property is located and in effect on the contract date for the purchase and sale of such property, shall be eligible for the exemption allowed pursuant to this section.

(b)

A first-time homebuyer who either as part of the written contract for sale of the primary residential property, or who enters into a written contract within ninety days after closing of the sale of the primary residence for reconstruction, alteration or improvements, the value of which exceeds three thousand dollars, to the primary residential property shall be exempt from taxation to the extent provided by this section. Such exemption shall apply solely to the increase in assessed value thereof attributable to such reconstruction, alteration or improvement provided that the assessed value after reconstruction, alteration, or improvements does not exceed fifteen percent more than the purchase price limits as defined in paragraph (a) of this subdivision. For purposes of this section the terms reconstruction, alteration and improvement shall not include ordinary maintenance and repairs.

(c)

A first-time homebuyer shall not qualify for the exemption authorized pursuant to this section if the household income exceeds income limits defined by the state of New York mortgage agency low interest rate mortgage program in the non-target, one and two person household category for the county where such property is located and in effect on the contract date for the purchase and sale of such property.

(i)

The term “household income” as used herein shall mean the total combined income of all the owners, and of any owners’ spouses residing on the premises, for the income tax year preceding the date of making application for the exemption.

(ii)

The term “income” as used herein shall mean the “adjusted gross income” for federal income tax purposes as reported on the applicant’s latest available federal or state income tax return subject to any subsequent amendments or revisions, reduced by distributions, to the extent included in federal adjusted gross income, received from an individual retirement account and an individual retirement annuity; provided that if no such return was filed within the one year period preceding taxable status date, “income” shall mean the adjusted gross income that would have been so reported if such a return had been filed. For purposes of this subdivision, “latest available return” shall mean the federal or state income tax return for the year immediately preceding the date of making application, provided however, that if the tax return for such tax year has not been filed, then the income tax return for the tax year two years preceding the date of making application shall be considered the latest available.

3.

Newly constructed primary residential property purchased by first-time homebuyers at a sales price greater than the maximum eligible sales price shall qualify for the exemption allowed pursuant to this section for that portion of the sales price of such newly constructed primary residential property equal to the maximum eligible sales price, provided, however, that any newly constructed primary residential property purchased at a sales price greater than fifteen percent above the maximum eligible sales price shall not be allowed any exemption.

4.

The legislative body or governing board of a county, city, town or village may adopt a local law, or a school district, other than a school district to which article fifty-two of the education law applies may adopt a resolution to provide for an increase not to exceed twenty-five per centum on the purchase price limit used for eligibility for the exemption provided for in this section.

5.

No exemption shall be allowed pursuant to this section for any newly constructed primary residential property purchased by a first-time homebuyer on or after December thirty-first, two thousand twenty-eight, unless such purchase is pursuant to a binding written contract entered into prior to December thirty-first, two thousand twenty-eight. Provided, however, that any first-time homebuyer who is allowed an exemption pursuant to this section prior to such date shall continue to be allowed further exemptions pursuant to subdivision one of this section.

6.

(a) No portion of a single family newly constructed primary residential property shall be leased during the period of time when the first-time homeowner exemption shall apply to the residence. If any portion of the single family newly constructed primary residential property is found to be the subject of a lease agreement the assessor shall discontinue any exemption granted pursuant to this section.

(b)

In the event that a primary residential property granted an exemption pursuant to this section ceases to be used primarily for residential purposes or title thereto is transferred to other than the heirs or distributees of the owner, the exemption granted pursuant to this section shall be discontinued.

(c)

Upon determining that an exemption granted pursuant to this section should be discontinued, the assessor shall mail a notice so stating to the owner or owners thereof at the time and in the manner provided by § 510 (Notice of increased assessments in towns, cities and certain counties)section five hundred ten of this chapter. Such owner or owners shall be entitled to seek administrative and judicial review of such action in the manner provided by law, provided that the burden shall be on such owner or owners to establish eligibility for the exemption.

7.

Such exemption shall be granted only upon application by the owner of such building on a form prescribed by the commissioner. The application shall be filed with the assessor of the city, town, village or county having the power to assess property for taxation on or before the appropriate taxable status date of such city, town, village and county.

8.

If satisfied that the applicant is entitled to an exemption pursuant to this section, the assessor shall approve the application and such primary residential property shall thereafter be exempt from taxation and special ad valorem levies as provided in this section commencing with the assessment roll prepared on the basis of the taxable status date referred to in subdivision seven 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.

9.

For purposes of this section:

(a)

“first-time homebuyer” means a person who has not owned a primary residential property and is not married to a person who has owned a residential property during the three-year period prior to his or her purchase of the primary residential property, and who does not own a vacation or investment home.

(b)

“Primary residential property” means any one or two family house, townhouse or condominium located in this state which is owner occupied by such homebuyer.

(c)

“Newly constructed” means an improvement to real property which was constructed as a primary residential property, and which has never been occupied and was constructed after the effective date of this section. “Newly constructed” shall also mean that portion of a primary residential property that is altered, improved or reconstructed.

Source: Section 457 — Exemption for first-time homebuyers of newly constructed homes, https://www.­nysenate.­gov/legislation/laws/RPT/457 (updated Aug. 19, 2022; accessed Jul. 13, 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
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

Accessed:
Jul. 13, 2024

Last modified:
Aug. 19, 2022

§ 457’s source at nysenate​.gov

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