N.Y. Real Property Tax Law Section 485-O
New residential property exemption

  • certain cities

1.

Construction of qualified new residential structures or total rehabilitation of qualified vacant residential structures determined to be unoccupied hazards initiated on or after the first day of January, two thousand thirteen in cities with a population of not less than one hundred thirty thousand and not more than one hundred sixty thousand, based upon the two thousand ten federal census may be exempt from city and school taxation as provided in this section.

2.

(a) (i) Such qualified residential real property shall be exempt in accordance with the applicable exemption schedules set forth in this subparagraph and such exemption shall be computed with respect to the “exemption base”. The exemption base shall be the increase in the assessed value due to qualified improvements as determined in the initial year of the applicable exemption price following the filing of an original application, provided that the application relative to the rehabilitation of a qualified vacant residential structure determined to be an unoccupied hazard shall be pre-approved by the city as provided in this section.

(ii)

Construction of Qualified LEED Certified New Residential Structures Percentage of exemption Year Certified/Silver Gold Platinum 1 100% 100% 100% 2 100% 100% 100% 3 100% 100% 100% 4 100% 100% 100% 5 100% 100% 100% 6 100% 100% 100% 7 100% 100% 100% 8 100% 100% 100% 9 80% 100% 100% 10 60% 80% 100% 11 40% 60% 100% 12 20% 40% 75% 13 0% 20% 50% 14 0% 0% 25% (iii) Construction of Qualified New Residential Structure or Total Rehabilitation of Pre-approved Qualified Residential Structure Determined To Be An Unoccupied Hazard Year Percentage of exemption 1 100% 2 100% 3 100% 4 100% 5 100% 6 100% 7 100% 8 75% 9 50% 10 25% (iv) Any application submitted by the property owner for the exemption relative to the rehabilitation of a residential structure determined to be an occupied hazard shall require pre-approval by the assessor of such city and the director of code enforcement which pre-approval shall be in writing and shall certify that the structure to be totally rehabilitated qualifies as an unoccupied hazard. The failure of the applicant to apply or receive such pre-approval for any exemption relative to the total rehabilitation of a qualified residential structure determined to be an unoccupied hazard shall disqualify the subject property from eligibility for any exemption pursuant to this section and the city’s local law.

(v)

For purposes of eligibility for the total rehabilitation of a residential structure, a qualified residential structure determined to be an unoccupied hazard, an unoccupied hazard shall be defined as any residential building or structure or a substantial part thereof which remains unoccupied for a period of more than one year with either doors, windows, or other openings broken, removed, boarded or sealed up.

(vi)

For purposes of eligibility for the construction of a qualified new residential structure, the new residential property must be a one or two family residence. New residential real property constructed which is greater than a one or two family residence shall in no event be eligible for real property tax exemptions authorized by this section.

(vii)

(A) For the purposes of eligibility under a LEED certification standard the term “LEED” shall mean the Leadership in Energy and Environmental Design Building Rating System published by the United States Green Building Council. Such residential real property which is certified under a LEED certification standard which is determined to be for the categories of certified, silver, gold or platinum as meeting green building standards, as determined by a LEED accredited professional shall be exempt as provided in subparagraph (ii) of paragraph (a) of subdivision two of this section for the respective percentages provided that a copy of the certification for a qualified category is filed with the city’s commissioner of assessment and the commissioner of assessment approves the application for the applicable category as meeting the requirements of this section and the city’s local law. (B) Construction of a qualified new residential structure which does not meet the certified, silver, gold or platinum standard as determined by the city shall be exempt under subparagraph (iii) of this paragraph provided it meets the applicable requirements of this section and the city’s local law.

(viii)

Exemptions granted pursuant to this section shall apply to real property taxes imposed for both city and school district purposes.

(b)

No such exemption shall be granted unless:

(i)

such construction of a qualified new residential real property or the total rehabilitation of a qualified residential structure determined to be an unoccupied hazard commenced on or after the first day of January, two thousand thirteen or such later date as may be specified by local law to qualify for the enhanced exemption;

(ii)

the qualified residential real property is situated in a city with a population of not less than one hundred thirty thousand and not more than one hundred sixty thousand based on the two thousand ten federal census;

(iii)

the value of such construction exceeds the sum of twenty thousand dollars; and

(iv)

such construction is documented by a building permit, if required, for the improvements, or other appropriate documentation as required by the assessor.

(c)

For purposes of this section the term “construction of improvements” shall not include ordinary maintenance and repairs.

3.

Such exemption for the construction of a qualified new residential real property shall be granted only upon application by the owner of such real property. Such exemption for a total rehabilitation of a qualified residential structure determined to be an unoccupied hazard shall be granted only upon application by the owner of such real property who has been pre-approved in accordance with the requirements of subparagraph (iv) of paragraph (a) of subdivision two of this section. Such application shall be filed with the assessor of a city with a population of not less than one hundred thirty thousand and not more than one hundred sixty thousand based upon the two thousand ten federal census, on or before the appropriate taxable status date of such city and within one year from the date of completion of such construction of qualified residential structure improvements.

4.

If the assessor of such city 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 and special ad valorem levies by a city with a population of not less than one hundred thirty thousand and not more than one hundred sixty thousand based upon the two thousand ten federal census, 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 of such city on the assessment roll with the taxable property, with the amount of the exemption shown in a separate column. In any case where there is an additional partial exemption based on a LEED certification, a copy of such certification shall be filed in the subject real property file.

5.

In the event that real property granted an exemption pursuant to this section ceases to be used primarily for purposes as provided in subparagraph (vi) of paragraph (a) of subdivision two of this section the exemption granted pursuant to this section shall cease.

6.

A city with a population of not less than one hundred thirty thousand and not more than one hundred sixty thousand, based upon the two thousand ten federal census may establish by a local law a date for the commencement of effectiveness of the exemption offered pursuant to this section. In addition, such city is authorized to establish procedures in such local law for the elimination of the exemption for an otherwise qualified residential property which is determined by the assessor of such city and the director of code enforcement to have serious code violations, as defined by the city in such local law, at any time subsequent to the approval of the application for real property tax exemption pursuant to this section and which serious code violations have not been corrected and any judgments and/or fines, penalties and costs, if any, have not been paid in accordance with the applicable laws, local law, ordinances, rules and regulations. Notwithstanding the foregoing, the elimination of any such exemption shall take effect on the assessment roll based on the next taxable status date subsequent to the city’s determination to eliminate the exemption. A copy of all such local laws shall be filed with the commissioner and the assessor of such city.

Source: Section 485-O — New residential property exemption; certain cities, https://www.­nysenate.­gov/legislation/laws/RPT/485-O (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

Accessed:
Oct. 26, 2024

Last modified:
Sep. 22, 2014

§ 485-O’s source at nysenate​.gov

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