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HomeMy WebLinkAboutLL 4 of 2023 Chapter 239 Tax Exemption for Infrastructure TOWN OF ITHACA LOCAL LAW NO. 4 OF THE YEAR 2023 A LOCAL LAW AMENDING CHAPTER 239 OF THE TOWN OF ITHACA CODE, TITLED “TAXATION,” BY ADDING ARTICLE VIII ENTITLED “INFRASTRUCTURE EXEMPTION” Be it enacted by the Town Board of the Town of Ithaca as follows: Section 1. Chapter 239 (Taxation), of the Town of Ithaca Code, is amended by adding Article VIII, “Infrastructure Exemption,” as follows: “Article VIII Infrastructure Exemption § 239-28 Title and applicability. This article shall be known as the "Infrastructure Tax Exemption Law." This article shall provide an exemption from certain real property taxation on residential building lots of the value of the infrastructure constructed in a residential subdivision that is intended to be dedicated to the Town or one of its special districts. § 239-29 Declaration of policy. As part of the approval process of residential subdivisions, the Town (including its boards and departments) may require such subdivisions to include infrastructure which is ultimately dedicated to the Town. The additional value attributable to such infrastructure should be exempt from taxation of the subdivision lots for three years or until a certificate of occupancy is issued for a residence constructed on a building lot in such subdivision (whichever is less), in order to minimize the negative impact of the taxes on the affordability of single-family and two-family residences in the Town. § 239-30 Definitions. As used herein, the following terms shall have the meaning indicated: INFRASTRUCTURE The following facilities which are intended to be dedicated to the Town or a special district thereof: streets, storm and sanitary sewers, drainage facilities, and any other facilities required by the Town to be installed in a residential subdivision as noted on the final plat plan for such residential subdivision. NEW RESIDENTIAL SUBDIVISION A residential subdivision approved by the Town after the effective date of this article and which has a final plat filed with the Tompkins County Clerk's office after the effective date of this article. Adopted 2023-02-13 Pg 1 RESIDENTIAL SUBDIVISION The division of any parcel of land into any number of residential building lots, plots or sites as defined in Town Code Chapter 234 (Subdivision of Land). TAXABLE STATUS DATE The date determined annually as required in New York Real Property Tax Law § 302. § 239-31 Statutory authority. The Town Board hereby enacts this article to provide for an infrastructure tax exemption pursuant to New York Real Property Tax Law § 485-g. § 239-32 Authorization and application. A. Residential building lots that are part of a plat for a new residential subdivision which includes infrastructure intended to be dedicated to the Town or a special district thereof shall be exempt from taxation to the extent of the increased assessed value of such lots resulting from the addition of such infrastructure. Such exemption shall be granted until the issuance of a certificate of occupancy for a residence constructed on a building lot in such subdivision or for three years from the grant of the exemption (whichever is less). Such exemption shall be the value of the infrastructure proportionately applied to each of the lots in the subdivision. Upon issuance of said certificate of occupancy but in no event longer than three years from the grant of the exemption, the exemption shall lapse. B. To obtain an infrastructure exemption, an owner of real property constituting a new residential subdivision must file an application with the Tompkins County Department of Assessment on a form prescribed by the New York State Department of Taxation and Finance. The application shall be filed with the Tompkins County Department of Assessment on or before the taxable status date, and not later than one year from the date of completion of construction, installation or improvement of the infrastructure within the new residential subdivision. C. Pursuant to New York Real Property Tax Law § 485-g, the Tompkins County Assessment Department, upon review of the application made by the owner and determination that such owner is entitled to the exemption, shall approve such application, and such real property shall thereafter be exempt from taxation as herein provided, commencing with the assessment roll prepared after the taxable status date. D. Pursuant to New York Real Property Tax Law § 485-g, the assessed value of any infrastructure exemption shall be entered by the Tompkins County Assessment Department on the assessment roll with the taxable property, with the amount of the exemption entered in a separate column. § 239-33 Filing with New York State Department of Taxation and Finance. A copy of this article shall be filed with the New York State Department of Taxation and Finance, which pursuant to New York Real Property Tax Law § 201 has the powers, functions and duties formerly granted to the Office of Real Property Services.” Section 2. In the event that any portion of this law is declared invalid by a court of Adopted 2023-02-13 Pg 2 competent jurisdiction, the validity of the remaining portions shall not be affected by such declaration of invalidity. Section 3. This local law shall take effect immediately upon its filing with the New York Secretary of State. Adopted 2023-02-13 Pg 3