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HomeMy WebLinkAboutLL 5 of 2023 Chapter 239 Tax Exemption for Capital Improvement TOWN OF ITHACA LOCAL LAW NO. 5 OF THE YEAR 2023 A LOCAL LAW AMENDING CHAPTER 239 OF THE TOWN OF ITHACA CODE, TITLED “TAXATION,” BY ADDING ARTICLE IX TITLED “CAPITAL IMPROVEMENT 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 IX, “Capital Improvement Exemption”, as follows: “Article IX Capital Improvement Exemption § 239-34 Purpose. The purpose of this article is to grant a partial exemption from taxation for capital improvements to residential buildings within the Town of Ithaca as authorized by § 421-f of the New York Real Property Tax Law. § 239-35 Title. This article shall be known as the "Town of Ithaca Capital Improvement Exemption Law." § 239-36 Statutory authority. This article is enacted under the power granted to the Town by New York Real Property Tax Law § 421-f. § 239-37 Definitions. For purposes of this article the following terms shall be defined as follows: EXEMPTION The exemption from taxation and special ad valorem levies granted by this article. RESIDENTIAL BUILDING Any building or structure designed and occupied exclusively for residential purposes by not more than two families. § 239-38 Exemption granted. Residential buildings reconstructed, altered or improved subsequent to the effective date of this article shall be exempt from taxation and special ad valorem levies to the extent provided hereinafter. Adopted 2023-02-13 Pg. 1 § 239-39 Amount of exemption. A. Subject to the provisions of § 421-f of the New York Real Property Tax Law and this article, the increase in assessed value attributable to a reconstruction, alteration or improvement which qualifies for exemption shall receive the following exemption percentages: Year Exemption Percentage 1 100% 2 87.5% 3 75% 4 62.5% 5 50% 6 37.5% 7 25% 8 12.5% B. Such exemption shall be limited to $80,000 in increased market value of the property attributable to such reconstruction, alteration or improvement. Any increase in market value greater than $80,000 shall not be eligible for the exemption pursuant to this article. C. The exemption base for each year shall be calculated pursuant to and be subject to the provisions of New York Real Property Tax Law § 421-f. § 239-40 Additional eligibility requirements. A. No such exemption shall be granted for reconstruction, alterations or improvements unless: (1) Such reconstruction, alteration or improvement was commenced after the effective date of this article; (2) The value of such reconstruction, alteration or improvement exceeds $3,000; (3) The greater portion, as so determined by square footage, of the building reconstructed, altered or improved is at least five years old; and (4) Such reconstruction, alteration or improvement consists of an addition, remodeling or modernization to an existing residential structure to prevent physical deterioration of the structure or to comply with applicable building, sanitary, health and/or fire codes. Adopted 2023-02-13 Pg. 2 B. For purpose of this section, the terms "reconstruction," "alteration" and "improvement" shall not include ordinary maintenance and repairs. C. The exemption provisions of this article shall not apply to detached garages or any other structures accessory to the principal residential structure. § 239-41 Application for exemption. Such exemption shall be granted only upon timely application by the owner of such building on a form prescribed by the New York State Department of Taxation and Finance Commissioner or their delegate. The original of such application shall be filed with the Tompkins County Department of Assessment, on or before the appropriate tax status date of the Town or other assessing entity. Application for the exemption must be filed with the Tompkins County Department of Assessment within one year after the date of the certificate of occupancy issued by the Town of Ithaca. § 239-42 Approval by Tompkins County Assessment Department. Pursuant to New York Real Property Law § 421-f, if the Tompkins County Assessment Department is satisfied that the applicant is entitled to an exemption pursuant to this article, the Tompkins County Assessment Department shall approve the application and such building shall thereafter be exempt from taxation and special ad valorem levies as herein provided commencing with the assessment roll prepared on the basis of the taxable status date. The assessed value of any exemption granted pursuant to this article shall be entered by the Tompkins County Assessment Department on the assessment roll with the taxable property, with the amount of the exemption shown in a separate column. § 239-43 Expiration of exemption. In the event that a building granted an exemption pursuant to this article ceases to be used exclusively for residential purposes or title thereto is transferred to any entity or person other than the estate, heirs or distributees of the owner, the exemption granted pursuant to this section shall cease and omitted taxes shall be computed from the date of transfer. § 239-44 Filing requirements. The Town Clerk shall file a copy of this article with the New York State Department of Taxation and Finance commissioner or their delegate, and the Tompkins County Assessment Department. § 239-46 Amendments. Any amendment or rescission of this article shall not reduce or repeal any exemption previously granted under it. § 239-47 Building permits. No reconstruction, alteration or improvement otherwise eligible for exemption under this article shall receive such exemption unless all building permits required by the Town of Ithaca shall have been acquired prior to the start of such reconstruction, alteration or improvement.” Section 2. In the event that any portion of this law is declared invalid by a court of Adopted 2023-02-13 Pg. 3 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. 4