Partial Tax Exemption for Private Dwellings Pursuant to § 421-b of the Real Property Tax Law

RCNY tit. 28, ch. 7

in effect

28 RCNY § 7-01 Definitions.

§ 7-01 Definitions. The following terms shall have the following meaning: Act. "Act" means § 421-b of the Real Property Tax Law as amended. Commencement of new construction. "Commencement of new construction" means the date upon which the foundation is started in good faith as certified in an affidavit by a licensed architect or professional engineer after the issuance of a new building permit by the Department of Buildings based upon plans approved by the Department of Buildings. Commencement of reconstruction. "Commencement of reconstruction" means the date upon which work begins in good faith after the filing of a building notice with the Department of Buildings or the issuance of an alteration permit where required. Commissioner. "Commissioner" means the Commissioner of the Department of Housing Preservation and Development of the City of New York or the chief executive officer of a successor thereto authorized to administer this chapter, or such representative of said Department as shall have been duly designated by the Commissioner to act on his behalf. Completion of new construction. "Completion of new construction" means the date a Certificate of Occupancy is issued by the Department of Buildings for lawful residential use. Completion of reconstruction. "Completion of reconstruction" means the date all work necessary to complete reconstruction is completed. Such completion may be confirmed by: (1) Issuance or reissuance of a Certificate of Occupancy; or (2) Issuance of a Letter of Completion by the Department of Buildings; or (3) Issuance of a Certificate of Completion or Compliance or other evidence of completion by a City agency other than the Department of Buildings; or (4) If none of the above is required by law, an affidavit by a registered architect, licensed professional engineer or attorney certifying to the date of completion or an affidavit by the applicant if the cost of work is less than five thousand ($5,000) dollars. Department. "Department" means the Department of Housing Preservation and Development of the City of New York. Office. "Office" means the Office of Development of the Department of Housing Preservation and Development of the City of New York or any successor thereto authorized to administer this chapter. Prior assessed valuation. "Prior assessed valuation" means the total assessed value of a tax lot (land and improvements) during the tax year immediately preceding the tax year of Commencement of New Construction or Commencement of Reconstruction. Private dwelling. "Private dwelling" means a building or structure, including the land upon which it is situated, which is designed and occupied exclusively for residence purposes by not more than two families living independently of each other with separate cooking facilities. Reconstruction. "Reconstruction" means reconstruction, alteration or improvement of a Private Dwelling if the actual cost thereof is not less than forty (40%) percent of Prior Assessed Valuation.

28 RCNY § 7-02 General Applicability.

§ 7-02 General Applicability. (a) Eligible projects. As used herein, eligible projects means private dwellings which are newly constructed or reconstructed provided such construction or reconstruction commences after July 1, 1978 but before July 1, 1980 and is completed no later than April 1, 1982. (b) Other tax exemptions. No private dwelling shall be eligible for tax exemption pursuant to this chapter if it is receiving tax exemption under any other provision of law.

28 RCNY § 7-03 Amount and Duration of Tax Exemption.

§ 7-03 Amount and Duration of Tax Exemption. (a) Taxes on prior assessed valuation not subject to exemption. Taxes on prior assessed valuation are not eligible for exemption under the Act. The prior assessed valuation is subject to taxes at the tax rate in effect from time-to-time. (b) Exemption during construction or reconstruction. (1) Eligible projects which have received a Preliminary Certificate of Eligibility shall be exempt from taxes (other than assessments for local improvements) upon any increase in assessed valuation over the prior assessed valuation for the period specified in paragraph (2) of this 28 RCNY § 7-03(b). (2) The period of exemption shall commence upon the first day of the tax year immediately following the taxable status date (January 25th) after the commencement of construction or reconstruction and shall extend for two years after commencement of construction or reconstruction, unless construction or reconstruction is completed in less than two years in which case the period of exemption will terminate on the first day of the first tax year following completion of construction or reconstruction. (c) Exemption after construction or reconstruction. Following the period specified in paragraph (2) of 28 RCNY § 7-03(b), an increase in assessed valuation over the prior assessed valuation of eligible projects which have received a Final Certificate of Eligibility shall be exempt from taxes (other than assessments for local improvements) for eight consecutive tax years pursuant to the following schedule: Year Percentage of Exemption First 100% Second 100% Third 75% Fourth 62.5% Fifth 50% Sixth 37.5% Seventh 25% Eighth 12.5%

28 RCNY § 7-04 Revocation of Tax Exemption. [Repealed]

28 RCNY § 7-05 Application Procedure.

§ 7-05 Application Procedure. (a) General requirements. All applicants must file an application for a Final Certificate of Eligibility. An application for a Preliminary Certificate of Eligibility must also be filed if tax exemption during new construction or reconstruction is requested. Applicants who do not file an application for a Preliminary Certificate of Eligibility shall be required to furnish the information required in an application for a Preliminary Certificate of Eligibility and pay the Preliminary Certificate of Eligibility filing fee at the time they submit their application for a Final Certificate of Eligibility. All applications must be filed with the Director of Tax Incentive Programs, 100 Gold Street, New York, N.Y. 10038 between March 16 and January 31. The Office will not accept applications between February 1 and March 15. (b) New construction: Preliminary Certificate of Eligibility. An application for a Preliminary Certificate of Eligibility shall be filed within ninety (90) days of commencement of new construction and prior to the issuance of a Temporary Certificate of Occupancy or a Certificate of Occupancy. The application shall include: (1) A non-refundable filing fee in the amount of one hundred twenty-five ($125) dollars for each newly constructed private dwelling. (2) Applicant's affidavit in the form required by the Department which shall certify that plans have been submitted to and approved by the Department of Buildings. (3) Proof to the satisfaction of the Office of the Eligible Project's Prior Assessed Valuation. (4) An affidavit by a licensed architect or professional engineer as to the date of commencement of new construction. (c) Reconstruction: Preliminary Certificate of Eligibility. An application for a Preliminary Certificate of Eligibility shall be filed within ninety (90) days of the date of Commencement of Reconstruction. The application shall include: (1) A non-refundable filing fee in the amount of ten ($10) dollars for each reconstructed private dwelling. (2) Applicant's certification as to the date of commencement of reconstruction and that the cost of reconstruction will be not less than forty (40%) percent of the prior assessed valuation. (3) Applicant's certification of the cost or estimated cost of reconstruction and prior assessed valuation. (d) New construction: Final Certificate of Eligibility. An application for a Final Certificate of Eligibility shall be filed within ninety (90) days of issuance of a Certificate of Occupancy. The application shall include: (1) A copy of the building permit. (2) A copy of the Certificate of Occupancy. (e) Reconstruction:Final Certificate of Eligibility. An application for a Final Certificate of Eligibility shall be filed within ninety (90) days of completion of reconstruction. The application shall include: (1) Confirmation of completion of reconstruction. (2) Proof to the satisfaction of the Office that the actual cost of reconstruction is not less than forty (40%) percent of the prior assessed valuation which shall include but not be limited to: copies of paid bills, cancelled checks and work contracts. (3) Copy of building permit or alteration permit where required. (f) Filing with the Department of Finance. Upon receipt of the application for a Preliminary or Final Certificate of Eligibility, and upon the Office's determination that a private dwelling is entitled to tax exemption pursuant to the Act, the Office shall issue a Preliminary or Final Certificate of Eligibility. Applicants shall file with the Preliminary Certificate of Eligibility and the Final Certificate of Eligibility with the appropriate Borough officer of the Real Property Assessment Bureau of the Department of Finance on the next following February 1 through March 15 filing period, together with an application to said Department for tax exemption. (g) All applicants for a Preliminary or Final Certificate of Eligibility must, in addition to the timely filing of an application, provide all of the required documentation for such application on or before December 31, 2011. (h) Notwithstanding anything to the contrary contained in this section, the Department may waive the filing deadlines for an application for a Final Certificate of Eligibility set forth in 28 RCNY § 7-05(d) and (e) if (1) the Department, in its sole discretion, determines that the owner of such private dwelling reasonably relied upon a representation by the seller of such private dwelling that the seller would file or had filed the application for the Final Certificate of Eligibility, and (2) the owner of such private dwelling provides all of the required documentation for such application on or before December 31, 2011.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-55490Fetched: 10/24/2026