§ 6-06 The Tax Exemption.
RCNY § 6-06
(a)Taxes on prior assessed valuation not subject to exemption. Taxes on the assessed value of land receiving benefits under this section, and any improvements thereon, during the tax year preceding the commencement of construction are not eligible for exemption under the Act. Tax exemption under the Act is not available until the tax year following the first year taxable status date following commencement of construction. The Prior Assessed Valuation remains subject to taxation at the prevailing rate from year to year.
(b)Diminution of tax exemption for excess commercial space. As of July 1, 1975, in the event the multiple dwelling contains Floor Area of Commercial, Community Facility and/or Accessory Use Space which exceeds twelve percent (12%) of the Aggregate Floor Area, there shall be a diminution of the tax exemption in an amount equal to the ratio of Floor Area of Commercial, Community Facility and/or Accessory Use Space in excess of twelve percent (12%) of the Aggregate Floor Area to the Aggregate Area. Where a project contains a separately assessed parcel such as a residential condominium located above a separately owned commercial space, the proportionate reduction of tax exemption resulting from Commercial, Community Facility and Accessory Use Space in excess of twelve percent (12%) shall be allocated entirely to the non-residential parcel or parcels up to the point that no exemption exists for any such parcel before applying the reduction in exemption to the residential space, provided, however, that such allocation shall only be made with respect to properties for which a preliminary application for benefits is received after July 26, 1993 or for which a final application is received after such date if no preliminary application was received.
(c)Exemption during construction. Multiple Dwellings which satisfy all of the requirements set forth herein and have received a Preliminary Certificate of Eligibility shall be exempt from real property taxes, other than assessments for local improvements, upon any increase in assessed valuation over the Prior Assessed Valuation during the statutorily defined period of construction, or for a period of three years, whichever is less, provided that taxes shall be paid in each tax year in which full or partial exemption is in effect on the Prior Assessed Valuation, as defined in 28 RCNY § 6-01(c).
(d)Exemption after construction. After the first taxable status date immediately following the completion of construction any increase in assessed valuation over the Prior Assessed Valuation of eligible multiple dwellings which have received a Final Certificate of Eligibility shall be exempt from real property taxes, other than assessments for local improvements, for either ten, fifteen, twenty or twenty-five consecutive tax years, as provided in 28 RCNY § 6-02(d), pursuant to the following schedules. In addition, owners must pay full taxes on the Prior Assessed Valuation, as defined in 28 RCNY § 6-01)(c). TEN YEAR EXEMPTION YearPercent of Increased Assessed Valuation Which is Exempt First100% Second100% Third80% Fourth80% Fifth60% Sixth60% Seventh40% Eighth40% Ninth20% Tenth20% Eleventh0% FIFTEEN YEAR EXEMPTION YearPercent of Increased Assessed Valuation Which is Exempt First through Eleventh100% Twelfth80% Thirteenth60% Fourteenth40% Fifteenth20% Sixteenth 0% TWENTY YEAR EXEMPTION YearPercent of Increased Assessed Valuation Which is Exempt First through Twelfth100% Thirteenth and Fourteenth80% Fifteenth and Sixteenth60% Seventeenth and Eighteenth40% Nineteenth and Twentieth20% Twenty-first0% TWENTY-FIVE YEAR EXEMPTION YearPercent of Increased Assessed Valuation Which is Exempt First through twenty-first100% Twenty-second80% Twenty-third60% Twenty-fourth40% Twenty-fifth20% Twenty-sixth0% (e) Period of gradual diminution of tax exemption. Solely for purposes of 28 RCNY § 6-04(b), the period of gradual diminution of tax exemption shall be the following: (1) For the ten year benefit period, the ten years beginning in the first year of exemption after completion of construction.
(2)For the fifteen year benefit period, the five years beginning in the eleventh year of exemption after completion of construction.
(3)For the twenty year benefit period, the eight years beginning in the thirteenth year after completion of construction.
(4)For the twenty-five year benefit period, the five years beginning in the twenty-first year of exemption after completion of construction.
