Instructions for Form RP-485-A "Application for Real Property Tax Exemption for Residential-Commercial Urban Exemption Program" - New York

This document contains official instructions for Form RP-485-A, Application for Real Property Tax Exemption for Residential-Commercial Urban Exemption Program - a form released and collected by the New York State Department of Taxation and Finance. An up-to-date fillable Form RP-485-A is available for download through this link.

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Download Instructions for Form RP-485-A "Application for Real Property Tax Exemption for Residential-Commercial Urban Exemption Program" - New York

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RP-485-a-Ins (1/05)
NEW YORK STATE DEPARTMENT OF TAXATION & FINANCE
OFFICE OF REAL PROPERTY TAX SERVICES
INSTRUCTIONS FOR APPLICATION FOR REAL PROPERTY TAX EXEMPTION FOR
RESIDENTIAL-COMMERCIAL URBAN EXEMPTION PROGRAM
(Real Property Tax Law, Section 485-a)
1. Authorization for exemption
Section 485-a of the Real Property Tax Law, at local option, authorizes a declining 12 year partial
exemption from real property taxation and special ad valorem levies for non-residential property
converted to a mix of residential and commercial uses. The property must be located in a city (other than
New York City), a town, or a village.
An eligible city, town, or village may enact a local law to adopt the residential-commercial urban
exemption. After such a city, town, or village adopts the exemption, the county and any school district
that is located wholly or partially within such city, town or village, other than the fiscally dependent
Buffalo, Rochester, Syracuse and Yonkers School Districts, also may adopt the exemption with the same
restrictions approved by the city, town, or village. The county’s approval of the exemption would require
a local law and the school district’s approval would require a resolution. Consult your assessor to
ascertain whether the city, town, village, or county, and, where applicable, the school district have
adopted the exemption.
2. Eligible Conversions
An eligible conversion must have a cost in excess of $10,000 or a higher amount stated in the local
law adopted by the city, town, or village. The assessor can tell you the minimum cost required in your
city, town, or village. The exemption applies only to construction commenced subsequent to the date on
which the local law adopted by the city, town, or village takes effect. The exemption does not apply to
improvements for dwelling units in a hotel and also does not apply to ordinary maintenance and repairs.
3. Duration and computation of exemption
The exemption is calculated as a percentage of the “exemption base,” which is the increase in
assessed value attributable to the conversion. The base should be determined for each year in which there
is such an increase attributed to an eligible conversion. The exemption is to be calculated by the
following method:
Year of Exemption
Percentage of Exemption
1 through 8
100% of Exemption Base
9
80% of Exemption Base
10
60% of Exemption Base
11
40% of Exemption Base
12
20% of Exemption Base
The exemption generally may not be granted concurrent with or subsequent to any other
exemption for the same improvements. There is an exception when, during the period of a previous
exemption, payments in lieu of taxes or other payments were made to the local government in an amount
equal to or greater than the taxes that would have been payable for that period if the property had received
exemption pursuant to Section 485-a. In that situation, a residential-commercial urban exemption is to be
granted for 12 years less the number of years the above-described payments were made.
RP-485-a-Ins (1/05)
NEW YORK STATE DEPARTMENT OF TAXATION & FINANCE
OFFICE OF REAL PROPERTY TAX SERVICES
INSTRUCTIONS FOR APPLICATION FOR REAL PROPERTY TAX EXEMPTION FOR
RESIDENTIAL-COMMERCIAL URBAN EXEMPTION PROGRAM
(Real Property Tax Law, Section 485-a)
1. Authorization for exemption
Section 485-a of the Real Property Tax Law, at local option, authorizes a declining 12 year partial
exemption from real property taxation and special ad valorem levies for non-residential property
converted to a mix of residential and commercial uses. The property must be located in a city (other than
New York City), a town, or a village.
An eligible city, town, or village may enact a local law to adopt the residential-commercial urban
exemption. After such a city, town, or village adopts the exemption, the county and any school district
that is located wholly or partially within such city, town or village, other than the fiscally dependent
Buffalo, Rochester, Syracuse and Yonkers School Districts, also may adopt the exemption with the same
restrictions approved by the city, town, or village. The county’s approval of the exemption would require
a local law and the school district’s approval would require a resolution. Consult your assessor to
ascertain whether the city, town, village, or county, and, where applicable, the school district have
adopted the exemption.
2. Eligible Conversions
An eligible conversion must have a cost in excess of $10,000 or a higher amount stated in the local
law adopted by the city, town, or village. The assessor can tell you the minimum cost required in your
city, town, or village. The exemption applies only to construction commenced subsequent to the date on
which the local law adopted by the city, town, or village takes effect. The exemption does not apply to
improvements for dwelling units in a hotel and also does not apply to ordinary maintenance and repairs.
3. Duration and computation of exemption
The exemption is calculated as a percentage of the “exemption base,” which is the increase in
assessed value attributable to the conversion. The base should be determined for each year in which there
is such an increase attributed to an eligible conversion. The exemption is to be calculated by the
following method:
Year of Exemption
Percentage of Exemption
1 through 8
100% of Exemption Base
9
80% of Exemption Base
10
60% of Exemption Base
11
40% of Exemption Base
12
20% of Exemption Base
The exemption generally may not be granted concurrent with or subsequent to any other
exemption for the same improvements. There is an exception when, during the period of a previous
exemption, payments in lieu of taxes or other payments were made to the local government in an amount
equal to or greater than the taxes that would have been payable for that period if the property had received
exemption pursuant to Section 485-a. In that situation, a residential-commercial urban exemption is to be
granted for 12 years less the number of years the above-described payments were made.
2
RP-485-a-Ins (1/05)
4. Time of filing application
The application must be filed with the assessor on or before the applicable taxable status date.
Since taxable status dates for cities, towns, or villages vary, you should ask the assessor for the correct
date.
Once the exemption has been granted, the exemption may continue for the authorized period
provided that the eligibility requirements continue to be satisfied. It is not necessary to reapply for the
exemption after the initial year in order for the exemption to continue.
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