Property Tax Reduction

I was wondering if any one has heard of this.

I was told by someone that when you buy a new home, if you do at least $3000 worth of home improvements you can qualify for 50% off your taxes the first year.

Does anyone have ANY info on this? I originally thought it was through the Town of Brookhaven, now I'm thinking it could be from the State.

I have been trying to get the information from the person that told me about it, and have had no luck.

I have Googling it a million different ways!

Re: Property Tax Reduction

I have never heard of this. If this was true I'm sure everyone would be doing this.

Re: Property Tax Reduction

Are you talking about this?

First Time Homebuyers Tax relief

There was a post up yesterday about it and it has a link to all the info I think you're lookin for. HTH!

Re: Property Tax Reduction

Re: Property Tax Reduction

I've never heard of this... and we put 10x that amount into our house when we bought it.

Re: Property Tax Reduction

Posted by TreAnt427

Posted by cindy104

Are you talking about this?

First Time Homebuyers Tax relief

There was a post up yesterday about it and it has a link to all the info I think you're lookin for. HTH!

No, it's not this. It's a reduction of your property taxes.

I just wish this person would get back to me with the info!

Re: Property Tax Reduction

I stumbled across the info on the Islip Town page but it's a state program.

NYS BOARD OF REAL PROPERTY SERVICES RP-421-f-Ins (9/00)
INSTRUCTIONS FOR APPLICATION FOR
REAL PROPERTY TAX EXEMPTION FOR
CAPITAL IMPROVEMENTS TO RESIDENTIAL PROPERTY
(Real Property Tax Law, Section 421-f)

AUTHORIZATION FOR EXEMPTION:
Section 421-f of the Real Property Tax Law authorizes a partial exemption from real property taxation of the
increase in assessed value attributable to reconstruction, alterations or improvements made to residential property.
Counties, cities (other than New York City), towns and villages may hold public hearings and then adopt local laws
granting the exemption. School districts, other than those in the cities of New York, Buffalo, Rochester, Syracuse
and Yonkers, have the option to pass a resolution providing that the exemption applies to school taxes.
Where it is adopted, the exemption applies to taxes and special ad valorem levies; the exemption does not apply
to special assessments.

ELIGIBILITY FOR EXEMPTION:
Section 421-f sets forth several exemption criteria:
1. The property for which exemption is sought must be a one or two family residence (question 4).
2. The greater portion of the residence (as measured by square footage) after the capital improvement must be
at least five years old (question 5).
3. The capital improvement must be commenced after the date the local law or resolution is enacted (question
6).
4. Unless limited by the local law, the exemption applies to reconstruction, alterations or improvements; it
does not apply to ordinary maintenance or repairs. Describe the capital improvement in question 7.
5. The value of such reconstruction, alteration or improvement must exceed the sum of $3,000 (question 8).
Attach documentation (e.g., construction contract, building permit, receipted bills) to support the cost of
capital improvement.

The exemption is limited to $80,000 in increased market value although a municipality may reduce such
maximum; any additional value attributable to the new construction is not eligible for the exemption. The market value of the new construction is calculated by dividing the increase in assessed value attributable to the new
construction by the latest State equalization rate or special equalization rate, unless such rate is 95 percent or more, in which case the increased assessed value will be deemed to equal the market value. In Nassau County, the class one ratio is to be used to determine the market value of the improvement.

Unless limited by local law or resolution, the value of an improvement qualifying for exemption should 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

RP-421-f-Ins (9/00) 2
AUTHORIZED LIMITATIONS:
The local law or resolution may limit the maximum value of an improvement which may receive exemption to an amount less than the statutorily prescribed $80,000, but not less than $5,000.
The percentage of exemption may be reduced. This means that the percentage of exemption otherwise allowed in any of the eight years listed above may be equal to or less than the State authorized percentage. For example, the local law or resolution could provide for an exemption of 75 percent for three years, followed by an exemption of 37.5 percent for three years. An exemption of 37.5 percent for
eight years would not be allowable since that would exceed the State limit in years seven and eight.

The State law applies to “reconstruction, alterations or improvements,” but the local law or
resolution may limit the exemption to specific forms of reconstruction, alteration or improvement. The
exemption also may be limited only to improvements which prevent physical deterioration of the existing
structure or which bring it into compliance with applicable building, sanitary, health or fire codes.

FILING APPLICATION:
Application should be filed with the city or town assessor. Application for exemption from village taxes in villages should be filed with the assessor who prepares the assessment roll used in levying village taxes. In Nassau County, application for exemption from county, town or school district taxes should be
filed with Nassau County Board of Assessors. In Tompkins County, application for exemption from
county, city, town, village or school district taxes should be filed with the Tompkins County Division of
Assessment.

TIME OF FILING APPLICATION:
The application must be filed in the assessor’s office on or before the appropriate taxable status
date. In towns preparing their assessment roll in accordance with the schedule provided by the Real
Property Tax Law, the taxable status is March 1. In towns in Nassau County, the taxable status date is
January 2. In towns in Erie County, the taxable status date is May 1. In towns in Westchester County, the
taxable status date is June 1. In villages and cities, the taxable status dates vary, and the appropriate
assessor should be consulted for the correct date.
Once the exemption has been granted, it is not necessary to reapply for the exemption after the
initial year in order for the exemption to continue. There is no need to reapply in subsequent years, but if
the property ceases to be used primarily for residential purposes, or if title to the property is transferred to
persons other than the heirs or distributees of the owner, the exemption is terminated. The exemption will
automatically be recalculated in any year in which there is a change in level of assessment for the final
assessment roll of 15 percent or more. No local law or resolution may repeal or reduce an exemption
granted pursuant to section 421- f until expiration of the period of that exemption.


Tax relief for renovations

Tax form

Re: Property Tax Reduction

i am skeptical. there has to be a reason that they do this... is this so they can monitor your house value and stick it to you in the end? can anyone interpret this and explain in lament terms?
i am very interested in this.

thanks OP for posting it!!

Re: Property Tax Reduction

Re: Property Tax Reduction

This is EXACTLY what I was looking for!!! Thank you so much KLSBear for finding it for me!!!!

Re: Property Tax Reduction

It seems to be a well kept secret!

I was looking for something totally unrelated on the Islip Town site when I stumbled across it. I e-mailed it to a friend doing some renovations and now that we're doing them too it's going to come in handy. I'm glad I could help!

Re: Property Tax Reduction

A while back I did that property tax reduction from a company that sends about letters about it. They did get me like a 1400 dollar reduction, but then you have to pay them half of that right away. and then the taxes just go up again, lol.

Re: Property Tax Reduction

I think that the percentages are just for the new increase in taxes though?

If you pay $10K in taxes, do x in improvements to cause your taxes to go to $12K, you still pay the $10K and then each year it goes up a little to reach the $12K. Is that what I'm reading?