Enacts the "homebuyer renovation property tax exemption act"

• Republican10
• Democratic1

◆ The sponsor's argument

Why Pamela Helming says this is needed

It is widely acknowledged that New York State is facing a severe short- age of housing. At the same time, many properties in New York State remain vacant, abandoned, or underutilized. Bringing this additional housing online would provide additional housing options for New Yorkers and would be a step towards addressing New York's current housing crisis. However, current market conditions make reconstruction, renovations, and alterations to currently dilapidated or outdated housing increasingly expensive. Due to inflation, supply chain issues and government poli- cies, material and labor costs continue to rise, and construction costs are projected to increase an additional three to six percent by the end of 2024. These costs can often prevent homebuyers from purchasing prop- erties which will require major renovation or alteration, leaving these properties vacant. This legislation would offset rising costs associated with recon- struction, renovations, and alterations by providing tax relief to home- buyers who begin reconstruction, renovations, or alterations valued at $15,000 or more, either as a part of a written contract for the sale of a primary residence or through a written contract entered into within one hundred eighty days after closing of the sale of a primary resi- dence. This tax relief will incentivize homebuyers to make significant improvements to the current housing stock and bring currently vacant or outdated homes back online. Homebuyers who qualify for this tax exemption will be exempt from increases in local taxes based on an increase in the property assessment which is attributable to the reconstruction, alteration, or improvement. The exemption will last for a period of five years following the purchase of the home. This provides a tax incentive for homebuyers making major improvements while also preventing decreases in funding for local governments and school districts, as the homebuyer will still be responsible for all taxes based on the assessed value prior to recon- struction, renovation, or alteration as well as any special ad valorem levies.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.