485-b BUSINESS INVESTMENT EXEMPTION

Section 485-b of the Real Property Tax Law authorized a partial tax exemption from assessment increases due to commercial, business and industrial real property construction, alteration or improvements.

ELIGIBILTY:

• Real property construction, alteration, installation or improvements occurring within one year (does not include ordinary maintenance and repairs);
• Cost of construction, alteration, installation or improvement exceeds $10,000; and
• The real property is not of a residential use.

BENEFITS:

Amount of exemption is limited, in the first year, to 50% of increase in assessed value attributable to the construction or improvement; in each succeeding year, the amount of exemption is decreased by 5%.

BASIC STRUCTURE:

Application for exemption must be filed by the owner of such real property and submitted to the City assessor within one year of completion.

The following table illustrates the computation of the tax exemption:

Year of Exemption	Percentage of Exemption
1	50%
2	45%
3	40%
4	35%
5	30%
6	25%
7	20%
8	15%
9	10%
10	5%

Applications are available from the City Assessors office,