Local approval could give eligible first-time buyers a property tax break

A local government or eligible school district may offer a temporary property tax exemption to qualifying buyers. The home must be an owner-occupied, one- or two-family house, townhouse, or condominium in New York. Each buyer must meet the first-time homebuyer definition, including limits on past home ownership and vacation or investment homes. A county, city, town, or village must adopt a local law after a public hearing, or an eligible school district must adopt a resolution. The local law or resolution sets the exemption period, up to five years. The owner must apply, and the assessor must approve the application. The exemption would start with the assessment roll based on the taxable status date when the assessor approves the application. The measure would apply to rolls based on taxable status dates on or after March 31, 2027.

The text ties eligibility to county home-price and household-income limits and allows some local bodies to raise the price limit. These limits apply to buyers seeking the exemption for a primary residence. The limits are those for the county under the New York State mortgage agency program in effect on the purchase contract date. A local government or eligible school district may raise the price limit by up to 25 percent. A home priced more than 15 percent above the maximum eligible price gets no exemption; a home priced above the maximum but no more than 15 percent above it may qualify for a partial exemption. Household income includes the owners and any owners' spouses who live in the home. The county limits in effect on the purchase contract date apply.

The assessor must end the exemption if the home is partly rented, stops being used mainly as a residence, or changes ownership outside the owner's heirs or distributees. These rules apply while the home receives the exemption. Owners may seek administrative or court review of the assessor's decision. The owner has the burden to establish eligibility in that review. These use and ownership rules apply during the exemption period.