§ 65-26. Exemption granted.

A. 

Residential buildings reconstructed, altered or improved shall be exempt from taxation and special ad valorem levies for a period of one year to the extent of 100% of the increase in assessed value thereof attributable to such reconstruction, alterations or improvements and an additional period of seven years as follows:

(1) 

The extent of such exemption shall be decreased by 12 1/2% of the exemption base during such additional periods. The exemption base shall be the increase in assessed value as determined in the initial year of the term of the exemption except as provided in § 421-f(2)(a)(ii) of the Real Property Tax Law.

(2) 

Such exemption shall be limited to eighty thousand dollars in increased market value of the property attributable to such reconstruction, alteration or improvement.

B. 

No such exemption shall be granted for reconstruction, alterations or improvements unless:

(1) 

Such reconstruction, alteration or improvement was commenced subsequent to the effective date of this article; and

(2) 

The value of such reconstruction, alteration or improvement exceeds $3,000; and

(3) 

The greater portion, as so determined by square footage, of the building reconstructed, altered or improved is at least five years old.

C. 

For purposes of this article, a “residential building” shall mean any building or structure designed and occupied exclusively for residential purposes by not more than two families.

D. 

In the event that a building granted an exemption pursuant to this section ceases to by used primarily for residential purposes or title thereto is transferred to other than the heirs or distributees of the owner, the exemption granted pursuant to this article shall cease.