BILL NUMBER: S5779EREVISED 6/3/2024
SPONSOR: OBERACKER
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to establishing a
residential investment exemption in certain cities
 
PURPOSE:
Establishes a residential investment exemption in certain cities
 
SUMMARY OF PROVISIONS:
Section 1. The real property tax law is amended by adding a new section
485-y to read as follows: 485-y. Vacant residential real property
improvement exemption; certain cities. 1. Construction of improvements
to residential real property, provided that such real property was
continuously vacant for a period of at least three years prior to such
construction, initiated on or after January first, two thousand twenty-
five in a city with a population of not less than seven thousand fifty
and not more than seven thousand sixty, determined in accordance with
the two thousand twenty census, may be exempt from city taxation as
provided in this section.
Section 2. (a) (i) Creates an immediate effective date.
 
JUSTIFICATION:
The City of Norwich requested this legislation to encourage development
of the vacant residential parcels along with increase the City's tax
base that will eventually add to the City of Norwich's taxable assessed
values. To be eligible, all parcels must be classified as code 311 Resi-
dential Vacant Land on the City's tax roll. Qualifying improvements will
be Residential dwellings only.
The City is only offering the incentive to residential dwellings not
commercial to provide additional housing within the City. The incentive
will allow the property owner to build the dwelling tax free for 18
months or until the Certificate of Occupancy is issued. After this
time, the property will be fully assessed but the property owner will
have 5 years on a sliding scale before they pay taxes on their full
assessment.
Currently there is no specific site plan for each lot, but they must be
residential dwellings and must meet all code and zoning requirements.
There are approximately 70 residential vacant lots on the City's tax
roll, and they are located throughout the City limits. This legislation
would assist the City of Norwich to provide an incentive for these resi-
dential vacant lots to property owners along with improve the housing
stock within the City too.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL AND LOCAL IMPLICATIONS:
To be determined.
 
LOCAL FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.