BILL NUMBER: S2320
SPONSOR: FAHY
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to changing the
amount of the exemption permitted for capital improvements to residen-
tial buildings
 
PURPOSE:
To increase the amount permitted for capital improvements to residential
buildings from eighty thousand dollars to two hundred thousand dollars
 
SUMMARY OF SPECIFIC PROVISIONS:
Amends subsection 421-f of the real property tax law
 
JUSTIFICATION:
This bill addresses the critical need to update the capital improvement
exemption threshold to reflect current economic realities in New York
State's residential real estate market. The existing $80,000 cap, which
has remained unchanged for years, no longer adequately accounts for the
substantial increase in construction costs, material prices, and overall
property values across the state.
Rising inflation and supply chain challenges have significantly
increased the cost of home improvements, making the current exemption
limit insufficient for many necessary renovation projects. By increasing
the threshold to $200,000, this amendment will encourage homeowners to
invest in meaningful improvements to their properties, which will help
maintain and enhance the state's housing stock.
This update will particularly benefit middle-class homeowners who wish
to modernize aging homes, improve energy efficiency, or make necessary
structural improvements. The increased exemption will also stimulate
local economies by encouraging construction projects, supporting skilled
labor jobs, and generating economic activity in related industries.
 
LEGISLATIVE HISTORY:
A2563 of 2019-20
A3121 of 2021-22
A3889 of 2023-24
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This bill will take effective immediately.

Statutes affected:
S2320: 421-f real property tax law, 421-f(2) real property tax law