485e
available in designated areas
Section 485e of the Real Property Tax Law allows for an abatement of increases in real property taxes that result from the construction or improvement to property located in a zone for a period of up to ten years. All types of real property located in an EDZ are eligible for this abatement including residential property. EDZ certification is not required.
The 485e option selected by all taxing jurisdictions in the Friendship Empire Zone provides for a ‘soft landing’ 10-year abatement program beginning the year in which the property was improved, without regard to the expiration of the zone. Each taxpayer will receive a full 10-year abatement at 100% for seven years after the property was improved, decreasing 25% in each of the following three years.
Example 7:
Property improved in 2002 will be eligible for an abatement according to the following schedule:
- 2002 – 2009 = 100% abatement
- 2010 = 75% abatement
- 2011 = 50% abatement
- 2012 = 25% abatement