New York State Department of Taxation and Finance
Office of Real Property Tax Services
Instructions for Form RP-485-n
Application for Real Property Tax Exemption for
Residential-Commercial Properties in Certain Counties
(Real Property Tax Law, Section 485-n, for use in Livingston and Steuben Counties only)
1. Authorization for exemption
Section 485-n of The Real Property Tax Law (RPTL) authorizes the governing body of a city,
town, or village in Livingston or Steuben County to adopt a local law offering a partial tax
exemption from town taxes and town special ad valorem levies, from city taxes or from village
taxes, to properties that are converted, created, modernized, rehabilitated, expanded, or
otherwise improved for commercial and mixed residential and commercial uses. The partial
exemption does not apply to special assessments. The property owner must meet the following
The property must be located in a benefit area, as designated in the local law.
Benefits of the exemption are reserved exclusively on property converted, created,
modernized, rehabilitated, expanded, or otherwise improved for commercial and mixed
The portion of the project devoted to residential construction work may not include dwelling
units in a hotel.
The cost of construction of the project must exceed $10,000 or a greater amount as
specified in the local law.
Costs attributable to ordinary maintenance and repairs are not eligible for the exemption.
The eligible project may not commence until after the date of the municipality’s local law has
Completion of project must be demonstrated by a certificate of occupancy.
Upon adoption of a local law by any city, town, or village, any of the other municipal
corporations in which the designated benefit area is located may likewise offer this exemption
by local law. After adoption by any such city, town or village, the county and any school
district(s) in which the designated benefit area is located may also elect to offer this exemption
by local law of the county government, or by resolution of the school board(s), respectively.
2. Duration and computation of exemption
If the exemption is locally authorized, the exemption benefit starts at 100% of the increase in
assessed value attributable to the conversion, creation, modernization, rehabilitation, expansion
or otherwise eligible improvement in the first through eighth years of a 12-year benefit, and
declines by 20 percentage points in each succeeding year thereafter.
This exemption may not be granted concurrent with or subsequent to any other property tax
exemption with respect to the same project, except that a subsequent exemption may be
granted where, during the period of a previous exemption, payments in lieu of taxes or other
payments were made to a local government in an amount equal to or greater than the amount of
taxes that would have been paid on the improvements had the property been granted an
exemption pursuant to RPTL §485-n. In that case, the property may be eligible for a §485-n