This incentive is optional for each taxing jurisdiction. If the jurisdiction adopts this incentive, real property constructed, altered, installed, or improved in the Empire Zone shall be exempt for up to seven years from any taxes on the increases in assessment, which may result from such improvements. This period of the exemption is followed by a three-year phase-in, during which time taxes are paid on the additional assessment at increasing increments of 25% each year.
EXAMPLE:
The schedule of the tax - applied to the increase in assessment is:
Years 1–7: |
0% |
Year 8: |
25% |
Year 9: |
50% |
Year 10: |
75% |
Year 11: |
100% |
In the Poughkeepsie/Dutchess Empire Zone, only the City of Poughkeepsie and the City of Poughkeepsie School District have adopted the 485e program.
The exemption applies to all improved property, including residential. To apply for the exemption, the property owner must apply to the building assessor prior to the close of the municipal assessment rolls for that year. The property owner is not required to be a certified business.
The 485e exemption is in addition to the EZ Real Property Tax Credit. Please contact EZ staff for current local status.