County staff pitches two state exemption models (RP-421F and RP-421P) to spur home improvements and ADUs

County planning staff briefed the committee on two New York State tax-exemption tools that local governments may adopt to encourage residential investment.

Megan Karkowski explained RP‑421F allows counties to phase the tax impact of qualifying owner‑occupied one‑ and two‑family improvements (default program values: minimum project $3,000, maximum eligible value up to $80,000 unless locally capped). The exemption typically covers 100% of the assessed increase in year one and reduces incrementally (commonly by 12.5% per year) over an eight‑year schedule.

RP‑421P is a variant intended to promote accessory dwelling units (ADUs); Karkowski said it commonly exempts the assessment increase for the ADU for five years, then phases the exemption over the next five years, incentivizing creation of compliant smaller rental units without new subdivision infrastructure. She urged that towns and school districts be coordinated with the county adoption.

Legislators questioned administrative burdens on assessors, the size of the taxpayer incentive relative to project cost (a $40,000 improvement yields modest annual tax savings), and whether towns would opt into the county framework. Staff said implementation details (documentation requirements, caps and the exemption schedule) are customizable and that the county could adopt a template to ease town adoption.

The committee did not adopt a local law at the meeting but directed staff to continue outreach and consider timing and administrative workload in any proposed local law.