New York State department of taxation and Finance - Office of Real Property Tax Services
real property tax incentive programs: branch banks in banking development districts


This program encourages the establishment of bank branches in certain underserved areas.


If allowed by local option, real property that (1) is altered, constructed, installed, or improved for use as a branch of a bank, trust company or national bank (excluding ordinary maintenance and repairs) and (2) is located in an area designated as a banking development district by the New York State Superintendent of Banks pursuant to Banking Law section 96-d is partially exempt from taxation and special ad valorem levies for 10 years, but is liable for special assessments.

The amount of the exemption is limited to a percentage of the increase in assessed value attributable to the alteration, construction, installation, or improvement as determined in the first year of the exemption.  The increase in assessed value (“exemption base”) used to calculate the amount of the exemption remains constant throughout the term of the exemption, except (1) where there is subsequent alteration, construction, installation, or improvement during the term of the exemption or (2) where there occurs in the assessing unit an overall change in the level of assessment of 15% or more; in either case the exemption base must be adjusted.


NYS Office of Real Property Tax Services
Local Assessor

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