What is the Capital Improvement Residential Tax Exemption?

The Capital Improvement Residential tax exemption requires improvements to have a minimum of $3,000 in expenditures with a maximum exemption of $80,000 to be applied towards the increase in value. In order to qualify for this tax exemption, applicants must:

  • Provide copies of at least $3000 in expenditures
  • The renovation cannot be more than double the size of the dwelling
  • Must provide a Certificate of Occupancy (CO) which cannot be more than a year old

The tax exemption applies to the increase in value due to the improvements. The first year the exemption is applied, there will be a zero increase on the first $80,000 of increase in value. Thereafter, the tax on the improvement increases each year by 12.5%; with the full tax on the improvement phased in over an 8 year period. The Capital Improvement Exemption Application is available online or can be obtained from the Assessor’s Office. Any questions, please call the Assessor’s Office at (631) 957-3014.

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1. What are Babylon's various tax exemptions?
2. How do I apply for tax exemption?
3. What is the deadline to file an application for property tax exemptions?
4. Does my property lose the exemption if I transfer it into a life estate?
5. Why isn't my exemption reflected on my tax bill?
6. How can I find out what exemptions I already have or applied for?
7. What is the Capital Improvement Residential Tax Exemption?