NY S01681

Creates a new real property tax exemption for improvements to residential properties of severely injured armed forces members with service-connected combat disabilities, to be approved by county, city, town, village, or school district boards.

Provides a 10-year declining exemption schedule ranging from 50% in year one down to 5% in year 10 for eligible alterations, installations, or improvements that remove architectural barriers.

Limits exemption eligibility to improvements commenced after the service member's combat disability and after local law adoption; prior improvements may receive remaining exemption period without refunds of previously paid taxes.

Requires applicants to submit military ID, current military orders, commander statement, treating physician letters, after-action reports describing the disability, and other evidence as determined by the commissioner.

Allows local jurisdictions to reduce exemption percentages and limit eligible improvement types through local law or resolution; exemption does not apply to service members already receiving other disabled veteran property tax exemptions under existing law.