N.Y. Real Property Tax Law § 485-p: Economic transformation area exemption

* § 485-p. Economic transformation area exemption. 1. (a) Real

property constructed, altered, installed or improved in an economic

transformation area as defined in subdivision ten of section four

hundred of the economic development law which is used for business,

commercial or industrial purposes and which is owned by a business

entity that has been issued a certificate of eligibility pursuant to

subdivision three of section four hundred two of the economic

development law shall be exempt from taxation and special ad valorem

levies by any municipal corporation in which located, for the period and

to the extent herein provided, provided that the governing board of such

municipal corporation, after public hearing, adopts a local law,

ordinance or resolution providing therefore. Such local law, ordinance

or resolution must be adopted within three years of the date of the

closure of a closed facility (as that term is defined in subdivision

eleven of section four hundred of the economic development law) located

in the economic transformation area.

(b) The exemption so authorized shall be for a term of five years. The

amount of such exemption shall be as follows:

(i) If the construction, alteration, installation or improvement

occurs on or at the site of the closed facility in the economic

transformation area, then the exemption in the first year of its term

shall be fifty percent of the "base amount," determined pursuant to

subdivision two of this section. The amount of the exemption in the

second, third, fourth and fifth year of its term shall be forty percent,

thirty percent, twenty percent and ten percent, respectively, of such

base amount.

(ii) If the construction, alteration, installation or improvement

occurs in the economic transformation area outside of the closed

facility, then the exemption in the first year of its term shall be

twenty-five percent of the "base amount," determined pursuant to

subdivision two of this section. The amount of the exemption in the

second, third, fourth and fifth year of its term shall be twenty

percent, fifteen percent, ten percent and five percent, respectively, of

such base amount.

2. (a) The base amount of the exemption shall be the extent of the

increase in assessed value attributable to such construction,

alteration, installation or improvement as determined in the initial

year for which application for exemption is made pursuant to this

section. The base amount shall remain constant for the authorized term

of the exemption, subject to the following:

(i) If there is subsequent construction, alteration, installation or

improvement during the term of the exemption, the base amount shall be

revised to include the increase in assessed value attributable to such

construction, alteration, installation or improvement.

(ii) If a change in level of assessment of fifteen percent or more is

certified for an assessment roll pursuant to the rules of the

commissioner, the base amount shall be adjusted by such change in level

of assessment. The exemption on that assessment roll shall thereupon be

recomputed, notwithstanding the fact that the assessor receives the

certification after the completion, verification and filing of the final

assessment roll. In the event the assessor does not have custody of the

roll when such certification is received, the assessor shall certify the

recomputed exemption to the local officers having custody and control of

the roll, and such local officers are hereby directed and authorized to

enter the recomputed exemption certified by the assessor on the roll.

(b) No such exemption shall be granted unless the construction,

alteration, installation or improvement commenced within one year of the

date of the issuance of the certificate of eligibility to the property

owner.

(c) For purposes of this section the terms construction, alteration,

installation and improvement shall not include ordinary maintenance and

repairs.

(d) No such exemption shall be granted concurrently with or subsequent

to any other real property tax exemption granted to the same

improvements to real property, except, where during the period of such

previous exemption, payments in lieu of taxes or other payments were

made to the local government in an amount that would have been equal to

or greater than the amount of real property taxes that would have been

paid on such improvements had such property been granted an exemption

pursuant to this section. In such case, an exemption shall be granted

for a number of years equal to the five year exemption granted pursuant

to this section less the number of years the property would have been

previously exempt from real property taxes.

3. Such exemption shall be granted only upon application by the owner

of such real property on a form prescribed by the commissioner. The

original of such application shall be filed with the assessor of the

assessing unit. Such original application shall be filed on or before

the appropriate taxable status date of such assessing unit and no later

than one year from the date of completion of such construction,

alteration, installation or improvement.

4. If the assessor receives an application by the owner of the real

property, he or she shall approve the application and such real property

shall thereafter be exempt from taxation as herein provided commencing

with the assessment roll prepared after the taxable status date referred

to in subdivision three of this section. The assessed value of any

exemption granted pursuant to this section shall be entered by the

assessor on the assessment roll with the taxable property, with the

amount of the exemption entered in a separate column.

* NB Repealed December 31, 2026