N.Y. Real Property Tax Law § 489-bbbb: Power to enact local law; real property tax exemption; deferral of tax payments

§ 489-bbbb. Power to enact local law; real property tax exemption;

deferral of tax payments. Any city having a population of one million or

more, acting through its local legislative body, is authorized and

empowered to determine that incentives in the form of exemption from or

abatement or deferral of payment of real property taxes are necessary to

encourage industrial and commercial development in such city and to

enact a local law providing that such benefits shall be provided in the

manner set forth in this title. Such city shall be divided into six

classes of areas as provided in this title and pursuant to designation

of areas to be made by a temporary commercial incentive area boundary

commission. Within such areas, the following benefits shall be available

to qualified recipients:

1. (a) A recipient who, following the effective date of a certificate

of eligibility, has performed industrial construction work in any area

of such city shall be eligible for an exemption from real property taxes

as follows: For the first thirteen tax years, the recipient shall be

exempt from taxation on one hundred per centum of the exemption base.

For the following nine tax years, the recipient shall be exempt from

taxation on a percentage of the exemption base beginning at ninety per

centum thereof in the fourteenth tax year and decreasing by ten per

centum of said exemption base each year.

The following table shall illustrate the computation of the exemption

for industrial construction work:

Tax year following effective

date of certificate of

eligibility: Amount of exemption:

1 through 13 Tax on 100% of exemption base

14 Tax on 90% of exemption base

15 Tax on 80% of exemption base

16 Tax on 70% of exemption base

17 Tax on 60% of exemption base

18 Tax on 50% of exemption base

19 Tax on 40% of exemption base

20 Tax on 30% of exemption base

21 Tax on 20% of exemption base

22 Tax on 10% of exemption base

(b) Notwithstanding paragraph (a) of this subdivision, a recipient who

filed an application for a certificate of eligibility for industrial

construction work in any area of such city on or after July first,

nineteen hundred ninety-five, and who, following the effective date of

such certificate of eligibility, has performed such industrial

construction work shall be eligible for an exemption from real property

taxes as follows: For the first sixteen tax years, the recipient shall

be exempt from taxation on one hundred per centum of the exemption base.

For the following nine tax years, the recipient shall be exempt from

taxation on a percentage of the exemption base beginning at ninety per

centum thereof in the seventeenth tax year and decreasing by ten per

centum of said exemption base each year.

The following table shall illustrate the computation of the exemption

for industrial construction work pursuant to this paragraph:

Tax year following effective

date of certificate of

eligibility: Amount of exemption:

1 Through 16 Tax on 100% of exemption base

17 Tax on 90% of exemption base

18 Tax on 80% of exemption base

19 Tax on 70% of exemption base

20 Tax on 60% of exemption base

21 Tax on 50% of exemption base

22 Tax on 40% of exemption base

23 Tax on 30% of exemption base

24 Tax on 20% of exemption base

25 Tax on 10% of exemption base

(c)(i) A recipient who filed an application for a certificate of

eligibility for industrial construction work in any area of such city on

or after July first, nineteen hundred ninety-five, and who, following

the effective date of such certificate of eligibility, both commenced

and completed such work, shall be eligible for an abatement of real

property taxes as follows: For the first tax year immediately following

completion of such work, and for the second, third and fourth tax years

following completion of such work, the abatement shall equal fifty per

centum of the real property tax that was imposed on the property which

is the subject of the certificate of eligibility for the tax year

immediately preceding the effective date of such certificate of

eligibility, provided, however, that if such property was fully or

partially exempt from real property taxes during such tax year, then the

abatement shall equal fifty per centum of the real property tax that

would have been imposed on such property but for such full or partial

exemption. For the fifth and sixth tax years, the abatement shall equal

forty per centum of such amount; for the seventh and eighth tax years,

the abatement shall equal thirty per centum of such amount; for the

ninth and tenth tax years, the abatement shall equal twenty per centum

of such amount; and for the eleventh and twelfth tax years, the

abatement shall equal ten per centum of such amount. Notwithstanding any

inconsistent provision of this paragraph, a recipient shall not be

eligible for an abatement for the first tax year following completion of

such work, unless the recipient submits proof satisfactory to the

department of finance that such work was completed on or before the

taxable status date for such first tax year no later than thirty days

after such taxable status date. Where the recipient fails to submit such

proof in accordance with the foregoing sentence, a recipient shall not

be eligible for an abatement until the second tax year following

completion of such work. In such case, a recipient shall submit proof

satisfactory to the department of finance that such work was completed

on or before the taxable status date for such first tax year no later

than thirty days after the taxable status date for such second tax year.

A recipient whose abatement begins in the second tax year following

completion of such work shall not thereby have his or her twelve-year

benefit period shortened.

The following table shall illustrate the computation of the abatement

for industrial construction work pursuant to this paragraph:

Tax year following

completion of industrial

construction work: Amount of abatement:

1 50%

2 50%

3 50%

4 50%

5 40%

6 40%

7 30%

8 30%

9 20%

10 20%

11 10%

12 10%

(ii) If, due to a determination of the department of finance or tax

commission of such city or a court, the real property tax imposed on

such property for the tax year immediately preceding the effective date

of such certificate of eligibility is changed, then any abatement that

was granted in accordance with this paragraph prior to such reduction

shall be recalculated and any abatement to be granted in accordance with

this paragraph shall be based on the real property tax imposed on such

property for the tax year immediately preceding the effective date of

such certificate of eligibility, as changed by such determination. The

amount equal to the difference between the abatement originally granted

and the abatement as so recalculated shall be deducted from any refund

otherwise payable or remission otherwise due as a result of a change due

to such determination, and any balance of such amount remaining unpaid

after making any such deduction shall be paid to the department of

finance within thirty days from the date of mailing by the department of

finance of a notice of the amount payable. Such amount payable shall

constitute a tax lien on such property as of the date of such notice

and, if not paid within such thirty-day period, penalty and interest at

the rate applicable to delinquent taxes on such property shall be

charged and collected on such amount from the date of such notice to the

date of payment.

(iii) No property which is the subject of a certificate of eligibility

pursuant to this title shall receive more than one abatement pursuant to

this title and no abatement shall exceed one consecutive twelve-year

period as specified in subparagraph (i) of this paragraph.

(iv) In no event shall an abatement granted pursuant to this title

exceed in any tax year the real property taxes imposed on the property

which is the subject of a certificate of eligibility pursuant to this

title.

(v) For the purpose of calculating an abatement of real property taxes

pursuant to this title, where a tax lot contains more than one building

or structure and not all of the buildings or structures comprising such

tax lot are the subject of a certificate of eligibility for industrial

construction work pursuant to this title, the real property taxes

imposed on such tax lot for the tax year immediately preceding the

effective date of such certificate of eligibility shall be apportioned

among the buildings, structures and land comprising such tax lot and

only such real property taxes as are allocable to the property which is

the subject of the certificate of eligibility pursuant to this title

shall be abated in accordance with this paragraph. Such apportionment

shall be in accordance with rules promulgated by the department of

finance.

(vi) A recipient who filed an application for a certificate of

eligibility for industrial construction work in the commercial

revitalization area on or after July first, two thousand, and who,

following the effective date of such certificate of eligibility, both

commenced and completed such work, shall be eligible for an abatement of

real property taxes in accordance with subparagraph (i) of this

paragraph, provided, however, that where the total net square footage of

the industrial property used or immediately available and held out for

use for manufacturing activities involving the assembly of goods or the

fabrication or processing of raw materials is less than seventy-five per

centum of the total net square footage of the industrial property, the

abatement of real property taxes shall be determined in accordance with

rules promulgated by the department of finance. Notwithstanding the

foregoing sentence, no such abatement shall be allowed where the total

net square footage of the industrial property used or immediately

available and held out for use for such manufacturing actives after

completion of industrial construction work is less than the total net

square footage used or immediately available and held out for use for

such manufacturing activities before the commencement of such

construction work. For purposes of this subparagraph only, the term

"industrial construction work" shall mean the modernization,

rehabilitation, expansion or improvement of an existing building or

structure for use as industrial property and the term "industrial

property" shall mean nonresidential property on which will exist after

completion of industrial construction work a building or structure

wherein at least twenty-five per centum of the total net square footage

is used or immediately available and held out for use for manufacturing

activities involving the assembly of goods or the fabrication or

processing of raw materials.

2. (a) A recipient who, following the effective date of a certificate

of eligibility, has performed commercial construction work in a special

exemption area shall be eligible for an exemption from real property

taxes as follows: For the first thirteen tax years, the recipient shall

be exempt from taxation on one hundred per centum of the exemption base.

For the following nine tax years, the recipient shall be exempt from

taxation on a percentage of the exemption base beginning at ninety per

centum thereof in the fourteenth tax year and decreasing by ten per

centum of said exemption base each year.

The following table shall illustrate the computation of the exemption

for commercial construction work in a special exemption area:

Tax year following effective

date of certificate of

eligibility: Amount of exemption:

1 through 13 Tax on 100% of exemption base

14 Tax on 90% of exemption base

15 Tax on 80% of exemption base

16 Tax on 70% of exemption base

17 Tax on 60% of exemption base

18 Tax on 50% of exemption base

19 Tax on 40% of exemption base

20 Tax on 30% of exemption base

21 Tax on 20% of exemption base

22 Tax on 10% of exemption base

(b) Notwithstanding paragraph (a) of this subdivision, a recipient who

filed an application for a certificate of eligibility for commercial

construction work in a special exemption area on or after July first,

nineteen hundred ninety-five, and who, following the effective date of

such certificate of eligibility, has performed such commercial

construction work shall be eligible for an exemption from real property

taxes as follows: For the first sixteen tax years, the recipient shall

be exempt from taxation on one hundred per centum of the exemption base.

For the following nine tax years, the recipient shall be exempt from

taxation on a percentage of the exemption base beginning at ninety per

centum thereof in the seventeenth tax year and decreasing by ten per

centum of said exemption base each year.

The following table shall illustrate the computation of the exemption

for commercial construction work in a special exemption area pursuant to

this paragraph:

Tax year following effective

date of certificate of

eligibility: Amount of exemption:

1 through 16 Tax on 100% of exemption base

17 Tax on 90% of exemption base

18 Tax on 80% of exemption base

19 Tax on 70% of exemption base

20 Tax on 60% of exemption base

21 Tax on 50% of exemption base

22 Tax on 40% of exemption base

23 Tax on 30% of exemption base

24 Tax on 20% of exemption base

25 Tax on 10% of exemption base

3. (a) A recipient who, following the effective date of a certificate

of eligibility, has performed commercial construction work in a regular

exemption area shall be eligible for an exemption from real property

taxes as follows: For the first eight tax years, the recipient shall be

exempt from taxation on one hundred per centum of the exemption base.

For the following four tax years, the recipient shall be exempt from

taxation on a percentage of the exemption base beginning at eighty per

centum thereof in the ninth tax year and decreasing by twenty per centum

of said exemption base each year.

The following table shall illustrate the computation of the exemption

for commercial construction work in a regular exemption area:

Tax year following effective

date of certificate of

eligibility: Amount of exemption:

1 through 8 Tax on 100% of exemption base

9 Tax on 80% of exemption base

10 Tax on 60% of exemption base

11 Tax on 40% of exemption base

12 Tax on 20% of exemption base

(b) Notwithstanding paragraph (a) of this subdivision, a recipient who

filed an application for a certificate of eligibility for commercial

construction work in a regular exemption area on or after July first,

nineteen hundred ninety-five, and who, following the effective date of

such certificate of eligibility, has performed such commercial

construction work shall be eligible for an exemption from real property

taxes as follows: For the first eleven tax years, the recipient shall be

exempt from taxation on one hundred per centum of the exemption base.

For the following four tax years, the recipient shall be exempt from

taxation on a percentage of the exemption base beginning at eighty per

centum thereof in the twelfth tax year and decreasing by twenty per

centum of said exemption base each year.

The following table shall illustrate the computation of the exemption

for commercial construction work in a regular exemption area pursuant to

this paragraph:

Tax year following effective

date of certificate of

eligibility: Amount of exemption:

1 through 11 Tax on 100% of exemption base

12 Tax on 80% of exemption base

13 Tax on 60% of exemption base

14 Tax on 40% of exemption base

15 Tax on 20% of exemption base

4. Except as provided in paragraphs (b) and (c) of subdivision five of

section four hundred eighty-nine-cccc of this title, a recipient who,

following the effective date of a certificate of eligibility, has

performed commercial construction work in a deferral area shall be

eligible for a deferral of tax payments as follows: For the first three

tax years following the effective date of a certificate of eligibility,

the tax payment on one hundred per centum of the exemption base shall be

deferred. For the following four tax years, the tax payment on a

percentage of the exemption base beginning at eighty per centum thereof

in the fourth tax year and decreasing by twenty per centum each year

shall be deferred. The total amount of tax payments deferred pursuant to

this title shall be paid subsequently over the course of ten tax years

as follows: Commencing in the eleventh tax year following the effective

date of the certificate of eligibility, through and including the

twentieth tax year following such effective date, an amount equal to ten

per centum of the total amount of tax payments deferred pursuant to this

section shall be added to the amount of tax otherwise assessed and

payable in each such tax year on the property subject to such deferral.

The following table shall illustrate the computation of deferral and

payment of taxes for commercial construction work in a deferral area:

Tax year following effective

date of certificate of Amount of tax payments to

eligibility: be deferred or paid:

1 through 3 Deferral of tax payment on 100%

of the exemption base

4 Deferral of tax payment on 80%

of the exemption base

5 Deferral of tax payment on 60%

of the exemption base

6 Deferral of tax payment on 40%

of the exemption base

7 Deferral of tax payment on 20%

of the exemption base

11 through 20 Payment each year of 10% of

total dollar amount of tax

payments deferred pursuant

to this title

5. A recipient who, following the effective date of a certificate of

eligibility, has performed renovation construction work in a renovation

exemption area shall be eligible for an exemption from real property

taxes as follows: For the first eight tax years, the recipient shall be

exempt from taxation on one hundred per centum of the exemption base.

For the following four tax years, the recipient shall be exempt from

taxation on a percentage of the exemption base beginning at eighty per

centum thereof in the ninth tax year and decreasing by twenty per centum

of said exemption base each year.

The following table shall illustrate the computation of the exemption

for renovation construction work in a renovation exemption area:

Tax year following effective

date of certificate of

eligibility: Amount of exemption:

1 through 8 Tax on 100% of exemption base

9 Tax on 80% of exemption base

10 Tax on 60% of exemption base

11 Tax on 40% of exemption base

12 Tax on 20% of exemption base

5-a. A recipient who, following the effective date of a certificate of

eligibility, constructs a new building or structure that meets the

requirements set forth in subdivision nine of section four hundred

eighty-nine-dddd of this title in the new construction exemption area

specified in paragraph (a), (b) or (c) of subdivision six of section

four hundred eighty-nine-cccc of this title shall be eligible for an

exemption from real property taxes as follows: For the first four tax

years, the recipient shall be exempt from taxation on one hundred per

centum of the exemption base. For the following four tax years, the

recipient shall be exempt from taxation on a percentage of the exemption

base beginning at eighty per centum thereof in the fifth tax year and

decreasing by twenty per centum of said exemption base each year.

The following table shall illustrate the computation of the exemption

for the construction of a new building or structure that meets the

requirements set forth in subdivision nine of section four hundred

eighty-nine-dddd of this title in the new construction exemption area

specified in paragraph (a), (b) or (c) of subdivision six of section

four hundred eighty-nine-cccc of this title:

Tax year following effective

date of certificate of

eligibility: Amount of exemption:

1 through 4 Tax on 100% of exemption base

5 Tax on 80% of exemption base

6 Tax on 60% of exemption base

7 Tax on 40% of exemption base

8 Tax on 20% of exemption base

6. There shall be no exemption from or deferral of a payment of real

property taxes available pursuant to this title to any person who

performs commercial or renovation construction work in an excluded area,

except as provided in paragraphs (b) and (c) of subdivision five of

section four hundred eighty-nine-cccc of this title.

7. The benefits of this title shall be granted exclusively for

industrial, commercial or renovation construction work described in

approved plans. No benefits shall be granted for residential

construction work. Any parcel which is partly located in an excluded

area shall be deemed to be entirely located in such area.

8. No benefits pursuant to this title shall be granted for work which

is the subject of a certificate of eligibility issued pursuant to title

two-C of this article.