N.Y. Real Property Tax Law § 489-ddd: Real property tax exemption

§ 489-ddd. Real property tax exemption. 1. A real property tax

exemption pursuant to this title shall be granted to an applicant who,

within a period of thirty-six months, or following an extension pursuant

to section four hundred eighty-nine-hhh of this title within a period of

forty-eight months, from the date of issuance of a certificate of

eligibility has completed reconstruction or construction work in

accordance with the plans approved by the board in the certificate of

eligibility. The amount of the tax exemption shall be determined as

follows:

(a) In the case of an applicant who has completed industrial

construction or reconstruction work, or commercial reconstruction work

designated as of right pursuant to section four hundred eighty-nine-ccc

of this title or as specially needed pursuant to section four hundred

eighty-nine-eee of this title, the tax exemption shall continue for

nineteen tax years in an amount decreasing by five per centum each year

from an exemption of ninety-five per centum of the exemption base, as

defined in paragraph (d) of this subdivision.

(b) In the case of an applicant who has completed other commercial

reconstruction work, or new commercial construction work designated as

of right pursuant to section four hundred eighty-nine-ccc of this title

or as specially needed pursuant to section four hundred eighty-nine-eee

of this title, the tax exemption shall continue for ten tax years, in an

amount decreasing by five per centum each year from an exemption of

fifty per centum of the exemption base.

(c) In the case of an applicant who has completed other new commercial

construction work, the exemption shall continue for five tax years in an

amount decreasing by ten per centum each year from an exemption of fifty

per centum of the exemption base.

(d) The term "exemption base" shall mean the difference between the

final assessed value of the property as determined upon completion of

the construction or reconstruction work and the lesser of (i) the

assessed value of the property at the time an application for a

certificate of eligibility pursuant to this title is made, or (ii) the

assessed value as may thereafter be reduced pursuant to application to

the tax commission.

The tax exemption shall be computed according to the following tables:

CONSTRUCTION OR RECONSTRUCTION OF INDUSTRIAL

STRUCTURES OR RECONSTRUCTION OF AS OF RIGHT OR

SPECIALLY NEEDED COMMERCIAL STRUCTURES

Year following Percentage of

completion of work exemption

1. 95

2. 90

3. 85

4. 80

5. 75

6. 70

7. 65

8. 60

9. 55

10. 50

11. 45

12. 40

13. 35

14. 30

15. 25

16. 20

17. 15

18. 10

19. 5

RECONSTRUCTION OF OTHER COMMERCIAL STRUCTURES

OR CONSTRUCTION OF AS OF RIGHT OR SPECIALLY

NEEDED COMMERCIAL STRUCTURES

Year following Percentage of

completion of work exemption

1. 50

2. 45

3. 40

4. 35

5. 30

6. 25

7. 20

8. 15

9. 10

10. 5

CONSTRUCTION OF OTHER NEW COMMERCIAL STRUCTURES

Year following Percentage of

completion of work exemption

1. 50

2. 40

3. 30

4. 20

5. 10

2. The taxes payable during the period from the issuance of a

certificate of eligibility to the approval of the tax exemption pursuant

to section four hundred eighty-nine-fff of this title shall be paid on

the lesser of:

(a) the assessed value of the property at the time an application for

a certificate of eligibility pursuant to this title is made, or (b) the

assessed value as may thereafter be reduced pursuant to application to

the tax commission, provided, however, that if reconstruction or

construction is not completed in accordance with the plans approved in

the certificate of eligibility including any amendments thereto, taxes

shall be due and payable retroactively as otherwise required by law.

3. In all cases where the board shall have issued a certificate of

eligibility prior to January first, nineteen hundred eighty-two, the

exemption percentage shall apply to any subsequent increase in the

assessed valuation of the property during the tenure of the exemption.

Where the board has issued a certificate of eligibility on or after

January first, nineteen hundred eighty-two, the exemption percentage

shall apply to any subsequent increase in the assessed valuation of the

property during the first two years after approval of the tax exemption

pursuant to section four hundred eighty-nine-fff of this title.

Commencing two years after approval of the tax exemption pursuant to

section four hundred eighty-nine-fff of this title, the exemption

percentage shall apply to any subsequent increase in assessed valuation

of the property only to the extent such increase is attributable to the

construction or reconstruction work approved in the certificate of

eligibility.

4. The provisions of this title shall not apply to any increase in

assessed value resulting from the construction or reconstruction of a

residential structure on any property receiving an exemption under the

provisions of this title. The provisions of this title shall apply

exclusively to those structures and the lands underlying them which were

identified explicitly in the certificate of eligibility.

5. The provisions of this title shall not apply if any new or

rehabilitated construction displaces or replaces a building or buildings

containing more than twenty-five occupied dwelling units in existence on

the date an application for certificate of eligibility is submitted for

preliminary approval pursuant to section four hundred eighty-nine-eee of

this title, which are administered under the local emergency housing

rent control act, the rent stabilization law of nineteen hundred

sixty-nine or the emergency tenant protection act of nineteen

seventy-four, unless a certificate of eviction has been issued for any

of the displaced or replaced units pursuant to the powers granted by the

city rent and rehabilitation law.

6. The provisions of this title shall not apply to an applicant who

has commenced construction or reconstruction work prior to the granting

of a certificate of eligibility except where applicant, having filed an

application for a certificate of eligibility receives written permission

to commence from the board or its designated representative prior to the

granting of a certificate of eligibility. Demolition of existing

structures, site preparation limited to grading, filling or clearing, or

the curing of a safety or sanitary hazard shall not be deemed to be

commencement of construction or reconstruction work.

7. Any property enjoying the benefits of a tax exemption approved by

the board shall be ineligible for any subsequent or additional tax

exemption pursuant to the provisions of this title until the expiration

of the original exemption period or earlier termination of the existing

exemption by action of the tax commission.