N.Y. Real Property Tax Law § 489-fffff: Conversion of property

§ 489-fffff. Conversion of property. 1. Any recipient whose property

is the subject of a certificate of eligibility pursuant to this title,

and who converts square footage within such property from the

residential and commercial uses authorized pursuant to this title where

such conversion results in twenty-five per centum or less of the

aggregate floor area of such property being used or held out for use as

commercial, community facility or accessory use space, shall cease to be

eligible for further exemption as of the last date to which such

recipient proves by clear and convincing evidence that more than

twenty-five per centum of the aggregate floor area of such property was

used or held out for use as commercial, community facility or accessory

use space, and shall pay, with interest, any taxes for which an

exemption was claimed after such date, including the pro rata share of

tax for which any exemption was claimed during the tax year in which

twenty-five per centum or less of the aggregate floor area of such

property was used or held out for use as commercial, community facility

or accessory use space.

2. Any recipient whose property is the subject of a certificate of

eligibility pursuant to this title, and who uses such property, or any

portion of such property, for any restricted activity prior to the

expiration of the benefit period, shall cease to be eligible for further

exemption as of the last date to which such recipient proves by clear

and convincing evidence that such property, or any portion of such

property, was not used for any restricted activity. Such recipient

shall pay, with interest, any taxes for which an exemption was claimed

after such date, including the pro rata share of tax for which any

exemption was claimed during the tax year in which such use occurred.