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

§ 489-gggg. Conversion of property. 1. Any recipient whose property is

the subject of a certificate of eligibility for commercial or renovation

construction work, and who, prior to the expiration of the benefit

period, uses such property as industrial property, shall continue to

receive benefits for commercial or renovation construction work as the

case may be.

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

eligibility for industrial construction work, and who, prior to the

expiration of the benefit period, uses such property as commercial

property, shall cease to be eligible for further exemption or abatement

for industrial construction work as of the last date to which such

recipient proves by clear and convincing evidence that such property was

used as industrial property, and shall pay with interest any taxes for

which an exemption or abatement was claimed after such date, except

that:

(a) a recipient of a certificate of eligibility for industrial

construction work in a special exemption area who would have been

eligible to receive a certificate of eligibility for commercial

construction work at the time such recipient applied for benefits shall

continue to receive an exemption for industrial construction; and

(b) a recipient of a certificate of eligibility for industrial

construction work in a regular exemption area who would have been

eligible to receive a certificate of eligibility for commercial

construction work at the time such recipient applied for benefits shall,

commencing with the date of conversion to commercial property and

continuing until the expiration of the benefit period for commercial

construction work, receive any exemption which such recipient would have

received in the corresponding tax year pursuant to a certificate of

eligibility for commercial construction work; and

(c) a recipient of a certificate of eligibility for industrial

construction work in any area of the city on whose property at least

sixty-five per centum of the net square footage continues to be used or

held out for use for manufacturing activities after conversion to

commercial property, shall not be required to pay the pro rata share of

tax for which an exemption was claimed during the tax year in which such

conversion occurred.

3. Except as provided in subdivision four of this section, any

recipient whose property is the subject of a certificate of eligibility

for commercial, industrial or renovation construction work, and who uses

such property as residential property or for any restricted activity

prior to the expiration of the benefit period, shall cease to be

eligible for further exemption, abatement or deferral as of the date

such property was first used as residential property or for any

restricted activity. In the case of property in an area that was

designated as an exemption area at the time the certificate of

eligibility was issued, 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. In the case of industrial property,

such recipient shall pay with interest any taxes for which an exemption

or abatement was claimed after such date, including the pro rata share

of tax for which any exemption or abatement was claimed during the tax

year in which such use occurred. In the case of property in an area that

was designated as a deferral area at the time the certificate of

eligibility was issued, all deferred tax payments on the property shall

become due and payable immediately.

4. Notwithstanding subdivision three of this section, any recipient

whose property is the subject of a certificate of eligibility for

commercial or renovation construction work with an effective date of

July first, nineteen hundred ninety-two or after, and who, prior to the

expiration of the benefit period, uses a portion of such property as

residential property, shall cease to be eligible for further exemption

for commercial or renovation construction work for that portion of such

property used as residential property as of the date such portion of the

property was first used as residential property. Such recipient shall

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

such date attributable to that portion of the property used as

residential property, including the pro rata share of tax for which such

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

Such recipient shall continue to receive an exemption for commercial or

renovation construction work for that portion of the property which

continues to be used as commercial property.