N.Y. Real Property Tax Law § 499-aa: Definitions

§ 499-aa. Definitions. When used in this title, the following terms

shall mean or include:

1. "Abatement base." The lesser of (i) two dollars and fifty cents of

the tax liability per square foot or (ii) fifty per centum of the tax

liability per square foot; provided, however, that with respect to a

lease commencing on or after April first, nineteen hundred ninety-seven,

the abatement base shall equal the tax liability per square foot subject

to a maximum of two dollars and fifty cents per square foot.

2. "Abatement zone." (a) Any area of a city having a population of one

million or more, provided that in the city of New York the abatement

zone shall be any district that is zoned C4, C5 or C6 in accordance with

the zoning resolution of such city in the borough of Manhattan north of

the center line of 96th Street or in the boroughs of the Bronx,

Brooklyn, Queens or Staten Island.

(b) In addition to the abatement zone set forth in paragraph (a) of

this subdivision, in the city of New York the abatement zone shall be

any district that is zoned C4, C5, C6, M1, M2 or M3 in accordance with

the zoning resolution of such city in any area of such city except the

area lying south of the center line of 96th Street in the borough of

Manhattan.

(c) Notwithstanding the provisions of paragraph (b) of this

subdivision, the abatement zone shall also include the special garment

center district as defined by chapter 1 of article XII of the zoning

resolution of the city of New York.

(d) Any tax lot that is partly located inside an abatement zone shall

be deemed to be entirely located inside such zone.

3. "Aggregate floor area." The sum of the gross areas of the several

floors of a building, measured from the exterior faces of exterior walls

or from the center lines of walls separating two buildings.

4. "Applicant." The landlord and the tenant.

5. "Benefit period." The period commencing with the first day of the

month immediately following the rent commencement date and terminating

no later than sixty months thereafter, provided, however, that with

respect to a lease commencing on or after April first, nineteen hundred

ninety-seven with an initial lease term of less than five years, but not

less than three years, the period commencing with the first day of the

month immediately following the rent commencement date and terminating

no later than thirty-six months thereafter, and provided, further,

however, that with respect to a lease commencing on or after July first,

two thousand five for eligible premises defined in subparagraph (ii) of

paragraph (b) or paragraph (c) of subdivision ten of this section with

an initial lease term of not less than three years, the period

commencing with the first day of the month immediately following the

rent commencement date and terminating no later than one hundred twenty

months thereafter. Notwithstanding the foregoing sentence, a benefit

period shall expire no later than March thirty-first, two thousand

seven, provided, however, that with respect to a lease commencing on or

after July first, two thousand for eligible premises defined in

subparagraph (i) of paragraph (b) of subdivision ten of this section, a

benefit period shall expire no later than June thirtieth, two thousand

sixteen, provided, further, however that with respect to a lease

commencing on or after July first, two thousand five for eligible

premises defined in subparagraph (ii) of paragraph (b) or paragraph (c)

of subdivision ten of this section, a benefit period shall expire no

later than June thirtieth, two thousand twenty.

6. "Billable assessed value." The lesser of the taxable transitional

or the taxable actual assessed value of the eligible building and the

land on which the eligible building is located for the fiscal year in

which the benefit period commences, as computed pursuant to subdivision

three of section one thousand eight hundred five of this chapter.

7. "Department of finance." The department of finance of any city

having a population of one million or more.

8. "Eligible building." (a) With respect to the abatement zone defined

in paragraph (a) of subdivision two of this section, a non-residential

or mixed-use building that has an aggregate floor area of twenty-five

thousand square feet or more and that received its initial certificate

of occupancy or initial temporary certificate of occupancy prior to

January first, nineteen hundred seventy-five; provided that if no

certificate of occupancy was required at the time the building was

constructed, other proof acceptable to the department of finance is

submitted that demonstrates that the building was constructed prior to

January first, nineteen hundred seventy-five; and provided further that

eligible building shall not include any building owned by a governmental

agency. Each condominium unit in a building that meets the requirements

of this subdivision shall be considered a separate eligible building.

(b) With respect to the abatement zone defined in paragraph (b) of

subdivision two of this section for eligible premises defined in

subparagraph (i) of paragraph (b) of subdivision ten of this section, a

non-residential or mixed-use building that has an aggregate floor area

of twenty-five thousand square feet or more and that received its

initial certificate of occupancy or initial temporary certificate of

occupancy prior to January first, nineteen hundred ninety-nine; provided

that if no certificate of occupancy was required at the time the

building was constructed, other proof acceptable to the department of

finance is submitted that demonstrates that the building was constructed

prior to January first, nineteen hundred ninety-nine; and provided

further that eligible building shall not include any building owned by a

governmental agency. Each condominium unit in a building that meets the

requirements of this subdivision shall be considered a separate eligible

building.

(c) With respect to the abatement zone defined in paragraph (b) of

subdivision two of this section for eligible premises defined in

subparagraph (ii) of paragraph (b) of subdivision ten of this section

and the abatement zone defined in paragraph (c) of subdivision two of

this section, a non-residential building; provided that eligible

building shall not include any building owned by a governmental agency.

Each condominium unit in a building that meets the requirements of this

subdivision shall be considered a separate eligible building.

9. "Eligibility period." The period commencing April first, nineteen

hundred ninety-five and terminating March thirty-first, two thousand

one, provided, however, that with respect to eligible premises defined

in subparagraph (i) of paragraph (b) of subdivision ten of this section,

the period commencing July first, two thousand and terminating June

thirtieth, two thousand twenty-eight, and provided, further, however,

that with respect to eligible premises defined in subparagraph (ii) of

paragraph (b) or paragraph (c) of subdivision ten of this section, the

period commencing July first, two thousand five and terminating June

thirtieth, two thousand twenty-eight.

10. "Eligible premises." (a) With respect to the abatement zone

defined in paragraph (a) of subdivision two of this section, premises

located in an eligible building that (a) are occupied or used as offices

(including ancillary uses) or are occupied or used as retail space and

(b) are occupied or used by a tenant under a lease that meets the

eligibility requirements of section four hundred ninety-nine-cc of this

title, provided, however, that premises occupied or used as retail space

shall not be eligible premises unless located in an eligible building

the premises of which are occupied or used primarily as offices

(including ancillary uses);

(b) With respect to the abatement zone defined in paragraph (b) of

subdivision two of this section, premises located in an eligible

building that are (i) occupied or used as offices (including ancillary

uses) or are occupied or used for other lawful commercial business

activities, but not premises occupied or used as retail space or for

hotel or residential purposes; or (ii) occupied or used for industrial

and manufacturing activities (including ancillary uses), but not

premises occupied or used for hotel or residential purposes; and

(c) With respect to the abatement zone defined in paragraph (c) of

subdivision two of this section, premises located in an eligible

building that are occupied or used for industrial and manufacturing

activities (including ancillary uses), but not premises occupied or used

for hotel or residential purposes.

(d) Notwithstanding the provisions of subparagraph (ii) of paragraph

(b) or paragraph (c) of this subdivision, premises located in an

eligible building shall not be eligible for the tax abatement granted

pursuant to subdivision one-b of section four hundred ninety-nine-bb of

this title unless at least fifty percent of the aggregate floor area of

such premises is occupied or used for industrial and manufacturing

activities (exclusive of ancillary uses) as defined in subdivision

fourteen-a of this section.

(e) For eligible premises defined in subparagraph (ii) of paragraph

(b) or paragraph (c) of this subdivision, retail space shall be (i)

occupied solely by the tenant of such eligible premises who has applied

for and receives a tax abatement pursuant to this title and (ii) used

for the purpose of selling or servicing the products of such tenant.

Such retail space shall not be deemed to be occupied or used for

industrial and manufacturing activities for purposes of paragraph (d) of

this subdivision.

11. "Expansion premises." Eligible premises leased by an expansion

tenant to accommodate additional employees.

12. "Expansion tenant." A person who (a) occupies premises in an

eligible building under a lease which does not expire during the

eligibility period and (b) executes a lease for expansion premises in

such eligible building or in another eligible building which lease meets

the eligibility requirements of section four hundred ninety-nine-cc of

this title. For purposes of determining whether expansion premises are

located in the same or in another eligible building, the last sentence

of subdivision eight of this section shall not be applicable.

13. "Fiscal year." The fiscal year of any city having a population of

one million or more.

14. "Governmental agency." The United States of America or any agency

or instrumentality thereof, the state of New York, the city of New York,

any public corporation (including a body corporate and politic created

pursuant to agreement or compact between the state of New York and any

other state), public benefit corporation, public authority or other

political subdivision of the state.

14-a. "Industrial and manufacturing activities." Activities involving

the assembly of goods to create a different article, or the processing,

fabrication, or packaging of goods. Industrial and manufacturing

activities shall not include waste management or utility services.

15. "Landlord." Any person who (a) controls all non-residential

portions of an eligible building, including, without limitation, the

record owner, the lessee under a ground lease, any mortgagee in

possession or any receiver, and (b) who grants the right to use or

occupy eligible premises to any tenant, provided that landlord shall not

include any lessee who at any time during the lease term occupied or

used or occupies or uses any part of the non-residential portions of

such eligible building, other than premises occupied or used by such

lessee to provide rental or management services to such building.

16. "Lease commencement date." The date set forth in the lease on

which the term of the lease commences.

17. "Mixed-use building." A building used for both residential and

commercial purposes, provided that more than twenty-five per centum of

the aggregate floor area of such building is used or held out for use as

commercial, community facility or accessory use space.

18. "New tenant." A person who (a) (i) is relocating or expanding from

premises in a relocation area to eligible premises, or (ii) occupies

premises in an eligible building under a lease which expires during the

eligibility period and is relocating or expanding to eligible premises,

or (iii) occupies premises in the abatement zone in a building which is

not an eligible building and is relocating or expanding to eligible

premises, or (iv) does not occupy any premises immediately prior to

executing a lease for eligible premises, or (v) is an owner of a

building in the abatement zone who is relocating or expanding to

eligible premises, and (b) executes a lease which meets the eligibility

requirements of section four hundred ninety-nine-cc of this title.

19. "Person." An individual, corporation, limited liability company,

partnership, association, agency, trust, estate, foreign or domestic

government or subdivision thereof, or other entity.

20. "Relocation area." Any area except the abatement zone as defined

in subdivision two of this section.

21. "Renewal tenant." A person who (a) occupies premises in an

eligible building under a lease which expires during the eligibility

period and (b) executes a lease for the continued occupancy of all or

part of such premises or all or part of such premises and additional

premises in such eligible building, provided such premises are eligible

premises and such lease meets the eligibility requirements of section

four hundred ninety-nine-cc of this title.

22. "Rent commencement date." The date set forth in the lease on which

the obligation to pay basic fixed rent shall commence.

23. "Subtenant." A person whose right to occupy and use the eligible

premises is not derived from a lease with the landlord.

24. "Tax commission." The tax commission in any city having a

population of one million or more.

25. "Tax liability." The product obtained by multiplying the billable

assessed value for the fiscal year in which the benefit period commences

by the tax rate applicable to the eligible building for such fiscal year

as set by the local legislative body of any city having a population of

one million or more.

26. "Tax liability per square foot." The tax liability divided by the

total number of square feet in the eligible building, as listed on the

records of the department of finance.

27. "Tenant." A person (including any successors in interest) who

executes a lease with the landlord for the right to occupy or use the

eligible premises and who occupies or uses the eligible premises

pursuant to such lease. Tenant shall not include any subtenant. When

used in this title, "tenant" includes "expansion tenant", "new tenant"

and "renewal tenant."

28. "Tenant's percentage share." (a) For eligible premises defined in

paragraph (a) or subparagraph (i) of paragraph (b) of subdivision ten of

this section, the percentage of the eligible building's aggregate floor

area allocated to the eligible premises, which shall be presumed to be

such percentage as set forth in the lease for the eligible premises;

provided that where the eligible premises includes expansion premises,

the "tenant's percentage share" shall be calculated on the basis of the

percentage of the eligible building's aggregate floor area allocated

solely to the expansion premises.

(b) For eligible premises defined in subparagraph (ii) of paragraph

(b) or paragraph (c) of subdivision ten of this section, the percentage

of the eligible building's aggregate floor area allocated to the

eligible premises to be occupied or used for industrial and

manufacturing activities, as defined in subdivision fourteen-a of this

section; provided that where the eligible premises includes expansion

premises, the "tenant's percentage share" shall be calculated on the

basis of the eligible building's aggregate floor area allocated solely

to expansion premises to be occupied or used for industrial and

manufacturing activities.