N.Y. Real Property Tax Law § 499-bb: Real property tax abatement

§ 499-bb. Real property tax abatement. 1. Except as provided in

subdivisions one-a and one-b of this section, within a city having a

population of one million or more, eligible buildings containing

eligible premises shall receive an abatement of real property taxes

during the benefit period as follows:

(a) for each of the first three years of the benefit period, the

abatement shall be equal to the product obtained by (i) multiplying the

tenant's percentage share by the number of square feet in the eligible

building, as listed on the records of the department of finance and (ii)

multiplying the product obtained in subparagraph (i) of this paragraph

by the abatement base;

(b) for the fourth year of the benefit period, the abatement shall be

equal to two-thirds of the abatement in the first year of the benefit

period; and

(c) for the fifth year of the benefit period, the abatement shall be

equal to one-third of the abatement in the first year of the benefit

period.

1-a. Except as provided in subdivision one-b of this section, within a

city having a population of one million or more, eligible buildings

containing eligible premises occupied or used by a tenant pursuant to a

lease having a lease commencement date 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, shall receive an abatement of real

property taxes during the benefit period as follows:

(a) for the first year of the benefit period, the abatement shall be

equal to the product obtained by (i) multiplying the tenant's percentage

share by the number of square feet in the eligible building, as listed

on the records of the department of finance and (ii) multiplying the

product obtained in subparagraph (i) of this paragraph by the abatement

base;

(b) for the second year of the benefit period, the abatement shall be

equal to two-thirds of the abatement in the first year of the benefit

period; and

(c) for the third year of the benefit period, the abatement shall be

equal to one-third of the abatement in the first year of the benefit

period.

1-b. (a) Within a city having a population of one million or more,

eligible buildings containing eligible premises as defined in

subparagraph (ii) of paragraph (b) or paragraph (c) of subdivision ten

of section four hundred ninety-nine-aa of this title occupied or used by

a tenant pursuant to a lease having a lease commencement date on or

after July first, two thousand five with an initial lease term of not

less than three years, shall receive an abatement of real property taxes

for each year of the benefit period equal to the product obtained by (i)

multiplying the tenant's percentage share by the number of square feet

in the eligible building, as listed on the records of the department of

finance and (ii) multiplying the product obtained in subparagraph (i) of

this paragraph by the abatement base.

(b) (i) The benefit described in paragraph (a) of this subdivision

shall apply to eligible premises where at least ninety percent of the

aggregate floor area is occupied or used for industrial and

manufacturing activities, as defined in subdivision fourteen-a of

section four hundred ninety-nine-aa of this title.

(ii) If at least fifty percent of the aggregate floor area of the

eligible premises but less than ninety percent of such premises are

occupied or used for industrial and manufacturing activities, as defined

in subdivision fourteen-a of section four hundred ninety-nine-aa of this

title, the benefits described in paragraph (a) of this subdivision shall

be limited to the proportion of such eligible premises occupied or used

for such activities.

2. If, as a result of application to the tax commission or a court

order or action by the department of finance, the billable assessed

value is reduced, the department of finance shall recalculate the

abatement utilizing such reduced billable assessed value. 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 such reduction in

billable assessed value, 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 the eligible building 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 eligible

building shall be charged and collected on such amount from the date of

such notice to the date of payment.

3. (a) In no event shall the abatement for the eligible premises

granted pursuant to this title exceed the tax liability allocable to the

eligible premises.

(b) In no event shall eligible premises receive benefits pursuant to

subdivision one-b of this section while receiving benefits pursuant to

subdivision one or one-a of this section.

4. Notwithstanding the provisions of any lease for occupancy of

non-eligible premises in an eligible building or for occupancy of

eligible premises for which no certificate of abatement has been issued

pursuant to this title, a lessee of non-eligible premises or of eligible

premises for which no certificate of abatement has been issued pursuant

to this title shall not be entitled to receive directly or indirectly a

reduction in either the real property taxes or any rent (including

additional rent) payable pursuant to such lease where such reduction

would result from an abatement of real property taxes granted pursuant

to this title. A landlord of an eligible building shall not allocate,

credit, assign or disburse any portion of an abatement granted pursuant

to this title to a lessee of non-eligible premises or of eligible

premises for which no certificate of abatement has been issued pursuant

to this title. A landlord shall not be required to reduce the real

property taxes or any rent (including additional rent) payable by

expansion tenants, new tenants and renewal tenants by an amount that

exceeds the full amount of the abatement granted pursuant to this title,

but a landlord shall be required to reduce the real property taxes or

any rent (including additional rent) payable by expansion tenants, new

tenants and renewal tenants by an amount that, in the aggregate, equals

the full amount of the abatement granted pursuant to this title. Such

reduction shall be allocated in accordance with the abatement granted

for the eligible premises occupied by each such tenant.

5. A tenant who occupies or uses eligible premises for which a

certificate of abatement is issued pursuant to this title shall not be

eligible to receive a second certificate of abatement for the same

eligible premises. A tenant who occupies or uses eligible premises for

which a certificate of abatement is issued pursuant to this title and

who, upon the expiration of the lease for such eligible premises,

relocates to otherwise eligible premises, shall not be eligible to

receive a certificate of abatement for such otherwise eligible premises,

except to the extent that the square footage of such otherwise eligible

premises exceeds the square footage of all eligible premises previously

occupied or used by such tenant for which such tenant held a certificate

of abatement. If the square footage of such otherwise eligible premises

exceeds the square footage of all such eligible premises previously

occupied or used by such tenant and if there is any variation in the tax

liability per square foot of such otherwise eligible premises, then, for

purposes of determining which square footage in such otherwise eligible

premises is entitled to an abatement pursuant to this title, square

footage with the greatest tax liability per square foot, in an amount

equal to the square footage of all such eligible premises previously

occupied or used by such tenant, shall first be excluded.