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

§ 499-bbbbb. Real property tax abatement. 1. The department of finance

shall provide an abatement of real property taxes pursuant to this

section to an eligible building in which construction, conversion,

alteration or improvement that is completed on or after April first, two

thousand twenty-two has resulted in the creation of a premises of a

childcare center or in an increase in the maximum number of children

allowed on the premises of an existing childcare center when such center

is in operation, as such number is specified in the permit issued by the

department of health and mental hygiene to operate such center. The

department of finance may only grant one such abatement to any eligible

building.

2. (a) (i) Beginning in the tax year commencing on or after July

first, two thousand twenty-three, the amount of such tax abatement

provided to an eligible building described in subdivision one of this

section shall be equal to the costs incurred in the construction,

conversion, alteration or improvement that has resulted in the creation

of a premises of a childcare center or in an increase in the maximum

number of children allowed on the premises of an existing childcare

center, provided that such costs are certified in accordance with

paragraph (d) of subdivision two of section four hundred

ninety-nine-ccccc of this title, and provided further that, during the

abatement period: (A) the amount of such abatement shall not exceed

thirty-five dollars for each square foot of the premises, nor exceed one

hundred thousand dollars, for a tax abatement initially taken in a tax

year commencing prior to July first, two thousand twenty-five; and (B)

the amount of such abatement shall not exceed thirty-five dollars for

each square foot of the premises, nor exceed three hundred fifty

thousand dollars, for a tax abatement initially taken in a tax year

commencing on or after July first, two thousand twenty-five.

(ii) For any tax year, such abatement shall not exceed seven dollars

for each square foot of the premises, provided that such amount may be

reduced as a result of an allocation of available funds for such

abatement pursuant to paragraph (d) of this subdivision; and provided,

further, that: (A) the amount of such tax abatement in any tax year

shall not exceed the lesser of (I) twenty thousand dollars, or (II) the

real property tax liability for the eligible building in the tax year in

which such tax abatement is taken, for a tax abatement initially taken

in a tax year commencing prior to July first, two thousand twenty-five;

and (B) the amount of a tax abatement in any tax year shall not exceed

the lesser of (I) seventy thousand dollars, or (II) the real property

tax liability for the eligible building in the tax year in which such

tax abatement is taken, for a tax abatement initially taken in a tax

year commencing on or after July first, two thousand twenty-five.

(iii) To the extent the amount of such tax abatement exceeds: (A) the

lesser of (I) twenty thousand dollars, or (II) the real property tax

liability of the eligible building in any tax year, for a tax abatement

initially taken in a tax year commencing prior to July first, two

thousand twenty-five; or (B) the lesser of (I) seventy thousand dollars,

or (II) the real property tax liability of the eligible building in any

tax year, for a tax abatement initially taken in a tax year commencing

on or after July first, two thousand twenty-five, any amount of such tax

abatement that remains may be applied to the real property tax liability

of such building in succeeding tax years, provided that such abatement

must be applied to the real property tax liability of such building in

one or more of the four tax years succeeding the tax year in which such

tax abatement was initially taken.

(b) (i) Notwithstanding paragraph (a) of this subdivision, an enhanced

tax abatement shall be provided to an eligible building described in

subdivision one of this section that is located within a childcare

desert as described in this title and in any rules promulgated

hereunder. Beginning in the tax year commencing on or after July first,

two thousand twenty-three, the amount of such enhanced tax abatement

shall be equal to the costs incurred in the construction, conversion,

alteration or improvement that has resulted in the creation of a

premises of a childcare center or in an increase in the maximum number

of children allowed on the premises of an existing childcare center,

provided that such costs are certified in accordance with paragraph (d)

of subdivision two of section four hundred ninety-nine-ccccc of this

title, and provided further that, during the abatement period: (A) the

amount of such abatement shall not exceed seventy-five dollars for each

square foot of the premises nor exceed two hundred twenty-five thousand

dollars, for a tax abatement initially taken in a tax year commencing

prior to July first, two thousand twenty-five; and (B) the amount of

such abatement shall not exceed seventy-five dollars for each square

foot of the premises nor exceed seven hundred fifty thousand dollars,

for a tax abatement initially taken in a tax year commencing on or after

July first, two thousand twenty-five.

(ii) For any tax year, such abatement shall not exceed fifteen dollars

for each square foot of the premises, provided that such amount may be

reduced as a result of an allocation of available funds for such

abatement pursuant to paragraph (d) of this subdivision; and provided

further that: (A) the amount of such enhanced tax abatement in any tax

year shall not exceed the lesser of (I) forty-five thousand dollars, or

(II) the real property tax liability for the eligible building in the

tax year in which such tax abatement is taken, for a tax abatement

initially taken in a tax year commencing prior to July first, two

thousand twenty-five; and (B) the amount of such enhanced tax abatement

in any tax year shall not exceed the lesser of (I) one hundred fifty

thousand dollars, or (II) the real property tax liability for the

eligible building in the tax year in which such tax abatement is taken,

for a tax abatement initially taken in a tax year commencing on or after

July first, two thousand twenty-five.

(iii) To the extent the amount of such enhanced tax abatement exceeds:

(A) the lesser of (I) forty-five thousand dollars, or (II) the real

property tax liability of the eligible building in any tax year, for a

tax abatement initially taken in a tax year commencing prior to July

first, two thousand twenty-five; or (B) the lesser of (I) seventy

thousand dollars, or (II) the real property tax liability of the

eligible building in any tax year, for a tax abatement initially taken

in a tax year commencing on or after July first, two thousand

twenty-five, any amount of such tax abatement that remains may be

applied to the real property tax liability of such building in

succeeding tax years, provided that such abatement must be applied to

the real property tax liability of such building in one or more of the

four tax years succeeding the tax year in which the tax abatement was

initially taken.

(c) Notwithstanding paragraph (a) or (b) of this subdivision, the

aggregate amount of tax abatements authorized pursuant to this section

for any tax year shall be a maximum of twenty-five million dollars. No

tax abatements shall be authorized pursuant to this section for any tax

year commencing on or after July first, two thousand thirty-two.

(d) Such aggregate amount of tax abatements, including the tax

abatement described in paragraph (a) of this subdivision and the

enhanced tax abatement described in paragraph (b) of this subdivision,

shall be allocated by the department of finance on a pro rata basis

among applicants whose applications have been approved by the designated

agency. If such allocation is not made prior to the date that the real

property tax bill, statement of account or other similar bill or

statement is prepared, the department of finance shall, as necessary,

after such allocation is made, submit an amended real property tax bill,

statement of account or other similar bill or statement to any applicant

whose abatement requires adjustment to reflect such allocation. Nothing

in this paragraph shall be deemed to affect the obligation of any

taxpayer under applicable law with respect to the payment of any

installment of real property tax for the fiscal year as to which such

allocation is made, which was due and payable prior to the date such

amended real property tax bills are sent, and the department of finance

shall be authorized to determine the date on which any such amended

bills be sent and the installments of real property tax be reflected

therein.

(e) Notwithstanding any law to the contrary, any abatement granted to

an eligible building pursuant to this section shall be in addition to

any other abatement or exemption granted to such building, provided that

any abatement granted under this section shall be applied after any

other abatement or exemption granted to such building, and provided

further that the application of this abatement after any other such

exemption or abatement shall not exceed the real property tax liability

due on such eligible property.

3. Such abatement shall commence on the first of July following the

approval of an application for abatement by the designated agency.

4. 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 of the eligible building for the fiscal year in which the tax

abatement is taken is reduced after the assessment roll becomes final,

the department of finance shall recalculate such abatement so that the

abatement granted shall not exceed the annual tax liability of such

building as so reduced. The amount equal to the difference between the

initial abatement granted by the department 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.