N.Y. Real Property Tax Law § 499-ff: Reporting requirements; revocation of abatements

§ 499-ff. Reporting requirements; revocation of abatements. 1. For the

duration of the applicant's benefit period, the applicant shall file

annually with the department of finance, on or before July first of each

year, a certificate of continuing eligibility confirming that the

eligible premises are occupied by the tenant who originally executed the

lease and that the eligible premises are being used for the purposes

described in the application. In addition, for eligible premises defined

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

ten of section four hundred ninety-nine-aa of this title, a certificate

of continuing eligibility shall (a) confirm that the percentage of the

aggregate floor area of the eligible premises occupied or used for

industrial and manufacturing activities (exclusive of ancillary uses)

has not been reduced and (b) state separately the current percentage of

the aggregate floor area of the eligible premises used for industrial

and manufacturing activities, ancillary uses and retail activities. Such

certificate of continuing eligibility shall be on a form prescribed by

the department of finance and shall contain such additional information

as the department of finance shall require. The department of finance

shall have the authority to terminate abatements granted pursuant to

this title upon failure of an applicant to file such certificate by such

July first date. The burden of proof shall be on the applicant to

establish continuing eligibility for benefits and the department of

finance shall have the authority to require that statements made in such

certificate shall be made under oath.

2. The department of finance shall revoke any abatement granted

pursuant to this title when the tenant who originally executed the lease

is no longer occupying the eligible premises. Such revocation shall be

retroactive to the date that such tenant vacated the eligible premises

and the department of finance shall require the landlord to pay, with

interest, any taxes which become payable as a result of such revocation.

The landlord shall notify the department of finance within thirty days

following the date on which such tenant vacated the eligible premises

and, for failure to comply with this notification requirement, shall be

liable for penalty calculated for the same period as interest is

calculated pursuant to the preceding sentence.

3. If any portion of the premises for which an abatement has been

granted pursuant to this title ceases to be occupied or used as eligible

premises or is occupied by a subtenant, the department of finance shall

reduce the abatement granted pursuant to this title by an amount equal

to the percentage of such eligible premises which has ceased to be

occupied or used as eligible premises or is occupied by a subtenant.

Such reduction shall be retroactive to the date that such premises

ceased to be occupied or used as eligible premises or was occupied by a

subtenant, and the department of finance shall require the landlord to

pay, with interest, any taxes which become payable as a result of such

reduction. The landlord shall notify the department of finance within

thirty days following the date on which the premises ceased to be

occupied or used as eligible premises or was occupied by a subtenant

and, for failure to comply with this notification requirement, shall be

liable for penalty calculated for the same period as interest is

calculated pursuant to the preceding sentence.

4. If, during the benefit period, any real property tax or water or

sewer charge or other lienable charge due and payable with respect to an

eligible building shall remain unpaid for at least one year following

the date upon which such tax or charge became due and payable, all

abatements granted pursuant to this title with respect to such building

shall be revoked, unless within thirty days from the mailing of a notice

of revocation by the department of finance satisfactory proof is

presented to the department of finance that any and all delinquent taxes

and charges owing with respect to such building as of the date of such

notice have been paid in full or are currently being paid in timely

installments pursuant to a written agreement with the department of

finance or other appropriate agency. Any revocation pursuant to this

subdivision shall be effective with respect to real property taxes which

become due and payable following the date of such revocation.

5. The department of finance may deny, reduce, suspend, terminate or

revoke any abatement granted pursuant to this title whenever:

(a) the landlord or the tenant receiving abatement pursuant to this

title fails to comply with the requirements of this title or the rules

promulgated hereunder; or

(b) an application, certificate, report or other document submitted by

the applicant contains a false or misleading statement as to a material

fact or omits to state any material fact necessary in order to make the

statement therein not false or misleading, and may declare any applicant

who makes such false or misleading statement or omission to be

ineligible for future abatement pursuant to this title for the same or

other property. In addition, the department of finance shall require the

applicant to pay, with penalty and interest, any abatement received

pursuant to this title as a result of such false or misleading statement

or omission of a material fact.

6. Notwithstanding any other provision of this title, the department

of finance shall deny, terminate or revoke any abatement applied for or

granted pursuant to this title upon a determination that the lease

between the landlord and the tenant does not constitute a bona fide

arm's length lease. In making such determination, the department of

finance may consider, among other factors, the relationship, if any,

between the landlord and the tenant and whether the business terms of

such lease are consistent with the business terms generally found in

leases for comparable space.

7. (a) If any person described in the statement required by paragraph

(b) of subdivision seven of section four hundred ninety-nine-cc of this

title or paragraph (b) of this subdivision is finally adjudicated by a

court of competent jurisdiction to be guilty of any charge listed in

such statement, the department of finance shall revoke the abatement

granted pursuant to this title and shall require the payment, with

interest, of any abatement received pursuant to this title.

(b) The applicant shall, on the certificate of continuing eligibility,

state whether any charges alleging violation by the applicant or any

person owning a substantial interest in the eligible building, or any

officer, director or general partner of the applicant or person owning a

substantial interest in the eligible building, or any person for whom

the applicant or person owning a substantial interest in the eligible

building is an officer, director or general partner, of section two

hundred thirty-five of the real property law or any section of article

one hundred fifty of the penal law or any similar arson law of another

jurisdiction, are pending. For purposes of this paragraph, "substantial

interest" shall have the same meaning as set forth in paragraph (c) of

subdivision seven of section four hundred ninety nine-cc of this title.

8. The department of finance shall revoke any abatement granted

pursuant to this title with respect to premises leased to a renewal

tenant if the applicant shall fail to submit evidence acceptable to the

department of finance, within the time specified in subdivision four of

section four hundred ninety-nine-dd of this title, that the requirements

of section four hundred ninety-nine-cc of this title concerning

expenditures on improvements have been met within the time specified in

such section four hundred ninety-nine-cc. In such event, the department

of finance shall require the landlord to pay, with penalty and interest,

any abatement received pursuant to this title with respect to the

premises in question.