§ 25-DD — Definitions

New York § 25-DD

• Jurisdiction: New York
• Law GCT: General City
• Art. 2-J: Lower Manhattan Relocation and Employment Assistance Program

Text

§ 25-dd. Definitions. When used in this article, the following terms\nshall have the following meanings:\n (a) "Eligible business" means any person subject to a tax imposed\nunder a local law enacted pursuant to part two or three of section one,\nor section two, of chapter seven hundred seventy-two of the laws of\nnineteen hundred sixty-six or a gross receipts tax imposed under a local\nlaw enacted pursuant to subdivision (a) of section twelve hundred one of\nthe tax law, that: (1) has been conducting substantial business\noperations at one or more business locations outside the city of New\nYork for the twenty-four consecutive months immediately preceding the\ntaxable year during which such eligible business relocates as defined in\nsubdivision (j) of this section but has not maintained employment shares\nat premises in the city of New York at any time during the period\nbeginning January first, two thousand two and ending on the date it\nenters into a lease or a contract to purchase the premises that will\nqualify as eligible premises pursuant to this article; and (2) on or\nafter July first, two thousand three relocates as defined in subdivision\n(j) of this section all or part of such business operations.\n (b) "Person" includes any individual, partnership, association,\njoint-stock company, corporation, estate or trust, limited liability\ncompany, and any combination of the foregoing.\n (c) "Retail activity" means any activity which consists predominately\nof the sale, other than through the mail, or by the telephone or by\nmeans of the internet, of tangible personal property to any person, for\nany purpose unrelated to the trade or business of such person, or which\nconsists predominately of the selling of services to individuals which\ngenerally involve the physical, mental and/or spiritual care of such\nindividuals, or the physical care of the personal property of any person\nunrelated to the trade or business of such person, or which consists\npredominately of the provision of retail banking services.\n (d) "Hotel services" means any services which consist predominately of\nthe lodging of guests at a building or a portion thereof which is\nregularly used and kept open for such services. The term "hotel\nservices" shall include the lodging of guests at an apartment hotel, a\nmotel, boarding house or club, whether or not meals are served.\n (e) "Eligible premises" means: (1) nonresidential premises which are\nwholly contained in real property which is certified as eligible to\nreceive benefits pursuant to a local law enacted in accordance with\ntitle two-C or title two-D of article four of the real property tax law,\nprovided that such premises have been improved by construction or\nrenovation, that expenditures have been made after June thirtieth, two\nthousand three, or in the case of a relocation by a special eligible\nbusiness, after June thirtieth, two thousand five, for improvements to\nsuch real property in excess of fifty per centum or, in the case of\nindustrial property, in excess of twenty-five per centum, of the value\nat which such real property was assessed for tax purposes for the tax\nyear in which such improvements commenced and such expenditures have\nbeen made within thirty-six months or, in the case of expenditures for\nsuch improvements to such real property in excess of fifty million\ndollars within seventy-two months from such commencement and, provided\nfurther, that such real property is located in the eligible Lower\nManhattan area, and provided further, that in the case of a special\neligible business, a lease or contract to purchase such premises is\nfirst entered into by the special eligible business after June\nthirtieth, two thousand five;\n (2) nonresidential premises which are: (i) wholly contained in or\nsituated on real property which has been leased from an industrial\ndevelopment agency established pursuant to article eighteen-A of the\ngeneral municipal law, provided that such premises were constructed or\nrenovated subsequent to the approval of such construction or renovation\nby such agency, or (ii) wholly contained in or situated on real property\nowned by a city having a population of one million or more, a lease for\nwhich was approved in accordance with the applicable provisions of the\ncharter of such city, provided that such premises were constructed or\nrenovated subsequent to such approval, or (iii) wholly contained in or\nsituated on real property which has been leased from the port authority\nof the state of New York and New Jersey or the New York state urban\ndevelopment corporation, or a subsidiary thereof, provided that such\npremises were constructed or renovated subsequent to the execution of\nsuch lease, or (iv) wholly contained in property which would be eligible\nto receive benefits pursuant to a local law enacted in accordance with\ntitle two-D of article four of the real property tax law except that\nsuch property is exempt from real property taxation; provided that\nexpenditures have been made after June thirtieth, two thousand three, or\nin the case of a relocation by a special eligible business, after June\nthirtieth, two thousand five, for improvements to such real property in\nexcess of fifty per centum or, in the case of industrial property, in\nexcess of twenty-five per centum, of the value at which such real\nproperty was assessed for tax purposes for the tax year in which such\nimprovements commenced and such expenditures have been made within\nthirty-six months or, in the case of expenditures for such improvements\nto such real property in excess of fifty million dollars within\nseventy-two months from the date of such commencement, and provided\nfurther that such real property is located in the eligible Lower\nManhattan area, and provided further, that in the case of a special\neligible business, a lease or contract to purchase such premises is\nfirst entered into by the special eligible business after June\nthirtieth, two thousand five; or\n (3) in the case of an eligible business, nonresidential premises which\nare located in the eligible Lower Manhattan area, for which a lease or a\ncontract to purchase is first entered into by an eligible business on or\nafter July first, two thousand three and for which a minimum expenditure\nhas been made on or after such date, for improvements in excess of\ntwenty-five dollars per square foot, or in the case of a special\neligible business, non-residential premises that are located in the\neligible Lower Manhattan area for which a lease or a contract to\npurchase is first entered into by the eligible business after June\nthirtieth, two thousand five, and for which a minimum expenditure has\nbeen made after such date for improvements in excess of twenty-five\ndollars per square foot, provided, however, that, in either case, if\nsuch premises are leased, such lease shall have a term that does not\nexpire until at least three years after the later of the date of\nrelocation and the lease commencement date.\n Notwithstanding the provisions of paragraphs one and two of this\nsubdivision, if, subsequent to date of certification, the property in\nwhich such premises are contained ceases to meet the requirements of\nparagraph one or two of this subdivision, such premises shall\nnonetheless remain eligible premises, provided that the eligible\nbusiness or special eligible business continues to occupy such premises;\nprovided however that if, after such property ceases to meet the\nrequirements of such paragraph one or two, an eligible business or\nspecial eligible business first leases or purchases additional premises\ncontained in such property, such additional premises shall not be\nconsidered eligible premises unless they meet the requirements of\nparagraph three of this subdivision.\n (f) "Eligible Lower Manhattan area" means the area in the city of New\nYork in the borough of Manhattan lying south of a line running from the\nintersection of the Hudson River with the Holland Tunnel and running\nthence north along West Street to the intersection of Clarkson Street,\nthen running east along the centerline of Clarkson Street to the\nintersection of Washington Street, then running south along the\ncenterline of Washington Street to the intersection of West Houston\nStreet, then east along the centerline of West Houston Street, then at\nthe intersection of the Avenue of the Americas continuing east along the\ncenterline of East Houston Street to the easterly bank of the East\nRiver.\n (g) "Employment share" means, for each employee, partner or sole\nproprietor of an eligible business or special eligible business, the sum\nof: (1) the number of full-time work weeks worked by such employee,\npartner or sole proprietor during the eligible business' or special\neligible business' taxable year divided by the number of weeks in the\ntaxable year, and (2) the number of part-time work weeks worked by such\nemployee, partner or sole proprietor during the eligible business' or\nspecial eligible business' taxable year divided by an amount equal to\ntwice the number of weeks in the taxable year. For purposes of this\nsubdivision, "full-time work week" shall mean a week during which at\nleast thirty-five hours of gainful work has been performed by such\nemployee, partner or sole proprietor and "part-time work week" shall\nmean a week during which at least fifteen but less than thirty-five\nhours of gainful work has been performed by such employee, partner or\nsole proprietor. For purposes of this section, employment shares shall\nnot be based upon work weeks attributable to employees, partners or sole\nproprietors acquired by an eligible business or special eligible\nbusiness as a result of a merger with, acquisition of another person, or\na transaction having a comparable effect, that occurs after June\nthirtieth, two thousand five, and before the end of the taxable year in\nwhich a credit is claimed by such eligible business pursuant to this\nsection, or to successors, if any, to those employees, partners or sole\nproprietors.\n (h) "Aggregate employment shares" means the sum of all employment\nshares maintained by an eligible business or special eligible business\nin a taxable year.\n (i) "Eligible aggregate employment shares" means (1) in the case of an\neligible business, the amount, if any, of aggregate employment shares\nmaintained by an eligible business in eligible premises in the eligible\nLower Manhattan area in the taxable year in which such eligible business\nclaims a credit pursuant to a local law enacted in accordance with\nsection twenty-five-ee of this article. Provided, however, that such\namount shall not exceed the lesser of: (i) the highest number of\naggregate employment shares maintained by such eligible business in\neligible premises in the taxable year during which such eligible\nbusiness relocates or in any of the five immediately succeeding taxable\nyears; or (ii) the greater of one hundred aggregate employment shares\nand twice the number of aggregate employment shares maintained by such\neligible business outside the city of New York in the taxable year\nimmediately preceding the taxable year during which such eligible\nbusiness relocates. In determining eligible aggregate employment shares,\nwork weeks at premises prior to the later of the date of relocation and\nthe date such premises meet the requirements of subdivision (e) of this\nsection shall not be taken into account.\n (2) In the case of a special eligible business, "eligible aggregate\nemployment shares" means: the amount of aggregate employment shares\ndetermined in subparagraph (i) of this paragraph, provided, however,\nsuch amount shall not exceed the lowest of the amounts determined in\nsubparagraphs (ii), (iii), (iv) and (v) of this paragraph.\n (i) the amount determined in this subparagraph is the number of\naggregate employment shares maintained by a special eligible business in\neligible premises in the eligible Lower Manhattan area in the taxable\nyear in which such special eligible business claims a credit pursuant to\na local law enacted in accordance with section twenty-five-ee of this\narticle less the number of aggregate employment shares maintained by\nsuch business in such premises in the taxable year prior to the year of\nrelocation.\n (ii) the amount determined in this subparagraph is the amount, if any,\nby which the number of aggregate employment shares maintained by a\nspecial eligible business in the taxable year in the city of New York\nexceeds the number of New York city base shares.\n (iii) the amount determined in this subparagraph is the amount, if\nany, by which number of aggregate employment shares maintained by a\nspecial eligible business in the taxable year in the eligible Lower\nManhattan area exceeds the number of Lower Manhattan base shares.\n (iv) the amount determined in this subparagraph is the greater of one\nhundred and twice the number of aggregate employment shares maintained\nby the special eligible business outside the city of New York in the\nyear prior to the year of relocation.\n (v) the amount determined in this subparagraph is:\n (A) for the year of relocation, the number of full time work weeks\nworked by relocated employees in eligible premises after the date of\nrelocation divided by the number of weeks in such taxable year, plus the\nnumber of part-time work weeks worked by such employees in such premises\nafter the date of relocation, divided by twice the number of weeks in\nthe taxable year of relocation;\n (B) for taxable years after the taxable year of relocation, the lesser\nof:\n (I) the number of relocated employee base shares plus the product of\n(a) the excess, if any, of the number of aggregate employment shares\ndetermined in subparagraph (i) of this paragraph over the number of\nrelocated employee base shares and (b) a fraction, the numerator of\nwhich is the number of relocated employee base shares and the\ndenominator of which is the sum of relocated employee base shares and\nNew York city base shares; and\n (II) the highest number of eligible aggregate employment shares\nmaintained by the special eligible business in eligible premises during\nthe year of relocation and the five immediately succeeding taxable\nyears.\n (j) In the case of an eligible business, "relocate" means to transfer\npre-existing business operations to one or more premises which are or\nwill become eligible premises in accordance with subdivision (e) of this\nsection, or to establish new business operations at such premises,\nprovided that an eligible business shall not be deemed to have relocated\nunless at least one employee, partner or sole proprietor of the eligible\nbusiness is transferred to such premises from pre-existing business\noperations conducted outside the city of New York. The date of\nrelocation shall be the later of: (1) the first day on which the\nindividual so transferred commences work at premises that are or will\nbecome eligible premises, and (2) the date of completion of sufficient\nimprovements to the eligible premises at which such individual has\ncommenced work, to meet the requirements of subdivision (e) of this\nsection relating to expenditures for improvements. The taxable year of\nrelocation shall be the taxable year in which the date of relocation\noccurs. For purposes of this article, an eligible business may relocate\nonly once but may add or substitute other eligible premises throughout\nthe period during which it is authorized pursuant to subdivision (a) of\nsection twenty-five-ee of this article to receive the credit allowed by\nsuch section.\n (k) "Tax year" and "taxable year" mean, for purposes of this article,\nin the case of taxpayers authorized to receive the credit allowed by\nsection twenty-five-ee of this article against the tax imposed under a\nlocal law enacted pursuant to subdivision (a) of section twelve hundred\none of the tax law, calendar year.\n (l) "Special eligible business" means any person subject to a tax\nimposed under a local law enacted pursuant to part two or three of\nsection one, or section two, of chapter seven hundred seventy-two of the\nlaws of nineteen hundred sixty-six or a gross receipts tax imposed under\na local law enacted pursuant to subdivision (a) of section twelve\nhundred one of the tax law, that: (1) has been conducting substantial\nbusiness operations at one or more business locations outside the city\nof New York for the twenty-four consecutive months immediately preceding\nthe taxable year during which such eligible business relocates as\ndefined in subdivision (m) of this section, (2) maintained employment\nshares at premises in Manhattan in the city of New York at some time\nduring the period beginning January first, two thousand two, and ending\non the date it enters into a lease or a contract to purchase the\npremises that will qualify as eligible premises pursuant to this\nsection, and (3) on or after June thirtieth, two thousand five,\nrelocates as defined in subdivision (m) of this section all or part of\nsuch business operations.\n (m) In the case of a special eligible business, "relocate" means to\ntransfer pre-existing business operations and employees from one or more\nqualifying business locations outside the city of New York to one or\nmore premises which are or will become eligible premises in accordance\nwith subdivision (e) of this section. The date of relocation shall be\nthe later of: (1) the first day on which the first individual so\ntransferred commences work at premises that are or will become eligible\npremises, and (2) the date of completion of sufficient improvements to\nthe eligible premises at which such individual has commenced work to\nmeet the requirements of subdivision (e) of this section relating to\nexpenditures for improvements. The taxable year of relocation shall be\nthe taxable year in which the date of relocation occurs. For purposes of\nthis chapter, a special eligible business may relocate only once but may\nadd additional eligible premises throughout the period during which it\nis authorized pursuant to subdivision (a) of section twenty-five-ee of\nthis article to receive the credit allowed by such section.\n (n) "Relocated Employee" means an employee of a special eligible\nbusiness who (1) has worked at a qualifying business location of the\neligible business outside of the city of New York continuously,\nfull-time or part-time, for the ten work weeks prior to the date of\nrelocation and continuously from the date of relocation until the date\nof transfer to eligible premises, (2) is transferred to eligible\npremises, and (3) continues to work for the eligible business at the\neligible premises for at least ten full work weeks after the date of\ntransfer.\n (o) "Relocated employee base shares" means the number of full-time\nwork weeks worked by relocated employees in eligible premises during the\ntwelve calendar months after the month of relocation, divided by the\nnumber of weeks in such twelve months, plus the number of part-time work\nweeks worked by such employees in such premises divided by twice the\nnumber of weeks in such months.\n (p) "New York city base shares" means the number of aggregate\nemployment shares maintained by the special eligible business in the\ncity of New York in the year prior to the year of relocation.\n (q) "Lower Manhattan base shares" means the number of aggregate\nemployment shares maintained by the special eligible business in the\neligible Lower Manhattan area in the year prior to the year of\nrelocation.\n (r) "Qualifying business location" means a business location of a\nspecial eligible business located outside the city of New York at which\nsuch business has been conducting substantial business operations for\nthe twenty-four months immediately preceding the year of relocation.\n