§ 485-B — Business investment exemption

New York § 485-B

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2: Private Property
• Art. 4: Exemptions

Text

§ 485-b. Business investment exemption. 1. Real property constructed,\naltered, installed or improved subsequent to the first day of July,\nnineteen hundred seventy-six for the purpose of commercial, business or\nindustrial activity shall be exempt from taxation and special ad valorem\nlevies, except for special ad valorem levies for fire district, fire\nprotection district and fire alarm district purposes, to the extent\nhereinafter provided.\n 2. (a) (i) Such real property shall be exempt for a period of one year\nto the extent of fifty per centum of the increase in assessed value\nthereof attributable to such construction, alteration, installation or\nimprovement and for an additional period of nine years provided,\nhowever, that the extent of such exemption shall be decreased by five\nper centum each year during such additional period of nine years and\nsuch exemption shall be computed with respect to the "exemption base."\nThe exemption base shall be the increase in assessed value as determined\nin the initial year of such ten year period following the filing of an\noriginal application, except as provided in subparagraph (ii) of this\nparagraph.\n (ii) In any year in which a change in level of assessment of fifteen\npercent or more is certified for a final assessment roll pursuant to the\nrules of the commissioner, the exemption base shall be multiplied by a\nfraction, the numerator of which shall be the total assessed value of\nthe parcel on such final assessment roll (after accounting for any\nphysical or quantity changes to the parcel since the immediately\npreceding assessment roll), and the denominator of which shall be the\ntotal assessed value of the parcel on the immediately preceding final\nassessment roll. The result shall be the new exemption base. The\nexemption shall thereupon be recomputed to take into account the new\nexemption base, notwithstanding the fact that the assessor receives the\ncertification of the change in level of assessment after the completion,\nverification and filing of the final assessment roll. In the event the\nassessor does not have custody of the roll when such certification is\nreceived, the assessor shall certify the recomputed exemption to the\nlocal officers having custody and control of the roll, and such local\nofficers are hereby directed and authorized to enter the recomputed\nexemption certified by the assessor on the roll. The assessor shall give\nwritten notice of such recomputed exemption to the property owner, who\nmay, if he or she believes that the exemption was recomputed\nincorrectly, apply for a correction in the manner provided by title\nthree of article five of this chapter for the correction of clerical\nerrors.\n (iii) The following table shall illustrate the computation of the tax\nexemption:\n Year of exemption Percentage of exemption\n 1 50\n 2 45\n 3 40\n 4 35\n 5 30\n 6 25\n 7 20\n 8 15\n 9 10\n 10 5\n (b) No such exemption shall be granted unless\n (1) such construction, alteration, installation or improvement was\ncommenced subsequent to the first day of January, nineteen hundred\nseventy-six or such later date as may be specified by local law or\nresolution;\n (2) the cost of such construction, alteration, installation or\nimprovement exceeds the sum of ten thousand dollars or such greater\namount as may be specified by local law or resolution; and\n (3) such construction, alteration, installation or improvement is\ncompleted as may be evidenced by a certificate of occupancy or other\nappropriate documentation as provided by the owner.\n (c) For purposes of this section the terms construction, alteration,\ninstallation and improvement shall not include ordinary maintenance and\nrepairs.\n (d) No such exemption shall be granted concurrent with or subsequent\nto any other real property tax exemption granted to the same\nimprovements to real property, except, where during the period of such\nprevious exemption, payments in lieu of taxes or other payments were\nmade to the local government in an amount that would have been equal to\nor greater than the amount of real property taxes that would have been\npaid on such improvements had such property been granted an exemption\npursuant to this section. In such case, an exemption shall be granted\nfor a number of years equal to the ten year exemption granted pursuant\nto this section less the number of years the property would have been\npreviously exempt from real property taxes.\n 3. Such exemption shall be granted only upon application by the owner\nof such real property on a form prescribed by the commissioner. Such\napplication shall be filed with the assessor of the city, town, village,\nor county having the power to assess property for taxation on or before\nthe appropriate taxable status date of such city, town, village or\ncounty and within one year from the date of completion of such\nconstruction, alteration, installation or improvement.\n 4. If the assessor is satisfied that the applicant is entitled to an\nexemption pursuant to this section, he or she shall approve the\napplication and such real property shall thereafter be exempt from\ntaxation and special ad valorem levies, except for special ad valorem\nlevies for fire district, fire protection district and fire alarm\ndistrict purposes, as herein provided commencing with the assessment\nroll prepared after the taxable status date referred to in subdivision\nthree of this section. The assessed value of any exemption granted\npursuant to this section shall be entered by the assessor on the\nassessment roll with the taxable property, with the amount of the\nexemption shown in a separate column.\n 5. The provisions of this section shall apply to real property used\nprimarily for the buying, selling, storing or developing goods or\nservices, the manufacture or assembly of goods or the processing of raw\nmaterials. This section shall not apply to property used primarily for\nthe furnishing of dwelling space or accommodations to either residents\nor transients other than hotels or motels.\n 6. In the event that real property granted an exemption pursuant to\nthis section ceases to be used primarily for eligible purposes, the\nexemption granted pursuant to this section shall cease.\n 7. A county, city, town or village may, by local law, and a school\ndistrict, except a city school district to which article fifty-two of\nthe education law applies, may, by resolution, reduce the per centum of\nexemption otherwise allowed pursuant to this section; provided, however,\nthat a project in course of construction and exemptions existing prior\nin time to passage of any such local law or resolution shall not be\nsubject to any such reduction so effected. Any county, city, town,\nvillage or school district that has reduced the per centum of exemption\npursuant to this subdivision may thereafter, by local law or resolution\nas the case may be, increase the per centum of exemption up to any per\ncentum not exceeding the maximum allowed by subdivision two or twelve of\nthis section, whichever is applicable, provided, however, that any such\nlocal law or resolution shall apply only to construction, alterations,\ninstallations, or improvements commenced subsequent to the effective\ndate of such local law or resolution. A copy of all such local laws or\nresolutions shall be filed with the commissioner and the assessor of\neach assessing unit which comprises the county, city, town or school\ndistrict or, in the case of a village, the village assessor, or the\napplicable town or county assessor of a village which has adopted a\nlocal law provided in subdivision three of section fourteen hundred two\nof this chapter.\n 8. A county, city, town or village may, by local law, and a school\ndistrict, except a city school district to which article fifty-two of\nthe education law applies may, by resolution, establish a date for the\ncommencement of effectiveness of exemptions offered pursuant to this\nsection and may provide that the provisions of this section shall apply\nonly to construction, alteration, installation or improvements having a\ngreater value than that specified by subdivision two of this section,\nprovided, however, that such amount shall not exceed fifty thousand\ndollars.\n 9. (a) A county, city, outside the city of New York, town or village\nmay, by local law, and a school district which levies school taxes may,\nby resolution, establish a board to be known as the industrial and\ncommercial incentive board. The membership and composition of such board\nshall be set forth in the local law or resolution.\n (b) The industrial and commercial incentive board shall present a plan\nto the appointing local legislative body concerning the various types of\nbusiness real property which should be granted eligibility for an\nexemption pursuant to subdivision one of this section. Such plan shall\nmake recommendations concerning the applicability of the exemption to\nspecific sectors and subsectors, as defined in the North American\nIndustry Classification System published by the United States\nGovernment. Such plan shall also make a recommendation as to whether the\nexemption be computed as provided in subdivision two or twelve of this\nsection. In addition, such plan shall identify specific geographic areas\nwithin which such exemptions should be offered. In developing the plan\nrequired by this paragraph, the board shall consider the planning\nobjectives of each municipality within which such exemptions may be\noffered, the necessity of the exemption to the attraction or retention\nof such business and the economic benefit to the area of providing\nexemptions to various types of businesses.\n (c) In addition, the board may make recommendations to the appointing\nlocal legislative body with respect to actions it deems desirable to\nimprove the economic climate therein.\n (d) Notwithstanding the provisions of paragraph (a) of this\nsubdivision, where a county establishes an industrial and commercial\nincentive board, the members of such board shall be appointed as\nfollows: three representatives of the county: the appointment of one\nshall be reserved to the county executive of the county who shall serve\nas chair, and one each for the majority and the minority parties of the\ncounty legislative body; one representative for each city located within\nthe county upon the recommendation of the mayor; one representative for\neach of the towns located within the county upon the recommendation of\nthe supervisor; one representative to collectively represent all of the\nvillages located within the county upon the recommendation of the mayors\nof the villages in the county; and one representative to collectively\nrepresent all of the school districts located within the county upon\nrecommendation of the county school boards association. The members of\nsuch board shall serve at the pleasure of the governing body which they\nrepresent. The members shall serve without salary, but the county\nlegislative body may entitle each such member to reimbursement for his\nor her actual and necessary expenses incurred in the performance of his\nor her duties.\n 10. Where a county, city, town, village or school district has\nestablished an industrial and commercial incentive board, pursuant to\nsubdivision nine of this section, such county, city, town or village\nmay, by local law, and a school district, except a city school district\nto which article fifty-two of the education law applies, may, by\nresolution, restrict real property eligible to receive the exemption to\nreal property constructed, altered, installed or improved for those\npurposes identified in the plan presented by the board. Such law or\nresolution shall identify the specific sectors and subsectors, as\ndefined in the North American Industry Classification System published\nby the United States Government to which the exemption shall be\napplicable. Such law or resolution shall also restrict the availability\nof such exemption to the specific geographic areas identified in the\nplan presented by the board.\n 11. Where a county, by law, restricts exemptions pursuant to the\nrecommendations of an industrial and commercial incentive board,\nestablished pursuant to subdivision nine of this section, such\nrestricted exemptions shall be applicable to taxes and special ad\nvalorem levies of each city, town, village and school district located\nwithin the area within which the restricted exemptions are offered by\nthe county, unless such city, town or village shall, by law, or such\nschool district, shall, by resolution, determine that such restricted\nexemptions shall not be applicable to its tax and ad valorem levies.\nUpon adoption of such law, the county shall notify each affected city,\ntown, village and school district of its actions and inform them of\ntheir options regarding such restricted exemptions.\n 12. Notwithstanding subdivision two of this section, where a county,\ncity, town, village or school district adopts restricted exemptions\npursuant to subdivision ten of this section, the law or resolution may\nprovide that such exemptions shall be computed pursuant to the following\naccelerated strategic exemption schedule:\n Year of exemption Percentage of exemption\n 1 50\n 2 50\n 3 50\n 4 40\n 5 30\n 6 20\n 7 10\n 8 10\n 9 10\n 10 5\n Provided however, that such law or resolution shall:\n (i) contain findings that the adoption of this accelerated strategic\nexemption schedule is necessary to encourage targeted economic\ndevelopment, create or retain permanent private sector jobs, and that\nthe value of the exemptions to be provided is justified by the need to\nprovide employment opportunities and broaden the tax base; and\n (ii) limit the applicability of such schedule to projects where the\ncost of such construction, alteration, installation or improvement\nexceeds the sum of fifty thousand dollars; and\n (iii) provide that such exemptions are restricted by geographic areas\nand/or groups and major divisions as is provided by subdivision ten of\nthis section.\n 13. The provisions of this section shall not apply in a city of one\nmillion or more persons.\n