§ 485-P — Economic transformation area exemption

New York § 485-P

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

Text

* § 485-p. Economic transformation area exemption. 1. (a) Real\nproperty constructed, altered, installed or improved in an economic\ntransformation area as defined in subdivision ten of section four\nhundred of the economic development law which is used for business,\ncommercial or industrial purposes and which is owned by a business\nentity that has been issued a certificate of eligibility pursuant to\nsubdivision three of section four hundred two of the economic\ndevelopment law shall be exempt from taxation and special ad valorem\nlevies by any municipal corporation in which located, for the period and\nto the extent herein provided, provided that the governing board of such\nmunicipal corporation, after public hearing, adopts a local law,\nordinance or resolution providing therefore. Such local law, ordinance\nor resolution must be adopted within three years of the date of the\nclosure of a closed facility (as that term is defined in subdivision\neleven of section four hundred of the economic development law) located\nin the economic transformation area.\n (b) The exemption so authorized shall be for a term of five years. The\namount of such exemption shall be as follows:\n (i) If the construction, alteration, installation or improvement\noccurs on or at the site of the closed facility in the economic\ntransformation area, then the exemption in the first year of its term\nshall be fifty percent of the "base amount," determined pursuant to\nsubdivision two of this section. The amount of the exemption in the\nsecond, third, fourth and fifth year of its term shall be forty percent,\nthirty percent, twenty percent and ten percent, respectively, of such\nbase amount.\n (ii) If the construction, alteration, installation or improvement\noccurs in the economic transformation area outside of the closed\nfacility, then the exemption in the first year of its term shall be\ntwenty-five percent of the "base amount," determined pursuant to\nsubdivision two of this section. The amount of the exemption in the\nsecond, third, fourth and fifth year of its term shall be twenty\npercent, fifteen percent, ten percent and five percent, respectively, of\nsuch base amount.\n 2. (a) The base amount of the exemption shall be the extent of the\nincrease in assessed value attributable to such construction,\nalteration, installation or improvement as determined in the initial\nyear for which application for exemption is made pursuant to this\nsection. The base amount shall remain constant for the authorized term\nof the exemption, subject to the following:\n (i) If there is subsequent construction, alteration, installation or\nimprovement during the term of the exemption, the base amount shall be\nrevised to include the increase in assessed value attributable to such\nconstruction, alteration, installation or improvement.\n (ii) If a change in level of assessment of fifteen percent or more is\ncertified for an assessment roll pursuant to the rules of the\ncommissioner, the base amount shall be adjusted by such change in level\nof assessment. The exemption on that assessment roll shall thereupon be\nrecomputed, notwithstanding the fact that the assessor receives the\ncertification after the completion, verification and filing of the final\nassessment roll. In the event the assessor does not have custody of the\nroll when such certification is received, the assessor shall certify the\nrecomputed exemption to the local officers having custody and control of\nthe roll, and such local officers are hereby directed and authorized to\nenter the recomputed exemption certified by the assessor on the roll.\n (b) No such exemption shall be granted unless the construction,\nalteration, installation or improvement commenced within one year of the\ndate of the issuance of the certificate of eligibility to the property\nowner.\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 concurrently 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 five 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. The\noriginal of such application shall be filed with the assessor of the\nassessing unit. Such original application shall be filed on or before\nthe appropriate taxable status date of such assessing unit and no later\nthan one year from the date of completion of such construction,\nalteration, installation or improvement.\n 4. If the assessor receives an application by the owner of the real\nproperty, he or she shall approve the application and such real property\nshall thereafter be exempt from taxation as herein provided commencing\nwith the assessment roll prepared after the taxable status date referred\nto in subdivision three of this section. The assessed value of any\nexemption granted pursuant to this section shall be entered by the\nassessor on the assessment roll with the taxable property, with the\namount of the exemption entered in a separate column.\n * NB Repealed December 31, 2026\n