§ 489-AAAA — Definitions

New York § 489-AAAA

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2-D: Tax Exemption and Deferral of Tax Payments For Certain Industrial and Commercial Properties In a City of One Million or More Persons
• Art. 4: Exemptions

Text

§ 489-aaaa. Definitions. When used in this title: 1. "Applicant" means\nany person obligated to pay real property taxes on the property for\nwhich an exemption from or abatement or deferral of real property tax\npayments is sought, or in the case of exempt property, the record owner\nor lessee thereof.\n 2. "Approved plans" means plans submitted to and approved by the\ndepartment of buildings in connection with the applicant's building\npermit, including any amendments to such plans approved by such\ndepartment before final inspection of the work for which such permit was\nissued.\n 3. "Benefit period" means the period of time when a recipient is\neligible to receive benefits pursuant to this title, including in the\ncase of a recipient of a certificate of eligibility for commercial\nconstruction work in a deferral area, the period of time tax payments\nare to be deferred, the interim period when no tax payments are to be\ndeferred and no deferred tax payments are required to be made, and the\nperiod of time when the deferred tax payments are to be made.\n 4. "Commission" means the temporary commercial incentive area boundary\ncommission.\n 5. "Commercial construction work" means the construction of a new\nbuilding or structure, or portion thereof, or the modernization,\nrehabilitation, expansion, or other improvement of an existing building\nor structure, or portion thereof, for use as commercial property.\n 6. "Commercial property" means nonresidential property (a) on which\nwill exist after completion of commercial construction work, a building\nor structure used for the buying, selling or otherwise providing of\ngoods or services including hotel services, or for other lawful\nbusiness, commercial or manufacturing activities; and (b) (i) where,\nexcept as provided in subparagraph (ii) of this paragraph and paragraph\n(c) of this subdivision, not more than fifteen per centum of the total\nnet square footage of any building or structure on such property was\nused for manufacturing activities at any one or more times during the\ntwenty-four months immediately preceding the date of application for a\ncertificate of eligibility or (ii) where not more than fifteen per\ncentum of the total net square footage of any building or structure on\nsuch property was used for manufacturing activities at any one or more\ntimes during the sixty months immediately preceding the date of\napplication for a certificate of eligibility if such property is\nlocated, in whole or in part, in the area in the borough of Manhattan\nlying south of the center line of 96th Street; and (c) in the commercial\nrevitalization area, and with respect to an application for a\ncertificate of eligibility filed on or after July first, two thousand,\n"commercial property" means nonresidential property on which will exist\nafter completion of commercial construction work, a building or\nstructure used for the buying, selling or otherwise providing of goods\nor services including hotel services, or for other lawful business,\ncommercial or manufacturing activities.\n 6-a. "Commercial revitalization area" means any area of a city having\na population of one million or more, provided that in the city of New\nYork a commercial revitalization area shall mean any district that is\nzoned C4, C5, C6, M1, M2, or M3 in accordance with the zoning resolution\nof such city in any area of such city except the area lying south of the\ncenter line of 96th Street in the borough of Manhattan.\n 7. "Deferral area" means an area in which deferral of payment of real\nproperty taxes in accordance with subdivision four of section four\nhundred eighty-nine-bbbb of this title shall be available to a recipient\nwho has performed commercial construction work.\n 8. "Excluded area" means each area specified in paragraphs (a), (b)\nand (c) of subdivision five of section four hundred eighty-nine-cccc of\nthis title.\n 9. "Exemption base." (a) For purposes of computing the exemption\npursuant to subdivision one, two, three or four of section four hundred\neighty-nine-bbbb of this title, "exemption base" shall mean, with\nrespect to property that is the subject of a certificate of eligibility\nwith an effective date of June thirtieth, nineteen hundred ninety-two or\nbefore: (i) for the first, second and third taxable years following the\neffective date of a certificate of eligibility, the assessed value of\nimprovements made since the effective date of such certificate which are\nattributable exclusively to commercial or industrial construction work\ndescribed in approved plans; and (ii) for all other years, the assessed\nvalue of such improvements which have been made before the fourth\ntaxable status date following the effective date of such certificate.\n (b) For purposes of computing the exemption pursuant to subdivision\nthree, four or five of section four hundred eighty-nine-bbbb of this\ntitle, "exemption base" shall mean, with respect to property that is the\nsubject of a certificate of eligibility with an effective date of July\nfirst, nineteen hundred ninety-two or after: (i) for the first through\nfifth taxable years following the effective date of a certificate of\neligibility, the assessed value of improvements made since the effective\ndate of such certificate which are attributable exclusively to\ncommercial or renovation construction work described in approved plans;\nand (ii) for all other years, the assessed value of such improvements\nwhich have been made before the sixth taxable status date following the\neffective date of such certificate.\n (c) For purposes of computing the exemption pursuant to subdivision\none or two of section four hundred eighty-nine-bbbb of this title,\n"exemption base" shall mean, with respect to property that is the\nsubject of a certificate of eligibility with an effective date of July\nfirst, nineteen hundred ninety-two or after: (i) for the first through\nfifth taxable years following the effective date of a certificate of\neligibility, the assessed value of improvements made since the effective\ndate of such certificate which are attributable exclusively to\ncommercial or industrial construction work described in approved plans\nplus any equalization increases or minus any equalization decreases in\nthe assessed value of the property so improved (excluding the land)\noccurring subsequent to the effective date of such certificate; and (ii)\nfor all other years, the assessed value of such improvements made before\nthe sixth taxable status date following the effective date of such\ncertificate plus any equalization increases or minus any equalization\ndecreases in the assessed value of the property so improved (excluding\nthe land) occurring subsequent to the effective date of such certificate\nbut before the fourteenth taxable status date following the effective\ndate of such certificate. For purposes of the preceding sentence: no\nadjustment shall be made to the assessed value of the improvements\nreferred to in subparagraphs (i) and (ii) of this paragraph for any\nportion of an equalization increase or decrease which is being phased in\npursuant to section eighteen hundred five of this chapter subsequent to\nthe effective date of the certificate of eligibility if such increase or\ndecrease occurred prior to such effective date; with respect to any\ntaxable year, an adjustment for an equalization increase or decrease\nshall reflect only the portion of such increase or decrease which is\nbeing phased in during such taxable year or which was phased in during a\nprior taxable year; no adjustment for an equalization decrease shall\nreduce the exemption base to an amount less than the assessed value of\nthe improvements referred to in subparagraphs (i) and (ii) of this\nparagraph, and, to the extent that any such decrease would reduce the\nexemption base below such amount, such decrease shall reduce the taxable\nportion of the assessed value; and no adjustment shall be made for an\nequalization increase or decrease if the improvements referred to in\nsubparagraphs (i) and (ii) of this paragraph do not result in a physical\nincrease in the assessed value of the property.\n (d) Notwithstanding paragraph (a) of this subdivision, for purposes of\ncomputing the exemption pursuant to subdivision one of section four\nhundred eighty-nine-bbbb of this title, "exemption base" shall mean,\nwith respect to industrial property that is located in the area in the\nborough of Manhattan lying north of the center line of 96th Street, or\nthat is located in the Bronx, Brooklyn, Queens or Staten Island; and\nthat is the subject of a certificate of eligibility with an effective\ndate after December thirty-first, nineteen hundred eighty-nine and\nbefore July first, nineteen hundred ninety-two: (i) for the first,\nsecond and third taxable years following the effective date of a\ncertificate of eligibility, the assessed value of improvements made\nsince the effective date of such certificate which are attributable\nexclusively to industrial construction work described in approved plans;\nand (ii) for all other years, the assessed value of such improvements\nmade before the fourth taxable status date following the effective date\nof such certificate plus any equalization increases or minus any\nequalization decreases in the assessed value of the property so improved\n(excluding the land) occurring subsequent to the fourth taxable status\ndate following the effective date of such certificate but before the\nfourteenth taxable status date following the effective date of such\ncertificate. For purposes of the preceding sentence: no adjustment shall\nbe made to the assessed value of the improvements referred to in\nsubparagraphs (i) and (ii) of this paragraph for any portion of an\nequalization increase or decrease which is being phased in pursuant to\nsection eighteen hundred five of this chapter subsequent to the\neffective date of the certificate of eligibility if such increase or\ndecrease occurred prior to such effective date; with respect to any\ntaxable year, an adjustment for an equalization increase or decrease\nshall reflect only the portion of such increase or decrease which is\nbeing phased in during such taxable year or which was phased in during a\nprior taxable year; no adjustment for an equalization decrease shall\nreduce the exemption base to an amount less than the assessed value of\nthe improvements referred to in subparagraphs (i) and (ii) of this\nparagraph, and, to the extent that any such decrease would reduce the\nexemption base below such amount, such decrease shall reduce the taxable\nportion of the assessed value; and no adjustment shall be made for an\nequalization increase or decrease if the improvements referred to in\nsubparagraphs (i) and (ii) of this paragraph do not result in a physical\nincrease in the assessed value of the property.\n (e) For purposes of computing the exemption: (i) pursuant to\nsubdivision five-a of section four hundred eighty-nine-bbbb of this\ntitle, "exemption base" shall mean, with respect to property that is the\nsubject of a certificate of eligibility with an effective date of July\nfirst, nineteen hundred ninety-five or after and that is located in the\nnew construction exemption area specified in paragraph (a) of\nsubdivision six of section four hundred eighty-nine-cccc of this title:\nfor any taxable year following the effective date of a certificate of\neligibility, the assessed value of improvements made since the effective\ndate of such certificate which are attributable exclusively to the\nconstruction of a new building or structure that meets the requirements\nset forth in subdivision nine of section four hundred eighty-nine-dddd\nof this title as described in approved plans, provided such improvements\nare made within thirty-six months of the effective date of such\ncertificate or by December thirty-first, nineteen hundred ninety-nine,\nwhichever is earlier; and (ii) pursuant to subdivision five-a of section\nfour hundred eighty-nine-bbbb of this title, "exemption base" shall\nmean, with respect to property that is the subject of a certificate of\neligibility with an effective date of July first, nineteen hundred\nninety-five or after and that is located in the new construction\nexemption area specified in paragraph (b) of subdivision six of section\nfour hundred eighty-nine-cccc of this title: for any taxable year\nfollowing the effective date of a certificate of eligibility, the\nassessed value of improvements made since the effective date of such\ncertificate which are attributable exclusively to the construction of a\nnew building or structure that meets the requirements set forth in\nsubdivision nine of section four hundred eighty-nine-dddd of this title\nas described in approved plans, provided such improvements are made\nwithin forty-two months of the effective date of such certificate.\n (f) For purposes of this subdivision "equalization increase or\ndecrease" means an increase or decrease in the assessed value of\nproperty which is not attributable to construction work, fire,\ndemolition, destruction or other change in the physical characteristics\nof the property (excluding gradual physical deterioration or\nobsolescence), or to a change in the description or boundaries of the\nproperty.\n 10. "Industrial construction work" means the construction of a new\nbuilding or structure or the modernization, rehabilitation, expansion or\nimprovement of an existing building or structure for use as industrial\nproperty.\n 11. "Industrial property" means nonresidential property on which will\nexist after completion of industrial construction work a building or\nstructure wherein at least seventy-five per centum of the total net\nsquare footage is used or immediately available and held out for use for\nmanufacturing activities involving the assembly of goods or the\nfabrication or processing of raw materials.\n 12. "Initial assessed value" means the lesser of (a) the taxable\nassessed value of real property appearing on the books of the annual\nrecord of the assessed valuation of real property on the effective date\nof a recipient's certificate of eligibility or (b) the assessed value to\nwhich such assessment is thereafter reduced pursuant to application to\nthe tax commission or court order. Where the real property is used for\nboth residential and nonresidential purposes on the effective date of\nsuch certificate of eligibility, the initial assessed value of such real\nproperty, determined as provided in the preceding sentence, shall be\napportioned between the residential and nonresidential portions thereof\nin such manner as shall properly reflect the initial assessed value of\neach such portion. Such apportionment shall be in accordance with rules\npromulgated by the department of finance.\n 13. "Manufacturing activity" means an activity involving the assembly\nof goods or the fabrication or processing of raw materials.\n 14. "Minimum required expenditure" means expenditure for commercial,\nrenovation or industrial construction work in an amount equal to twenty\nper centum of the initial assessed value; provided, however, that with\nrespect to a recipient who filed an application on or after July first,\nnineteen hundred ninety-five for a certificate of eligibility for\nindustrial construction work or for commercial construction work in a\nspecial exemption area or a regular exemption area, minimum required\nexpenditure means expenditure for such work in an amount equal to ten\nper centum of the initial assessed value; provided, however, that with\nrespect to a recipient who filed an application on or after July first,\nnineteen hundred ninety-five for a certificate of eligibility for\nindustrial construction work and for the purpose of receiving an\nabatement of real property taxes in accordance with paragraph (c) of\nsubdivision one of section four hundred eighty-nine-bbbb of this title,\nminimum required expenditure means expenditure for such work in an\namount equal to twenty-five per centum of the initial assessed value;\nand provided further that if the department of finance, after\nconsultation with the deputy mayor for finance and economic development,\ndetermines that a greater expenditure is required to encourage\nsignificant industrial and commercial development it may establish by\nrule a higher percentage of initial assessed value, not to exceed fifty\nper centum thereof, as the minimum required expenditure. Expenditure for\nresidential construction work shall not be included in the minimum\nrequired expenditure; provided, however, that for mixed-use property,\nexpenditures for construction work related to the common areas and\nsystems of such property shall be allocated, in accordance with rules\npromulgated by the department of finance, between the residential and\nnonresidential portions of the property. If real property was used for\nboth residential and nonresidential purposes on the effective date of\nthe certificate of eligibility, the initial assessed value of such real\nproperty, for purposes of this subdivision, shall be the initial\nassessed value apportioned to the nonresidential portions thereof.\n 15. "Person" means an individual, corporation, partnership,\nassociation, agency, trust, estate, foreign or domestic government or\nsubdivision thereof, or other entity.\n 16. "Recipient" means an applicant to whom a certificate of\neligibility has been issued pursuant to this title, or the successor in\ninterest of such applicant, provided that where a person who has entered\ninto a lease or purchase agreement with the owner or lessee of exempt\nproperty has been a co-applicant, such person or the successor in\ninterest of such person shall be the recipient.\n 17. "Regular exemption area" means an area in which a regular\nexemption from taxes in accordance with subdivision three of section\nfour hundred eighty-nine-bbbb of this title shall be available to a\nrecipient who performs commercial construction work.\n 18. "Residential construction work" means any construction,\nmodernization, rehabilitation, expansion or improvement of dwelling\nunits other than dwelling units in a hotel.\n 19. "Residential property" means property, other than property used\nfor hotel purposes, on which exists or will exist, upon completion of\nconstruction work, a building or structure used for residential\npurposes.\n 20. "Restricted activity" means any entertainment activity which the\ndepartment of finance has identified in regulations promulgated pursuant\nto a local law enacted pursuant to this title as an activity which, in\nthe public interest, should not be encouraged through the benefits of\nthis title.\n 21. "Special exemption area" means an area in which the commission has\ndetermined that a special exemption from real property taxes in\naccordance with subdivision two of section four hundred eighty-nine-bbbb\nof this title shall be available to a recipient who performs commercial\nconstruction work and, in addition, means the area specified in\nparagraph (d) of subdivision four of section four hundred\neighty-nine-cccc of this title.\n 22. "Mixed-use property" means property on which exists, or will exist\nupon completion of construction work, a building or structure used for\nboth residential and nonresidential purposes.\n 23. "Renovation construction work" means the modernization,\nrehabilitation, expansion or improvement of an existing building or\nstructure, or portion thereof, for use as commercial property in a\nrenovation exemption area where such modernization, rehabilitation,\nexpansion or improvement is physically and functionally integrated with\nthe existing building or structure, or portion thereof, does not\nincrease the bulk of the existing building or structure by more than\nthirty per centum and does not increase the height of the existing\nbuilding or structure by more than thirty per centum.\n 24. "Renovation exemption area" means the area specified in paragraph\n(d) of subdivision five of section four hundred eighty-nine-cccc of this\ntitle in which a renovation exemption from taxes in accordance with\nsubdivision five of section four hundred eighty-nine-bbbb of this title\nshall be available to a recipient who performs renovation construction\nwork.\n 25. "New construction exemption areas" means the areas specified in\nsubdivision six of section four hundred eighty-nine-cccc of this title\nin which an exemption from real property taxes in accordance with\nsubdivision five-a of section four hundred eighty-nine-bbbb of this\ntitle shall be available to a recipient who constructs a new building or\nstructure that meets the requirements set forth in subdivision nine of\nsection four hundred eighty-nine-dddd of this title.\n