§ 489-BBBB — Power to enact local law; real property tax exemption; deferral of tax payments

New York § 489-BBBB

• 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

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§ 489-bbbb. Power to enact local law; real property tax exemption;\ndeferral of tax payments. Any city having a population of one million or\nmore, acting through its local legislative body, is authorized and\nempowered to determine that incentives in the form of exemption from or\nabatement or deferral of payment of real property taxes are necessary to\nencourage industrial and commercial development in such city and to\nenact a local law providing that such benefits shall be provided in the\nmanner set forth in this title. Such city shall be divided into six\nclasses of areas as provided in this title and pursuant to designation\nof areas to be made by a temporary commercial incentive area boundary\ncommission. Within such areas, the following benefits shall be available\nto qualified recipients:\n 1. (a) A recipient who, following the effective date of a certificate\nof eligibility, has performed industrial construction work in any area\nof such city shall be eligible for an exemption from real property taxes\nas follows: For the first thirteen tax years, the recipient shall be\nexempt from taxation on one hundred per centum of the exemption base.\nFor the following nine tax years, the recipient shall be exempt from\ntaxation on a percentage of the exemption base beginning at ninety per\ncentum thereof in the fourteenth tax year and decreasing by ten per\ncentum of said exemption base each year.\n The following table shall illustrate the computation of the exemption\nfor industrial construction work:\nTax year following effective\ndate of certificate of\neligibility: Amount of exemption:\n 1 through 13 Tax on 100% of exemption base\n 14 Tax on 90% of exemption base\n 15 Tax on 80% of exemption base\n 16 Tax on 70% of exemption base\n 17 Tax on 60% of exemption base\n 18 Tax on 50% of exemption base\n 19 Tax on 40% of exemption base\n 20 Tax on 30% of exemption base\n 21 Tax on 20% of exemption base\n 22 Tax on 10% of exemption base\n (b) Notwithstanding paragraph (a) of this subdivision, a recipient who\nfiled an application for a certificate of eligibility for industrial\nconstruction work in any area of such city on or after July first,\nnineteen hundred ninety-five, and who, following the effective date of\nsuch certificate of eligibility, has performed such industrial\nconstruction work shall be eligible for an exemption from real property\ntaxes as follows: For the first sixteen tax years, the recipient shall\nbe exempt from taxation on one hundred per centum of the exemption base.\nFor the following nine tax years, the recipient shall be exempt from\ntaxation on a percentage of the exemption base beginning at ninety per\ncentum thereof in the seventeenth tax year and decreasing by ten per\ncentum of said exemption base each year.\n The following table shall illustrate the computation of the exemption\nfor industrial construction work pursuant to this paragraph:\nTax year following effective\ndate of certificate of\neligibility: Amount of exemption:\n 1 Through 16 Tax on 100% of exemption base\n 17 Tax on 90% of exemption base\n 18 Tax on 80% of exemption base\n 19 Tax on 70% of exemption base\n 20 Tax on 60% of exemption base\n 21 Tax on 50% of exemption base\n 22 Tax on 40% of exemption base\n 23 Tax on 30% of exemption base\n 24 Tax on 20% of exemption base\n 25 Tax on 10% of exemption base\n (c)(i) A recipient who filed an application for a certificate of\neligibility for industrial construction work in any area of such city on\nor after July first, nineteen hundred ninety-five, and who, following\nthe effective date of such certificate of eligibility, both commenced\nand completed such work, shall be eligible for an abatement of real\nproperty taxes as follows: For the first tax year immediately following\ncompletion of such work, and for the second, third and fourth tax years\nfollowing completion of such work, the abatement shall equal fifty per\ncentum of the real property tax that was imposed on the property which\nis the subject of the certificate of eligibility for the tax year\nimmediately preceding the effective date of such certificate of\neligibility, provided, however, that if such property was fully or\npartially exempt from real property taxes during such tax year, then the\nabatement shall equal fifty per centum of the real property tax that\nwould have been imposed on such property but for such full or partial\nexemption. For the fifth and sixth tax years, the abatement shall equal\nforty per centum of such amount; for the seventh and eighth tax years,\nthe abatement shall equal thirty per centum of such amount; for the\nninth and tenth tax years, the abatement shall equal twenty per centum\nof such amount; and for the eleventh and twelfth tax years, the\nabatement shall equal ten per centum of such amount. Notwithstanding any\ninconsistent provision of this paragraph, a recipient shall not be\neligible for an abatement for the first tax year following completion of\nsuch work, unless the recipient submits proof satisfactory to the\ndepartment of finance that such work was completed on or before the\ntaxable status date for such first tax year no later than thirty days\nafter such taxable status date. Where the recipient fails to submit such\nproof in accordance with the foregoing sentence, a recipient shall not\nbe eligible for an abatement until the second tax year following\ncompletion of such work. In such case, a recipient shall submit proof\nsatisfactory to the department of finance that such work was completed\non or before the taxable status date for such first tax year no later\nthan thirty days after the taxable status date for such second tax year.\nA recipient whose abatement begins in the second tax year following\ncompletion of such work shall not thereby have his or her twelve-year\nbenefit period shortened.\n The following table shall illustrate the computation of the abatement\nfor industrial construction work pursuant to this paragraph:\n Tax year following\n completion of industrial\n construction work: Amount of abatement:\n 1 50%\n 2 50%\n 3 50%\n 4 50%\n 5 40%\n 6 40%\n 7 30%\n 8 30%\n 9 20%\n 10 20%\n 11 10%\n 12 10%\n (ii) If, due to a determination of the department of finance or tax\ncommission of such city or a court, the real property tax imposed on\nsuch property for the tax year immediately preceding the effective date\nof such certificate of eligibility is changed, then any abatement that\nwas granted in accordance with this paragraph prior to such reduction\nshall be recalculated and any abatement to be granted in accordance with\nthis paragraph shall be based on the real property tax imposed on such\nproperty for the tax year immediately preceding the effective date of\nsuch certificate of eligibility, as changed by such determination. The\namount equal to the difference between the abatement originally granted\nand the abatement as so recalculated shall be deducted from any refund\notherwise payable or remission otherwise due as a result of a change due\nto such determination, and any balance of such amount remaining unpaid\nafter making any such deduction shall be paid to the department of\nfinance within thirty days from the date of mailing by the department of\nfinance of a notice of the amount payable. Such amount payable shall\nconstitute a tax lien on such property as of the date of such notice\nand, if not paid within such thirty-day period, penalty and interest at\nthe rate applicable to delinquent taxes on such property shall be\ncharged and collected on such amount from the date of such notice to the\ndate of payment.\n (iii) No property which is the subject of a certificate of eligibility\npursuant to this title shall receive more than one abatement pursuant to\nthis title and no abatement shall exceed one consecutive twelve-year\nperiod as specified in subparagraph (i) of this paragraph.\n (iv) In no event shall an abatement granted pursuant to this title\nexceed in any tax year the real property taxes imposed on the property\nwhich is the subject of a certificate of eligibility pursuant to this\ntitle.\n (v) For the purpose of calculating an abatement of real property taxes\npursuant to this title, where a tax lot contains more than one building\nor structure and not all of the buildings or structures comprising such\ntax lot are the subject of a certificate of eligibility for industrial\nconstruction work pursuant to this title, the real property taxes\nimposed on such tax lot for the tax year immediately preceding the\neffective date of such certificate of eligibility shall be apportioned\namong the buildings, structures and land comprising such tax lot and\nonly such real property taxes as are allocable to the property which is\nthe subject of the certificate of eligibility pursuant to this title\nshall be abated in accordance with this paragraph. Such apportionment\nshall be in accordance with rules promulgated by the department of\nfinance.\n (vi) A recipient who filed an application for a certificate of\neligibility for industrial construction work in the commercial\nrevitalization area on or after July first, two thousand, and who,\nfollowing the effective date of such certificate of eligibility, both\ncommenced and completed such work, shall be eligible for an abatement of\nreal property taxes in accordance with subparagraph (i) of this\nparagraph, provided, however, that where the total net square footage of\nthe industrial property used or immediately available and held out for\nuse for manufacturing activities involving the assembly of goods or the\nfabrication or processing of raw materials is less than seventy-five per\ncentum of the total net square footage of the industrial property, the\nabatement of real property taxes shall be determined in accordance with\nrules promulgated by the department of finance. Notwithstanding the\nforegoing sentence, no such abatement shall be allowed where the total\nnet square footage of the industrial property used or immediately\navailable and held out for use for such manufacturing actives after\ncompletion of industrial construction work is less than the total net\nsquare footage used or immediately available and held out for use for\nsuch manufacturing activities before the commencement of such\nconstruction work. For purposes of this subparagraph only, the term\n"industrial construction work" shall mean the modernization,\nrehabilitation, expansion or improvement of an existing building or\nstructure for use as industrial property and the term "industrial\nproperty" shall mean nonresidential property on which will exist after\ncompletion of industrial construction work a building or structure\nwherein at least twenty-five per centum of the total net square footage\nis used or immediately available and held out for use for manufacturing\nactivities involving the assembly of goods or the fabrication or\nprocessing of raw materials.\n 2. (a) A recipient who, following the effective date of a certificate\nof eligibility, has performed commercial construction work in a special\nexemption area shall be eligible for an exemption from real property\ntaxes as follows: For the first thirteen tax years, the recipient shall\nbe exempt from taxation on one hundred per centum of the exemption base.\nFor the following nine tax years, the recipient shall be exempt from\ntaxation on a percentage of the exemption base beginning at ninety per\ncentum thereof in the fourteenth tax year and decreasing by ten per\ncentum of said exemption base each year.\n The following table shall illustrate the computation of the exemption\nfor commercial construction work in a special exemption area:\nTax year following effective\ndate of certificate of\neligibility: Amount of exemption:\n 1 through 13 Tax on 100% of exemption base\n 14 Tax on 90% of exemption base\n 15 Tax on 80% of exemption base\n 16 Tax on 70% of exemption base\n 17 Tax on 60% of exemption base\n 18 Tax on 50% of exemption base\n 19 Tax on 40% of exemption base\n 20 Tax on 30% of exemption base\n 21 Tax on 20% of exemption base\n 22 Tax on 10% of exemption base\n (b) Notwithstanding paragraph (a) of this subdivision, a recipient who\nfiled an application for a certificate of eligibility for commercial\nconstruction work in a special exemption area on or after July first,\nnineteen hundred ninety-five, and who, following the effective date of\nsuch certificate of eligibility, has performed such commercial\nconstruction work shall be eligible for an exemption from real property\ntaxes as follows: For the first sixteen tax years, the recipient shall\nbe exempt from taxation on one hundred per centum of the exemption base.\nFor the following nine tax years, the recipient shall be exempt from\ntaxation on a percentage of the exemption base beginning at ninety per\ncentum thereof in the seventeenth tax year and decreasing by ten per\ncentum of said exemption base each year.\n The following table shall illustrate the computation of the exemption\nfor commercial construction work in a special exemption area pursuant to\nthis paragraph:\nTax year following effective\ndate of certificate of\neligibility: Amount of exemption:\n 1 through 16 Tax on 100% of exemption base\n 17 Tax on 90% of exemption base\n 18 Tax on 80% of exemption base\n 19 Tax on 70% of exemption base\n 20 Tax on 60% of exemption base\n 21 Tax on 50% of exemption base\n 22 Tax on 40% of exemption base\n 23 Tax on 30% of exemption base\n 24 Tax on 20% of exemption base\n 25 Tax on 10% of exemption base\n 3. (a) A recipient who, following the effective date of a certificate\nof eligibility, has performed commercial construction work in a regular\nexemption area shall be eligible for an exemption from real property\ntaxes as follows: For the first eight tax years, the recipient shall be\nexempt from taxation on one hundred per centum of the exemption base.\nFor the following four tax years, the recipient shall be exempt from\ntaxation on a percentage of the exemption base beginning at eighty per\ncentum thereof in the ninth tax year and decreasing by twenty per centum\nof said exemption base each year.\n The following table shall illustrate the computation of the exemption\nfor commercial construction work in a regular exemption area:\nTax year following effective\ndate of certificate of\neligibility: Amount of exemption:\n 1 through 8 Tax on 100% of exemption base\n 9 Tax on 80% of exemption base\n 10 Tax on 60% of exemption base\n 11 Tax on 40% of exemption base\n 12 Tax on 20% of exemption base\n (b) Notwithstanding paragraph (a) of this subdivision, a recipient who\nfiled an application for a certificate of eligibility for commercial\nconstruction work in a regular exemption area on or after July first,\nnineteen hundred ninety-five, and who, following the effective date of\nsuch certificate of eligibility, has performed such commercial\nconstruction work shall be eligible for an exemption from real property\ntaxes as follows: For the first eleven tax years, the recipient shall be\nexempt from taxation on one hundred per centum of the exemption base.\nFor the following four tax years, the recipient shall be exempt from\ntaxation on a percentage of the exemption base beginning at eighty per\ncentum thereof in the twelfth tax year and decreasing by twenty per\ncentum of said exemption base each year.\n The following table shall illustrate the computation of the exemption\nfor commercial construction work in a regular exemption area pursuant to\nthis paragraph:\nTax year following effective\ndate of certificate of\neligibility: Amount of exemption:\n 1 through 11 Tax on 100% of exemption base\n 12 Tax on 80% of exemption base\n 13 Tax on 60% of exemption base\n 14 Tax on 40% of exemption base\n 15 Tax on 20% of exemption base\n 4. Except as provided in paragraphs (b) and (c) of subdivision five of\nsection four hundred eighty-nine-cccc of this title, a recipient who,\nfollowing the effective date of a certificate of eligibility, has\nperformed commercial construction work in a deferral area shall be\neligible for a deferral of tax payments as follows: For the first three\ntax years following the effective date of a certificate of eligibility,\nthe tax payment on one hundred per centum of the exemption base shall be\ndeferred. For the following four tax years, the tax payment on a\npercentage of the exemption base beginning at eighty per centum thereof\nin the fourth tax year and decreasing by twenty per centum each year\nshall be deferred. The total amount of tax payments deferred pursuant to\nthis title shall be paid subsequently over the course of ten tax years\nas follows: Commencing in the eleventh tax year following the effective\ndate of the certificate of eligibility, through and including the\ntwentieth tax year following such effective date, an amount equal to ten\nper centum of the total amount of tax payments deferred pursuant to this\nsection shall be added to the amount of tax otherwise assessed and\npayable in each such tax year on the property subject to such deferral.\n The following table shall illustrate the computation of deferral and\npayment of taxes for commercial construction work in a deferral area:\nTax year following effective\ndate of certificate of Amount of tax payments to\neligibility: be deferred or paid:\n 1 through 3 Deferral of tax payment on 100%\n of the exemption base\n 4 Deferral of tax payment on 80%\n of the exemption base\n 5 Deferral of tax payment on 60%\n of the exemption base\n 6 Deferral of tax payment on 40%\n of the exemption base\n 7 Deferral of tax payment on 20%\n of the exemption base\n 11 through 20 Payment each year of 10% of\n total dollar amount of tax\n payments deferred pursuant\n to this title\n 5. A recipient who, following the effective date of a certificate of\neligibility, has performed renovation construction work in a renovation\nexemption area shall be eligible for an exemption from real property\ntaxes as follows: For the first eight tax years, the recipient shall be\nexempt from taxation on one hundred per centum of the exemption base.\nFor the following four tax years, the recipient shall be exempt from\ntaxation on a percentage of the exemption base beginning at eighty per\ncentum thereof in the ninth tax year and decreasing by twenty per centum\nof said exemption base each year.\n The following table shall illustrate the computation of the exemption\nfor renovation construction work in a renovation exemption area:\nTax year following effective\ndate of certificate of\neligibility: Amount of exemption:\n 1 through 8 Tax on 100% of exemption base\n 9 Tax on 80% of exemption base\n 10 Tax on 60% of exemption base\n 11 Tax on 40% of exemption base\n 12 Tax on 20% of exemption base\n 5-a. A recipient who, following the effective date of a certificate of\neligibility, constructs a new building or structure that meets the\nrequirements set forth in subdivision nine of section four hundred\neighty-nine-dddd of this title in the new construction exemption area\nspecified in paragraph (a), (b) or (c) of subdivision six of section\nfour hundred eighty-nine-cccc of this title shall be eligible for an\nexemption from real property taxes as follows: For the first four tax\nyears, the recipient shall be exempt from taxation on one hundred per\ncentum of the exemption base. For the following four tax years, the\nrecipient shall be exempt from taxation on a percentage of the exemption\nbase beginning at eighty per centum thereof in the fifth tax year and\ndecreasing by twenty per centum of said exemption base each year.\n The following table shall illustrate the computation of the exemption\nfor the construction of a new building or structure that meets the\nrequirements set forth in subdivision nine of section four hundred\neighty-nine-dddd of this title in the new construction exemption area\nspecified in paragraph (a), (b) or (c) of subdivision six of section\nfour hundred eighty-nine-cccc of this title:\nTax year following effective\ndate of certificate of\neligibility: Amount of exemption:\n 1 through 4 Tax on 100% of exemption base\n 5 Tax on 80% of exemption base\n 6 Tax on 60% of exemption base\n 7 Tax on 40% of exemption base\n 8 Tax on 20% of exemption base\n 6. There shall be no exemption from or deferral of a payment of real\nproperty taxes available pursuant to this title to any person who\nperforms commercial or renovation construction work in an excluded area,\nexcept as provided in paragraphs (b) and (c) of subdivision five of\nsection four hundred eighty-nine-cccc of this title.\n 7. The benefits of this title shall be granted exclusively for\nindustrial, commercial or renovation construction work described in\napproved plans. No benefits shall be granted for residential\nconstruction work. Any parcel which is partly located in an excluded\narea shall be deemed to be entirely located in such area.\n 8. No benefits pursuant to this title shall be granted for work which\nis the subject of a certificate of eligibility issued pursuant to title\ntwo-C of this article.\n