§ 499-AA — Definitions

New York § 499-AA

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 4-A: Tax Abatement For Certain Commercial Properties In a City of One Million or More Persons
• Art. 4: Exemptions

Text

§ 499-aa. Definitions. When used in this title, the following terms\nshall mean or include:\n 1. "Abatement base." The lesser of (i) two dollars and fifty cents of\nthe tax liability per square foot or (ii) fifty per centum of the tax\nliability per square foot; provided, however, that with respect to a\nlease commencing on or after April first, nineteen hundred ninety-seven,\nthe abatement base shall equal the tax liability per square foot subject\nto a maximum of two dollars and fifty cents per square foot.\n 2. "Abatement zone." (a) Any area of a city having a population of one\nmillion or more, provided that in the city of New York the abatement\nzone shall be any district that is zoned C4, C5 or C6 in accordance with\nthe zoning resolution of such city in the borough of Manhattan north of\nthe center line of 96th Street or in the boroughs of the Bronx,\nBrooklyn, Queens or Staten Island.\n (b) In addition to the abatement zone set forth in paragraph (a) of\nthis subdivision, in the city of New York the abatement zone shall be\nany district that is zoned C4, C5, C6, M1, M2 or M3 in accordance with\nthe zoning resolution of such city in any area of such city except the\narea lying south of the center line of 96th Street in the borough of\nManhattan.\n (c) Notwithstanding the provisions of paragraph (b) of this\nsubdivision, the abatement zone shall also include the special garment\ncenter district as defined by chapter 1 of article XII of the zoning\nresolution of the city of New York.\n (d) Any tax lot that is partly located inside an abatement zone shall\nbe deemed to be entirely located inside such zone.\n 3. "Aggregate floor area." The sum of the gross areas of the several\nfloors of a building, measured from the exterior faces of exterior walls\nor from the center lines of walls separating two buildings.\n 4. "Applicant." The landlord and the tenant.\n 5. "Benefit period." The period commencing with the first day of the\nmonth immediately following the rent commencement date and terminating\nno later than sixty months thereafter, provided, however, that with\nrespect to a lease commencing on or after April first, nineteen hundred\nninety-seven with an initial lease term of less than five years, but not\nless than three years, the period commencing with the first day of the\nmonth immediately following the rent commencement date and terminating\nno later than thirty-six months thereafter, and provided, further,\nhowever, that with respect to a lease commencing on or after July first,\ntwo thousand five for eligible premises defined in subparagraph (ii) of\nparagraph (b) or paragraph (c) of subdivision ten of this section with\nan initial lease term of not less than three years, the period\ncommencing with the first day of the month immediately following the\nrent commencement date and terminating no later than one hundred twenty\nmonths thereafter. Notwithstanding the foregoing sentence, a benefit\nperiod shall expire no later than March thirty-first, two thousand\nseven, provided, however, that with respect to a lease commencing on or\nafter July first, two thousand for eligible premises defined in\nsubparagraph (i) of paragraph (b) of subdivision ten of this section, a\nbenefit period shall expire no later than June thirtieth, two thousand\nsixteen, provided, further, however that with respect to a lease\ncommencing on or after July first, two thousand five for eligible\npremises defined in subparagraph (ii) of paragraph (b) or paragraph (c)\nof subdivision ten of this section, a benefit period shall expire no\nlater than June thirtieth, two thousand twenty.\n 6. "Billable assessed value." The lesser of the taxable transitional\nor the taxable actual assessed value of the eligible building and the\nland on which the eligible building is located for the fiscal year in\nwhich the benefit period commences, as computed pursuant to subdivision\nthree of section one thousand eight hundred five of this chapter.\n 7. "Department of finance." The department of finance of any city\nhaving a population of one million or more.\n 8. "Eligible building." (a) With respect to the abatement zone defined\nin paragraph (a) of subdivision two of this section, a non-residential\nor mixed-use building that has an aggregate floor area of twenty-five\nthousand square feet or more and that received its initial certificate\nof occupancy or initial temporary certificate of occupancy prior to\nJanuary first, nineteen hundred seventy-five; provided that if no\ncertificate of occupancy was required at the time the building was\nconstructed, other proof acceptable to the department of finance is\nsubmitted that demonstrates that the building was constructed prior to\nJanuary first, nineteen hundred seventy-five; and provided further that\neligible building shall not include any building owned by a governmental\nagency. Each condominium unit in a building that meets the requirements\nof this subdivision shall be considered a separate eligible building.\n (b) With respect to the abatement zone defined in paragraph (b) of\nsubdivision two of this section for eligible premises defined in\nsubparagraph (i) of paragraph (b) of subdivision ten of this section, a\nnon-residential or mixed-use building that has an aggregate floor area\nof twenty-five thousand square feet or more and that received its\ninitial certificate of occupancy or initial temporary certificate of\noccupancy prior to January first, nineteen hundred ninety-nine; provided\nthat if no certificate of occupancy was required at the time the\nbuilding was constructed, other proof acceptable to the department of\nfinance is submitted that demonstrates that the building was constructed\nprior to January first, nineteen hundred ninety-nine; and provided\nfurther that eligible building shall not include any building owned by a\ngovernmental agency. Each condominium unit in a building that meets the\nrequirements of this subdivision shall be considered a separate eligible\nbuilding.\n (c) With respect to the abatement zone defined in paragraph (b) of\nsubdivision two of this section for eligible premises defined in\nsubparagraph (ii) of paragraph (b) of subdivision ten of this section\nand the abatement zone defined in paragraph (c) of subdivision two of\nthis section, a non-residential building; provided that eligible\nbuilding shall not include any building owned by a governmental agency.\nEach condominium unit in a building that meets the requirements of this\nsubdivision shall be considered a separate eligible building.\n 9. "Eligibility period." The period commencing April first, nineteen\nhundred ninety-five and terminating March thirty-first, two thousand\none, provided, however, that with respect to eligible premises defined\nin subparagraph (i) of paragraph (b) of subdivision ten of this section,\nthe period commencing July first, two thousand and terminating June\nthirtieth, two thousand twenty-eight, and provided, further, however,\nthat with respect to eligible premises defined in subparagraph (ii) of\nparagraph (b) or paragraph (c) of subdivision ten of this section, the\nperiod commencing July first, two thousand five and terminating June\nthirtieth, two thousand twenty-eight.\n 10. "Eligible premises." (a) With respect to the abatement zone\ndefined in paragraph (a) of subdivision two of this section, premises\nlocated in an eligible building that (a) are occupied or used as offices\n(including ancillary uses) or are occupied or used as retail space and\n(b) are occupied or used by a tenant under a lease that meets the\neligibility requirements of section four hundred ninety-nine-cc of this\ntitle, provided, however, that premises occupied or used as retail space\nshall not be eligible premises unless located in an eligible building\nthe premises of which are occupied or used primarily as offices\n(including ancillary uses);\n (b) With respect to the abatement zone defined in paragraph (b) of\nsubdivision two of this section, premises located in an eligible\nbuilding that are (i) occupied or used as offices (including ancillary\nuses) or are occupied or used for other lawful commercial business\nactivities, but not premises occupied or used as retail space or for\nhotel or residential purposes; or (ii) occupied or used for industrial\nand manufacturing activities (including ancillary uses), but not\npremises occupied or used for hotel or residential purposes; and\n (c) With respect to the abatement zone defined in paragraph (c) of\nsubdivision two of this section, premises located in an eligible\nbuilding that are occupied or used for industrial and manufacturing\nactivities (including ancillary uses), but not premises occupied or used\nfor hotel or residential purposes.\n (d) Notwithstanding the provisions of subparagraph (ii) of paragraph\n(b) or paragraph (c) of this subdivision, premises located in an\neligible building shall not be eligible for the tax abatement granted\npursuant to subdivision one-b of section four hundred ninety-nine-bb of\nthis title unless at least fifty percent of the aggregate floor area of\nsuch premises is occupied or used for industrial and manufacturing\nactivities (exclusive of ancillary uses) as defined in subdivision\nfourteen-a of this section.\n (e) For eligible premises defined in subparagraph (ii) of paragraph\n(b) or paragraph (c) of this subdivision, retail space shall be (i)\noccupied solely by the tenant of such eligible premises who has applied\nfor and receives a tax abatement pursuant to this title and (ii) used\nfor the purpose of selling or servicing the products of such tenant.\nSuch retail space shall not be deemed to be occupied or used for\nindustrial and manufacturing activities for purposes of paragraph (d) of\nthis subdivision.\n 11. "Expansion premises." Eligible premises leased by an expansion\ntenant to accommodate additional employees.\n 12. "Expansion tenant." A person who (a) occupies premises in an\neligible building under a lease which does not expire during the\neligibility period and (b) executes a lease for expansion premises in\nsuch eligible building or in another eligible building which lease meets\nthe eligibility requirements of section four hundred ninety-nine-cc of\nthis title. For purposes of determining whether expansion premises are\nlocated in the same or in another eligible building, the last sentence\nof subdivision eight of this section shall not be applicable.\n 13. "Fiscal year." The fiscal year of any city having a population of\none million or more.\n 14. "Governmental agency." The United States of America or any agency\nor instrumentality thereof, the state of New York, the city of New York,\nany public corporation (including a body corporate and politic created\npursuant to agreement or compact between the state of New York and any\nother state), public benefit corporation, public authority or other\npolitical subdivision of the state.\n 14-a. "Industrial and manufacturing activities." Activities involving\nthe assembly of goods to create a different article, or the processing,\nfabrication, or packaging of goods. Industrial and manufacturing\nactivities shall not include waste management or utility services.\n 15. "Landlord." Any person who (a) controls all non-residential\nportions of an eligible building, including, without limitation, the\nrecord owner, the lessee under a ground lease, any mortgagee in\npossession or any receiver, and (b) who grants the right to use or\noccupy eligible premises to any tenant, provided that landlord shall not\ninclude any lessee who at any time during the lease term occupied or\nused or occupies or uses any part of the non-residential portions of\nsuch eligible building, other than premises occupied or used by such\nlessee to provide rental or management services to such building.\n 16. "Lease commencement date." The date set forth in the lease on\nwhich the term of the lease commences.\n 17. "Mixed-use building." A building used for both residential and\ncommercial purposes, provided that more than twenty-five per centum of\nthe aggregate floor area of such building is used or held out for use as\ncommercial, community facility or accessory use space.\n 18. "New tenant." A person who (a) (i) is relocating or expanding from\npremises in a relocation area to eligible premises, or (ii) occupies\npremises in an eligible building under a lease which expires during the\neligibility period and is relocating or expanding to eligible premises,\nor (iii) occupies premises in the abatement zone in a building which is\nnot an eligible building and is relocating or expanding to eligible\npremises, or (iv) does not occupy any premises immediately prior to\nexecuting a lease for eligible premises, or (v) is an owner of a\nbuilding in the abatement zone who is relocating or expanding to\neligible premises, and (b) executes a lease which meets the eligibility\nrequirements of section four hundred ninety-nine-cc of this title.\n 19. "Person." An individual, corporation, limited liability company,\npartnership, association, agency, trust, estate, foreign or domestic\ngovernment or subdivision thereof, or other entity.\n 20. "Relocation area." Any area except the abatement zone as defined\nin subdivision two of this section.\n 21. "Renewal tenant." A person who (a) occupies premises in an\neligible building under a lease which expires during the eligibility\nperiod and (b) executes a lease for the continued occupancy of all or\npart of such premises or all or part of such premises and additional\npremises in such eligible building, provided such premises are eligible\npremises and such lease meets the eligibility requirements of section\nfour hundred ninety-nine-cc of this title.\n 22. "Rent commencement date." The date set forth in the lease on which\nthe obligation to pay basic fixed rent shall commence.\n 23. "Subtenant." A person whose right to occupy and use the eligible\npremises is not derived from a lease with the landlord.\n 24. "Tax commission." The tax commission in any city having a\npopulation of one million or more.\n 25. "Tax liability." The product obtained by multiplying the billable\nassessed value for the fiscal year in which the benefit period commences\nby the tax rate applicable to the eligible building for such fiscal year\nas set by the local legislative body of any city having a population of\none million or more.\n 26. "Tax liability per square foot." The tax liability divided by the\ntotal number of square feet in the eligible building, as listed on the\nrecords of the department of finance.\n 27. "Tenant." A person (including any successors in interest) who\nexecutes a lease with the landlord for the right to occupy or use the\neligible premises and who occupies or uses the eligible premises\npursuant to such lease. Tenant shall not include any subtenant. When\nused in this title, "tenant" includes "expansion tenant", "new tenant"\nand "renewal tenant."\n 28. "Tenant's percentage share." (a) For eligible premises defined in\nparagraph (a) or subparagraph (i) of paragraph (b) of subdivision ten of\nthis section, the percentage of the eligible building's aggregate floor\narea allocated to the eligible premises, which shall be presumed to be\nsuch percentage as set forth in the lease for the eligible premises;\nprovided that where the eligible premises includes expansion premises,\nthe "tenant's percentage share" shall be calculated on the basis of the\npercentage of the eligible building's aggregate floor area allocated\nsolely to the expansion premises.\n (b) For eligible premises defined in subparagraph (ii) of paragraph\n(b) or paragraph (c) of subdivision ten of this section, the percentage\nof the eligible building's aggregate floor area allocated to the\neligible premises to be occupied or used for industrial and\nmanufacturing activities, as defined in subdivision fourteen-a of this\nsection; provided that where the eligible premises includes expansion\npremises, the "tenant's percentage share" shall be calculated on the\nbasis of the eligible building's aggregate floor area allocated solely\nto expansion premises to be occupied or used for industrial and\nmanufacturing activities.\n