§ 499-B — Real property tax abatement

§ 499-b. Real property tax abatement. 1. Except as provided in\nsubdivision one-a of this section, within a city having a population of\none million or more, eligible buildings containing eligible premises\nshall receive an abatement of real property taxes during the benefit\nperiod as follows:\n (a) for each of the first three years of the benefit period, the\nabatement shall be equal to the product obtained by (i) multiplying the\ntenant's percentage share by the number of square feet in the eligible\nbuilding, as listed on the records of the department of finance and (ii)\nmultiplying the product obtained in subparagraph (i) of this paragraph\nby the abatement base;\n (b) for the fourth year of the benefit period, the abatement shall be\nequal to two-thirds of the abatement in the first year of the benefit\nperiod; and\n (c) for the fifth year of the benefit period, the abatement shall be\nequal to one-third of the abatement in the first year of the benefit\nperiod.\n 1-a. Within a city having a population of one million or more,\neligible buildings containing eligible premises occupied or used by a\ntenant pursuant to a lease having a lease commencement date on or after\nApril first, nineteen hundred ninety-seven with an initial lease term of\nless than five years, but not less than three years, shall receive an\nabatement of real property taxes during the benefit period as follows:\n (a) for the first year of the benefit period, the abatement shall be\nequal to the product obtained by (i) multiplying the tenant's percentage\nshare by the number of square feet in the eligible building, as listed\non the records of the department of finance and (ii) multiplying the\nproduct obtained in subparagraph (i) of this paragraph by the abatement\nbase;\n (b) for the second year of the benefit period, the abatement shall be\nequal to two-thirds of the abatement in the first year of the benefit\nperiod; and\n (c) for the third year of the benefit period, the abatement shall be\nequal to one-third of the abatement in the first year of the benefit\nperiod.\n 2. If, as a result of application to the tax commission or a court\norder or action by the department of finance, the billable assessed\nvalue is reduced, the department of finance shall recalculate the\nabatement utilizing such reduced billable assessed value. The amount\nequal to the difference between the abatement originally granted and the\nabatement as so recalculated shall be deducted from any refund otherwise\npayable or remission otherwise due as a result of such reduction in\nbillable assessed value, 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 the eligible building as of the date of such\nnotice and, if not paid within such thirty-day period, penalty and\ninterest at the rate applicable to delinquent taxes on such eligible\nbuilding shall be charged and collected on such amount from the date of\nsuch notice to the date of payment.\n 3. In no event shall the abatement for the eligible premises granted\npursuant to this title exceed the tax liability allocable to the\neligible premises.\n 4. Notwithstanding the provisions of any lease for occupancy of\nnon-eligible premises in an eligible building or for occupancy of\neligible premises for which no certificate of abatement has been issued\npursuant to this title, a lessee of non-eligible premises or of eligible\npremises for which no certificate of abatement has been issued pursuant\nto this title shall not be entitled to receive directly or indirectly a\nreduction in either the real property taxes or any rent (including\nadditional rent) payable pursuant to such lease where such reduction\nwould result from an abatement of real property taxes granted pursuant\nto this title. A landlord of an eligible building shall not allocate,\ncredit, assign or disburse any portion of an abatement granted pursuant\nto this title to a lessee of non-eligible premises or of eligible\npremises for which no certificate of abatement has been issued pursuant\nto this title. A landlord shall not be required to reduce the real\nproperty taxes or any rent (including additional rent) payable by\nexpansion tenants, new tenants and renewal tenants by an amount that\nexceeds the full amount of the abatement granted pursuant to this title,\nbut a landlord shall be required to reduce the real property taxes or\nany rent (including additional rent) payable by expansion tenants, new\ntenants and renewal tenants by an amount that, in the aggregate, equals\nthe full amount of the abatement granted pursuant to this title. Such\nreduction shall be allocated in accordance with the abatement granted\nfor the eligible premises occupied by each such tenant.\n 5. (a) A tenant who occupies or uses eligible premises for which a\ncertificate of abatement is issued pursuant to this title shall not be\neligible to receive a second certificate of abatement for the same\neligible premises. A tenant who occupies or uses eligible premises for\nwhich a certificate of abatement is issued pursuant to this title and\nwho, upon the expiration of the lease for such eligible premises,\nrelocates to otherwise eligible premises, shall not be eligible to\nreceive a certificate of abatement for such otherwise eligible premises,\nexcept to the extent that the square footage of such otherwise eligible\npremises exceeds the square footage of all eligible premises previously\noccupied or used by such tenant for which such tenant held a certificate\nof abatement. If the square footage of such otherwise eligible premises\nexceeds the square footage of all such eligible premises previously\noccupied or used by such tenant and if there is any variation in the tax\nliability per square foot of such otherwise eligible premises, then, for\npurposes of determining which square footage in such otherwise eligible\npremises is entitled to an abatement pursuant to this title, square\nfootage with the greatest tax liability per square foot, in an amount\nequal to the square footage of all such eligible premises previously\noccupied or used by such tenant, shall first be excluded.\n (b) Notwithstanding the provisions of paragraph (a) of this\nsubdivision, a tenant who is eligible in accordance with the provisions\nof this title, who occupies or uses eligible premises for which a\ncertificate of abatement is issued pursuant to this title and who, upon\nthe termination of the lease for such premises as a result of a taking\nby eminent domain, relocates to otherwise eligible premises, shall be\neligible to receive a second certificate of abatement for such eligible\npremises; provided, however, that such tenant shall have eighteen months\nfrom the date that the lease has terminated, as a result of the taking\nby eminent domain, or eighteen months from the effective date of this\nparagraph, whichever is later, to relocate to such eligible premises.\n