§ 499-BBBBB — Real property tax abatement

§ 499-bbbbb. Real property tax abatement. 1. The department of finance\nshall provide an abatement of real property taxes pursuant to this\nsection to an eligible building in which construction, conversion,\nalteration or improvement that is completed on or after April first, two\nthousand twenty-two has resulted in the creation of a premises of a\nchildcare center or in an increase in the maximum number of children\nallowed on the premises of an existing childcare center when such center\nis in operation, as such number is specified in the permit issued by the\ndepartment of health and mental hygiene to operate such center. The\ndepartment of finance may only grant one such abatement to any eligible\nbuilding.\n 2. (a) (i) Beginning in the tax year commencing on or after July\nfirst, two thousand twenty-three, the amount of such tax abatement\nprovided to an eligible building described in subdivision one of this\nsection shall be equal to the costs incurred in the construction,\nconversion, alteration or improvement that has resulted in the creation\nof a premises of a childcare center or in an increase in the maximum\nnumber of children allowed on the premises of an existing childcare\ncenter, provided that such costs are certified in accordance with\nparagraph (d) of subdivision two of section four hundred\nninety-nine-ccccc of this title, and provided further that, during the\nabatement period: (A) the amount of such abatement shall not exceed\nthirty-five dollars for each square foot of the premises, nor exceed one\nhundred thousand dollars, for a tax abatement initially taken in a tax\nyear commencing prior to July first, two thousand twenty-five; and (B)\nthe amount of such abatement shall not exceed thirty-five dollars for\neach square foot of the premises, nor exceed three hundred fifty\nthousand dollars, for a tax abatement initially taken in a tax year\ncommencing on or after July first, two thousand twenty-five.\n (ii) For any tax year, such abatement shall not exceed seven dollars\nfor each square foot of the premises, provided that such amount may be\nreduced as a result of an allocation of available funds for such\nabatement pursuant to paragraph (d) of this subdivision; and provided,\nfurther, that: (A) the amount of such tax abatement in any tax year\nshall not exceed the lesser of (I) twenty thousand dollars, or (II) the\nreal property tax liability for the eligible building in the tax year in\nwhich such tax abatement is taken, for a tax abatement initially taken\nin a tax year commencing prior to July first, two thousand twenty-five;\nand (B) the amount of a tax abatement in any tax year shall not exceed\nthe lesser of (I) seventy thousand dollars, or (II) the real property\ntax liability for the eligible building in the tax year in which such\ntax abatement is taken, for a tax abatement initially taken in a tax\nyear commencing on or after July first, two thousand twenty-five.\n (iii) To the extent the amount of such tax abatement exceeds: (A) the\nlesser of (I) twenty thousand dollars, or (II) the real property tax\nliability of the eligible building in any tax year, for a tax abatement\ninitially taken in a tax year commencing prior to July first, two\nthousand twenty-five; or (B) the lesser of (I) seventy thousand dollars,\nor (II) the real property tax liability of the eligible building in any\ntax year, for a tax abatement initially taken in a tax year commencing\non or after July first, two thousand twenty-five, any amount of such tax\nabatement that remains may be applied to the real property tax liability\nof such building in succeeding tax years, provided that such abatement\nmust be applied to the real property tax liability of such building in\none or more of the four tax years succeeding the tax year in which such\ntax abatement was initially taken.\n (b) (i) Notwithstanding paragraph (a) of this subdivision, an enhanced\ntax abatement shall be provided to an eligible building described in\nsubdivision one of this section that is located within a childcare\ndesert as described in this title and in any rules promulgated\nhereunder. Beginning in the tax year commencing on or after July first,\ntwo thousand twenty-three, the amount of such enhanced tax abatement\nshall be equal to the costs incurred in the construction, conversion,\nalteration or improvement that has resulted in the creation of a\npremises of a childcare center or in an increase in the maximum number\nof children allowed on the premises of an existing childcare center,\nprovided that such costs are certified in accordance with paragraph (d)\nof subdivision two of section four hundred ninety-nine-ccccc of this\ntitle, and provided further that, during the abatement period: (A) the\namount of such abatement shall not exceed seventy-five dollars for each\nsquare foot of the premises nor exceed two hundred twenty-five thousand\ndollars, for a tax abatement initially taken in a tax year commencing\nprior to July first, two thousand twenty-five; and (B) the amount of\nsuch abatement shall not exceed seventy-five dollars for each square\nfoot of the premises nor exceed seven hundred fifty thousand dollars,\nfor a tax abatement initially taken in a tax year commencing on or after\nJuly first, two thousand twenty-five.\n (ii) For any tax year, such abatement shall not exceed fifteen dollars\nfor each square foot of the premises, provided that such amount may be\nreduced as a result of an allocation of available funds for such\nabatement pursuant to paragraph (d) of this subdivision; and provided\nfurther that: (A) the amount of such enhanced tax abatement in any tax\nyear shall not exceed the lesser of (I) forty-five thousand dollars, or\n(II) the real property tax liability for the eligible building in the\ntax year in which such tax abatement is taken, for a tax abatement\ninitially taken in a tax year commencing prior to July first, two\nthousand twenty-five; and (B) the amount of such enhanced tax abatement\nin any tax year shall not exceed the lesser of (I) one hundred fifty\nthousand dollars, or (II) the real property tax liability for the\neligible building in the tax year in which such tax abatement is taken,\nfor a tax abatement initially taken in a tax year commencing on or after\nJuly first, two thousand twenty-five.\n (iii) To the extent the amount of such enhanced tax abatement exceeds:\n(A) the lesser of (I) forty-five thousand dollars, or (II) the real\nproperty tax liability of the eligible building in any tax year, for a\ntax abatement initially taken in a tax year commencing prior to July\nfirst, two thousand twenty-five; or (B) the lesser of (I) seventy\nthousand dollars, or (II) the real property tax liability of the\neligible building in any tax year, for a tax abatement initially taken\nin a tax year commencing on or after July first, two thousand\ntwenty-five, any amount of such tax abatement that remains may be\napplied to the real property tax liability of such building in\nsucceeding tax years, provided that such abatement must be applied to\nthe real property tax liability of such building in one or more of the\nfour tax years succeeding the tax year in which the tax abatement was\ninitially taken.\n (c) Notwithstanding paragraph (a) or (b) of this subdivision, the\naggregate amount of tax abatements authorized pursuant to this section\nfor any tax year shall be a maximum of twenty-five million dollars. No\ntax abatements shall be authorized pursuant to this section for any tax\nyear commencing on or after July first, two thousand thirty-two.\n (d) Such aggregate amount of tax abatements, including the tax\nabatement described in paragraph (a) of this subdivision and the\nenhanced tax abatement described in paragraph (b) of this subdivision,\nshall be allocated by the department of finance on a pro rata basis\namong applicants whose applications have been approved by the designated\nagency. If such allocation is not made prior to the date that the real\nproperty tax bill, statement of account or other similar bill or\nstatement is prepared, the department of finance shall, as necessary,\nafter such allocation is made, submit an amended real property tax bill,\nstatement of account or other similar bill or statement to any applicant\nwhose abatement requires adjustment to reflect such allocation. Nothing\nin this paragraph shall be deemed to affect the obligation of any\ntaxpayer under applicable law with respect to the payment of any\ninstallment of real property tax for the fiscal year as to which such\nallocation is made, which was due and payable prior to the date such\namended real property tax bills are sent, and the department of finance\nshall be authorized to determine the date on which any such amended\nbills be sent and the installments of real property tax be reflected\ntherein.\n (e) Notwithstanding any law to the contrary, any abatement granted to\nan eligible building pursuant to this section shall be in addition to\nany other abatement or exemption granted to such building, provided that\nany abatement granted under this section shall be applied after any\nother abatement or exemption granted to such building, and provided\nfurther that the application of this abatement after any other such\nexemption or abatement shall not exceed the real property tax liability\ndue on such eligible property.\n 3. Such abatement shall commence on the first of July following the\napproval of an application for abatement by the designated agency.\n 4. 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 of the eligible building for the fiscal year in which the tax\nabatement is taken is reduced after the assessment roll becomes final,\nthe department of finance shall recalculate such abatement so that the\nabatement granted shall not exceed the annual tax liability of such\nbuilding as so reduced. The amount equal to the difference between the\ninitial abatement granted by the department and the abatement as so\nrecalculated shall be deducted from any refund otherwise payable or\nremission otherwise due as a result of such reduction in billable\nassessed value.\n