NY Gen Mun L § 874 (2021)
2021 New York Laws GMU - General Municipal Article 18-A - Industrial Development Title 1 - Agencies, Organization and Powers 874 - Tax Exemptions.

§  874.  Tax exemptions. (1) It is hereby determined that the creation of the agency and the carrying out of its corporate purposes is  in  all respects for the benefit of the people of the state of New York and is a public  purpose,  and  the  agency  shall  be  regarded  as performing a governmental function in the exercise of the powers conferred upon it by this title and shall be required to pay no taxes or assessments upon any of the property acquired by it or under its jurisdiction or  control  or supervision  or upon its activities. Provided, however, if the agency is located within a transportation district referenced in paragraph (a)  of subdivision  two  of  section two hundred fifty-three of the tax law, it shall not be exempt from the additional tax on  each  mortgage  of  real property situated within the state imposed by such paragraph.  (2)  Any  bonds  or notes issued pursuant to this title, together with the income therefrom, as well as the property of the  agency,  shall  be exempt from taxation, except for transfer and estate taxes.  (3) Payments in lieu of taxes received by the agency shall be remitted to each affected tax jurisdiction within thirty days of receipt.  (4)  (a)  The  agency  shall establish a uniform tax exemption policy, with input from affected tax jurisdictions, which shall be applicable to the provision of financial assistance pursuant to section eight  hundred fifty-nine-a  of  this  chapter  and  shall  provide  guidelines for the claiming of real property, mortgage recording, and sales tax exemptions. Such guidelines  shall  include,  but  not  be  limited  to:  period  of exemption;   percentage  of  exemption;  types  of  projects  for  which exemptions can be claimed; procedures for payments in lieu of taxes  and instances  in  which  real  property appraisals are to be performed as a part of an application for tax exemption; in addition, agencies shall in adopting such policy consider such issues as:  the  extent  to  which  a project  will  create  or  retain  permanent,  private  sector jobs; the estimated value of any tax exemptions to be provided;  whether  affected tax  jurisdictions  shall  be  reimbursed  by  the project occupant if a project does not  fulfill  the  purposes  for  which  an  exemption  was provided;  the  impact  of  a  proposed project on existing and proposed businesses and economic development projects in the vicinity; the amount of private sector investment generated or likely to be generated by  the proposed  project;  the  demonstrated  public  support  for the proposed project; the likelihood of  accomplishing  the  proposed  project  in  a timely fashion; the effect of the proposed project upon the environment; the  extent  to  which  the  project will utilize, to the fullest extent practicable and economically  feasible,  resource  conservation,  energy efficiency,  green  technologies,  and  alternative and renewable energy measures; the extent to which the  proposed  project  will  require  the provision   of  additional  services,  including,  but  not  limited  to additional educational, transportation,  police,  emergency  medical  or fire services; and the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts.  (b)  The  agency  shall  establish  a procedure for deviation from the uniform tax exemption policy required pursuant to this subdivision.  The agency  shall  set  forth in writing the reasons for deviation from such policy, and shall further notify the affected local taxing jurisdictions of the proposed deviation from such policy and the reasons therefor.  (5) Payments in lieu of taxes which are delinquent under the agreement or which an agency fails to remit pursuant to subdivision three of  this section,  shall  be subject to a late payment penalty of five percent of the amount due which shall be paid by the project occupant (where  taxes are  delinquent  because  of the occupant's failure to make the required payment) or the  agency  (because  of  the  agency's  failure  to  remit pursuant  to  subdivision  three  of  this  section) to the affected tax  jurisdiction at the time the payment in lieu of taxes is paid. For  each month,  or part thereof, that the payment in lieu of taxes is delinquent beyond the first month, interest shall accrue to  and  be  paid  to  the affected  tax  jurisdiction  on the total amount due plus a late payment penalty in the amount of one percent per  month  until  the  payment  is made.  (6)  An  affected tax jurisdiction which has not received a payment in lieu of taxes due to it under an agreement may commence legal action  in any  court  of competent jurisdiction directly against any person, firm, corporation, organization or agency which is obligated to make  payments in  lieu of taxes under an agreement and has failed to do so. In such an action, the affected tax jurisdiction shall be entitled to  recover  the amount  due,  the  late  payment  penalty, interest, expenses, costs and disbursements together with the reasonable attorneys' fees necessary  to prosecute such action. Nothing herein shall be construed as providing an affected  tax  jurisdiction  with  the  right to sue and recover from an agency which has not received payments in lieu of taxes from  a  project occupant.  (7) Any refinancing of a project shall be subject to the provisions of section  eight  hundred  fifty-nine-a of this chapter, except where such refinancing was previously approved pursuant to such section.  (8) Agents of an agency and project operators shall  annually  file  a statement  with  the state department of taxation and finance, on a form and in such a manner as is prescribed by the  commissioner  of  taxation and finance, of the value of all sales and use tax exemptions claimed by such  agents  or  agents of such agents or project operators, including, but not limited to, consultants or  subcontractors  of  such  agents  or project operators, under the authority granted pursuant to this section. The  penalty  for failure to file such statement shall be the removal of authority to act as an agent of an agency or a project operator.  (9) (a) Within thirty days of the date that the  agency  designates  a project  operator  or  other  person  to  act as agent of the agency for purposes of providing financial assistance consisting of any  sales  and compensating  use  tax exemption to such person, the agency shall file a statement with the department of taxation and finance relating  thereto, on  a  form  and  in such manner as is prescribed by the commissioner of taxation and finance, identifying  each  such  agent  so  named  by  the agency,  setting  forth  the taxpayer identification number of each such agent, giving a  brief  description  of  the  property  and/or  services intended  to be exempted from such taxes as a result of such appointment as agent, indicating the agency's rough estimate of  the  value  of  the property  and/or  services  to  which such appointment as agent relates, indicating the date when such designation as agent became effective  and indicating the date upon which such designation as agent shall cease.  (b)  Within  thirty  days  of  the  date that the agency's designation described in  paragraph  (a)  of  this  subdivision  has  been  amended, terminated,  been  revoked,  or  become  invalid  or ineffective for any reason, the agency  shall  file  a  statement  with  the  department  of taxation  and  finance relating thereto, on a form and in such manner as is prescribed by the commissioner of taxation and  finance,  identifying each  such  agent so named by the agency in the original designation and setting forth the taxpayer identification number and  other  identifying information  of  each  such  agent,  the  date  as of which the original designation was amended,  terminated,  revoked,  or  became  invalid  or ineffective  and  the  reason  therefor,  together  with  a  copy of the original designation.  (10)  Each  agency  shall  develop  policies  for  the  suspension  or discontinuance  of  financial assistance, or for the modification of any  payment in lieu of tax agreement to  require  increased  payments  under circumstances  as  specified  in the policy, which may include but shall not be limited  to  events  of  material  violation  of  the  terms  and conditions of a project agreement.  (11)  Each  agency  shall  develop policies for the return of all or a part of the financial assistance provided for the project, including all or part of the amount of any tax exemptions, as specified in the policy, which may include but shall not be limited to material shortfalls in job creation and retention projections or material violations of  the  terms and  conditions  of project agreements. All such returned amounts of tax exemptions shall  be  redistributed  to  the  appropriate  affected  tax jurisdiction,   unless   agreed   to   otherwise  by  any  local  taxing jurisdiction.  (12) Each agency shall at least annually assess the progress  of  each project  for  which  bonds or notes remain outstanding or straight-lease transactions have not terminated, or which continue to receive financial assistance or are otherwise active, toward achieving the investment, job retention or creation, or other objectives of the project  indicated  in the  project  application.  Such  assessments shall be provided to board members.