NY Real Prop Tax L § 489-FFFFFF (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2-F - Abatement of Tax Payments for Certain Industrial and Commercial Properties in a City of One Million or More Persons 489-FFFFFF - Conversion of Property.

§ 489-ffffff. Conversion of property. 1. Conversion from commercial to industrial   use.  Where  a  property  has  been  granted  benefits  for commercial or renovation construction work, but such property is used as industrial property before the benefits period  expires,  such  property shall   continue  to  receive  benefits  for  commercial  or  renovation construction work.   2. Conversion from industrial use to commercial use. Where a  property has  been  granted benefits for industrial construction work, and where, before the benefit period expires, less than seventy-five percent of the total net square footage is used or held out for use  for  manufacturing activities,  no  further benefits for industrial construction work shall be provided except as provided in this subdivision. Taxes, together with interest, shall become due and owing after such  date  of  the  use  for purposes other than industrial, except as provided in this subdivision.  (a)  Any  applicant  whose  property  has been granted a tax abatement under  this  title  for  industrial  construction  work  in  a   special commercial  abatement  area  who  would  have  been  eligible to receive benefits for commercial construction work at  the  time  such  applicant applied  for  benefits  shall  continue  to  receive  an  abatement  for industrial construction work.  (b) Any applicant whose property has been granted benefits under  this title   for  industrial  construction  work  other  than  in  a  special commercial abatement area  who  would  have  been  eligible  to  receive benefits  for  commercial  construction  work at the time such applicant applied for benefits shall, commencing with the date  of  conversion  to commercial  property  and continuing until the expiration of the benefit period for commercial construction work,  receive  any  abatement  which such  applicant  would  have  received  in  the  corresponding  tax year pursuant to the benefits granted for commercial construction work.  (c) Any applicant whose property has been granted benefits under  this title  for industrial construction work in any area of the city on whose property at least sixty-five percent of the net square footage continues to be used or held  out  for  use  for  manufacturing  activities  after conversion  to commercial property, shall not be required to pay the pro rata share of tax for which an abatement was claimed during the tax year in which such conversion occurred.  (d)  Where  the  property  is  receiving  the  additional   industrial abatement pursuant to paragraph (e) of subdivision three of section four hundred  eighty-nine-bbbbbb  of  this  title, such additional industrial abatement  shall  cease  from  the  date  of  conversion  to  commercial property.   3. Conversion to restricted use. Any applicant whose property has been granted  benefits  for commercial, industrial or renovation construction work, and who uses such property for any restricted  activity  prior  to the  expiration  of  the  benefit period, shall cease to be eligible for further abatement as of the date such property was first  used  for  any restricted  activity.  Such  recipient of benefits that cease under this subdivision shall pay with interest any taxes for which an abatement was claimed after such date, including the pro rata share of tax  for  which any  abatement  was  claimed  during  the  tax  year  in  which such use occurred.   4. Conversion to residential use. (a) Any applicant whose property has been  granted  benefits  for  commercial,   industrial   or   renovation construction  work  and who, before the benefit period expires, uses the property or a portion of the property  as  residential  property,  shall cease to be eligible for further abatement for commercial, industrial or renovation construction work as of the date such property was first used as residential property, as follows:  (i)  if  twenty  percent or more of the rentable square footage of the property is used as residential property, then the entire building shall cease to be eligible for further abatement;  (ii) if less than twenty percent of the rentable square footage of the property  is  used  as  residential  property, then that portion of such property used as residential property shall cease  to  be  eligible  for further abatement;  (iii)  notwithstanding subparagraph (ii) of this paragraph, where less than five percent of a property's rentable square  footage  is  used  as residential  property,  that  use will be considered de minimus and will not be a basis for benefits to cease under this subdivision; and  (iv) such recipient of benefits  that  cease  under  this  subdivision shall  pay,  with interest, any taxes for which an abatement was claimed after the conversion of the property as described in  this  subdivision, including the pro rata share of tax for which such abatement was claimed during  the  tax  year  in  which such use occurred. The abatement shall continue for the commercial, industrial or renovation construction  work for the portion of the property that continues to be used for commercial purposes.  (b)  For  purposes  of  paragraph  (a) of this subdivision, "property" means the real property contained by an individual tax lot.  (c)  Notwithstanding  paragraph  (b)  of  this  subdivision,  where  a building  or  structure is owned in condominium form, and an application for benefits under this title includes more than  one  property  in  the same  condominium,  then  for  purposes  of  this  subdivision, the five percent and twenty percent of  the  rentable  square  footage  shall  be determined based on the aggregate usage of all such properties.   5.  Conversion  to  retail  use. (a) Where a property has been granted benefits for industrial  or  commercial  construction  work  in  special commercial  abatement areas on buildings where not more than ten percent of the building or structure is used  for  retail  purposes  and  where, before  the benefit period expires, the property or a portion thereof is converted so that ten percent or more of the building  or  structure  is used for retail purposes, the department shall recalculate the abatement upon conversion as provided in subdivision six of this section.  (b)  Where  a  property  has  been  granted  benefits  for  renovation construction work in renovation areas  and  where,  before  the  benefit period  expires,  the property or a portion of the property is converted so that more than five percent of the building or structure is used  for retail  purposes,  the  department  shall recalculate the abatement upon conversion as provided in subdivision six of this section.   5-a. Conversion of use by peaking units. Any applicant whose  property has  been  granted benefits under this title for industrial construction work as a peaking unit and who converts such property in any tax year to a use that no longer qualifies it as a peaking unit, or  who  uses  such property in a manner inconsistent with the definition of a peaking unit, shall be ineligible for abatement benefits during any such tax year. Any such  recipient  of  benefits shall pay with interest taxes for which an abatement was claimed during any portion of such tax year.   6. Recalculation of abatement upon conversion. If, during the  benefit period,  a  recipient  converts  square  footage  within any building or structure, the department may recalculate the benefit  granted  pursuant to  this  title  to  reflect  the  benefit  for which the current use is eligible under this title and rules  that  may  be  promulgated  by  the department.   7. The burden shall at all times be on the recipient to demonstrate by clear  and  convincing  evidence that property subject to benefits under  this title is used as stated in the preliminary and  final  applications for benefits filed by the recipient with the department.