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

§ 489-aaaa. Definitions. When used in this title: 1. "Applicant" means any  person  obligated  to  pay  real property taxes on the property for which an exemption from or abatement or deferral of  real  property  tax payments  is sought, or in the case of exempt property, the record owner or lessee thereof.   2. "Approved plans" means plans  submitted  to  and  approved  by  the department  of  buildings  in  connection  with the applicant's building permit,  including  any  amendments  to  such  plans  approved  by  such department before final inspection of the work for which such permit was issued.   3.  "Benefit  period"  means  the  period  of time when a recipient is eligible to receive benefits pursuant to this title,  including  in  the case  of  a  recipient  of  a  certificate of eligibility for commercial construction work in a deferral area, the period of  time  tax  payments are  to  be  deferred, the interim period when no tax payments are to be deferred and no deferred tax payments are required to be made,  and  the period of time when the deferred tax payments are to be made.   4. "Commission" means the temporary commercial incentive area boundary commission.   5.  "Commercial  construction  work"  means  the construction of a new building  or  structure,  or  portion  thereof,  or  the  modernization, rehabilitation,  expansion, or other improvement of an existing building or structure, or portion thereof, for use as commercial property.   6. "Commercial property" means nonresidential property  (a)  on  which will  exist after completion of commercial construction work, a building or structure used for the buying,  selling  or  otherwise  providing  of goods  or  services  including  hotel  services,  or  for  other  lawful business, commercial or manufacturing activities;  and  (b)  (i)  where, except  as provided in subparagraph (ii) of this paragraph and paragraph (c) of this subdivision, not more than fifteen per centum of  the  total net  square  footage  of  any building or structure on such property was used for manufacturing activities at any one or more  times  during  the twenty-four  months  immediately preceding the date of application for a certificate of eligibility or (ii)  where  not  more  than  fifteen  per centum  of  the total net square footage of any building or structure on such property was used for manufacturing activities at any one  or  more times  during  the  sixty  months  immediately  preceding  the  date  of application for  a  certificate  of  eligibility  if  such  property  is located,  in  whole  or in part, in the area in the borough of Manhattan lying south of the center line of 96th Street; and (c) in the commercial revitalization  area,  and  with  respect  to  an  application   for   a certificate  of  eligibility filed on or after July first, two thousand, "commercial property" means nonresidential property on which will  exist after   completion  of  commercial  construction  work,  a  building  or structure used for the buying, selling or otherwise providing  of  goods or  services  including  hotel  services,  or for other lawful business, commercial or manufacturing activities.   6-a. "Commercial revitalization area" means any area of a city  having a  population  of  one million or more, provided that in the city of New York a commercial revitalization area shall mean any  district  that  is zoned C4, C5, C6, M1, M2, or M3 in accordance with the zoning resolution of such city in any area of such city except the area lying south of the center line of 96th Street in the borough of Manhattan.   7.  "Deferral area" means an area in which deferral of payment of real property taxes in accordance  with  subdivision  four  of  section  four hundred eighty-nine-bbbb of this title shall be available to a recipient who has performed commercial construction work.    8.  "Excluded  area"  means each area specified in paragraphs (a), (b) and (c) of subdivision five of section four hundred eighty-nine-cccc  of this title.   9.  "Exemption  base."  (a)  For  purposes  of computing the exemption pursuant to subdivision one, two, three or four of section four  hundred eighty-nine-bbbb  of  this  title,  "exemption  base"  shall  mean, with respect to property that is the subject of a certificate of  eligibility with an effective date of June thirtieth, nineteen hundred ninety-two or before:  (i) for the first, second and third taxable years following the effective date of a certificate of eligibility, the  assessed  value  of improvements made since the effective date of such certificate which are attributable  exclusively  to commercial or industrial construction work described in approved plans; and (ii) for all other years, the  assessed value  of  such  improvements  which  have  been  made before the fourth taxable status date following the effective date of such certificate.  (b) For purposes of computing the exemption  pursuant  to  subdivision three,  four  or  five  of section four hundred eighty-nine-bbbb of this title, "exemption base" shall mean, with respect to property that is the subject of a certificate of eligibility with an effective date  of  July first,  nineteen  hundred ninety-two or after: (i) for the first through fifth taxable years following the effective date  of  a  certificate  of eligibility, the assessed value of improvements made since the effective date   of   such  certificate  which  are  attributable  exclusively  to commercial or renovation construction work described in approved  plans; and  (ii)  for  all other years, the assessed value of such improvements which have been made before the sixth taxable status date following  the effective date of such certificate.  (c)  For  purposes  of computing the exemption pursuant to subdivision one or two of section  four  hundred  eighty-nine-bbbb  of  this  title, "exemption  base"  shall  mean,  with  respect  to  property that is the subject of a certificate of eligibility with an effective date  of  July first,  nineteen  hundred ninety-two or after: (i) for the first through fifth taxable years following the effective date  of  a  certificate  of eligibility, the assessed value of improvements made since the effective date   of   such  certificate  which  are  attributable  exclusively  to commercial or industrial construction work described in  approved  plans plus  any  equalization increases or minus any equalization decreases in the assessed value of the property  so  improved  (excluding  the  land) occurring subsequent to the effective date of such certificate; and (ii) for all other years, the assessed value of such improvements made before the  sixth  taxable  status  date  following  the effective date of such certificate plus any equalization increases or  minus  any  equalization decreases  in  the assessed value of the property so improved (excluding the land) occurring subsequent to the effective date of such certificate but before the fourteenth taxable status date  following  the  effective date  of  such  certificate.  For purposes of the preceding sentence: no adjustment shall be made to  the  assessed  value  of  the  improvements referred  to  in  subparagraphs  (i)  and (ii) of this paragraph for any portion of an equalization increase or decrease which is being phased in pursuant to section eighteen hundred five of this chapter subsequent  to the effective date of the certificate of eligibility if such increase or decrease  occurred  prior  to  such  effective date; with respect to any taxable year, an adjustment for an  equalization  increase  or  decrease shall  reflect  only  the  portion of such increase or decrease which is being phased in during such taxable year or which was phased in during a prior taxable year; no adjustment for  an  equalization  decrease  shall reduce  the  exemption base to an amount less than the assessed value of the improvements referred to in  subparagraphs  (i)  and  (ii)  of  this  paragraph,  and,  to  the extent that any such decrease would reduce the exemption base below such amount, such decrease shall reduce the taxable portion of the assessed value; and no adjustment shall be  made  for  an equalization  increase  or  decrease  if the improvements referred to in subparagraphs (i) and (ii) of this paragraph do not result in a physical increase in the assessed value of the property.  (d) Notwithstanding paragraph (a) of this subdivision, for purposes of computing the exemption pursuant to  subdivision  one  of  section  four hundred  eighty-nine-bbbb  of  this  title, "exemption base" shall mean, with respect to industrial property that is located in the area  in  the borough  of  Manhattan lying north of the center line of 96th Street, or that is located in the Bronx, Brooklyn, Queens  or  Staten  Island;  and that  is  the  subject of a certificate of eligibility with an effective date after  December  thirty-first,  nineteen  hundred  eighty-nine  and before  July  first,  nineteen  hundred  ninety-two:  (i) for the first, second and third  taxable  years  following  the  effective  date  of  a certificate  of  eligibility,  the  assessed  value of improvements made since the effective date of  such  certificate  which  are  attributable exclusively to industrial construction work described in approved plans; and  (ii)  for  all other years, the assessed value of such improvements made before the fourth taxable status date following the effective  date of  such  certificate  plus  any  equalization  increases  or  minus any equalization decreases in the assessed value of the property so improved (excluding the land) occurring subsequent to the fourth  taxable  status date  following  the  effective  date of such certificate but before the fourteenth taxable status date following  the  effective  date  of  such certificate. For purposes of the preceding sentence: no adjustment shall be  made  to  the  assessed  value  of  the  improvements referred to in subparagraphs (i) and (ii) of this  paragraph  for  any  portion  of  an equalization  increase  or decrease which is being phased in pursuant to section  eighteen  hundred  five  of  this  chapter  subsequent  to  the effective  date  of  the  certificate of eligibility if such increase or decrease occurred prior to such effective  date;  with  respect  to  any taxable  year,  an  adjustment  for an equalization increase or decrease shall reflect only the portion of such increase  or  decrease  which  is being phased in during such taxable year or which was phased in during a prior  taxable  year;  no  adjustment for an equalization decrease shall reduce the exemption base to an amount less than the assessed  value  of the  improvements  referred  to  in  subparagraphs  (i) and (ii) of this paragraph, and, to the extent that any such decrease  would  reduce  the exemption base below such amount, such decrease shall reduce the taxable portion  of  the  assessed value; and no adjustment shall be made for an equalization increase or decrease if the  improvements  referred  to  in subparagraphs (i) and (ii) of this paragraph do not result in a physical increase in the assessed value of the property.  (e)   For  purposes  of  computing  the  exemption:  (i)  pursuant  to subdivision five-a of section  four  hundred  eighty-nine-bbbb  of  this title, "exemption base" shall mean, with respect to property that is the subject  of  a certificate of eligibility with an effective date of July first, nineteen hundred ninety-five or after and that is located in  the new   construction   exemption   area  specified  in  paragraph  (a)  of subdivision six of section four hundred eighty-nine-cccc of this  title: for  any  taxable  year following the effective date of a certificate of eligibility, the assessed value of improvements made since the effective date of such certificate  which  are  attributable  exclusively  to  the construction  of a new building or structure that meets the requirements set forth in subdivision nine of section four  hundred  eighty-nine-dddd of this title as described in approved plans, provided such improvements  are  made  within  thirty-six  months  of  the  effective  date  of such certificate or by December thirty-first, nineteen  hundred  ninety-nine, whichever is earlier; and (ii) pursuant to subdivision five-a of section four  hundred  eighty-nine-bbbb  of  this  title, "exemption base" shall mean, with respect to property that is the subject of a  certificate  of eligibility  with  an  effective  date  of  July first, nineteen hundred ninety-five or after  and  that  is  located  in  the  new  construction exemption  area specified in paragraph (b) of subdivision six of section four hundred eighty-nine-cccc  of  this  title:  for  any  taxable  year following  the  effective  date  of  a  certificate  of eligibility, the assessed value of improvements made since the  effective  date  of  such certificate  which are attributable exclusively to the construction of a new building or structure that  meets  the  requirements  set  forth  in subdivision  nine of section four hundred eighty-nine-dddd of this title as described in approved plans,  provided  such  improvements  are  made within forty-two months of the effective date of such certificate.  (f)  For  purposes  of  this  subdivision  "equalization  increase  or decrease" means an  increase  or  decrease  in  the  assessed  value  of property   which   is  not  attributable  to  construction  work,  fire, demolition, destruction or other change in the physical  characteristics of   the   property   (excluding   gradual   physical  deterioration  or obsolescence), or to a change in the description or  boundaries  of  the property.   10.  "Industrial  construction  work"  means the construction of a new building or structure or the modernization, rehabilitation, expansion or improvement of an existing building or structure for use  as  industrial property.   11.  "Industrial property" means nonresidential property on which will exist after completion of industrial construction  work  a  building  or structure  wherein  at  least  seventy-five  per centum of the total net square footage is used or immediately available and held out for use for manufacturing  activities  involving  the  assembly  of  goods  or   the fabrication or processing of raw materials.   12.  "Initial  assessed  value"  means  the  lesser of (a) the taxable assessed value of real property appearing on the  books  of  the  annual record  of the assessed valuation of real property on the effective date of a recipient's certificate of eligibility or (b) the assessed value to which such assessment is thereafter reduced pursuant to  application  to the  tax  commission or court order. Where the real property is used for both residential and nonresidential purposes on the  effective  date  of such certificate of eligibility, the initial assessed value of such real property,  determined  as  provided  in the preceding sentence, shall be apportioned between the residential and nonresidential portions  thereof in  such  manner as shall properly reflect the initial assessed value of each such portion. Such apportionment shall be in accordance with  rules promulgated by the department of finance.   13.  "Manufacturing activity" means an activity involving the assembly of goods or the fabrication or processing of raw materials.   14. "Minimum required expenditure" means expenditure  for  commercial, renovation  or industrial construction work in an amount equal to twenty per centum of the initial assessed value; provided, however,  that  with respect  to a recipient who filed an application on or after July first, nineteen hundred  ninety-five  for  a  certificate  of  eligibility  for industrial  construction  work  or for commercial construction work in a special exemption area or a regular  exemption  area,  minimum  required expenditure  means  expenditure  for such work in an amount equal to ten per centum of the initial assessed value; provided, however,  that  with respect  to a recipient who filed an application on or after July first,  nineteen hundred  ninety-five  for  a  certificate  of  eligibility  for industrial  construction  work  and  for  the  purpose  of  receiving an abatement of real property taxes in accordance  with  paragraph  (c)  of subdivision  one of section four hundred eighty-nine-bbbb of this title, minimum required expenditure means  expenditure  for  such  work  in  an amount  equal  to  twenty-five per centum of the initial assessed value; and  provided  further  that  if  the  department  of   finance,   after consultation with the deputy mayor for finance and economic development, determines   that   a  greater  expenditure  is  required  to  encourage significant industrial and commercial development it  may  establish  by rule  a higher percentage of initial assessed value, not to exceed fifty per centum thereof, as the minimum required expenditure. Expenditure for residential construction work shall  not  be  included  in  the  minimum required  expenditure;  provided,  however, that for mixed-use property, expenditures for construction work  related  to  the  common  areas  and systems  of  such  property shall be allocated, in accordance with rules promulgated by the department of finance, between  the  residential  and nonresidential  portions  of the property. If real property was used for both residential and nonresidential purposes on the  effective  date  of the  certificate of eligibility, the initial assessed value of such real property, for  purposes  of  this  subdivision,  shall  be  the  initial assessed value apportioned to the nonresidential portions thereof.   15.   "Person"   means   an   individual,   corporation,  partnership, association, agency, trust, estate, foreign or  domestic  government  or subdivision thereof, or other entity.   16.   "Recipient"   means  an  applicant  to  whom  a  certificate  of eligibility has been issued pursuant to this title, or the successor  in interest of such applicant, provided that where a person who has entered into  a  lease  or purchase agreement with the owner or lessee of exempt property has been a  co-applicant,  such  person  or  the  successor  in interest of such person shall be the recipient.   17.  "Regular  exemption  area"  means  an  area  in  which  a regular exemption from taxes in accordance with  subdivision  three  of  section four  hundred  eighty-nine-bbbb  of  this  title shall be available to a recipient who performs commercial construction work.   18.  "Residential   construction   work"   means   any   construction, modernization,  rehabilitation,  expansion  or  improvement  of dwelling units other than dwelling units in a hotel.   19. "Residential property" means property, other  than  property  used for  hotel  purposes,  on which exists or will exist, upon completion of construction  work,  a  building  or  structure  used  for   residential purposes.   20.  "Restricted  activity" means any entertainment activity which the department of finance has identified in regulations promulgated pursuant to a local law enacted pursuant to this title as an activity  which,  in the  public  interest,  should not be encouraged through the benefits of this title.   21. "Special exemption area" means an area in which the commission has determined  that  a  special  exemption  from  real  property  taxes  in accordance with subdivision two of section four hundred eighty-nine-bbbb of  this title shall be available to a recipient who performs commercial construction  work  and,  in  addition,  means  the  area  specified  in paragraph   (d)   of   subdivision   four   of   section   four  hundred eighty-nine-cccc of this title.   22. "Mixed-use property" means property on which exists, or will exist upon completion of construction work, a building or structure  used  for both residential and nonresidential purposes.    23.   "Renovation   construction   work"   means   the  modernization, rehabilitation, expansion or improvement  of  an  existing  building  or structure,  or  portion  thereof,  for  use  as commercial property in a renovation exemption  area  where  such  modernization,  rehabilitation, expansion  or improvement is physically and functionally integrated with the existing  building  or  structure,  or  portion  thereof,  does  not increase  the  bulk  of  the existing building or structure by more than thirty per centum and does not  increase  the  height  of  the  existing building or structure by more than thirty per centum.   24.  "Renovation exemption area" means the area specified in paragraph (d) of subdivision five of section four hundred eighty-nine-cccc of this title in which a renovation exemption  from  taxes  in  accordance  with subdivision  five of section four hundred eighty-nine-bbbb of this title shall be available to a recipient who performs  renovation  construction work.   25.  "New  construction  exemption areas" means the areas specified in subdivision six of section four hundred eighty-nine-cccc of  this  title in  which  an  exemption  from  real  property  taxes in accordance with subdivision five-a of section  four  hundred  eighty-nine-bbbb  of  this title shall be available to a recipient who constructs a new building or structure  that  meets the requirements set forth in subdivision nine of section four hundred eighty-nine-dddd of this title.