NY Real Prop Tax L § 499-AA (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 4-A - Tax Abatement for Certain Commercial Properties in a City of One Million or More Persons 499-AA - Definitions.

§  499-aa.  Definitions.  When used in this title, the following terms shall mean or include:   1. "Abatement base." The lesser of (i) two dollars and fifty cents  of the  tax  liability  per square foot or (ii) fifty per centum of the tax liability per square foot; provided, however, that  with  respect  to  a lease commencing on or after April first, nineteen hundred ninety-seven, the abatement base shall equal the tax liability per square foot subject to a maximum of two dollars and fifty cents per square foot.   2. "Abatement zone." (a) Any area of a city having a population of one million  or  more,  provided  that in the city of New York the abatement zone shall be any district that is zoned C4, C5 or C6 in accordance with the zoning resolution of such city in the borough of Manhattan north  of the  center  line  of  96th  Street  or  in  the  boroughs of the Bronx, Brooklyn, Queens or Staten Island.  (b) In addition to the abatement zone set forth in  paragraph  (a)  of this  subdivision,  in  the city of New York the abatement zone shall be 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.  (c)   Notwithstanding   the   provisions  of  paragraph  (b)  of  this subdivision, the abatement zone shall also include the  special  garment center  district  as  defined  by chapter 1 of article XII of the zoning resolution of the city of New York.  (d) Any tax lot that is partly located inside an abatement zone  shall be deemed to be entirely located inside such zone.   3.  "Aggregate  floor area." The sum of the gross areas of the several floors of a building, measured from the exterior faces of exterior walls or from the center lines of walls separating two buildings.   4. "Applicant." The landlord and the tenant.   5. "Benefit period." The period commencing with the first day  of  the month  immediately  following the rent commencement date and terminating no later than sixty months  thereafter,  provided,  however,  that  with respect  to a lease commencing on or after April first, nineteen hundred ninety-seven with an initial lease term of less than five years, but not less than three years, the period commencing with the first day  of  the month  immediately  following the rent commencement date and terminating no later than  thirty-six  months  thereafter,  and  provided,  further, however, that with respect to a lease commencing on or after July first, two  thousand five for eligible premises defined in subparagraph (ii) of paragraph (b) or paragraph (c) of subdivision ten of this  section  with an  initial  lease  term  of  not  less  than  three  years,  the period commencing with the first day of the  month  immediately  following  the rent  commencement date and terminating no later than one hundred twenty months thereafter. Notwithstanding the  foregoing  sentence,  a  benefit period  shall  expire  no  later  than  March thirty-first, two thousand seven, provided, however, that with respect to a lease commencing on  or after  July  first,  two  thousand  for  eligible  premises  defined  in subparagraph (i) of paragraph (b) of subdivision ten of this section,  a benefit  period  shall expire no later than June thirtieth, two thousand sixteen, provided,  further,  however  that  with  respect  to  a  lease commencing  on  or  after  July  first,  two  thousand five for eligible premises defined in subparagraph (ii) of paragraph (b) or paragraph  (c) of  subdivision  ten  of  this section, a benefit period shall expire no later than June thirtieth, two thousand twenty.   6. "Billable assessed value." The lesser of the  taxable  transitional or  the  taxable  actual assessed value of the eligible building and the land on which the eligible building is located for the  fiscal  year  in  which  the benefit period commences, as computed pursuant to subdivision three of section one thousand eight hundred five of this chapter.   7.  "Department  of  finance."  The  department of finance of any city having a population of one million or more.   8. "Eligible building." (a) With respect to the abatement zone defined in paragraph (a) of subdivision two of this section,  a  non-residential or  mixed-use  building  that has an aggregate floor area of twenty-five thousand square feet or more and that received its  initial  certificate of  occupancy  or  initial  temporary  certificate of occupancy prior to January first,  nineteen  hundred  seventy-five;  provided  that  if  no certificate  of  occupancy  was  required  at  the time the building was constructed, other proof acceptable to  the  department  of  finance  is submitted  that  demonstrates that the building was constructed prior to January first, nineteen hundred seventy-five; and provided further  that eligible building shall not include any building owned by a governmental agency.  Each condominium unit in a building that meets the requirements of this subdivision shall be considered a separate eligible building.  (b) With respect to the abatement zone defined  in  paragraph  (b)  of subdivision  two  of  this  section  for  eligible  premises  defined in subparagraph (i) of paragraph (b) of subdivision ten of this section,  a non-residential  or  mixed-use building that has an aggregate floor area of twenty-five thousand square  feet  or  more  and  that  received  its initial  certificate  of  occupancy  or initial temporary certificate of occupancy prior to January first, nineteen hundred ninety-nine; provided that if no certificate  of  occupancy  was  required  at  the  time  the building  was  constructed,  other proof acceptable to the department of finance is submitted that demonstrates that the building was constructed prior to January  first,  nineteen  hundred  ninety-nine;  and  provided further that eligible building shall not include any building owned by a governmental  agency. Each condominium unit in a building that meets the requirements of this subdivision shall be considered a separate eligible building.  (c) With respect to the abatement zone defined  in  paragraph  (b)  of subdivision  two  of  this  section  for  eligible  premises  defined in subparagraph (ii) of paragraph (b) of subdivision ten  of  this  section and  the  abatement  zone defined in paragraph (c) of subdivision two of this  section,  a  non-residential  building;  provided  that   eligible building  shall not include any building owned by a governmental agency. Each condominium unit in a building that meets the requirements of  this subdivision shall be considered a separate eligible building.   9.  "Eligibility  period." The period commencing April first, nineteen hundred ninety-five and terminating  March  thirty-first,  two  thousand one,  provided,  however, that with respect to eligible premises defined in subparagraph (i) of paragraph (b) of subdivision ten of this section, the period commencing July first,  two  thousand  and  terminating  June thirtieth,  two  thousand  twenty-four,  and provided, further, however, that with respect to eligible premises defined in subparagraph  (ii)  of paragraph  (b)  or paragraph (c) of subdivision ten of this section, the period commencing July first, two thousand  five  and  terminating  June thirtieth, two thousand twenty-four.   10.  "Eligible  premises."  (a)  With  respect  to  the abatement zone defined in paragraph (a) of subdivision two of  this  section,  premises located in an eligible building that (a) are occupied or used as offices (including  ancillary  uses) or are occupied or used as retail space and (b) are occupied or used by a  tenant  under  a  lease  that  meets  the eligibility  requirements of section four hundred ninety-nine-cc of this title, provided, however, that premises occupied or used as retail space shall not be eligible premises unless located in  an  eligible  building  the  premises  of  which  are  occupied  or  used  primarily  as offices (including ancillary uses);  (b)  With  respect  to  the abatement zone defined in paragraph (b) of subdivision two  of  this  section,  premises  located  in  an  eligible building  that  are (i) occupied or used as offices (including ancillary uses) or are occupied or  used  for  other  lawful  commercial  business activities,  but  not  premises  occupied or used as retail space or for hotel or residential purposes; or (ii) occupied or used  for  industrial and   manufacturing  activities  (including  ancillary  uses),  but  not premises occupied or used for hotel or residential purposes; and  (c) With respect to the abatement zone defined  in  paragraph  (c)  of subdivision  two  of  this  section,  premises  located  in  an eligible building that are occupied or  used  for  industrial  and  manufacturing activities (including ancillary uses), but not premises occupied or used for hotel or residential purposes.  (d)  Notwithstanding  the provisions of subparagraph (ii) of paragraph (b) or paragraph  (c)  of  this  subdivision,  premises  located  in  an eligible  building  shall  not be eligible for the tax abatement granted pursuant to subdivision one-b of section four hundred ninety-nine-bb  of this  title unless at least fifty percent of the aggregate floor area of such premises is occupied  or  used  for  industrial  and  manufacturing activities  (exclusive  of  ancillary  uses)  as  defined in subdivision fourteen-a of this section.  (e) For eligible premises defined in subparagraph  (ii)  of  paragraph (b)  or  paragraph  (c)  of  this subdivision, retail space shall be (i) occupied solely by the tenant of such eligible premises who has  applied for  and  receives  a tax abatement pursuant to this title and (ii) used for the purpose of selling or servicing the  products  of  such  tenant. Such  retail  space  shall  not  be  deemed  to  be occupied or used for industrial and manufacturing activities for purposes of paragraph (d) of this subdivision.   11. "Expansion premises." Eligible premises  leased  by  an  expansion tenant to accommodate additional employees.   12.  "Expansion  tenant."  A  person  who  (a) occupies premises in an eligible building under  a  lease  which  does  not  expire  during  the eligibility  period  and  (b) executes a lease for expansion premises in such eligible building or in another eligible building which lease meets the eligibility requirements of section four hundred  ninety-nine-cc  of this  title.  For purposes of determining whether expansion premises are located in the same or in another eligible building, the  last  sentence of subdivision eight of this section shall not be applicable.   13.  "Fiscal year." The fiscal year of any city having a population of one million or more.   14. "Governmental agency." The United States of America or any  agency or instrumentality thereof, the state of New York, the city of New York, any  public  corporation (including a body corporate and politic created pursuant to agreement or compact between the state of New York  and  any other  state),  public  benefit  corporation,  public authority or other political subdivision of the state.   14-a. "Industrial and manufacturing activities." Activities  involving the  assembly of goods to create a different article, or the processing, fabrication,  or  packaging  of  goods.  Industrial  and   manufacturing activities shall not include waste management or utility services.   15.  "Landlord."  Any  person  who  (a)  controls  all non-residential portions of an eligible building,  including,  without  limitation,  the record  owner,  the  lessee  under  a  ground  lease,  any  mortgagee in possession or any receiver, and (b) who  grants  the  right  to  use  or occupy eligible premises to any tenant, provided that landlord shall not  include  any  lessee  who  at any time during the lease term occupied or used or occupies or uses any part of  the  non-residential  portions  of such  eligible  building,  other  than premises occupied or used by such lessee to provide rental or management services to such building.   16.  "Lease  commencement  date."  The  date set forth in the lease on which the term of the lease commences.   17. "Mixed-use building." A building used  for  both  residential  and commercial  purposes,  provided that more than twenty-five per centum of the aggregate floor area of such building is used or held out for use as commercial, community facility or accessory use space.   18. "New tenant." A person who (a) (i) is relocating or expanding from premises in a relocation area to eligible  premises,  or  (ii)  occupies premises  in an eligible building under a lease which expires during the eligibility period and is relocating or expanding to eligible  premises, or  (iii) occupies premises in the abatement zone in a building which is not an eligible building and is  relocating  or  expanding  to  eligible premises,  or  (iv)  does  not  occupy any premises immediately prior to executing a lease for eligible  premises,  or  (v)  is  an  owner  of  a building  in  the  abatement  zone  who  is  relocating  or expanding to eligible premises, and (b) executes a lease which meets the  eligibility requirements of section four hundred ninety-nine-cc of this title.   19.  "Person."  An individual, corporation, limited liability company, partnership, association, agency, trust,  estate,  foreign  or  domestic government or subdivision thereof, or other entity.   20.  "Relocation  area." Any area except the abatement zone as defined in subdivision two of this section.   21. "Renewal tenant."  A  person  who  (a)  occupies  premises  in  an eligible  building  under  a  lease which expires during the eligibility period and (b) executes a lease for the continued occupancy  of  all  or part  of  such  premises  or all or part of such premises and additional premises in such eligible building, provided such premises are  eligible premises  and  such  lease meets the eligibility requirements of section four hundred ninety-nine-cc of this title.   22. "Rent commencement date." The date set forth in the lease on which the obligation to pay basic fixed rent shall commence.   23. "Subtenant." A person whose right to occupy and use  the  eligible premises is not derived from a lease with the landlord.   24.  "Tax  commission."  The  tax  commission  in  any  city  having a population of one million or more.   25. "Tax liability." The product obtained by multiplying the  billable assessed value for the fiscal year in which the benefit period commences by the tax rate applicable to the eligible building for such fiscal year as  set by the local legislative body of any city having a population of one million or more.   26. "Tax liability per square foot." The tax liability divided by  the total  number  of square feet in the eligible building, as listed on the records of the department of finance.   27. "Tenant." A person (including  any  successors  in  interest)  who executes  a  lease  with the landlord for the right to occupy or use the eligible premises  and  who  occupies  or  uses  the  eligible  premises pursuant  to  such  lease.  Tenant shall not include any subtenant. When used in this title, "tenant" includes "expansion tenant",  "new  tenant" and "renewal tenant."   28.  "Tenant's percentage share." (a) For eligible premises defined in paragraph (a) or subparagraph (i) of paragraph (b) of subdivision ten of this section, the percentage of the eligible building's aggregate  floor area  allocated  to the eligible premises, which shall be presumed to be such percentage as set forth in the lease  for  the  eligible  premises;  provided  that  where the eligible premises includes expansion premises, the "tenant's percentage share" shall be calculated on the basis of  the percentage  of  the  eligible  building's aggregate floor area allocated solely to the expansion premises.  (b)  For  eligible  premises defined in subparagraph (ii) of paragraph (b) or paragraph (c) of subdivision ten of this section, the  percentage of  the  eligible  building's  aggregate  floor  area  allocated  to the eligible  premises  to  be  occupied  or   used   for   industrial   and manufacturing  activities,  as defined in subdivision fourteen-a of this section; provided that where the eligible  premises  includes  expansion premises,  the  "tenant's  percentage  share" shall be calculated on the basis of the eligible building's aggregate floor area  allocated  solely to  expansion  premises  to  be  occupied  or  used  for  industrial and manufacturing activities.