2023 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-BB - Real Property Tax Abatement.

§  499-bb.  Real  property  tax  abatement.  1.  Except as provided in
subdivisions one-a and one-b of this section, within  a  city  having  a
population  of  one  million  or  more,  eligible  buildings  containing
eligible premises shall receive an  abatement  of  real  property  taxes
during the benefit period as follows:
(a)  for  each  of  the  first  three years of the benefit period, the
abatement shall be equal to the product obtained by (i) multiplying  the
tenant's  percentage  share by the number of square feet in the eligible
building, as listed on the records of the department of finance and (ii)
multiplying the product obtained in subparagraph (i) of  this  paragraph
by the abatement base;
(b)  for the fourth year of the benefit period, the abatement shall be
equal to two-thirds of the abatement in the first year  of  the  benefit
period; and
(c)  for  the fifth year of the benefit period, the abatement shall be
equal to one-third of the abatement in the first  year  of  the  benefit
period.
1-a. Except as provided in subdivision one-b of this section, within a
city  having  a  population  of  one million or more, eligible buildings
containing eligible premises occupied or used by a tenant pursuant to  a
lease having a lease commencement date 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,  shall  receive an abatement of real
property taxes during the benefit period as follows:
(a) for the first year of the benefit period, the abatement  shall  be
equal to the product obtained by (i) multiplying the tenant's percentage
share  by  the number of square feet in the eligible building, as listed
on the records of the department of finance  and  (ii)  multiplying  the
product  obtained in subparagraph (i) of this paragraph by the abatement
base;
(b) for the second year of the benefit period, the abatement shall  be
equal  to  two-thirds  of the abatement in the first year of the benefit
period; and
(c) for the third year of the benefit period, the abatement  shall  be
equal  to  one-third  of  the abatement in the first year of the benefit
period.
1-b. (a) Within a city having a population of  one  million  or  more,
eligible   buildings   containing   eligible   premises  as  defined  in
subparagraph (ii) of paragraph (b) or paragraph (c) of  subdivision  ten
of section four hundred ninety-nine-aa of this title occupied or used by
a  tenant  pursuant  to  a  lease having a lease commencement date on or
after July first, two thousand five with an initial lease  term  of  not
less than three years, shall receive an abatement of real property taxes
for each year of the benefit period equal to the product obtained by (i)
multiplying  the  tenant's percentage share by the number of square feet
in the eligible building, as listed on the records of the department  of
finance and (ii) multiplying the product obtained in subparagraph (i) of
this paragraph by the abatement base.
(b)  (i)  The  benefit  described in paragraph (a) of this subdivision
shall apply to eligible premises where at least ninety  percent  of  the
aggregate   floor   area   is   occupied  or  used  for  industrial  and
manufacturing  activities,  as  defined  in  subdivision  fourteen-a  of
section four hundred ninety-nine-aa of this title.
(ii)  If  at  least  fifty  percent of the aggregate floor area of the
eligible premises but less than ninety  percent  of  such  premises  are
occupied or used for industrial and manufacturing activities, as defined
in subdivision fourteen-a of section four hundred ninety-nine-aa of this
title, the benefits described in paragraph (a) of this subdivision shall

be  limited to the proportion of such eligible premises occupied or used
for such activities.
2.  If,  as  a  result of application to the tax commission or a court
order or action by the department  of  finance,  the  billable  assessed
value  is  reduced,  the  department  of  finance  shall recalculate the
abatement utilizing such reduced billable  assessed  value.  The  amount
equal to the difference between the abatement originally granted and the
abatement as so recalculated shall be deducted from any refund otherwise
payable  or  remission  otherwise  due  as a result of such reduction in
billable assessed value, and any balance of such amount remaining unpaid
after making any such deduction shall  be  paid  to  the  department  of
finance within thirty days from the date of mailing by the department of
finance  of  a  notice  of the amount payable. Such amount payable shall
constitute a tax lien on the eligible building as of the  date  of  such
notice  and,  if  not  paid  within  such thirty-day period, penalty and
interest at the rate applicable to delinquent  taxes  on  such  eligible
building  shall be charged and collected on such amount from the date of
such notice to the date of payment.
3. (a) In no event shall  the  abatement  for  the  eligible  premises
granted pursuant to this title exceed the tax liability allocable to the
eligible premises.
(b)  In  no event shall eligible premises receive benefits pursuant to
subdivision one-b of this section while receiving benefits  pursuant  to
subdivision one or one-a of this section.
4.  Notwithstanding  the  provisions  of  any  lease  for occupancy of
non-eligible premises in  an  eligible  building  or  for  occupancy  of
eligible  premises for which no certificate of abatement has been issued
pursuant to this title, a lessee of non-eligible premises or of eligible
premises for which no certificate of abatement has been issued  pursuant
to  this title shall not be entitled to receive directly or indirectly a
reduction in either the real  property  taxes  or  any  rent  (including
additional  rent)  payable  pursuant  to such lease where such reduction
would result from an abatement of real property taxes  granted  pursuant
to  this  title.  A landlord of an eligible building shall not allocate,
credit, assign or disburse any portion of an abatement granted  pursuant
to  this  title  to  a  lessee  of  non-eligible premises or of eligible
premises for which no certificate of abatement has been issued  pursuant
to  this  title.  A  landlord  shall  not be required to reduce the real
property taxes or  any  rent  (including  additional  rent)  payable  by
expansion  tenants,  new  tenants  and renewal tenants by an amount that
exceeds the full amount of the abatement granted pursuant to this title,
but a landlord shall be required to reduce the real  property  taxes  or
any  rent  (including additional rent) payable by expansion tenants, new
tenants and renewal tenants by an amount that, in the aggregate,  equals
the  full  amount  of the abatement granted pursuant to this title. Such
reduction shall be allocated in accordance with  the  abatement  granted
for the eligible premises occupied by each such tenant.
5.  A  tenant  who  occupies  or  uses  eligible  premises for which a
certificate of abatement is issued pursuant to this title shall  not  be
eligible  to  receive  a  second  certificate  of abatement for the same
eligible premises. A tenant who occupies or uses eligible  premises  for
which  a  certificate  of abatement is issued pursuant to this title and
who, upon the expiration  of  the  lease  for  such  eligible  premises,
relocates  to  otherwise  eligible  premises,  shall  not be eligible to
receive a certificate of abatement for such otherwise eligible premises,
except to the extent that the square footage of such otherwise  eligible
premises  exceeds the square footage of all eligible premises previously
occupied or used by such tenant for which such tenant held a certificate

of abatement. If the square footage of such otherwise eligible  premises
exceeds  the  square  footage  of  all such eligible premises previously
occupied or used by such tenant and if there is any variation in the tax
liability per square foot of such otherwise eligible premises, then, for
purposes  of determining which square footage in such otherwise eligible
premises is entitled to an abatement  pursuant  to  this  title,  square
footage  with  the  greatest tax liability per square foot, in an amount
equal to the square footage of all  such  eligible  premises  previously
occupied or used by such tenant, shall first be excluded.