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-FF - Reporting Requirements; Revocation of Abatements.

§ 499-ff. Reporting requirements; revocation of abatements. 1. For the
duration  of  the  applicant's  benefit period, the applicant shall file
annually with the department of finance, on or before July first of each
year, a  certificate  of  continuing  eligibility  confirming  that  the
eligible premises are occupied by the tenant who originally executed the
lease  and  that  the  eligible premises are being used for the purposes
described in the application. In addition, for eligible premises defined
in subparagraph (ii) of paragraph (b) or paragraph  (c)  of  subdivision
ten  of section four hundred ninety-nine-aa of this title, a certificate
of continuing eligibility shall (a) confirm that the percentage  of  the
aggregate  floor  area  of  the  eligible  premises occupied or used for
industrial and manufacturing activities (exclusive  of  ancillary  uses)
has  not been reduced and (b) state separately the current percentage of
the aggregate floor area of the eligible premises  used  for  industrial
and manufacturing activities, ancillary uses and retail activities. Such
certificate  of  continuing eligibility shall be on a form prescribed by
the department of finance and shall contain such additional  information
as  the  department  of finance shall require. The department of finance
shall have the authority to terminate  abatements  granted  pursuant  to
this title upon failure of an applicant to file such certificate by such
July  first  date.  The  burden  of  proof  shall be on the applicant to
establish continuing eligibility for  benefits  and  the  department  of
finance shall have the authority to require that statements made in such
certificate shall be made under oath.
2.  The  department  of  finance  shall  revoke  any abatement granted
pursuant to this title when the tenant who originally executed the lease
is no longer occupying the eligible premises. Such revocation  shall  be
retroactive  to  the date that such tenant vacated the eligible premises
and the department of finance shall require the landlord  to  pay,  with
interest, any taxes which become payable as a result of such revocation.
The  landlord  shall notify the department of finance within thirty days
following the date on which such tenant vacated  the  eligible  premises
and,  for failure to comply with this notification requirement, shall be
liable for penalty  calculated  for  the  same  period  as  interest  is
calculated pursuant to the preceding sentence.
3.  If  any  portion  of  the premises for which an abatement has been
granted pursuant to this title ceases to be occupied or used as eligible
premises or is occupied by a subtenant, the department of finance  shall
reduce  the  abatement granted pursuant to this title by an amount equal
to the percentage of such eligible  premises  which  has  ceased  to  be
occupied  or  used  as  eligible premises or is occupied by a subtenant.
Such reduction shall be retroactive  to  the  date  that  such  premises
ceased  to be occupied or used as eligible premises or was occupied by a
subtenant, and the department of finance shall require the  landlord  to
pay,  with  interest, any taxes which become payable as a result of such
reduction. The landlord shall notify the department  of  finance  within
thirty  days  following  the  date  on  which  the premises ceased to be
occupied or used as eligible premises or was  occupied  by  a  subtenant
and,  for failure to comply with this notification requirement, shall be
liable for penalty  calculated  for  the  same  period  as  interest  is
calculated pursuant to the preceding sentence.
4.  If,  during  the benefit period, any real property tax or water or
sewer charge or other lienable charge due and payable with respect to an
eligible building shall remain unpaid for at least  one  year  following
the  date  upon  which  such  tax  or charge became due and payable, all
abatements granted pursuant to this title with respect to such  building
shall be revoked, unless within thirty days from the mailing of a notice
of  revocation  by  the  department  of  finance  satisfactory  proof is

presented to the department of finance that any and all delinquent taxes
and charges owing with respect to such building as of the date  of  such
notice  have  been  paid  in  full or are currently being paid in timely
installments  pursuant  to  a  written  agreement with the department of
finance or other appropriate agency. Any  revocation  pursuant  to  this
subdivision shall be effective with respect to real property taxes which
become due and payable following the date of such revocation.
5.  The  department of finance may deny, reduce, suspend, terminate or
revoke any abatement granted pursuant to this title whenever:
(a) the landlord or the tenant receiving abatement  pursuant  to  this
title  fails  to comply with the requirements of this title or the rules
promulgated hereunder; or
(b) an application, certificate, report or other document submitted by
the applicant contains a false or misleading statement as to a  material
fact  or omits to state any material fact necessary in order to make the
statement therein not false or misleading, and may declare any applicant
who  makes  such  false  or  misleading  statement  or  omission  to  be
ineligible  for  future abatement pursuant to this title for the same or
other property. In addition, the department of finance shall require the
applicant to pay, with penalty  and  interest,  any  abatement  received
pursuant to this title as a result of such false or misleading statement
or omission of a material fact.
6.  Notwithstanding  any other provision of this title, the department
of finance shall deny, terminate or revoke any abatement applied for  or
granted  pursuant  to  this  title  upon  a determination that the lease
between the landlord and the tenant does  not  constitute  a  bona  fide
arm's  length  lease.  In  making  such determination, the department of
finance may consider, among other factors,  the  relationship,  if  any,
between  the  landlord  and the tenant and whether the business terms of
such lease are consistent with the business  terms  generally  found  in
leases for comparable space.
7.  (a) If any person described in the statement required by paragraph
(b) of subdivision seven of section four hundred ninety-nine-cc of  this
title  or  paragraph (b) of this subdivision is finally adjudicated by a
court of competent jurisdiction to be guilty of  any  charge  listed  in
such  statement,  the  department  of finance shall revoke the abatement
granted pursuant to this title  and  shall  require  the  payment,  with
interest, of any abatement received pursuant to this title.
(b) The applicant shall, on the certificate of continuing eligibility,
state  whether  any  charges  alleging violation by the applicant or any
person owning a substantial interest in the eligible  building,  or  any
officer, director or general partner of the applicant or person owning a
substantial  interest  in  the eligible building, or any person for whom
the applicant or person owning a substantial interest  in  the  eligible
building  is  an  officer,  director  or general partner, of section two
hundred thirty-five of the real property law or any section  of  article
one  hundred  fifty of the penal law or any similar arson law of another
jurisdiction, are pending. For purposes of this paragraph,  "substantial
interest"  shall  have the same meaning as set forth in paragraph (c) of
subdivision seven of section four hundred ninety nine-cc of this title.
8. The department  of  finance  shall  revoke  any  abatement  granted
pursuant  to  this  title  with  respect to premises leased to a renewal
tenant if the applicant shall fail to submit evidence acceptable to  the
department  of finance, within the time specified in subdivision four of
section four hundred ninety-nine-dd of this title, that the requirements
of  section  four  hundred  ninety-nine-cc  of  this  title   concerning
expenditures  on improvements have been met within the time specified in
such section four hundred ninety-nine-cc. In such event, the  department

of finance shall require the landlord to pay, with penalty and interest,
any  abatement  received  pursuant  to  this  title  with respect to the
premises in question.