2023 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-GGGG - Conversion of Property.

§ 489-gggg. Conversion of property. 1. Any recipient whose property is
the subject of a certificate of eligibility for commercial or renovation
construction  work,  and  who,  prior  to  the expiration of the benefit
period, uses such property as industrial  property,  shall  continue  to
receive  benefits  for commercial or renovation construction work as the
case may be.
2. Any recipient whose property is the subject  of  a  certificate  of
eligibility  for  industrial  construction  work,  and who, prior to the
expiration of the benefit  period,  uses  such  property  as  commercial
property,  shall cease to be eligible for further exemption or abatement
for industrial construction work as of  the  last  date  to  which  such
recipient proves by clear and convincing evidence that such property was
used  as  industrial property, and shall pay with interest any taxes for
which an exemption or abatement was  claimed  after  such  date,  except
that:
(a)  a  recipient  of  a  certificate  of  eligibility  for industrial
construction work in a  special  exemption  area  who  would  have  been
eligible   to  receive  a  certificate  of  eligibility  for  commercial
construction work at the time such recipient applied for benefits  shall
continue to receive an exemption for industrial construction; and
(b)  a  recipient  of  a  certificate  of  eligibility  for industrial
construction work in a  regular  exemption  area  who  would  have  been
eligible   to  receive  a  certificate  of  eligibility  for  commercial
construction work at the time such recipient 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 exemption which such recipient would have
received in the corresponding tax year  pursuant  to  a  certificate  of
eligibility for commercial construction work; and
(c)  a  recipient  of  a  certificate  of  eligibility  for industrial
construction work in any area of the city on  whose  property  at  least
sixty-five  per centum 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 exemption was claimed during the tax year in which such
conversion occurred.
3. Except as  provided  in  subdivision  four  of  this  section,  any
recipient  whose property is the subject of a certificate of eligibility
for commercial, industrial or renovation construction work, and who uses
such property as residential property or  for  any  restricted  activity
prior  to  the  expiration  of  the  benefit  period,  shall cease to be
eligible for further exemption, abatement or deferral  as  of  the  date
such  property  was  first  used  as  residential  property  or  for any
restricted activity. In the  case  of  property  in  an  area  that  was
designated  as  an  exemption  area  at  the  time  the  certificate  of
eligibility was issued, such recipient shall pay with interest any taxes
for which an exemption was claimed after such date,  including  the  pro
rata  share  of  tax  for which any exemption was claimed during the tax
year in which such use occurred. In the  case  of  industrial  property,
such  recipient shall pay with interest any taxes for which an exemption
or abatement was claimed after such date, including the pro  rata  share
of  tax  for which any exemption or abatement was claimed during the tax
year in which such use occurred. In the case of property in an area that
was designated as a  deferral  area  at  the  time  the  certificate  of
eligibility  was issued, all deferred tax payments on the property shall
become due and payable immediately.
4. Notwithstanding subdivision three of this  section,  any  recipient
whose  property  is  the  subject  of  a  certificate of eligibility for

commercial or renovation construction work with  an  effective  date  of
July  first, nineteen hundred ninety-two or after, and who, prior to the
expiration of the benefit period, uses a portion  of  such  property  as
residential  property,  shall cease to be eligible for further exemption
for commercial or renovation construction work for that portion of  such
property used as residential property as of the date such portion of the
property  was  first  used as residential property. Such recipient shall
pay, with interest, any taxes for which an exemption was  claimed  after
such  date  attributable  to  that  portion  of  the  property  used  as
residential property, including the pro rata share of tax for which such
exemption was claimed during the tax year in which  such  use  occurred.
Such  recipient shall continue to receive an exemption for commercial or
renovation construction work for that  portion  of  the  property  which
continues to be used as commercial property.