2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 4 - Tax Abatement for Certain Commercial Properties in a City of One Million or More Persons › 499-B - Real Property Tax Abatement.

§  499-b.  Real  property  tax  abatement.  1.  Except  as provided in
subdivision one-a 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.  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.
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. In no event shall the abatement for the eligible  premises  granted
pursuant  to  this  title  exceed  the  tax  liability  allocable to the
eligible premises.
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)  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.
(b)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
subdivision,  a tenant who is eligible in accordance with the provisions
of this title, who occupies  or  uses  eligible  premises  for  which  a
certificate  of abatement is issued pursuant to this title and who, upon
the termination of the lease for such premises as a result of  a  taking
by  eminent  domain,  relocates to otherwise eligible premises, shall be
eligible to receive a second certificate of abatement for such  eligible
premises; provided, however, that such tenant shall have eighteen months
from  the  date that the lease has terminated, as a result of the taking
by eminent domain, or eighteen months from the effective  date  of  this
paragraph, whichever is later, to relocate to such eligible premises.