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-F - Reporting Requirements; Revocation of Abatements.

§  499-f.    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.     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 determine the 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-c  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-c 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-d of this title, that the  requirements
of   section   four  hundred  ninety-nine-c  of  this  title  concerning
expenditures on improvements have been met within the time specified  in
such  section four hundred ninety-nine-c.  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.