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-BBBB - Power to Enact Local Law; Real Property Tax Exemption; Deferral of Tax Payments.

§  489-bbbb.  Power  to  enact local law; real property tax exemption;
deferral of tax payments. Any city having a population of one million or
more, acting through its  local  legislative  body,  is  authorized  and
empowered  to determine that incentives in the form of exemption from or
abatement or deferral of payment of real property taxes are necessary to
encourage industrial and commercial development  in  such  city  and  to
enact  a local law providing that such benefits shall be provided in the
manner set forth in this title. Such city  shall  be  divided  into  six
classes  of  areas as provided in this title and pursuant to designation
of areas to be made by a temporary commercial  incentive  area  boundary
commission. Within such areas, the following benefits shall be available
to qualified recipients:
1.  (a) A recipient who, following the effective date of a certificate
of eligibility, has performed industrial construction work in  any  area
of such city shall be eligible for an exemption from real property taxes
as  follows:  For  the  first thirteen tax years, the recipient shall be
exempt from taxation on one hundred per centum of  the  exemption  base.
For  the  following  nine  tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at  ninety  per
centum  thereof  in  the  fourteenth  tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the  exemption
for industrial construction work:
 
Tax year following effective
date of certificate of
eligibility:                        Amount of exemption:
1 through 13                 Tax on 100% of exemption base
14                            Tax on 90% of exemption base
15                            Tax on 80% of exemption base
16                            Tax on 70% of exemption base
17                            Tax on 60% of exemption base
18                            Tax on 50% of exemption base
19                            Tax on 40% of exemption base
20                            Tax on 30% of exemption base
21                            Tax on 20% of exemption base
22                            Tax on 10% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed  an  application  for  a certificate of eligibility for industrial
construction work in any area of such  city  on  or  after  July  first,
nineteen  hundred  ninety-five, and who, following the effective date of
such  certificate  of  eligibility,  has   performed   such   industrial
construction  work shall be eligible for an exemption from real property
taxes as follows: For the first sixteen tax years, the  recipient  shall
be exempt from taxation on one hundred per centum of the exemption base.
For  the  following  nine  tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at  ninety  per
centum  thereof  in  the  seventeenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the  exemption
for industrial construction work pursuant to this paragraph:
 
Tax year following effective
date of certificate of
eligibility:                        Amount of exemption:
1 Through 16                 Tax on 100% of exemption base
17                            Tax on 90% of exemption base
18                            Tax on 80% of exemption base
19                            Tax on 70% of exemption base
20                            Tax on 60% of exemption base
21                            Tax on 50% of exemption base
22                            Tax on 40% of exemption base
23                            Tax on 30% of exemption base
24                            Tax on 20% of exemption base
25                            Tax on 10% of exemption base
(c)(i)  A  recipient  who  filed  an  application for a certificate of
eligibility for industrial construction work in any area of such city on
or after July first, nineteen hundred ninety-five,  and  who,  following
the  effective  date  of such certificate of eligibility, both commenced
and completed such work, shall be eligible  for  an  abatement  of  real
property  taxes as follows: For the first tax year immediately following
completion of such work, and for the second, third and fourth tax  years
following  completion  of such work, the abatement shall equal fifty per
centum of the real property tax that was imposed on the  property  which
is  the  subject  of  the  certificate  of  eligibility for the tax year
immediately  preceding  the  effective  date  of  such  certificate   of
eligibility,  provided,  however,  that  if  such  property was fully or
partially exempt from real property taxes during such tax year, then the
abatement shall equal fifty per centum of the  real  property  tax  that
would  have  been  imposed on such property but for such full or partial
exemption. For the fifth and sixth tax years, the abatement shall  equal
forty  per  centum of such amount; for the seventh and eighth tax years,
the abatement shall equal thirty per centum  of  such  amount;  for  the
ninth  and  tenth tax years, the abatement shall equal twenty per centum
of such amount;  and  for  the  eleventh  and  twelfth  tax  years,  the
abatement shall equal ten per centum of such amount. Notwithstanding any
inconsistent  provision  of  this  paragraph,  a  recipient shall not be
eligible for an abatement for the first tax year following completion of
such work, unless  the  recipient  submits  proof  satisfactory  to  the
department  of  finance  that  such  work was completed on or before the
taxable status date for such first tax year no later  than  thirty  days
after such taxable status date. Where the recipient fails to submit such
proof  in  accordance with the foregoing sentence, a recipient shall not
be eligible for  an  abatement  until  the  second  tax  year  following
completion  of  such  work. In such case, a recipient shall submit proof
satisfactory to the department of finance that such work  was  completed
on  or  before  the taxable status date for such first tax year no later
than thirty days after the taxable status date for such second tax year.
A recipient whose abatement begins in  the  second  tax  year  following
completion  of  such  work shall not thereby have his or her twelve-year
benefit period shortened.
The following table shall illustrate the computation of the  abatement
for industrial construction work pursuant to this paragraph:
Tax year following
completion of industrial
construction work:                     Amount of abatement:
1                                  50%
2                                  50%
3                                  50%
4                                  50%
5                                  40%
6                                  40%
7                                  30%
8                                  30%
9                                  20%
10                                  20%
11                                  10%
12                                  10%
(ii)  If,  due  to a determination of the department of finance or tax
commission of such city or a court, the real  property  tax  imposed  on
such  property for the tax year immediately preceding the effective date
of such certificate of eligibility is changed, then any  abatement  that
was  granted  in  accordance with this paragraph prior to such reduction
shall be recalculated and any abatement to be granted in accordance with
this paragraph shall be based on the real property tax imposed  on  such
property  for  the  tax year immediately preceding the effective date of
such certificate of eligibility, as changed by such  determination.  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 a change due
to  such  determination, 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 such property 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  property  shall  be
charged and collected on such amount from the date of such notice to the
date of payment.
(iii) No property which is the subject of a certificate of eligibility
pursuant to this title shall receive more than one abatement pursuant to
this  title  and  no  abatement shall exceed one consecutive twelve-year
period as specified in subparagraph (i) of this paragraph.
(iv) In no event shall an abatement granted  pursuant  to  this  title
exceed  in  any tax year the real property taxes imposed on the property
which is the subject of a certificate of eligibility  pursuant  to  this
title.
(v) For the purpose of calculating an abatement of real property taxes
pursuant  to this title, where a tax lot contains more than one building
or structure and not all of the buildings or structures comprising  such
tax  lot  are the subject of a certificate of eligibility for industrial
construction work pursuant  to  this  title,  the  real  property  taxes
imposed  on  such  tax  lot  for  the tax year immediately preceding the
effective date of such certificate of eligibility shall  be  apportioned
among  the  buildings,  structures  and land comprising such tax lot and
only such real property taxes as are allocable to the property which  is
the  subject  of  the  certificate of eligibility pursuant to this title
shall be abated in accordance with this  paragraph.  Such  apportionment
shall  be  in  accordance  with  rules  promulgated by the department of
finance.
(vi) A recipient  who  filed  an  application  for  a  certificate  of
eligibility   for   industrial   construction  work  in  the  commercial
revitalization area on or after  July  first,  two  thousand,  and  who,
following  the  effective  date of such certificate of eligibility, both
commenced and completed such work, shall be eligible for an abatement of
real  property  taxes  in  accordance  with  subparagraph  (i)  of  this
paragraph, provided, however, that where the total net square footage of

the  industrial  property used or immediately available and held out for
use for manufacturing activities involving the assembly of goods or  the
fabrication or processing of raw materials is less than seventy-five per
centum  of  the total net square footage of the industrial property, the
abatement of real property taxes shall be determined in accordance  with
rules  promulgated  by  the  department  of finance. Notwithstanding the
foregoing sentence, no such abatement shall be allowed where  the  total
net  square  footage  of  the  industrial  property  used or immediately
available and held out for use  for  such  manufacturing  actives  after
completion  of  industrial  construction work is less than the total net
square footage used or immediately available and held out  for  use  for
such   manufacturing   activities   before   the  commencement  of  such
construction work. For purposes of  this  subparagraph  only,  the  term
"industrial   construction   work"   shall   mean   the   modernization,
rehabilitation, expansion or improvement  of  an  existing  building  or
structure  for  use  as  industrial  property  and  the term "industrial
property" shall mean nonresidential property on which will  exist  after
completion  of  industrial  construction  work  a  building or structure
wherein at least twenty-five per centum of the total net square  footage
is  used or immediately available and held out for use for manufacturing
activities involving  the  assembly  of  goods  or  the  fabrication  or
processing of raw materials.
2.  (a) A recipient who, following the effective date of a certificate
of eligibility, has performed commercial construction work in a  special
exemption  area  shall  be  eligible for an exemption from real property
taxes as follows: For the first thirteen tax years, the recipient  shall
be exempt from taxation on one hundred per centum of the exemption base.
For  the  following  nine  tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at  ninety  per
centum  thereof  in  the  fourteenth  tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the  exemption
for commercial construction work in a special exemption area:
 
Tax year following effective
date of certificate of
eligibility:                        Amount of exemption:
1 through 13                 Tax on 100% of exemption base
14                            Tax on 90% of exemption base
15                            Tax on 80% of exemption base
16                            Tax on 70% of exemption base
17                            Tax on 60% of exemption base
18                            Tax on 50% of exemption base
19                            Tax on 40% of exemption base
20                            Tax on 30% of exemption base
21                            Tax on 20% of exemption base
22                            Tax on 10% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed  an  application  for  a certificate of eligibility for commercial
construction work in a special exemption area on or  after  July  first,
nineteen  hundred  ninety-five, and who, following the effective date of
such  certificate  of  eligibility,  has   performed   such   commercial
construction  work shall be eligible for an exemption from real property
taxes as follows: For the first sixteen tax years, the  recipient  shall
be exempt from taxation on one hundred per centum of the exemption base.
For  the  following  nine  tax years, the recipient shall be exempt from

taxation on a percentage of the exemption base beginning at  ninety  per
centum  thereof  in  the  seventeenth tax year and decreasing by ten per
centum of said exemption base each year.
The  following table shall illustrate the computation of the exemption
for commercial construction work in a special exemption area pursuant to
this paragraph:
 
Tax year following effective
date of certificate of
eligibility:                        Amount of exemption:
1 through 16                 Tax on 100% of exemption base
17                            Tax on 90% of exemption base
18                            Tax on 80% of exemption base
19                            Tax on 70% of exemption base
20                            Tax on 60% of exemption base
21                            Tax on 50% of exemption base
22                            Tax on 40% of exemption base
23                            Tax on 30% of exemption base
24                            Tax on 20% of exemption base
25                            Tax on 10% of exemption base
3. (a) A recipient who, following the effective date of a  certificate
of  eligibility, has performed commercial construction work in a regular
exemption area shall be eligible for an  exemption  from  real  property
taxes  as follows: For the first eight tax years, the recipient shall be
exempt from taxation on one hundred per centum of  the  exemption  base.
For  the  following  four  tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at  eighty  per
centum thereof in the ninth tax year and decreasing by twenty per centum
of said exemption base each year.
The  following table shall illustrate the computation of the exemption
for commercial construction work in a regular exemption area:
 
Tax year following effective
date of certificate of
eligibility:                        Amount of exemption:
1 through 8                  Tax on 100% of exemption base
9                            Tax on 80% of exemption base
10                            Tax on 60% of exemption base
11                            Tax on 40% of exemption base
12                            Tax on 20% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed an application for a certificate  of  eligibility  for  commercial
construction  work  in  a regular exemption area on or after July first,
nineteen hundred ninety-five, and who, following the effective  date  of
such   certificate   of   eligibility,  has  performed  such  commercial
construction work shall be eligible for an exemption from real  property
taxes as follows: For the first eleven tax years, the recipient shall be
exempt  from  taxation  on one hundred per centum of the exemption base.
For the following four tax years, the recipient  shall  be  exempt  from
taxation  on  a percentage of the exemption base beginning at eighty per
centum thereof in the twelfth tax year  and  decreasing  by  twenty  per
centum of said exemption base each year.
The  following table shall illustrate the computation of the exemption
for commercial construction work in a regular exemption area pursuant to
this paragraph:
 
Tax year following effective
date of certificate of
eligibility:                        Amount of exemption:
1 through 11                 Tax on 100% of exemption base
12                            Tax on 80% of exemption base
13                            Tax on 60% of exemption base
14                            Tax on 40% of exemption base
15                            Tax on 20% of exemption base
4. Except as provided in paragraphs (b) and (c) of subdivision five of
section  four  hundred  eighty-nine-cccc of this title, a recipient who,
following the effective  date  of  a  certificate  of  eligibility,  has
performed  commercial  construction  work  in  a  deferral area shall be
eligible for a deferral of tax payments as follows: For the first  three
tax  years following the effective date of a certificate of eligibility,
the tax payment on one hundred per centum of the exemption base shall be
deferred. For the following  four  tax  years,  the  tax  payment  on  a
percentage  of the exemption base beginning at eighty per centum thereof
in the fourth tax year and decreasing by twenty  per  centum  each  year
shall be deferred. The total amount of tax payments deferred pursuant to
this  title  shall be paid subsequently over the course of ten tax years
as follows: Commencing in the eleventh tax year following the  effective
date  of  the  certificate  of  eligibility,  through  and including the
twentieth tax year following such effective date, an amount equal to ten
per centum of the total amount of tax payments deferred pursuant to this
section shall be added to the  amount  of  tax  otherwise  assessed  and
payable in each such tax year on the property subject to such deferral.
The  following  table shall illustrate the computation of deferral and
payment of taxes for commercial construction work in a deferral area:
 
Tax year following effective
date of certificate of              Amount of tax payments to
eligibility:                        be deferred or paid:
1 through 3                   Deferral of tax payment on 100%
of the exemption base
4                             Deferral of tax payment on 80%
of the exemption base
5                             Deferral of tax payment on 60%
of the exemption base
6                             Deferral of tax payment on 40%
of the exemption base
7                             Deferral of tax payment on 20%
of the exemption base
11 through 20                 Payment each year of 10% of
total dollar amount of tax
payments deferred pursuant
to this title
5. A recipient who, following the effective date of a  certificate  of
eligibility,  has performed renovation construction work in a renovation
exemption area shall be eligible for an  exemption  from  real  property
taxes  as follows: For the first eight tax years, the recipient shall be

exempt from taxation on one hundred per centum of  the  exemption  base.
For  the  following  four  tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at  eighty  per
centum thereof in the ninth tax year and decreasing by twenty per centum
of said exemption base each year.
The  following table shall illustrate the computation of the exemption
for renovation construction work in a renovation exemption area:
 
Tax year following effective
date of certificate of
eligibility:                        Amount of exemption:
1 through 8                  Tax on 100% of exemption base
9                            Tax on 80% of exemption base
10                            Tax on 60% of exemption base
11                            Tax on 40% of exemption base
12                            Tax on 20% of exemption base
5-a. A recipient who, following the effective date of a certificate of
eligibility, constructs a new  building  or  structure  that  meets  the
requirements  set  forth  in  subdivision  nine  of section four hundred
eighty-nine-dddd of this title in the new  construction  exemption  area
specified  in  paragraph  (a),  (b) or (c) of subdivision six of section
four hundred eighty-nine-cccc of this title shall  be  eligible  for  an
exemption  from  real  property taxes as follows: For the first four tax
years, the recipient shall be exempt from taxation on  one  hundred  per
centum  of  the  exemption  base.  For the following four tax years, the
recipient shall be exempt from taxation on a percentage of the exemption
base beginning at eighty per centum thereof in the fifth  tax  year  and
decreasing by twenty per centum of said exemption base each year.
The  following table shall illustrate the computation of the exemption
for the construction of a new  building  or  structure  that  meets  the
requirements  set  forth  in  subdivision  nine  of section four hundred
eighty-nine-dddd of this title in the new  construction  exemption  area
specified  in  paragraph  (a),  (b) or (c) of subdivision six of section
four hundred eighty-nine-cccc of this title:
 
Tax year following effective
date of certificate of
eligibility:                        Amount of exemption:
1 through 4                   Tax on 100% of exemption base
5                             Tax on 80% of exemption base
6                             Tax on 60% of exemption base
7                             Tax on 40% of exemption base
8                             Tax on 20% of exemption base
6. There shall be no exemption from or deferral of a payment  of  real
property  taxes  available  pursuant  to  this  title  to any person who
performs commercial or renovation construction work in an excluded area,
except as provided in paragraphs (b) and  (c)  of  subdivision  five  of
section four hundred eighty-nine-cccc of this title.
7.  The  benefits  of  this  title  shall  be  granted exclusively for
industrial, commercial or  renovation  construction  work  described  in
approved   plans.   No   benefits   shall  be  granted  for  residential
construction work. Any parcel which is partly  located  in  an  excluded
area shall be deemed to be entirely located in such area.
8.  No benefits pursuant to this title shall be granted for work which
is the subject of a certificate of eligibility issued pursuant to  title
two-C of this article.