2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2-C - Tax Exemption for Certain Industrial and Commercial Properties in a City of One Million or More Persons › 489-DDD - Real Property Tax Exemption.

§  489-ddd.  Real  property  tax  exemption.  1.  A  real property tax
exemption pursuant to this title shall be granted to an  applicant  who,
within a period of thirty-six months, or following an extension pursuant
to section four hundred eighty-nine-hhh of this title within a period of
forty-eight  months,  from  the  date  of  issuance  of a certificate of
eligibility  has  completed  reconstruction  or  construction  work   in
accordance  with  the  plans approved by the board in the certificate of
eligibility. The amount of the tax  exemption  shall  be  determined  as
follows:
(a)  In  the  case  of  an  applicant  who  has  completed  industrial
construction or reconstruction work, or commercial  reconstruction  work
designated  as of right pursuant to section four hundred eighty-nine-ccc
of this title or as specially needed pursuant to  section  four  hundred
eighty-nine-eee  of  this  title,  the  tax exemption shall continue for
nineteen tax years in an amount decreasing by five per centum each  year
from  an  exemption  of ninety-five per centum of the exemption base, as
defined in paragraph (d) of this subdivision.
(b) In the case of an applicant who  has  completed  other  commercial
reconstruction  work,  or new commercial construction work designated as
of right pursuant to section four hundred eighty-nine-ccc of this  title
or  as specially needed pursuant to section four hundred eighty-nine-eee
of this title, the tax exemption shall continue for ten tax years, in an
amount decreasing by five per centum each  year  from  an  exemption  of
fifty per centum of the exemption base.
(c) In the case of an applicant who has completed other new commercial
construction work, the exemption shall continue for five tax years in an
amount decreasing by ten per centum each year from an exemption of fifty
per centum of the exemption base.
(d)  The  term  "exemption base" shall mean the difference between the
final assessed value of the property as determined  upon  completion  of
the  construction  or  reconstruction  work  and  the  lesser of (i) the
assessed value of  the  property  at  the  time  an  application  for  a
certificate  of  eligibility pursuant to this title is made, or (ii) the
assessed value as may thereafter be reduced pursuant to  application  to
the tax commission.
The tax exemption shall be computed according to the following tables:
CONSTRUCTION OR RECONSTRUCTION OF INDUSTRIAL
STRUCTURES OR RECONSTRUCTION OF AS OF RIGHT OR
SPECIALLY NEEDED COMMERCIAL STRUCTURES
Year following                             Percentage of
completion of work                           exemption
1.                                      95
2.                                      90
3.                                      85
4.                                      80
5.                                      75
6.                                      70
7.                                      65
8.                                      60
9.                                      55
10.                                      50
11.                                      45
12.                                      40
13.                                      35
14.                                      30
15.                                      25
16.                                      20
17.                                      15
18.                                      10
19.                                       5
RECONSTRUCTION OF OTHER COMMERCIAL STRUCTURES
OR CONSTRUCTION OF AS OF RIGHT OR SPECIALLY
NEEDED COMMERCIAL STRUCTURES
Year following                             Percentage of
completion of work                           exemption
1.                                      50
2.                                      45
3.                                      40
4.                                      35
5.                                      30
6.                                      25
7.                                      20
8.                                      15
9.                                      10
10.                                       5
CONSTRUCTION OF OTHER NEW COMMERCIAL STRUCTURES
Year following                             Percentage of
completion of work                           exemption
1.                                      50
2.                                      40
3.                                      30
4.                                      20
5.                                      10
2.  The  taxes  payable  during  the  period  from  the  issuance of a
certificate of eligibility to the approval of the tax exemption pursuant
to section four hundred eighty-nine-fff of this title shall be  paid  on
the lesser of:
(a)  the assessed value of the property at the time an application for
a certificate of eligibility pursuant to this title is made, or (b)  the
assessed  value  as may thereafter be reduced pursuant to application to
the  tax  commission,  provided,  however,  that  if  reconstruction  or
construction  is  not completed in accordance with the plans approved in
the certificate of eligibility including any amendments  thereto,  taxes
shall be due and payable retroactively as otherwise required by law.
3.  In  all  cases  where the board shall have issued a certificate of
eligibility prior to January first,  nineteen  hundred  eighty-two,  the
exemption  percentage  shall  apply  to  any  subsequent increase in the
assessed valuation of the property during the tenure of  the  exemption.
Where  the  board  has  issued  a certificate of eligibility on or after
January first, nineteen hundred  eighty-two,  the  exemption  percentage
shall  apply to any subsequent increase in the assessed valuation of the
property during the first two years after approval of the tax  exemption
pursuant   to  section  four  hundred  eighty-nine-fff  of  this  title.
Commencing two years after approval of the  tax  exemption  pursuant  to
section  four  hundred  eighty-nine-fff  of  this  title,  the exemption
percentage shall apply to any subsequent increase in assessed  valuation
of  the property only to the extent such increase is attributable to the
construction or reconstruction  work  approved  in  the  certificate  of
eligibility.
4.  The  provisions  of  this title shall not apply to any increase in
assessed value resulting from the construction or  reconstruction  of  a
residential  structure  on any property receiving an exemption under the
provisions of this title. The  provisions  of  this  title  shall  apply

exclusively to those structures and the lands underlying them which were
identified explicitly in the certificate of eligibility.
5.  The  provisions  of  this  title  shall  not  apply  if any new or
rehabilitated construction displaces or replaces a building or buildings
containing more than twenty-five occupied dwelling units in existence on
the date an application for certificate of eligibility is submitted  for
preliminary approval pursuant to section four hundred eighty-nine-eee of
this  title,  which  are  administered under the local emergency housing
rent control  act,  the  rent  stabilization  law  of  nineteen  hundred
sixty-nine   or   the   emergency  tenant  protection  act  of  nineteen
seventy-four, unless a certificate of eviction has been issued  for  any
of the displaced or replaced units pursuant to the powers granted by the
city rent and rehabilitation law.
6.  The  provisions  of this title shall not apply to an applicant who
has commenced construction or reconstruction work prior to the  granting
of  a certificate of eligibility except where applicant, having filed an
application for a certificate of eligibility receives written permission
to commence from the board or its designated representative prior to the
granting  of  a  certificate  of  eligibility.  Demolition  of  existing
structures, site preparation limited to grading, filling or clearing, or
the  curing  of  a  safety  or sanitary hazard shall not be deemed to be
commencement of construction or reconstruction work.
7. Any property enjoying the benefits of a tax exemption  approved  by
the  board  shall  be  ineligible  for  any subsequent or additional tax
exemption pursuant to the provisions of this title until the  expiration
of  the original exemption period or earlier termination of the existing
exemption by action of the tax commission.