2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2 - Private Property › 485-B - Business Investment Exemption.

§  485-b. Business investment exemption. 1. Real property constructed,
altered, installed or improved subsequent to  the  first  day  of  July,
nineteen  hundred seventy-six for the purpose of commercial, business or
industrial activity shall be exempt from taxation and special ad valorem
levies, except for special ad valorem levies  for  fire  district,  fire
protection  district  and  fire  alarm  district purposes, to the extent
hereinafter provided.
2. (a) (i) Such real property shall be exempt for a period of one year
to the extent of fifty per centum of  the  increase  in  assessed  value
thereof  attributable  to such construction, alteration, installation or
improvement and  for  an  additional  period  of  nine  years  provided,
however,  that  the  extent of such exemption shall be decreased by five
per centum each year during such additional period  of  nine  years  and
such  exemption  shall be computed with respect to the "exemption base."
The exemption base shall be the increase in assessed value as determined
in the initial year of such ten year period following the filing  of  an
original  application,  except  as provided in subparagraph (ii) of this
paragraph.
(ii) In any year in which a change in level of assessment  of  fifteen
percent or more is certified for a final assessment roll pursuant to the
rules  of  the commissioner, the exemption base shall be multiplied by a
fraction, the numerator of which shall be the total  assessed  value  of
the  parcel  on  such  final  assessment  roll (after accounting for any
physical or  quantity  changes  to  the  parcel  since  the  immediately
preceding  assessment  roll),  and the denominator of which shall be the
total assessed value of the parcel on the  immediately  preceding  final
assessment  roll.  The  result  shall  be  the  new  exemption base. The
exemption shall thereupon be recomputed to take  into  account  the  new
exemption  base, notwithstanding the fact that the assessor receives the
certification of the change in level of assessment after the completion,
verification and filing of the final assessment roll. In the  event  the
assessor  does  not  have custody of the roll when such certification is
received, the assessor shall certify the  recomputed  exemption  to  the
local  officers  having  custody and control of the roll, and such local
officers are hereby directed and  authorized  to  enter  the  recomputed
exemption certified by the assessor on the roll. The assessor shall give
written  notice  of such recomputed exemption to the property owner, who
may,  if  he  or  she  believes  that  the  exemption   was   recomputed
incorrectly,  apply  for  a  correction  in the manner provided by title
three of article five of this chapter for  the  correction  of  clerical
errors.
(iii)  The following table shall illustrate the computation of the tax
exemption:
Year of exemption                      Percentage of exemption
1                                       50
2                                       45
3                                       40
4                                       35
5                                       30
6                                       25
7                                       20
8                                       15
9                                       10
10                                        5
(b) No such exemption shall be granted unless
(1) such construction, alteration,  installation  or  improvement  was
commenced  subsequent  to  the  first  day  of January, nineteen hundred
seventy-six or such later date as may  be  specified  by  local  law  or
resolution;
(2)  the  cost  of  such  construction,  alteration,  installation  or
improvement exceeds the sum of ten  thousand  dollars  or  such  greater
amount as may be specified by local law or resolution; and
(3)  such  construction,  alteration,  installation  or improvement is
completed as may be evidenced by a certificate  of  occupancy  or  other
appropriate documentation as provided by the owner.
(c)  For  purposes of this section the terms construction, alteration,
installation and improvement shall not include ordinary maintenance  and
repairs.
(d)  No  such exemption shall be granted concurrent with or subsequent
to  any  other  real  property  tax  exemption  granted  to   the   same
improvements  to  real property, except, where during the period of such
previous exemption, payments in lieu of taxes  or  other  payments  were
made  to the local government in an amount that would have been equal to
or greater than the amount of real property taxes that would  have  been
paid  on  such  improvements had such property been granted an exemption
pursuant to this section. In such case, an exemption  shall  be  granted
for  a  number of years equal to the ten year exemption granted pursuant
to this section less the number of years the property  would  have  been
previously exempt from real property taxes.
3.  Such exemption shall be granted only upon application by the owner
of such real property on a form prescribed  by  the  commissioner.  Such
application shall be filed with the assessor of the city, town, village,
or  county having the power to assess property for taxation on or before
the appropriate taxable status date  of  such  city,  town,  village  or
county  and  within  one  year  from  the  date  of  completion  of such
construction, alteration, installation or improvement.
4. If the assessor is satisfied that the applicant is entitled  to  an
exemption  pursuant  to  this  section,  he  or  she  shall  approve the
application and such real  property  shall  thereafter  be  exempt  from
taxation  and  special  ad valorem levies, except for special ad valorem
levies for fire  district,  fire  protection  district  and  fire  alarm
district  purposes,  as  herein  provided commencing with the assessment
roll prepared after the taxable status date referred to  in  subdivision
three  of  this  section.  The  assessed  value of any exemption granted
pursuant to this section  shall  be  entered  by  the  assessor  on  the
assessment  roll  with  the  taxable  property,  with  the amount of the
exemption shown in a separate column.
5. The provisions of this section shall apply to  real  property  used
primarily  for  the  buying,  selling,  storing  or  developing goods or
services, the manufacture or assembly of goods or the processing of  raw
materials.  This  section shall not apply to property used primarily for
the furnishing of dwelling space or accommodations to  either  residents
or transients other than hotels or motels.
6.  In  the  event that real property granted an exemption pursuant to
this section ceases to be used  primarily  for  eligible  purposes,  the
exemption granted pursuant to this section shall cease.
7.  A  county,  city,  town or village may, by local law, and a school
district, except a city school district to which  article  fifty-two  of
the  education law applies, may, by resolution, reduce the per centum of
exemption otherwise allowed pursuant to this section; provided, however,
that a project in course of construction and exemptions  existing  prior
in  time  to  passage  of  any such local law or resolution shall not be
subject to any such reduction  so  effected.  Any  county,  city,  town,

village  or school district that has reduced the per centum of exemption
pursuant to this subdivision may thereafter, by local law or  resolution
as  the  case may be, increase the per centum of exemption up to any per
centum not exceeding the maximum allowed by subdivision two or twelve of
this  section, whichever is applicable, provided, however, that any such
local law or resolution shall apply only to  construction,  alterations,
installations,  or  improvements  commenced  subsequent to the effective
date of such local law or resolution. A copy of all such local  laws  or
resolutions  shall  be  filed  with the commissioner and the assessor of
each assessing unit which comprises the county,  city,  town  or  school
district  or,  in  the  case  of a village, the village assessor, or the
applicable town or county assessor of a  village  which  has  adopted  a
local  law provided in subdivision three of section fourteen hundred two
of this chapter.
8. A county, city, town or village may, by local  law,  and  a  school
district,  except  a  city school district to which article fifty-two of
the education law applies may, by resolution, establish a date  for  the
commencement  of  effectiveness  of  exemptions offered pursuant to this
section and may provide that the provisions of this section shall  apply
only  to construction, alteration, installation or improvements having a
greater value than that specified by subdivision two  of  this  section,
provided,  however,  that  such  amount  shall not exceed fifty thousand
dollars.
9. (a) A county, city, outside the city of New York, town  or  village
may,  by local law, and a school district which levies school taxes may,
by resolution, establish a board to  be  known  as  the  industrial  and
commercial incentive board. The membership and composition of such board
shall be set forth in the local law or resolution.
(b) The industrial and commercial incentive board shall present a plan
to the appointing local legislative body concerning the various types of
business  real  property  which  should  be  granted  eligibility for an
exemption pursuant to subdivision one of this section. Such  plan  shall
make  recommendations  concerning  the applicability of the exemption to
specific sectors and  subsectors,  as  defined  in  the  North  American
Industry   Classification   System   published   by  the  United  States
Government. Such plan shall also make a recommendation as to whether the
exemption be computed as provided in subdivision two or twelve  of  this
section. In addition, such plan shall identify specific geographic areas
within  which  such exemptions should be offered. In developing the plan
required by this  paragraph,  the  board  shall  consider  the  planning
objectives  of  each  municipality  within  which such exemptions may be
offered, the necessity of the exemption to the attraction  or  retention
of  such  business  and  the  economic  benefit to the area of providing
exemptions to various types of businesses.
(c) In addition, the board may make recommendations to the  appointing
local  legislative  body  with  respect to actions it deems desirable to
improve the economic climate therein.
(d)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
subdivision,  where  a  county  establishes an industrial and commercial
incentive board, the  members  of  such  board  shall  be  appointed  as
follows:  three  representatives  of  the county: the appointment of one
shall be reserved to the county executive of the county who shall  serve
as  chair, and one each for the majority and the minority parties of the
county legislative body; one representative for each city located within
the county upon the recommendation of the mayor; one representative  for
each  of  the towns located within the county upon the recommendation of
the supervisor; one representative to collectively represent all of  the
villages located within the county upon the recommendation of the mayors

of  the  villages  in the county; and one representative to collectively
represent all of the school districts located  within  the  county  upon
recommendation  of  the county school boards association. The members of
such  board shall serve at the pleasure of the governing body which they
represent. The members  shall  serve  without  salary,  but  the  county
legislative  body  may entitle each such member to reimbursement for his
or her actual and necessary expenses incurred in the performance of  his
or her duties.
10.  Where  a  county,  city,  town,  village  or  school district has
established an industrial and commercial incentive  board,  pursuant  to
subdivision  nine  of  this  section, such county, city, town or village
may, by local law, and a school district, except a city school  district
to  which  article  fifty-two  of  the  education  law  applies, may, by
resolution, restrict real property eligible to receive the exemption  to
real  property  constructed,  altered,  installed  or improved for those
purposes identified in the plan presented by  the  board.  Such  law  or
resolution  shall  identify  the  specific  sectors  and  subsectors, as
defined in the North American Industry Classification  System  published
by  the  United  States  Government  to  which  the  exemption  shall be
applicable. Such law or resolution shall also restrict the  availability
of  such  exemption  to  the specific geographic areas identified in the
plan presented by the board.
11. Where a county, by  law,  restricts  exemptions  pursuant  to  the
recommendations   of  an  industrial  and  commercial  incentive  board,
established  pursuant  to  subdivision  nine  of  this   section,   such
restricted  exemptions  shall  be  applicable  to  taxes  and special ad
valorem levies of each city, town, village and school  district  located
within  the  area  within which the restricted exemptions are offered by
the county, unless such city, town or village shall,  by  law,  or  such
school  district,  shall,  by resolution, determine that such restricted
exemptions shall not be applicable to its tax  and  ad  valorem  levies.
Upon  adoption  of such law, the county shall notify each affected city,
town, village and school district of its  actions  and  inform  them  of
their options regarding such restricted exemptions.
12.  Notwithstanding  subdivision two of this section, where a county,
city, town, village or  school  district  adopts  restricted  exemptions
pursuant  to  subdivision ten of this section, the law or resolution may
provide that such exemptions shall be computed pursuant to the following
accelerated strategic exemption schedule:
Year of exemption                      Percentage of exemption
1                                       50
2                                       50
3                                       50
4                                       40
5                                       30
6                                       20
7                                       10
8                                       10
9                                       10
10                                        5
Provided however, that such law or resolution shall:
(i) contain findings that the adoption of this  accelerated  strategic
exemption   schedule   is   necessary  to  encourage  targeted  economic
development, create or retain permanent private sector  jobs,  and  that
the  value  of the exemptions to be provided is justified by the need to
provide employment opportunities and broaden the tax base; and
(ii) limit the applicability of such schedule to  projects  where  the
cost  of  such  construction,  alteration,  installation  or improvement
exceeds the sum of fifty thousand dollars; and
(iii)  provide that such exemptions are restricted by geographic areas
and/or groups and major divisions as is provided by subdivision  ten  of
this section.
13.  The  provisions  of this section shall not apply in a city of one
million or more persons.