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

§  499-aa.  Definitions.  When used in this title, the following terms
shall mean or include:
1. "Abatement base." The lesser of (i) two dollars and fifty cents  of
the  tax  liability  per square foot or (ii) fifty per centum of the tax
liability per square foot; provided, however, that  with  respect  to  a
lease commencing on or after April first, nineteen hundred ninety-seven,
the abatement base shall equal the tax liability per square foot subject
to a maximum of two dollars and fifty cents per square foot.
2. "Abatement zone." (a) Any area of a city having a population of one
million  or  more,  provided  that in the city of New York the abatement
zone shall be any district that is zoned C4, C5 or C6 in accordance with
the zoning resolution of such city in the borough of Manhattan north  of
the  center  line  of  96th  Street  or  in  the  boroughs of the Bronx,
Brooklyn, Queens or Staten Island.
(b) In addition to the abatement zone set forth in  paragraph  (a)  of
this  subdivision,  in  the city of New York the abatement zone shall be
any district that is zoned C4, C5, C6, M1, M2 or M3 in  accordance  with
the  zoning  resolution of such city in any area of such city except the
area lying south of the center line of 96th Street  in  the  borough  of
Manhattan.
(c)   Notwithstanding   the   provisions  of  paragraph  (b)  of  this
subdivision, the abatement zone shall also include the  special  garment
center  district  as  defined  by chapter 1 of article XII of the zoning
resolution of the city of New York.
(d) Any tax lot that is partly located inside an abatement zone  shall
be deemed to be entirely located inside such zone.
3.  "Aggregate  floor area." The sum of the gross areas of the several
floors of a building, measured from the exterior faces of exterior walls
or from the center lines of walls separating two buildings.
4. "Applicant." The landlord and the tenant.
5. "Benefit period." The period commencing with the first day  of  the
month  immediately  following the rent commencement date and terminating
no later than sixty months  thereafter,  provided,  however,  that  with
respect  to a lease commencing 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, the period commencing with the first day  of  the
month  immediately  following the rent commencement date and terminating
no later than  thirty-six  months  thereafter,  and  provided,  further,
however, that with respect to a lease commencing on or after July first,
two  thousand five for eligible premises defined in subparagraph (ii) of
paragraph (b) or paragraph (c) of subdivision ten of this  section  with
an  initial  lease  term  of  not  less  than  three  years,  the period
commencing with the first day of the  month  immediately  following  the
rent  commencement date and terminating no later than one hundred twenty
months thereafter. Notwithstanding the  foregoing  sentence,  a  benefit
period  shall  expire  no  later  than  March thirty-first, two thousand
seven, provided, however, that with respect to a lease commencing on  or
after  July  first,  two  thousand  for  eligible  premises  defined  in
subparagraph (i) of paragraph (b) of subdivision ten of this section,  a
benefit  period  shall expire no later than June thirtieth, two thousand
sixteen, provided,  further,  however  that  with  respect  to  a  lease
commencing  on  or  after  July  first,  two  thousand five for eligible
premises defined in subparagraph (ii) of paragraph (b) or paragraph  (c)
of  subdivision  ten  of  this section, a benefit period shall expire no
later than June thirtieth, two thousand twenty.
6. "Billable assessed value." The lesser of the  taxable  transitional
or  the  taxable  actual assessed value of the eligible building and the
land on which the eligible building is located for the  fiscal  year  in

which  the benefit period commences, as computed pursuant to subdivision
three of section one thousand eight hundred five of this chapter.
7.  "Department  of  finance."  The  department of finance of any city
having a population of one million or more.
8. "Eligible building." (a) With respect to the abatement zone defined
in paragraph (a) of subdivision two of this section,  a  non-residential
or  mixed-use  building  that has an aggregate floor area of twenty-five
thousand square feet or more and that received its  initial  certificate
of  occupancy  or  initial  temporary  certificate of occupancy prior to
January first,  nineteen  hundred  seventy-five;  provided  that  if  no
certificate  of  occupancy  was  required  at  the time the building was
constructed, other proof acceptable to  the  department  of  finance  is
submitted  that  demonstrates that the building was constructed prior to
January first, nineteen hundred seventy-five; and provided further  that
eligible building shall not include any building owned by a governmental
agency.  Each condominium unit in a building that meets the requirements
of this subdivision shall be considered a separate eligible building.
(b) With respect to the abatement zone defined  in  paragraph  (b)  of
subdivision  two  of  this  section  for  eligible  premises  defined in
subparagraph (i) of paragraph (b) of subdivision ten of this section,  a
non-residential  or  mixed-use building that has an aggregate floor area
of twenty-five thousand square  feet  or  more  and  that  received  its
initial  certificate  of  occupancy  or initial temporary certificate of
occupancy prior to January first, nineteen hundred ninety-nine; provided
that if no certificate  of  occupancy  was  required  at  the  time  the
building  was  constructed,  other proof acceptable to the department of
finance is submitted that demonstrates that the building was constructed
prior to January  first,  nineteen  hundred  ninety-nine;  and  provided
further that eligible building shall not include any building owned by a
governmental  agency. Each condominium unit in a building that meets the
requirements of this subdivision shall be considered a separate eligible
building.
(c) With respect to the abatement zone defined  in  paragraph  (b)  of
subdivision  two  of  this  section  for  eligible  premises  defined in
subparagraph (ii) of paragraph (b) of subdivision ten  of  this  section
and  the  abatement  zone defined in paragraph (c) of subdivision two of
this  section,  a  non-residential  building;  provided  that   eligible
building  shall not include any building owned by a governmental agency.
Each condominium unit in a building that meets the requirements of  this
subdivision shall be considered a separate eligible building.
9.  "Eligibility  period." The period commencing April first, nineteen
hundred ninety-five and terminating  March  thirty-first,  two  thousand
one,  provided,  however, that with respect to eligible premises defined
in subparagraph (i) of paragraph (b) of subdivision ten of this section,
the period commencing July first,  two  thousand  and  terminating  June
thirtieth,  two  thousand  twenty-eight, and provided, further, however,
that with respect to eligible premises defined in subparagraph  (ii)  of
paragraph  (b)  or paragraph (c) of subdivision ten of this section, the
period commencing July first, two thousand  five  and  terminating  June
thirtieth, two thousand twenty-eight.
10.  "Eligible  premises."  (a)  With  respect  to  the abatement zone
defined in paragraph (a) of subdivision two of  this  section,  premises
located in an eligible building that (a) are occupied or used as offices
(including  ancillary  uses) or are occupied or used as retail space and
(b) are occupied or used by a  tenant  under  a  lease  that  meets  the
eligibility  requirements of section four hundred ninety-nine-cc of this
title, provided, however, that premises occupied or used as retail space
shall not be eligible premises unless located in  an  eligible  building

the  premises  of  which  are  occupied  or  used  primarily  as offices
(including ancillary uses);
(b)  With  respect  to  the abatement zone defined in paragraph (b) of
subdivision two  of  this  section,  premises  located  in  an  eligible
building  that  are (i) occupied or used as offices (including ancillary
uses) or are occupied or  used  for  other  lawful  commercial  business
activities,  but  not  premises  occupied or used as retail space or for
hotel or residential purposes; or (ii) occupied or used  for  industrial
and   manufacturing  activities  (including  ancillary  uses),  but  not
premises occupied or used for hotel or residential purposes; and
(c) With respect to the abatement zone defined  in  paragraph  (c)  of
subdivision  two  of  this  section,  premises  located  in  an eligible
building that are occupied or  used  for  industrial  and  manufacturing
activities (including ancillary uses), but not premises occupied or used
for hotel or residential purposes.
(d)  Notwithstanding  the provisions of subparagraph (ii) of paragraph
(b) or paragraph  (c)  of  this  subdivision,  premises  located  in  an
eligible  building  shall  not be eligible for the tax abatement granted
pursuant to subdivision one-b of section four hundred ninety-nine-bb  of
this  title unless at least fifty percent of the aggregate floor area of
such premises is occupied  or  used  for  industrial  and  manufacturing
activities  (exclusive  of  ancillary  uses)  as  defined in subdivision
fourteen-a of this section.
(e) For eligible premises defined in subparagraph  (ii)  of  paragraph
(b)  or  paragraph  (c)  of  this subdivision, retail space shall be (i)
occupied solely by the tenant of such eligible premises who has  applied
for  and  receives  a tax abatement pursuant to this title and (ii) used
for the purpose of selling or servicing the  products  of  such  tenant.
Such  retail  space  shall  not  be  deemed  to  be occupied or used for
industrial and manufacturing activities for purposes of paragraph (d) of
this subdivision.
11. "Expansion premises." Eligible premises  leased  by  an  expansion
tenant to accommodate additional employees.
12.  "Expansion  tenant."  A  person  who  (a) occupies premises in an
eligible building under  a  lease  which  does  not  expire  during  the
eligibility  period  and  (b) executes a lease for expansion premises in
such eligible building or in another eligible building which lease meets
the eligibility requirements of section four hundred  ninety-nine-cc  of
this  title.  For purposes of determining whether expansion premises are
located in the same or in another eligible building, the  last  sentence
of subdivision eight of this section shall not be applicable.
13.  "Fiscal year." The fiscal year of any city having a population of
one million or more.
14. "Governmental agency." The United States of America or any  agency
or instrumentality thereof, the state of New York, the city of New York,
any  public  corporation (including a body corporate and politic created
pursuant to agreement or compact between the state of New York  and  any
other  state),  public  benefit  corporation,  public authority or other
political subdivision of the state.
14-a. "Industrial and manufacturing activities." Activities  involving
the  assembly of goods to create a different article, or the processing,
fabrication,  or  packaging  of  goods.  Industrial  and   manufacturing
activities shall not include waste management or utility services.
15.  "Landlord."  Any  person  who  (a)  controls  all non-residential
portions of an eligible building,  including,  without  limitation,  the
record  owner,  the  lessee  under  a  ground  lease,  any  mortgagee in
possession or any receiver, and (b) who  grants  the  right  to  use  or
occupy eligible premises to any tenant, provided that landlord shall not

include  any  lessee  who  at any time during the lease term occupied or
used or occupies or uses any part of  the  non-residential  portions  of
such  eligible  building,  other  than premises occupied or used by such
lessee to provide rental or management services to such building.
16.  "Lease  commencement  date."  The  date set forth in the lease on
which the term of the lease commences.
17. "Mixed-use building." A building used  for  both  residential  and
commercial  purposes,  provided that more than twenty-five per centum of
the aggregate floor area of such building is used or held out for use as
commercial, community facility or accessory use space.
18. "New tenant." A person who (a) (i) is relocating or expanding from
premises in a relocation area to eligible  premises,  or  (ii)  occupies
premises  in an eligible building under a lease which expires during the
eligibility period and is relocating or expanding to eligible  premises,
or  (iii) occupies premises in the abatement zone in a building which is
not an eligible building and is  relocating  or  expanding  to  eligible
premises,  or  (iv)  does  not  occupy any premises immediately prior to
executing a lease for eligible  premises,  or  (v)  is  an  owner  of  a
building  in  the  abatement  zone  who  is  relocating  or expanding to
eligible premises, and (b) executes a lease which meets the  eligibility
requirements of section four hundred ninety-nine-cc of this title.
19.  "Person."  An individual, corporation, limited liability company,
partnership, association, agency, trust,  estate,  foreign  or  domestic
government or subdivision thereof, or other entity.
20.  "Relocation  area." Any area except the abatement zone as defined
in subdivision two of this section.
21. "Renewal tenant."  A  person  who  (a)  occupies  premises  in  an
eligible  building  under  a  lease which expires during the eligibility
period and (b) executes a lease for the continued occupancy  of  all  or
part  of  such  premises  or all or part of such premises and additional
premises in such eligible building, provided such premises are  eligible
premises  and  such  lease meets the eligibility requirements of section
four hundred ninety-nine-cc of this title.
22. "Rent commencement date." The date set forth in the lease on which
the obligation to pay basic fixed rent shall commence.
23. "Subtenant." A person whose right to occupy and use  the  eligible
premises is not derived from a lease with the landlord.
24.  "Tax  commission."  The  tax  commission  in  any  city  having a
population of one million or more.
25. "Tax liability." The product obtained by multiplying the  billable
assessed value for the fiscal year in which the benefit period commences
by the tax rate applicable to the eligible building for such fiscal year
as  set by the local legislative body of any city having a population of
one million or more.
26. "Tax liability per square foot." The tax liability divided by  the
total  number  of square feet in the eligible building, as listed on the
records of the department of finance.
27. "Tenant." A person (including  any  successors  in  interest)  who
executes  a  lease  with the landlord for the right to occupy or use the
eligible premises  and  who  occupies  or  uses  the  eligible  premises
pursuant  to  such  lease.  Tenant shall not include any subtenant. When
used in this title, "tenant" includes "expansion tenant",  "new  tenant"
and "renewal tenant."
28.  "Tenant's percentage share." (a) For eligible premises defined in
paragraph (a) or subparagraph (i) of paragraph (b) of subdivision ten of
this section, the percentage of the eligible building's aggregate  floor
area  allocated  to the eligible premises, which shall be presumed to be
such percentage as set forth in the lease  for  the  eligible  premises;

provided  that  where the eligible premises includes expansion premises,
the "tenant's percentage share" shall be calculated on the basis of  the
percentage  of  the  eligible  building's aggregate floor area allocated
solely to the expansion premises.
(b)  For  eligible  premises defined in subparagraph (ii) of paragraph
(b) or paragraph (c) of subdivision ten of this section, the  percentage
of  the  eligible  building's  aggregate  floor  area  allocated  to the
eligible  premises  to  be  occupied  or   used   for   industrial   and
manufacturing  activities,  as defined in subdivision fourteen-a of this
section; provided that where the eligible  premises  includes  expansion
premises,  the  "tenant's  percentage  share" shall be calculated on the
basis of the eligible building's aggregate floor area  allocated  solely
to  expansion  premises  to  be  occupied  or  used  for  industrial and
manufacturing activities.