Section 11-247
§ 11-247 Definitions. When used in this part:
a. "Applicant" means any person or corporation obligated to pay real
property taxes on the property for which an exemption is sought, or in
the case of exempt property, the record owner thereof, provided,
however, that such property is not commercial property located in an
area designated as excluded pursuant to section 11-249 of this part;
b. "Board" means the industrial and commercial incentive board;
c. "Commercial" means any non-residential property used primarily for
the buying, selling or otherwise providing of goods or services,
provided that the use of such property has not been designated as a
restricted commercial use pursuant to section 11-249 of this part;
d. "Construction" means the building of new industrial or commercial
structures on vacant or predominantly vacant land, or the modernization,
rehabilitation or expansion or other improvements of an existing
commercial structure where such modernization, rehabilitation, expansion
or other improvement is not physically or functionally integrated with
the existing structure or results in additional usable square footage
fifty per centum greater than the square footage of the existing
structure;
e. "Industrial" means property used primarily for the manufacturing or
assembling of goods or the processing of raw materials;
f. "Predominantly vacant land" means land, including land under water,
on which not more than fifteen percent of the lot area contains
enclosed, permanent improvements; in addition, such land may include
existing foundations. A fence, shed, garage, attendant's booth, paving,
pier, bulkhead, lighting fixtures, and similar items, or any improvement
having an assessed value of less than two thousand dollars shall not
constitute an enclosed, permanent improvement;
g. "Reconstruction" means the modernization, rehabilitation, expansion
or other improvement of an existing commercial or industrial structure
where the total proposed project cost is in an amount equal to at least
twenty per centum of the assessed value of the property at the time an
application for a certificate of eligibility pursuant to this part is
made, and where such modernization, rehabilitation, expansion or other
improvement is physically and functionally integrated with the existing
structure and does not create additional usable square footage greater
than fifty per centum of the usable square footage of the existing
structure except in a case where the existing structure has been
substantially destroyed by fire or other casualty;
h. "Residential property" shall mean property, other than property
used for hotel purposes, on which will exist upon completion of
construction a building or structure containing more than one
independent dwelling unit or where more than one-third of the total
square footage of said structure is to be used for residential purposes;
it shall also mean, in the case of reconstruction, property on which
exists or will exist upon completion of the reconstruction a building or
structure where more than one-third of the total square footage is used
or is to be used for dwelling purposes;
i. "Vacant land" means land, including land under water, which
contains no enclosed, permanent improvement. A fence, shed, garage,
attendant's booth, paving, pier, bulkhead, lighting fixtures, and
similar items, or any improvement having an assessed value of less than
two thousand dollars shall not constitute an enclosed, permanent
improvement.
Section 11-248
§ 11-248 Industrial and commercial incentive board. There shall be an
industrial and commercial incentive board to consist of the deputy mayor
for economic policy and development who shall be chairperson of the
board, the commissioner of finance, the chairperson of the city planning
commission and the director of management and budget, each of whom shall
have the power to designate an alternate to represent him or her at
board meetings with all the rights and powers, including the right to
vote, reserved to all board members, provided that such designation be
in writing to the chairperson of the board, and three other members to
be appointed by the mayor. In addition, the borough president of each
borough or his or her designated representative, shall be a member of
such board for the purpose of taking action with respect to property
located in his or her borough. The members of the board who shall be
agents, officers, or employees of the city shall serve without
compensation but shall be reimbursed for expenses necessarily incurred
in the performance of their duties. The members of the board who are not
agents, officers, or employees of the city shall receive as compensation
for their services one hundred dollars per diem, provided, however, that
the total compensation paid to any such member shall not exceed twelve
hundred dollars for any calendar year. Four members of the board shall
constitute a quorum.
Section 11-249
§ 11-249 Functions, powers and duties of the board; annual designation
of exemption areas and restricted commercial uses. a. The members of the
board shall have the following functions, powers and duties:
1. to receive and review applications for certificates of eligibility
pursuant to the charter and pursuant to subdivision thirteen of section
11-604 and subdivision (e) of section 11-503 of this title;
2. to make findings and determinations on the qualifications of
applicants for certificates of eligibility pursuant to this part and
pursuant to subdivision thirteen of section 11-658 and subdivision (e)
of section 11-503 of this title;
3. to issue certificates of eligibility and amendments thereto;
4. to make recommendations to the tax commission on the termination of
a tax exemption pursuant to section 11-253 of this part;
5. to designate annually, pursuant to subdivision b of this section,
areas in which exemptions for commercial construction or reconstruction
shall be granted as of right, areas from which such exemptions shall be
excluded and commercial uses for which the granting of exemptions shall
be restricted; and
6. to make and promulgate rules and regulations to carry out the
purposes of the board.
b. (1) Not later than October first of each year the board shall
publish a notice at least once in the official paper or a newspaper of
general circulation in the city setting forth: (i) the proposed
boundaries of areas in which commercial construction or reconstruction
shall be granted exemptions as of right, proposed boundaries of areas
from which exemptions for commercial construction or reconstruction
shall be excluded and proposed restricted commercial uses; and (ii) the
date, not earlier than ten nor later than thirty days following the
publication of such notice, on which the board will hold a public
hearing to hear all persons interested in the designation of such
boundaries and restricted commercial uses.
(2) Not earlier than ten nor later than thirty days following the
conclusion of the public hearing provided for in paragraph one of this
subdivision, the board shall designate the boundaries of areas in which
exemptions for commercial construction or reconstruction shall be
granted as of right and areas from which such exemptions shall be
excluded and shall also designate restricted commercial uses. Such
designations shall be made upon the following determinations:
(i) With respect to areas in which exemption for commercial
construction or reconstruction shall be granted as of right, the board
shall determine that market conditions in each area are such that
exemptions are required to attract commercial construction or
reconstruction to the area and that attracting such construction or
reconstruction, and the granting of exemptions therefor, are in the
public interest. In making such determination, the board may consider,
among other factors, that the area is experiencing economic distress or
is characterized by an unusually large number of vacant, underutilized,
unsuitable or substandard structures, or by other substandard,
unsanitary, deteriorated or deteriorating conditions, with or without
tangible blight, or that commercial development in the area will be
beneficial to the city's economy.
(ii) With respect to areas from which exemptions for commercial
construction or reconstruction are to be excluded, the board shall
determine that market conditions in each area are such that exemptions
are not required to attract commercial construction or reconstruction to
the area, or that it is not in the public interest to grant exemptions
for commercial construction or reconstruction in the area. No
applications for exemptions for commercial construction or
reconstruction shall be accepted from such areas.
(iii) With respect to restricted commercial uses, the board shall
determine that it is not in the public interest to grant exemptions for
such uses unless the board further determines that in certain areas
designated pursuant to this subdivision, such uses will have an
especially positive impact on the area's economy. All applications for
exemptions for restricted commercial uses shall be determined pursuant
to paragraphs two and three of subdivision b of section 11-251 of this
part.
(3) Designations made pursuant to this subdivision shall be effective
on the first day of January of each year.
c. So far as practicable and subject to the approval of the mayor, the
services of all other city departments and agencies shall be made
available by their respective heads to the board for the carrying out of
the functions stated in this part. The head of any department or agency
shall furnish information in the possession of such department or agency
when the board, after consultation with the mayor, so requests.
Section 11-250
§ 11-250 Real property tax exemption. a. A real property tax
exemption pursuant to this part shall be granted to an applicant who,
within a period of thirty-six months, or following an extension pursuant
to section 11-254 of this part 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:
(1) 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 11-249 of this part or as
specially needed pursuant to section 11-251 of this part, 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 four of this subdivision.
(2) 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 11-249 of this part or as specially needed
pursuant to section 11-251 of this part, 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.
(3) 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.
(4) 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
certificate of eligibility pursuant to this part 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
completion Percentage
of work of 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
completion Percentage
of work of 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
completion Percentage
of work of exemption
------------------------------------------------------------------------
1....................................................50
2....................................................40
3....................................................30
4....................................................20
5....................................................10
========================================================================
b. The taxes payable during the period from the issuance of a
certificate of eligibility to the approval of the tax exemption pursuant
to section 11-252 of this part shall be paid on the lesser of:
(1) the assessed value of the property at the time an application for
a certificate of eligibility pursuant to this part is made, or
(2) 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.
c. 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 11-252 of this part. Commencing two years after
approval of the tax exemption pursuant to section 11-252 of this part,
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.
d. The provisions of this part 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 part. The provisions of this part shall apply
exclusively to those structures and the lands underlying them which were
identified explicitly in the certificate of eligibility.
e. The provisions of this part 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 11-251 of this part, 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.
f. The provisions of this part 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.
g. 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 part until the expiration
of the original exemption period or earlier termination of the existing
exemption by action of the tax commission.
Section 11-251
§ 11-251 Applications for certificates of eligibility. a. Applications
for a certificate of eligibility pursuant to this part shall be
submitted for preliminary approval to the office for economic
development commencing immediately after March first, nineteen hundred
eighty-two and continuing until the thirty-first day of January,
nineteen hundred eighty-six, on such form or forms as shall be
prescribed by the board. In addition to any other information required
by the board, the application shall include plans for reconstruction or
construction that have been certified by a professional engineer or an
architect of the applicant's choice and cost estimates or bids for the
proposed reconstruction or construction. Upon a finding by such office
that the application satisfies the requirements of reconstruction or
construction as defined in this part, the application shall be presented
to the board for evaluation and written notice thereof shall be given to
the community board of the district in which the application site is
located.
b. (1) In the case of an application for construction or
reconstruction of an industrial structure or a commercial structure
located in an area designated as of right, the board shall issue a
certificate of eligibility upon determining that the application
satisfies the requirements of construction or reconstruction as defined
in this part, that the applicant has obtained plans for construction or
reconstruction certified by a professional engineer or architect, and
that the applicant has otherwise complied with the provisions of this
part and other applicable provisions of law.
(2) In the case of an application for construction or reconstruction
of a commercial structure not located in an as of right area, or
involving a restricted commercial use, the board shall issue a
certificate of eligibility upon making the determination specified in
paragraph one of this subdivision and upon making the further
determination that the granting of a tax exemption for the construction
or reconstruction of such a structure in the proposed location is in the
public interest. In making such determination, the board shall make
findings that there is a need in the area for the services the
enterprise will provide, that the enterprise will generate or retain
employment in the area, and that a tax incentive is required to attract
construction or reconstruction of such a structure to the area. In
addition, the board shall consider the economic impact such commercial
structure will have in the area.
(3) In the case of an application for construction or reconstruction
of a commercial structure not located in an as of right area, or
involving a restricted commercial use, the board may make a further
determination that special circumstances warrant designating the
proposed construction or reconstruction as "specially needed". In making
such determination, the board shall make findings that the commercial
services to be provided will have an especially positive impact on the
area's or the city's economy and that the applicant has demonstrated
that the project cannot go forward without the greater exemption granted
by such designation.
c. Any meeting of the board at which an application for a certificate
of eligibility is to be considered shall be open to the public, and
notice of such meeting shall be given at least two weeks prior thereto
by publication in a newspaper of general circulation within the city.
d. The burden of proof shall be on the applicant to show by clear and
convincing evidence that the requirements for granting a tax exemption
pursuant to this part have been satisfied, and the board shall have the
authority to require that statements made in consideration of the
application be taken under oath.
e. After the issuance of a certificate of eligibility the applicant
shall apply to the city tax commission, during the period provided by
law for filing applications for corrections of assessed valuations, for
a tax exemption as provided for in section 11-250 of this part. The
application shall be accompanied by a copy of the certificate of
eligibility.
Section 11-252
§ 11-252 Approval of tax exemption. On completion of the
reconstruction or construction work the applicant shall notify the board
in writing of said completion. The board shall determine the eligibility
of the applicant for the tax exemption as provided in section 11-250 of
this part and shall notify the tax commission of such determination. If
the applicant is determined to be qualified the commission shall approve
the tax exemption.
Section 11-253
§ 11-253 Continuation of tax exemption; termination of tax exemption.
The tax exemption approved by the board shall continue in accordance
with this part, provided that the applicant files an annual certificate
of continuing use stating that the structure and property continue to be
used for the industrial or commercial purposes justifying the issuance
of the certificate of eligibility. The certificate of continuing use
shall be filed with the tax commission on such form or forms and
containing such information as shall be prescribed by the tax
commission. The tax commission shall have authority to terminate a tax
exemption on failure of an applicant to file an annual certificate of
continuing use or on the recommendation of the commissioner of finance
who, in reviewing the certificate filed by an applicant, has determined
that the structure or property has ceased to be used for the industrial
or commercial purposes justifying the issuance of the certificate of
eligibility.
Section 11-254
§ 11-254 Extension of time for completion. Where an applicant has
received a certificate of eligibility but has not completed or will not
be able to complete the construction or reconstruction work within
thirty-six months, the board shall, upon application, extend to
forty-eight months, from the time of issuance of such certificate, the
time for completion of the construction or reconstruction work; provided
the applicant has completed not less than two-thirds of the work as
specified in the certified plans previously filed with the application
at the time of such application for extension.
Section 11-255
§ 11-255 Prior certificates of eligibility. Any project for which a
certificate of eligibility has been approved by the board prior to the
enactment of this section shall be eligible for a tax exemption computed
according to the tax exemption tables and formulae in effect on the date
of such approval.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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