Section 11-256
§ 11-256 Definitions. When used in this part:
a. "Applicant" means any person obligated to pay real property taxes
on the property for which an exemption from or abatement or deferral of
real property tax payments is sought, or in the case of exempt property,
the record owner or lessee thereof.
b. "Approved plans" means plans submitted to and approved by the
department of buildings in connection with the applicant's building
permit, including any amendments to such plans approved by such
department before final inspection of the work for which such permit was
issued.
c. "Benefit period" means the period of time when a recipient is
eligible to receive benefits pursuant to this part including in the case
of a recipient of a certificate of eligibility for commercial
construction work in a deferral area, the period of time when tax
payments are to be deferred, the interim period when no tax payments are
to be deferred and no deferred tax payments are required to be made, and
the period of time when the deferred tax payments are to be made.
d. "Commission" means the temporary commercial incentive area boundary
commission.
e. "Commercial construction work" means the construction of a new
building or structure, or portion thereof, or the modernization,
rehabilitation, expansion, or other improvement of an existing building
or structure, or portion thereof, for use as commercial property.
f. "Commercial property" means nonresidential property: (1) on which
will exist after completion of commercial construction work, a building
or structure used for the buying, selling or otherwise providing of
goods or services including hotel services, or for other lawful
business, commercial or manufacturing activities; and (2) (a) where,
except as provided in subparagraph (b) of this paragraph and paragraph
(3) of this subdivision, not more than fifteen per centum of the total
net square footage of any building or structure on such property was
used for manufacturing activities at any one or more times during the
twenty-four months immediately preceding the date of application for a
certificate of eligibility or (b) where not more than fifteen per centum
of the total net square footage of any building or structure on such
property was used for manufacturing activities at any one or more times
during the sixty months immediately preceding the date of application
for a certificate of eligibility if such property is located, in whole
or in part, in the area in the borough of Manhattan lying south of the
center line of 96th Street; and (3) in the commercial revitalization
area, and with respect to an application for a certificate of
eligibility filed on or after July first, two thousand, "commercial
property" means nonresidential property on which will exist after
completion of commercial construction work, a building or structure used
for the buying, selling or otherwise providing of goods or services
including hotel services, or for other lawful business, commercial or
manufacturing activities.
f-1. "Commercial revitalization area" means any district that is zoned
C4, C5, C6, M1, M2 or M3 in accordance with the zoning resolution in any
area of the city except the area lying south of the center line of 96th
street in the borough of Manhattan.
g. "Deferral area" means an area in which deferral of payment of real
property taxes in accordance with section 11-257 of this part shall be
available to a recipient who has performed commercial construction work.
h. "Excluded area" means each area specified in paragraphs (1), (2)
and (3) of subdivision d of section 11-258 of this part.
i. "Exemption base." (1) For purposes of computing the exemption
pursuant to subdivision a, b, c or d of section 11-257 of this part,
"exemption base" shall mean, with respect to property that is the
subject of a certificate of eligibility with an effective date of June
30, 1992 or before: (a) for the first, second and third taxable years
following the effective date of a certificate of eligibility, the
assessed value of improvements made since the effective date of such
certificate which are attributable exclusively to commercial or
industrial construction work described in approved plans; and (b) for
all other years, the assessed value of such improvements which have been
made before the fourth taxable status date following the effective date
of such certificate.
(2) For purposes of computing the exemption pursuant to subdivision c,
d or e of section 11-257 of this part, "exemption base" shall mean, with
respect to property that is the subject of a certificate of eligibility
with an effective date of July 1, 1992 or after: (a) for the first
through fifth taxable years following the effective date of a
certificate of eligibility, the assessed value of improvements made
since the effective date of such certificate which are attributable
exclusively to commercial or renovation construction work described in
approved plans; and (b) for all other years, the assessed value of such
improvements which have been made before the sixth taxable status date
following the effective date of such certificate.
(3) For purposes of computing the exemption pursuant to subdivision a
or b of section 11-257 of this part, "exemption base" shall mean, with
respect to property that is the subject of a certificate of eligibility
with an effective date of July 1, 1992 or after: (a) for the first
through fifth taxable years following the effective date of a
certificate of eligibility, the assessed value of improvements made
since the effective date of such certificate which are attributable
exclusively to commercial or industrial construction work described in
approved plans plus any equalization increases or minus any equalization
decreases in the assessed value of the property so improved (excluding
the land) occurring subsequent to the effective date of such
certificate; and (b) for all other years, the assessed value of such
improvements made before the sixth taxable status date following the
effective date of such certificate plus any equalization increases or
minus any equalization decreases in the assessed value of the property
so improved (excluding the land) occurring subsequent to the effective
date of such certificate but before the fourteenth taxable status date
following the effective date of such certificate. For purposes of the
preceding sentence: no adjustment shall be made to the assessed value of
the improvements referred to in subparagraphs (a) and (b) of this
paragraph for any portion of an equalization increase or decrease which
is being phased in pursuant to section eighteen hundred five of the real
property tax law subsequent to the effective date of the certificate of
eligibility if such increase or decrease occurred prior to such
effective date; with respect to any taxable year, an adjustment for an
equalization increase or decrease shall reflect only the portion of such
increase or decrease which is being phased in during such taxable year
or which was phased in during a prior taxable year; no adjustment for an
equalization decrease shall reduce the exemption base to an amount less
than the assessed value of the improvements referred to in subparagraphs
(a) and (b) of this paragraph, and, to the extent that any such decrease
would reduce the exemption base below such amount, such decrease shall
reduce the taxable portion of the assessed value; and no adjustment
shall be made for an equalization increase or decrease if the
improvements referred to in subparagraphs (a) and (b) of this paragraph
do not result in a physical increase in the assessed value of the
property.
(4) Notwithstanding paragraph (1) of this subdivision, for purposes of
computing the exemption pursuant to subdivision a of section 11-257 of
this part, "exemption base" shall mean, with respect to industrial
property that is located in the area in the borough of Manhattan lying
north of the center line of 96th Street, or that is located in the
Bronx, Brooklyn, Queens or Staten Island; and that is the subject of a
certificate of eligibility with an effective date after December 31,
1989 and before July 1, 1992: (a) for the first, second and third
taxable years following the effective date of a certificate of
eligibility, the assessed value of improvements made since the effective
date of such certificate which are attributable exclusively to
industrial construction work described in approved plans; and (b) for
all other years, the assessed value of such improvements made before the
fourth taxable status date following the effective date of such
certificate plus any equalization increases or minus any equalization
decreases in the assessed value of the property so improved (excluding
the land) occurring subsequent to the fourth taxable status date
following the effective date of such certificate but before the
fourteenth taxable status date following the effective date of such
certificate. For purposes of the preceding sentence: no adjustment shall
be made to the assessed value of the improvements referred to in
subparagraphs (a) and (b) of this paragraph for any portion of an
equalization increase or decrease which is being phased in pursuant to
section eighteen hundred five of the real property tax law subsequent to
the effective date of the certificate of eligibility if such increase or
decrease occurred prior to such effective date; with respect to any
taxable year, an adjustment for an equalization increase or decrease
shall reflect only the portion of such increase or decrease which is
being phased in during such taxable year or which was phased in during a
prior taxable year; no adjustment for an equalization decrease shall
reduce the exemption base to an amount less than the assessed value of
the improvements referred to in subparagraphs (a) and (b) of this
paragraph, and, to the extent that any such decrease would reduce the
exemption base below such amount, such decrease shall reduce the taxable
portion of the assessed value; and no adjustment shall be made for an
equalization increase or decrease if the improvements referred to in
subparagraphs (a) and (b) of this paragraph do not result in a physical
increase in the assessed value of the property.
(5) For purposes of computing the exemption: (a) pursuant to
subdivision e.1 of section 11-257 of this part, "exemption base" shall
mean, with respect to property that is the subject of a certificate of
eligibility with an effective date of July 1, 1995 or after and that is
located in the new construction exemption area specified in paragraph
(1) of subdivision e of section 11-258 of this part: for any taxable
year following the effective date of a certificate of eligibility, the
assessed value of improvements made since the effective date of such
certificate which are attributable exclusively to the construction of a
new building or structure that meets the requirements set forth in
subdivision i of section 11-259 of this part as described in approved
plans, provided such improvements are made within thirty-six months of
the effective date of such certificate or by December 31, 1999,
whichever is earlier; and (b) pursuant to subdivision e.1 of section
11-257 of this part, "exemption base" shall mean, with respect to
property that is the subject of a certificate of eligibility with an
effective date of July 1, 1995 or after and that is located in the new
construction exemption area specified in paragraph (2) of subdivision e
of section 11-258 of this part: for any taxable year following the
effective date of a certificate of eligibility, the assessed value of
improvements made since the effective date of such certificate which are
attributable exclusively to the construction of a new building or
structure that meets the requirements set forth in subdivision i of
section 11-259 of this part as described in approved plans, provided
such improvements are made within forty-two months of the effective date
of such certificate.
(6) For purposes of this subdivision "equalization increase or
decrease" means an increase or decrease in the assessed value of
property which is not attributable to construction work, fire,
demolition, destruction or other change in the physical characteristics
of the property (excluding gradual physical deterioration or
obsolescence), or to a change in the description or boundaries of the
property.
j. "Industrial construction work" means the construction of a new
building or structure or the modernization, rehabilitation, expansion or
improvement of an existing building or structure for use as industrial
property.
k. "Industrial property" means nonresidential property on which will
exist after completion of industrial construction work a building or
structure wherein at least seventy-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.
l. "Initial assessed value" means the lesser of: (1) the taxable
assessed value of real property appearing on the books of the annual
record of the assessed valuation of real property on the effective date
of a recipient's certificate of eligibility; or (2) the assessed value
to which such assessment is thereafter reduced pursuant to application
to the tax commission or court order. Where the real property is used
for both residential and nonresidential purposes on the effective date
of such certificate of eligibility, the initial assessed value of such
real property, determined as provided in the preceding sentence, shall
be apportioned between the residential and nonresidential portions
thereof in such manner as shall properly reflect the initial assessed
value of each such portion. Such apportionment shall be in accordance
with rules promulgated by the department of finance.
m. "Manufacturing activity" means an activity involving the assembly
of goods or the fabrication or processing of raw materials.
n. "Minimum required expenditure" means expenditure for commercial,
renovation or industrial construction work in an amount equal to twenty
per centum of the initial assessed value; provided, however, that with
respect to a recipient who filed an application on or after July 1, 1995
for a certificate of eligibility for industrial construction work or for
commercial construction work in a special exemption area or a regular
exemption area, minimum required expenditure means expenditure for such
work in an amount equal to ten per centum of the initial assessed value;
provided, however, that with respect to a recipient who filed an
application on or after July 1, 1995 for a certificate of eligibility
for industrial construction work and for the purpose of receiveing an
abatement of real property taxes in accordance with paragraph (3) of
subdivision a of section 11-257 of this part, minimum required
expenditure means expenditure for such work in an amount equal to
twenty-five per centum of the initial assessed value; and provided
further that if the department of finance, after consultation with the
deputy mayor for finance and economic development, determines that a
greater expenditure is required to encourage significant industrial and
commercial development it may establish by rule a higher percentage of
initial assessed value, not to exceed fifty per centum thereof, as the
minimum required expenditure. Expenditure for residential construction
work shall not be included in the minimum required expenditure;
provided, however, that for mixed-use property, expenditures for
construction work related to the common areas and systems of such
property shall be allocated, in accordance with rules promulgated by the
department of finance, between the residential and nonresidential
portions of the property. If real property was used for both residential
and nonresidential purposes on the effective date of the certificate of
eligibility, the initial assessed value of such real property, for
purposes of this subdivision, shall be the initial assessed value
apportioned to the nonresidential portions thereof.
o. "Person" means an individual, corporation, partnership,
association, agency, trust, estate, foreign or domestic government or
subdivision thereof, or other entity.
p. "Recipient" means an applicant to whom a certificate of eligibility
has been issued pursuant to this part, or the successor in interest of
such applicant, provided that where a person who has entered into a
lease or purchase agreement with the owner or lessee of exempt property
has been a co-applicant, such person or the successor in interest of
such person shall be the recipient.
q. "Regular exemption area" means an area in which a regular exemption
from taxes in accordance with section 11-257 of this part shall be
available to a recipient who performs commercial construction work.
r. "Residential construction work" means any construction,
modernization, rehabilitation, expansion or improvement of dwelling
units other than dwelling units in a hotel.
s. "Residential property" means property, other than property used for
hotel purposes, on which exists, or will exist upon completion of
construction work, a building or structure used for residential
purposes.
t. "Restricted activity" means any entertainment activity which the
department of finance has identified in regulations promulgated pursuant
to this part as an activity which, in the public interest, should not be
encouraged through the benefits of this part.
u. "Special exemption area" means an area in which the commission has
determined that a special exemption from real property taxes in
accordance with subdivision b of section 11-257 of this part shall be
available to a recipient who performs commercial construction work and,
in addition, means the area specified in paragraph (4) of subdivision c
of section 11-258 of this part.
v. "Mixed-use property" means property on which exists, or will exist
upon completion of construction work, a building or structure used for
both residential and nonresidential purposes.
w. "Renovation construction work" means the modernization,
rehabilitation, expansion or improvement of an existing building or
structure, or portion thereof, for use as commercial property in a
renovation exemption area where such modernization, rehabilitation,
expansion or improvement is physically and functionally integrated with
the existing building or structure, or portion thereof, does not
increase the bulk of the existing building or structure by more than
thirty per centum and does not increase the height of the existing
building or structure by more than thirty per centum.
x. "Renovation exemption area" means the area specified in paragraph
(4) of subdivision d of section 11-258 of this part in which a
renovation exemption from taxes in accordance with subdivision e of
section 11-257 of this part shall be available to a recipient who
performs renovation construction work.
y. "New construction exemption areas" means the areas specified in
subdivision e of section 11-258 of this part in which an exemption from
real property taxes in accordance with subdivision e.1 of section 11-257
of this part shall be available to a recipient who constructs a new
building or structure that meets the requirements set forth in
subdivsion i of section 11-259 of this part.
Section 11-257
§ 11-257 Real property tax exemption; deferral of tax payments. The
city shall be divided into six classes of areas as provided in this part
and pursuant to designation of areas to be made by the temporary
commercial incentive area boundary commission. Within such areas, the
following benefits shall be available to qualified recipients:
a. (1) A recipient who, following the effective date of a certificate
of eligibility, has performed industrial construction work in any area
of the 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
(2) Notwithstanding paragraph (1) 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 1, 1995, 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
(3)(a) 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 1, 1995, 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%
(b) 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 orginally 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.
(c) No property which is the subject of a certificate of eligibility
pursuant to this part shall receive more than one abatement pursuant to
this part and no abatement shall exceed one consecutive twelve-year
period as specified in subparagraph (a) of this paragraph.
(d) In no event shall an abatement granted pursuant to this part
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
part.
(e) For the purpose of calculating an abatement of real property taxes
pursuant to this part, 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 part, the real property taxes imposed
on such tax lot for the 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 part shall be
abated in accordance with this paragraph. Such apportionment shall be in
accordance with rules promulgated by the department of finance.
(f) 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 (a) 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 activities 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.
b. (1) 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
(2) Notwithstanding paragraph (1) 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 1, 1995,
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% on exemption base
25 ........................ Tax on 10% of exemption base
c. (1) 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
(2) Notwithstanding paragraph (1) 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 1, 1995,
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
d. Except as provided in paragraphs (2) and (3) of subdivision d of
section 11-258 of this part, 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 part 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
eligibility: Amount of tax payments to 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
8 through 10 ..... No tax payments are to be deferred and no deferred
tax payments are required to be made
11 through 20 .... Payment each year of 10% of total dollar amount of
tax payments deferred pursuant to this part
e. 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
e.1. 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 i of section 11-259 of this part
in the new construction exemption area specified in paragraph (1), (2)
or (3) of subdivision e of section 11-258 of this part 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 i of section 11-259 of this part
in the new construction exemption area specified in paragraph (1), (2)
or (3) of subdivision e of section 11-258 of this part:
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
f. There shall be no exemption from or deferral of payment of real
property taxes available pursuant to this part to any person who
performs commercial or renovation construction work in an excluded area,
except as provided in paragraphs (2) and (3) of subdivision d of section
11-258 of this part.
g. The benefits of this part 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.
h. No benefits pursuant to this part shall be granted for work which
is the subject of a certificate of eligibility issued pursuant to part
three of this subchapter.
Section 11-258
§ 11-258 Temporary commercial incentive area boundary commission;
classes of area; excluded areas. a. There shall be a temporary
commercial incentive area boundary commission to consist of the deputy
mayor for economic development and planning, the commissioner of
finance, the chair of the city planning commission, the director of
management and budget, the borough presidents, the speaker of the city
council and a public member appointed by the mayor to serve at the
mayor's pleasure. Each member except the public member shall have the
power to designate an alternate to represent him or her at commission
meetings to exercise all the rights and powers of such member, including
the right to vote, provided that such designation be made in writing to
the chair of the commission. The deputy mayor for economic development
and planning shall be the chair of the commission. Each borough
president shall be entitled to vote only on the designation of areas
within his or her borough. Commission members who shall be officers or
employees of the city shall serve without compensation but shall be
reimbursed for expenses necessarily incurred in the performance of their
duties. Any other commission member shall receive as exclusive
compensation for his or her 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. A
majority of members of such commission entitled to vote on a matter
shall constitute a quorum for such issue. Decisions shall be made by
majority vote of those present entitled to vote on a matter.
b. (1) The commission shall meet in nineteen hundred ninety-two,
nineteen hundred ninety-five and nineteen hundred ninety-nine to
determine the boundaries of the various areas which it is authorized to
designate pursuant to this section. The areas designated by the
commission in effect as of December thirty-first, nineteen hundred
ninety-one shall remain in effect until the first taxable status date
after the city council approves a new designation pursuant to paragraph
(4) of this subdivision.
(2) Not later than October first of each year when areas are to be
designated, the commission shall publish notice of proposed boundaries
of areas to be designated, and the date, not earlier than five nor later
than fifteen days following the publication of such notice, on which the
commission will hold a public hearing to hear all persons interested in
the designation of areas. The notice required by this paragraph shall be
published in the City Record and a newspaper of general circulation in
the city, and copies thereof shall be forwarded to each council member
and community board.
(3) The commission shall make such designation, and notify the city
council of such designation, not later than November first of each year
when areas are to be designated. The designation shall be effective as
provided in paragraph (4) of this subdivision.
(4) Within thirty days after the first stated meeting of the city
council following the receipt of notice of such designation, the city
council may, by majority vote, disapprove such designation. If, within
such thirty-day period, the city council fails to act or fails to act by
the required vote, the city council shall be deemed to have approved
such designation. Such designation shall be effective as of the first
taxable status date after the city council approves such designation and
shall remain in effect until the first taxable status date after the
city council approves a new designation pursuant to this paragraph.
c. (1) The commission may designate any area other than the area lying
south of the center line of ninety-sixth street in the borough of
Manhattan to be a special exemption area if it determines that market
conditions in the area are such that the availability of a special
exemption is required in order to encourage commercial construction work
in such area. In making such determination, the commission shall
consider, among other factors, the existence in such area of a special
need for commercial and job development, high unemployment, economic
distress or unusually large numbers of vacant, underutilized, unsuitable
or substandard structures, or other substandard, unsanitary,
deteriorated or deteriorating conditions, with or without tangible
blight.
(2) Any area in the city, other than the area lying south of the
center line of ninety-sixth street, which the commission has not
designated as a special exemption area shall be a regular exemption
area.
(3) On or after January 1, 1992, the commission shall not designate
any area to be either a deferral area or an excluded area, nor shall the
commission make any new designation in any urban renewal area designated
pursuant to Article 15 of the General Municipal Law so as to reduce the
level of benefits available pursuant to this title in such area.
(4) Notwithstanding any other provision of this part, any area in the
city of New York designated as an empire zone in accordance with article
eighteen-b of the general municipal law, which the commission has not
designated as a special exemption area, shall be a special exemption
area as of July 1, 1995 or as of the date of the designation of such
area as an empire zone, whichever is later.
d. (1) The following area in the borough of Manhattan shall, except as
otherwise provided in paragraphs (2), (3) and (4) of this subdivision
and subdivision e of this section, be an excluded area: the area in the
borough of Manhattan lying south of the center line of 96th Street and
north of the center line of 23rd Street.
(2) The following areas in the borough of Manhattan shall, except as
otherwise provided in paragraph (4) of this subdivision and subdivision
e of this section, be excluded areas as of July 1, 1992; provided,
however, that if an application for a certificate of eligibility has
been filed for commercial construction work in such areas on or before
December 31, 1992 and the recipient presents evidence satisfactory to
the department of finance: (a)(i) for a new building or structure, that
construction has been completed on a foundation, as described in
approved plans, on or before June 30, 1993; or (ii) for an existing
building or structure, that at least five per centum of the minimum
required expenditure has been made for commercial construction work, as
described in approved plans, on or before June 30, 1993; and (b) that
all other requirements of this part have been met; then, a deferral of
tax payments pursuant to subdivision d of section 11-257 of this part
shall be granted for such commercial construction work, except that no
deferral of tax payments shall be granted for commercial construction
work on mixed-use property:
(i) the area delineated by a line beginning at the point where the
center line of 96th Street would intersect the Hudson River Pierhead
line and running easterly along the center line of 96th Street to the
center line of Central Park West; thence southerly along said center
line to the center line of 59th Street; thence westerly along said
center line to the Hudson River Pierhead line; thence northerly along
said Pierhead line to the point of beginning; and
(ii) the area delineated by a line beginning at a point where the
center line of 59th Street would intersect with a point one hundred
fifty feet west of the center line of 8th Avenue and running easterly
along the center line of 59th Street to a point one hundred fifty feet
west of the center line of the Avenue of the Americas; thence southerly
parallel to the Avenue of the Americas to a point which is the midpoint
between the center line of 42nd Street and the center line of 41st
Street; thence westerly parallel to 41st Street to a point one hundred
fifty feet west of the center line of 8th Avenue; thence northerly
parallel to 8th Avenue to the point of beginning.
(3) The following area in the borough of Manhattan shall, except as
otherwise provided in paragraph (4) of this subdivision and subdivision
e of this section, be an excluded area as of January 1, 1993; provided,
however, that if an application for a certificate of eligibility has
been filed for commercial construction work in such area on or before
December 31, 1992 and the recipient presents evidence satisfactory to
the department of finance: (a)(i) for a new building or structure, that
construction has been completed on a foundation, as described in
approved plans, on or before December 31, 1993; or (ii) for an existing
building or structure, that at least five per centum of the minimum
required expenditure has been made for commercial construction work, as
described in approved plans, on or before December 31, 1993; and (b)
that all other requirements of this part have been met, then, a deferral
of tax payments pursuant to subdivision d of section 11-257 of this part
shall be granted for such commercial construction work, except that no
deferral of tax payments shall be granted for commercial construction
work on mixed-use property: the area delineated by a line beginning at
the point where the center line of 59th Street would intersect with the
Hudson River Pierhead line; thence southerly along said Pierhead line to
the center line of Liberty Street; thence easterly along said center
line to the center line of Church Street; thence northerly along said
center line to the center line of Fulton Street; thence easterly along
said center line to the East River Pierhead line; thence northerly along
said Pierhead line to a point which is the midpoint between the center
line of 34th Street and the center line of 33rd Street; thence westerly
parallel to 33rd Street to a point one hundred fifty feet west of the
center line of the Avenue of the Americas; thence northerly parallel to
the Avenue of the Americas to a point which is the midpoint between the
center line of 42nd Street and the center line of 41st Street; thence
westerly parallel to 41st Street to a point one hundred fifty feet west
of the center line of 8th Avenue; thence northerly parallel to 8th
Avenue to the center line of 59th Street; thence westerly along said
center line to the point of beginning.
(4) Notwithstanding the provisions of paragraphs (1), (2) and (3) of
this subdivision, the following areas in the borough of Manhattan shall
be renovation exemption areas: (a) as of July 1, 1992 and until June 30,
2008: the area in the borough of Manhattan lying south of the center
line of 23rd Street; (b) as of July 1, 1992 and until January 31, 1995:
the area in the borough of Manhattan lying south of the center line of
96th Street and north of the center line of 23rd Street; and (c) as of
July 1, 1995 and until June 30, 2008: the area in the borough of
Manhattan lying south of the center line of 59th Street and north of the
center line of 23rd Street.
e. Notwithstanding the provisions of subdivision d of this section,
the areas in the borough of Manhattan specified in paragraphs (1), (2)
and (3) of this subdivision, except the "Project Area" described in a
lease held by the Battery Park City Authority as tenant and originally
dated as of November 24, 1969 and thereafter from time to time amended,
shall be new construction exemption areas: (1) as of July 1, 1995 and
until December 31, 1996: the area in the borough of Manhattan lying
south of the center line of 96th Street, excluding the area specified in
paragraph (2) of this subdivision; and (2) as of July 1, 1995 and until
June 30, 2003: the area in the borough of Manhattan bounded by Murray
Street on the north starting at the intersection of West Street and
Murray Street; running easterly along the center line of Murray Street;
connecting through city hall park with the center line of Frankfort
Street and running easterly along the center line of Frankfort and Dover
Streets to the intersection of Dover Street and South Street; running
southerly along the center line of South Street to Peter Minuit Plaza;
connecting through Peter Minuit Plaza to the center line of State Street
and running northwesterly along the center line of State Street to the
intersection of State Street and Battery Place; running westerly along
the center line of Battery Place to the intersection of Battery Place
and West Street; and running northerly along the center line of West
Street to the intersection of West Street and Murray Street; and (3) as
of July 1, 2003 and until June 30, 2008: the area in the borough of
Manhattan bounded by Murray Street on the north starting at the
intersection of West Street and Murray Street; running easterly along
the center line of Murray Street; connecting through City Hall Park with
the center line of Frankfort Street and running easterly along the
center line of Frankfort and Dover Streets to the intersection of Dover
Street and South Street; running southerly along the center line of
South Street to Peter Minuit Plaza; connecting through Peter Minuit
Plaza to the center line of State Street and running northwesterly along
the center line of State Street to the intersection of State Street and
Battery Place; running westerly along the center line of Battery Place
to the intersection of Battery Place and West Street; and running
northerly along the center line of West Street to the intersection of
West Street and Murray Street, except the area in the borough of
Manhattan bounded by Church Street on the east starting at the
intersection of Liberty Street and Church Street; running northerly
along the center line of Church Street to the intersection of Church
Street and Vesey Street; running westerly along the center line of Vesey
Street to the intersection of Vesey Street and West Broadway; running
northerly along the center line of West Broadway to the intersection of
West Broadway and Barclay Street; running westerly along the center line
of Barclay Street to the intersection of Barclay Street and Washington
Street; running southerly along the center line of Washington Street to
the intersection of Washington Street and Vesey Street; running westerly
along the center line of Vesey Street to the intersection of Vesey
Street and West Street; running southerly along the center line of West
Street to the intersection of West Street and Liberty Street; and
running easterly along the center line of Liberty Street to the
intersection of Liberty Street and Church Street.
Section 11-259
§ 11-259 Eligibility for benefits. a. A recipient of a certificate of
eligibility with an effective date of June 30, 1992 or before must make
one-half the minimum required expenditure within eighteen months of the
effective date of such recipient's certificate of eligibility, and make
the minimum required expenditure within thirty-six months of the
effective date of such certificate to be eligible to receive the
benefits of this part. A recipient of a certificate of eligibility with
an effective date of July 1, 1992 or after must make one-half the
minimum required expenditure within thirty months of the effective date
of such recipient's certificate of eligibility, and make the minimum
required expenditure within sixty months of the effective date of such
certificate to be eligible to receive the benefits of this part;
provided, however, that a recipient of a certificate of eligibility for
renovation construction work for property located in the renovation
exemption area specified in subparagraph (b) of paragraph (4) of
subdivision d of section 11-258 of this part must make one-half the
minimum required expenditure within eighteen months of the effective
date of such recipient's certificate of eligibility, or by December 31,
1994, whichever is earlier, and make the minimum required expenditure
within thirty-six months of the effective date of such certificate, or
by December 31, 1995, whichever is earlier, to be eligible to receive
the benefits of this part; provided, further, however, that a recipient
who filed an application for a certificate of eligibility for renovation
construction work for property located in the renovation exemption area
specified in subparagraph (b) of paragraph (4) of subdivision d of
section 11-258 of this part on or after July 1, 1994, but before
February 1, 1995, must make one-half the minimum required expenditure
within eighteen months of the effective date of such certificate, or by
July 31, 1995, whichever is earlier, and make the minimum required
expenditure within thirty-six months of the effective date of such
certificate, or by July 31, 1996, whichever is earlier, to be eligible
to receive the benefits of this part, provided, further, however, that a
recipient who filed an application for a certificate of eligibility for
renovation construction work for property located in the renovation
exemption area specified in subparagraph (a) or (c) of paragraph (4) of
subdivision d of section 11-258 of this part on or after July 1, 1995,
must make one-half the minimum required expenditure within eighteen
months of the effective date of such certificate, and make the minimum
required expenditure within thirty-six months of the effective date of
such certificate, to be eligible to receive the benefits of this part.
Any recipient who shall fail to make such expenditures shall become
ineligible and shall pay, with interest, any taxes for which an
exemption or deferral was claimed pursuant to this section. This
subdivision shall not apply to the recipient of a certificate of
eligibility for construction of a new building or structure that meets
the requirements set forth in subdivision i of section 11-259 of this
part in a new construction exemption area.
b. No benefits pursuant to this part shall be granted for construction
work on any condominium unit unless such unit is in a building or
structure which, if viewed as a whole and as if it were under single
ownership, would qualify as commercial or industrial property. The
minimum required expenditure applicable to any recipient of a
certificate of eligibility for construction work on a condominium unit
shall be equal to the minimum expenditure which would apply if a
certificate of eligibility were issued for construction work on the
entire property where such unit is located. Nothing in this subdivision
shall be construed to prevent owners of condominium units in the same
property from forming an association to be a recipient. This subdivision
shall not apply to any applicant whose property would be, or recipient
whose property is, the subject of a certificate of eligibility with an
effective date of July 1, 1992 or after.
c. (1) No benefits pursuant to this part shall be granted for any
construction work unless the applicant filed an application for such
benefits on or before the date of issuance of a building permit for such
work. The requirements of this subdivision may be satisfied where the
applicant's architect, contractor or other representative authorized to
file the application for such building permit files with the department
of finance on behalf of the applicant a preliminary application
containing such information as the department of finance shall prescribe
by regulation.
(2) Notwithstanding paragraph (1) of this subdivision, an applicant
may file an application for benefits pursuant to this part for
renovation construction work for property located in the areas specified
in paragraph (3) of this subdivision, regardless of whether a building
permit for such work was issued before such application was filed,
provided that such permit was not issued before January 1, 1990 or after
June 30, 1992, and provided further that a final application is filed
with, and accepted by, the department of finance, on or before December
31, 1992. The department of finance shall issue a certificate of
eligibility to such an applicant upon determining that the applicant
satisfies all other requirements of this part. The effective date of
such certificate shall be the date of acceptance by the department of
finance of a final application containing such information as prescribed
by rule of the department of finance. No benefits pursuant to this part
shall be granted for construction work performed before the effective
date of the recipient's certificate of eligibility.
(3) Pursuant to paragraph (2) of this subdivision, an applicant may
file an application for benefits pursuant to this part for renovation
construction work for property located in the following areas in the
borough of Manhattan lying south of 96th Street:
(a) the area delineated by a line beginning at the point where the
center line of 96th Street would intersect the East River Pierhead line
and running westerly along the center line of 96th Street to the center
line of Fifth Avenue; thence southerly along said center line to the
center line of 59th Street; thence westerly along said center line to a
point one hundred fifty feet west of the center line of the Avenue of
the Americas; thence southerly parallel to the Avenue of the Americas to
the center line of 34th Street; thence easterly along said center line
to the East River Pierhead line; thence northerly along said Pierhead
line to the point of beginning; and
(b) the area delineated by a line beginning at the point where the
center line of Fulton Street would intersect the East River Pierhead
line and running westerly along the center line of Fulton Street to the
center line of Church Street; thence southerly along said center line to
the center line of Liberty Street; thence westerly along said center
line to the Hudson River Pierhead line; thence southerly and along said
Pierhead line to the point of beginning.
(4) Notwithstanding paragraph (1) of this subdivision, an applicant
may file an application for benefits pursuant to this part for
renovation construction work for property located in the renovation
exemption area specified in subparagraph (c) of paragraph (4) of
subdivision d of section 11-258 of this part within sixty days of the
date of enactment of local law number 58 for the year 1995, regardless
of whether a building permit for such work was issued before such
application was filed, provided that such permit was not issued before
February 1, 1995, and provided further that a final application is filed
with, and accepted by, the department of finance, on or before December
31, 1995. The department of finance shall issue a certificate of
eligibility to such an applicant upon determining that the applicant
satisfied all other requirements of this part. The effective date of
such certificate shall be the date of acceptance by the department of
finance of a final application containing such information as prescribed
by rule of the department of finance. No benefits pursuant to this part
shall be granted for construction work performed before the effective
date of such certificate of eligibility.
d. No benefits pursuant to this part shall be granted to any recipient
for construction work on property any part of which is to be used for a
restricted activity.
e. No benefits pursuant to this part shall be granted for any
construction work unless the applicant shall file, together with the
application, an affidavit setting forth the following information:
(1) a statement that within the seven years immediately preceding the
date of application for a certificate of eligibility, neither the
applicant, nor any person owning a substantial interest in the property
as defined in paragraph four of this subdivision, nor any officer,
director or general partner of the applicant or such person was finally
adjudicated by a court of competent jurisdiction to have violated
section two hundred thirty-five of the real property law or any section
of article one hundred fifty of the penal law or any similar arson law
of another state with respect to any building, or was an officer,
director or general partner of a person at the time such person was
finally adjudicated to have violated such law;
(2) a statement setting forth any pending charges alleging violation
of section two hundred thirty-five of the real property law or any
section of article one hundred fifty of the penal law or any similar
arson law of another jurisdiction with respect to any building by the
applicant or any person owning a substantial interest in the property as
defined in paragraph four of this subdivision, or any officer, director
or general partner of the applicant or such person; and
(3) a statement that the applicant has posted notice in a conspicuous
place at the premises which are the subject of the application and
published notice in a newspaper of general circulation in the city, in
such form as shall be prescribed by the department of finance, stating
that persons having information concerning any violation by the
applicant or a person having a substantial interest in the property as
defined in paragraph four of this subdivision has violated section two
hundred thirty-five of the real property law or any section of article
one hundred fifty of the penal law or any similar arson law of another
jurisdiction may submit such information to the department of finance to
be considered in determining the applicant's eligibility for benefits.
(4) "Substantial interest" as used in this subdivision shall mean
ownership and control of an interest of ten per centum or more in a
property or of any person owning a property.
f. If any person described in the statement required by paragraph two
of subdivision e of this section is finally adjudicated by a court of
competent jurisdiction to be guilty of any charge listed in such
statement, the recipient shall cease to be eligible for benefits
pursuant to this part and shall pay with interest any taxes for which an
exemption, abatement or deferral was claimed pursuant to this part.
g. In addition to any other qualifications for exemption from or
abatement or deferral of payment of taxes set forth in this part, an
applicant must be:
(1) obligated to pay real property tax on the property for which an
exemption, abatement or deferral is sought, whether such obligation
arises because of record ownership of such property, or because the
obligation to pay such tax has been assumed by contract; or
(2) the record owner or lessee of property which is exempt from real
property taxation who has entered into an agreement to sell or lease
such property to another person. Such person shall be a co-applicant
with such owner or lessee.
h. A co-applicant with a public entity shall be an eligible recipient
pursuant to this part, provided that for such period as the property
which is the subject of the certificate of eligibility is exempt from
real property taxation because it is owned or controlled by a public
entity no benefits shall be available to such recipient pursuant to this
part. Such recipient shall receive benefits pursuant to this part when
such property ceases to be eligible for exemption pursuant to other
provisions of law, as follows: the recipient shall, commencing with the
date such tax exemption ceases, and continuing until the expiration of
the benefit period pursuant to this part, receive the benefits to which
such recipient is entitled in the corresponding tax year pursuant to
this part.
i. (1)(a) No benefits pursuant to this part shall be granted for
construction of a new building or structure in the new construction
exemption area specified in paragraph (1) of subdivision e of section
11-258 of this part unless (i) construction of the foundation of such
building or structure has been completed within twelve months of the
effective date of the recipient's certificate of eligibility, or by
December 31, 1997, whichever is earlier; and (ii) construction of such
building or structure has been completed within thirty-six months of the
effective date of the recipient's certificate of eligibility, or by
December 31, 1999, whichever is earlier. (b) No benefits pursuant to
this part shall be granted or reconstruction of a new building or
structure in the new construction exemption area specified in paragraph
(2) of subdivision e of section 11-258 of this part unless: (i)
construction of the foundation of such building or structure has been
completed within twenty-four months of the effective date of the
recipients' certificate of eligibility; and (ii) construction of such
building or structure has been completed within forty-two months of the
effective date of the recipient's certificate of eligibility. (c) No
benefits pursuant to this part shall be granted for construction of a
new building or structure in the new construction exemption area
specified in paragraph (3) of subdivision e of section 11-258 of this
part unless: (i) construction of the foundation of such building or
structure has been completed within twenty-four months of the effective
date of the recipient's certificate of eligibility; and (ii)
construction of such building or structure has been completed within
forty-two months of the effective date of the recipient's certificate of
eligibility.
(2) No benefits pursuant to this part shall be granted for
construction of a new building or structure in a new construction
exemption area unless such building or structure meets the requirements
set forth in subparagraphs (a) and (b) of this paragraph and, in
addition, meets at least two of the five requirements set forth in
subparagraphs (c) through (g) of this paragraph.
(a) The height of at least fifty per centum of the floors in such
building or structure shall be not less than twelve feet, nine inches
measured from the top of the slab comprising the floor to the bottom of
the slab comprising the ceiling;
(b) Such building or structure shall be served by fiber optic
telecommunications wiring and shall contain vertical penetrations for
the distribution of fiber optic cabling to individual tenants on each
floor;
(c) The total square footage of such building or structure is not less
than five hundred thousand gross square feet;
(d) A minimum of two hundred thousand gross square feet or twenty-five
per centum of such building or structure is comprised of floors of not
less than forty thousand gross square feet;
(e) At least ten per centum of the gross square footage of such
building or structure is comprised of floors that contain no more than
eight structural columns, excluding any columns within the core or on
the periphery of such building or structure;
(f) The electrical capacity of such building or structure is not less
than six watts per net square foot;
(g) Emergency backup power sufficient to accommodate a need of six
watts per net square foot is available in at least two hundred thousand
gross square feet or twenty-five per centum of such building or
structure.
j. No benefits pursuant to this part shall be granted for construction
work performed pursuant to a building permit issued after July
thirty-first, two thousand eight, except that if a building permit is
issued on or before July thirty-first, two thousand eight for
construction work on a building or structure described in an application
for a certificate of eligibility filed on or before June thirtieth, two
thousand eight, construction work performed as described in such
application pursuant to any additional building permit issued on or
after August first, two thousand eight shall be eligible for benefits
pursuant to this part in accordance with this subdivision.
(1) Except as provided in paragraph (2) of this subdivision, all
construction work performed pursuant to any such application shall be
completed on or before December thirty-first, two thousand thirteen. No
benefits shall be granted for construction work performed after such
date, and any exemption granted pursuant to this part in relation to
property on which such construction work was performed shall not exceed
the amount of the exemption in effect for such property on the tax roll
for which the taxable status date is January fifth, two thousand
fourteen.
(2) All construction work performed pursuant to any such application
for the construction of a new building or structure in the new
construction exemption area specified in paragraph (3) of subdivision e
of section 11-258 of this part shall be completed in accordance with
subparagraph (c) of paragraph (1) of subdivision i of this section and,
if not completed in accordance with such subparagraph, shall not be
eligible for benefits pursuant to this part.
(3) For purposes of this subdivision, construction work as described
in an application for a certificate of eligibility shall be deemed
completed on the date on which the department of buildings issues a
temporary or final certificate of occupancy or, if such construction
work does not require the issuance of a certificate of occupancy, the
date on which the applicant and the applicant's architect or
professional engineer for such construction work submit to the
department of finance an affidavit certifying that such construction
work has been completed. For purposes of this subdivision, a demolition
permit shall be deemed to be a building permit issued for construction
work.
Section 11-260
§ 11-260 Application for certificate of eligibility. a. Application
for a certificate of eligibility pursuant to this part may be made
immediately and continuing until June 30, 2008; provided, however, that
application for a certificate of eligibility for renovation construction
work for property located in the renovation exemption area specified in
subparagraph (b) of paragraph (4) of subdivision d of section 11-258 of
this part may not be made after January 31, 1995; provided, further,
however, that application for a certificate of eligibility for
construction of a new building or structure that meets the requirements
set forth in subdivision i of section 11-259 of this part in the new
construction exemption area specified in paragraph (1) of subdivision e
of section 11-258 of this part may not be made after December 31, 1996;
provided, further, however, that application for a certificate of
eligibility for construction of a new building or structure that meets
the requirements set forth in subdivision i of section 11-259 of this
part in the new construction exemption area specified in paragraph (2)
of subdivision e of section 11-258 of this part may not be made after
June 30, 2003. Such application shall state whether it is for
industrial, commercial or renovation construction work, and shall be
filed with the department of finance. In addition to any other
information required by such department, the application shall include
cost estimates or bids for the proposed construction and an affidavit of
a professional engineer or architect of the applicant's choice,
certifying that detailed plans for the construction work have been
submitted to the department of buildings. Such application shall also
state that the applicant agrees to comply with and be subject to the
rules issued from time to time by the department of finance to secure
compliance with all applicable city, state and federal laws or which
implement mayoral directives and executive orders designed to ensure
equal employment opportunity. Such application shall also certify that
all taxes currently due and owing on the property which is the subject
of the application have been paid or are currently being paid in timely
installments pursuant to written agreement with the department of
finance.
b. The burden of proof shall be on the applicant to show by clear and
convincing evidence that the requirements for granting an exemption from
or abatement or deferral of payment of taxes pursuant to this part have
been satisfied. The department of finance shall have the authority to
require that statements in connection with the application be made under
oath.
c. Upon receipt of an application, the department of finance shall
send written notice thereof to the council member representing the
district where the proposed construction work is to take place.
d. The department of finance shall issue a certificate of eligibility
upon determining that the applicant satisfies the requirements for
industrial, commercial or renovation construction work in an area where
benefits are available for such work. Such certificate shall state
whether such benefits are to be granted for industrial, commercial or
renovation construction work, and in which class of area the property is
located. The effective date of such certificate, except as provided in
paragraph (2) or paragraph (4) of subdivision c of section 11-259 of
this part, shall be the earlier of (1) the date on which a building
permit for the construction work is issued by the department of
buildings, or (2) the last day before the effective date of any
designation of boundaries by the commission which changes the class of
area in which the property is located so as to reduce the level of
benefits for commercial construction work on such property. Where the
effective date of the certificate of eligibility is July 1, 1992 or
after, the benefits granted for industrial, commercial or renovation
construction work pursuant to this part shall be in accordance with the
provisions of this part as amended by local law number 73 for the year
1992, local law number 40 for the year 1994, local law number 58 for the
year 1995, local law number 44 for the year 1999, local law number 48
for the year 2003 and the local law for the year 2007 that added this
clause. Where the effective date of the certificate of eligibility is
June 30, 1992 or before, the benefits granted for industrial or
commercial construction work pursuant to this part shall be in
accordance with the provisions of this part as it was in effect until
June 30, 1992 immediately prior to its amendment by local law number 73
for the year 1992. No recipient whose property is the subject of a
certificate of eligibility for commercial construction work in a
deferral area shall be eligible to apply for a certificate of
eligibility for renovation construction work on the same property, where
the renovation construction work is the same as, or similar to, the
commercial construction work for which the deferral area certificate was
issued, until three years after the effective date of the deferral area
certificate. No recipient shall receive a tax deferral and a tax
exemption for the same expenditure on eligible construction work.
e. A copy of the certificate of eligibility shall be filed by the
department of finance in the manner prescribed for recording a mortgage
pursuant to section two hundred ninety-one-d of the real property law.
f. The department of finance may provide by rule for reasonable
administrative charges or fees necessary to defray expenses in
administering the benefit program provided by this part.
Section 11-261
§ 11-261 Reporting requirement; termination of benefits. a. Upon
approval by the department of buildings of the plans submitted in
connection with the building permit and any amendments to such plans,
the recipient shall file with the department of finance a narrative
description of such approved plans describing the industrial, commercial
or renovation construction work for which such recipient seeks benefits
pursuant to this part.
b. For the duration of the benefit period the recipient shall file
annually with the department of finance, on or before the taxable status
date, a certificate of continuing use stating the purposes for which the
property described in the certificate of eligibility is being used and
the net square footage allotted to each such purpose. Such certificate
of continuing use shall be on a form prescribed by the department of
finance and shall state the total number of workers employed on the
property and the number of such workers who are city residents. The
department of finance shall have authority to terminate benefits
pursuant to this part upon failure of a recipient to file such
certificate by the taxable status date. The burden of proof shall be on
the recipient to establish continuing eligibility for benefits and the
department of finance shall have the authority to require that
statements made in such certificate shall be made under oath.
c. A recipient shall file an amendment to the latest certificate of
continuing use prior to (1) converting square footage within property
which is the subject of a certificate of eligibility for industrial
construction work from use for the manufacturing activities described in
such certificate of continuing use where such conversion results in less
than sixty-five per centum of total net square footage being used or
held out for use for manufacturing activities; or (2) converting any
portion of property which is the subject of a certificate of eligibility
to use for any restricted activity or as residential property.
d. No later than eighteen months after the effective date of a
certificate of eligibility with an effective date of June 30, 1992 or
before, the recipient shall present evidence to the department of
finance demonstrating that the recipient has made one-half of the
minimum required expenditure. Not later than thirty-six months after the
effective date of such certificate, such recipient shall present
evidence to such department demonstrating that the recipient has made
the minimum required expenditure. Not later than thirty months after the
effective date of a certificate of eligibility with an effective date of
July 1, 1992 or after, the recipient shall present evidence to the
department of finance demonstrating that the recipient has made one-half
of the minimum required expenditure; provided, however, that a recipient
of a certificate of eligibility for renovation construction work for
property located in the renovation exemption area specified in
subparagraph (b) of paragraph (4) of subdivision d of section 11-258 of
this part shall present such evidence not later than eighteen months
after the effective date of such certificate, or by December 31, 1994,
whichever is earlier; provided, further, however, that a recipient who
filed an application for a certificate of eligibility for renovation
construction work for property located in the renovation exemption area
specified in subparagraph (b) of paragraph (4) of subdivision d of
section 11-258 of this part on or after July 1, 1994, but before
February 1, 1995, shall present such evidence not later than eighteen
months after the effective date of such certificate, or by July 31,
1995, whichever is earlier, provided, further, however, that a recipient
who filed an application for a certificate of eligibility for renovation
construction work for property located in the renovation exemption area
specified in subparagraph (a) or (c) of paragraph (4) of subdivision d
of section 11-258 of this part on or after July 1, 1995, shall present
such evidence not later than eighteen months after the effective date of
such certificate. Not later than sixty months after the effective date
of a certificate of eligibility with an effective date of July 1, 1992
or after, the recipient shall present evidence to such department
demonstrating that the recipient has made the minimum required
expenditure; provided, however, that a recipient of a certificate of
eligibility for renovation construction work for property located in the
renovation exemption area specified in subparagraph (b) of paragraph (4)
of subdivision d of section 11-258 of this part shall present such
evidence not later than thirty-six months after the effective date of
such certificate, or by December 31, 1995, whichever is earlier;
provided, further, however, that a recipient who filed an application
for a certificate of eligibility for renovation construction work for
property located in the renovation exemption area specified in
subparagraph (b) of paragraph (4) of subdivision d of section 11-258 of
this part on or after July 1, 1994, but before February 1, 1995, shall
present such evidence not later than thirty-six months after the
effective date of such certificate, or by July 31, 1996, whichever is
earlier, provided, further, however, that a recipient who filed an
application for a certificate of eligibility for renovation construction
work for property located in the renovation exemption area specified in
subparagraph (a) or (c) of paragraph (4) of subdivision d of section
11-258 of this part on or after July 1, 1995, shall present such
evidence not later than thirty-six months after the effective date of
such certificate. Such evidence shall be presented in the form and
manner prescribed by such department. The burden of proof shall be on
the recipient to show by clear and convincing evidence that the required
expenditures have been made. This subdivision shall not apply to the
recipient of a certificate of eligibility for construction of a new
building or structure that meets the requirements set forth in
subdivision i of section 11-259 of this part in a new construction
exemption area.
e. A recipient of a certificate of eligibility for construction of a
new building or structure in a new construction exemption area shall
present evidence to the department of finance demonstrating that the
requirements of subdivision i of section 11-259 of this part have been
met. Such evidence shall be presented in the form and manner and at the
time prescribed by such department. The burden of proof shall be on the
recipient to show by clear and convincing evidence that such
requirements have been met.
Section 11-262
§ 11-262 Conversion of property. a. Any recipient whose property is
the subject of a certificate of eligibility for commercial or renovation
construction work, and who, prior to the expiration of the benefit
period, uses such property as industrial property, shall continue to
receive benefits for commercial or renovation construction work as the
case may be.
b. Any recipient whose property is the subject of a certificate of
eligibility for industrial construction work, and who, prior to the
expiration of the benefit period, uses such property as commercial
property, shall cease to be eligible for further exemption or abatement
for industrial construction work as of the last date to which such
recipient proves by clear and convincing evidence that such property was
used as industrial property, and shall pay with interest any taxes for
which an exemption or abatement was claimed after such date, except
that:
(1) a recipient of a certificate of eligibility for industrial
construction work in a special exemption area who would have been
eligible to receive a certificate of eligibility for commercial
construction work at the time such recipient applied for benefits shall
continue to receive an exemption for industrial construction; and
(2) a recipient of a certificate of eligibility for industrial
construction work in a regular exemption area who would have been
eligible to receive a certificate of eligibility for commercial
construction work at the time such recipient applied for benefits shall,
commencing with the date of conversion to commercial property and
continuing until the expiration of the benefit period for commercial
construction work, receive any exemption which such recipient would have
received in the corresponding tax year pursuant to a certificate of
eligibility for commercial construction work; and
(3) a recipient of a certificate of eligibility for industrial
construction work in any area of the city on whose property at least
sixty-five per centum of the net square footage continues to be used or
held out for use for manufacturing activities after conversion to
commercial property, shall not be required to pay the pro rata share of
tax for which an exemption was claimed during the tax year in which such
conversion occurred.
c. Except as provided in subdivision d of this section, any recipient
whose property is the subject of a certificate of eligibility for
commercial, industrial or renovation construction work, and who uses
such property as residential property or for any restricted activity
prior to the expiration of the benefit period, shall cease to be
eligible for further exemption, abatement or deferral as of the date
such property was first used as residential property or for any
restricted activity. In the case of property in an area that was
designated as an exemption area at the time the certificate of
eligibility was issued, such recipient shall pay with interest any taxes
for which an exemption was claimed after such date, including the pro
rata share of tax for which any exemption was claimed during the tax
year in which such use occurred. In the case of industrial property,
such recipient shall pay with interest any taxes for which an exemption
or abatement was claimed after such date, including the pro rata share
of tax for which any exemption or abatement was claimed during the tax
year in which such use occurred. In the case of property in an area that
was designated as a deferral area at the time the certificate of
eligibility was issued, all deferred tax payments on the property shall
become due and payable immediately.
d. Notwithstanding subdivision c of this section, any recipient whose
property is the subject of a certificate of eligibility for commercial
or renovation construction work with an effective date of July 1, 1992
or after, and who, prior to the expiration of the benefit period, uses a
portion of such property as residential property, shall cease to be
eligible for further exemption for commercial or renovation construction
work for that portion of such property used as residential property as
of the date such portion of the property was first used as residential
property. Such recipient shall pay, with interest, any taxes for which
an exemption was claimed after such date attributable to that portion of
the property used as residential property, including the pro rata share
of tax for which such exemption was claimed during the tax year in which
such use occurred. Such recipient shall continue to receive an exemption
for commercial or renovation construction work for that portion of the
property which continues to be used as commercial property.
Section 11-263
§ 11-263 Administration of the benefit program. a. The department of
finance shall have, in addition to any other functions, powers and
duties which have been or may be conferred on it by law, the following
functions, powers and duties:
(1) To publicize the availability of benefits pursuant to this part
for industrial, commercial and renovation construction work.
(2) To receive and review applications for certificates of
eligibility, issue such certificates where authorized pursuant to
section 11-260 of this part, and record the issuance of such
certificates as prescribed in such section.
(3) To receive evidence of expenditures made for construction, and
where such expenditures do not equal the amount required to qualify for
exemption from or abatement or deferral of tax payments to take
appropriate action, including but not limited to denying, reducing,
suspending, terminating or revoking benefits pursuant to this part.
(4) To enter and inspect property to determine whether it is
industrial or commercial or mixed-use and to determine whether (a) any
such property is being used for any restricted use, or (b) any property
which is the subject of a certificate of eligibility for industrial
construction work is being used as commercial property, or (c) any
industrial or commercial property is being used as residential or
mixed-use property, or (d) all or part of the nonresidential portion of
mixed-use property is being used as residential property.
(5) To collect all real property taxes for which payment is deferred
pursuant to this part.
(6) To collect all real property taxes, with interest, due and owing
as a result of reduction, suspension, termination or revocation of any
exemption from or abatement or deferral of taxes granted pursuant to
this part.
(7) To make and promulgate regulations to carry out the purposes of
this part including, but not limited to, regulations requiring
applicants to publish notice of their applications, defining
manufacturing and commercial activities and specifying the nature of
work for which expenses may be included in the minimum required
expenditure, provided, however, that any regulation increasing the
minimum required expenditure shall not apply to any person who is a
recipient on the effective date of such regulation. Such regulations
shall include a requirement that with respect to the construction work
recipients and their contractors shall be equal opportunity employers
and shall also provide that persons employed in the construction work
shall implement a training program for economically disadvantaged
persons enrolled or eligible to be enrolled in training programs
approved by the department of labor, with particular reference to city
residents.
Section 11-264
§ 11-264 Tax lien; interest rate. a. All taxes plus interest required
to be paid retroactively pursuant to this part shall constitute a tax
lien as of the date it is determined such taxes and interest are owed.
All interest shall be calculated from the date the taxes would have been
due but for the exemption, abatement or deferral claimed pursuant to
this part at three per centum above the applicable rate of interest
imposed by the city generally for non-payment of real property tax on
such date.
b. All taxes for which payment is deferred pursuant to section 11-257
of this part shall constitute a tax lien as of the date they are due and
payable in accordance with the provisions of that section.
Section 11-265
§ 11-265 Penalties for non-compliance, false statements and omissions.
a. The department of finance may deny, reduce, suspend, revoke or
terminate any exemption from or abatement or deferral of tax payments
pursuant to this part whenever:
(1) a recipient fails to comply with the requirements of this part or
the rules and regulations promulgated by the department of finance
pursuant thereto; or
(2) an application, certificate, report or other document delivered by
an applicant or recipient hereunder contains a false or misleading
statement as to a material fact or omits to state any material fact
necessary in order to make the statements therein not false or
misleading, and may declare any applicant or recipient who makes such
false or misleading statement or omission to be ineligible for future
exemption, abatement or deferral pursuant to this part for the same or
other property.
b. Notwithstanding any other law to the contrary, a recipient shall be
personally liable for any taxes owed pursuant to this part whenever such
recipient fails to comply with such law and rules or makes such false or
misleading statement or omission, and the department of finance
determines that such act was due to the recipient's willful neglect, or
that under the circumstances such act constituted a fraud on the
department of finance or a buyer or prospective buyer of the property.
The remedy provided herein for an action in personam shall be in
addition to any other remedy or procedure for the enforcement of
collection of deliquent taxes provided by any general, special or local
law. Any lease provision which obligates a tenant to pay taxes which
become due because of willful neglect or fraud by the recipient, or
otherwise relieve or indemnify the recipient from any personal liability
arising hereunder, shall be void as against public policy except where
the imposition of such taxes or liability is occasioned by actions of
the tenant in violation of the lease.
Section 11-266
§ 11-266 Code violations; suspension of benefits. a. If a court, or
the environmental control board with respect to matters within its
jurisdiction, finds that at the property which is the subject of a
certificate of eligibility there has been a violation of any of the
provisions of the building, fire and air pollution control codes set
forth in subdivision b of this section, all benefits pursuant to such
certificate shall be suspended unless within one hundred eighty days
after the department of finance has sent notice of such finding to the
recipient, and all other persons having a financial interest in the
property who have filed a timely request for such notice in such form as
may be prescribed by the department of finance, the recipient submits to
the department of finance, certification from the department of
buildings, the fire department or the department of environmental
protection respectively that the underlying code violation has been
cured. If the recipient fails to submit the required certification
within the one hundred eighty day period, the period of suspension shall
be effective retroactively to the time of the finding by the court or
the environmental control board. The suspension of benefits shall
continue until the recipient submits to the department of finance the
required certification that the violation has been cured.
If the original finding of violation or the denial of certification is
appealed and a court or appropriate governmental agency finally
determines that the finding of violation or denial of certification was
invalid, any benefits lost pursuant to this section to which the
recipient was entitled shall be restored retroactively.
As applied to a recipient who is eligible for deferral of tax payments
pursuant to subdivision d of section 11-257 of this part, suspension of
benefits shall be deferred by operation of such section and interest at
the rate charged by the department of finance for overdue taxes shall be
charged on the amount of any tax payments already deferred by operation
of such section. The interest charged shall accrue from the beginning of
the period of suspension.
b. The provisions of subdivision a of this section shall apply to
violations of the following provision of the code:
(1) section 27-4260;
(2) section 27-4265;
(3) section 27-4267;
(4) section 27-954;
(5) section 27-339;
(6) subdivision (c) of section 27-353;
(7) paragraph twelve of subdivision (f) of section 27-972;
(8) paragraph ten of subdivision (g) of section 27-972;
(9) subdivision (c) of section 27-975;
(10) subdivision (c) of section 27-989;
(11) the following provisions to the extent applicable to cabarets as
defined in article two of subchapter two of the building code:
(a) section 27-542;
(b) subparagraph d of paragraph two of subdivision (b) of section
27-547;
(c) paragraph three of subdivision (a) of section 27-549;
(d) subdivision (b) of section 27-549;
(12) section 27-127 when the violation concerns an unsafe condition on
a facade of a building which exceeds six stories in height;
(13) section five hundred one of reference standard 13-1;
(14) section one thousand three of reference standard 13-1;
(15) paragraph six of subdivision (b) of section 24-178; and
(16) section 24-185.
Section 11-267
§ 11-267 Annual report. The department of finance shall submit an
annual report to the council, on April first of each year, concerning
the status of the program established pursuant to this part and its
effects in the city, including information on certificates of
eligibility issued and jobs created in each area where benefits are
available.
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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