Chapter 7 - COMMERCIAL RENT OR OCCUPANCY TAX

Section 11-701

Section 11-701

  §  11-701  Definitions.  When used in this chapter the following terms
shall mean or include:
  1. "Person." An individual, partnership, society,  association,  joint
stock  company,  corporation, estate, receiver, assignee, trustee or any
other person acting in a fiduciary  capacity,  whether  appointed  by  a
court or otherwise, and any combination of individuals.
  2. "Landlord." A person who grants the right to use or occupy premises
to  any  lessee,  sublessee,  licensee or concessionaire, whether or not
such person is the owner of the premises.
  3. "Tenant." A person paying or required to pay rent for premises as a
lessee, sublessee, licensee or concessionaire.
  4. "Premises." Any real property or part thereof,  and  any  structure
thereon or space therein.
  5.  "Taxable  premises."  Any  premises  in the city occupied, used or
intended to be occupied or used  for  the  purpose  of  carrying  on  or
exercising  any  trade,  business,  profession,  vocation  or commercial
activity, including any premises so used even though it is  used  solely
for  the purpose of renting, or granting the right to occupy or use, the
same premises in whole or in part to tenants; except premises within the
area leased by the city of  New  York  to  the  New  York  world's  fair
1964-1965  corporation  pursuant to chapter four hundred twenty-eight of
the laws of nineteen hundred sixty, as amended during the period of such
lease.
  6. "Rent." The consideration paid or required to be paid by  a  tenant
for  the use or occupancy of premises, valued in money, whether received
in money or otherwise, including all credits and property or services of
any kind and including any payment required to be made by  a  tenant  on
behalf  of  his  or  her  landlord for real estate taxes, water rents or
charges,  sewer  rents  or  any  other  expenses  (including  insurance)
normally  payable  by a landlord who owns the realty other than expenses
for the improvement, repair or maintenance of the tenant's premises.
  7. "Base rent." The rent paid for each taxable premises by a tenant to
his or her landlord for a period, less the amounts received  by  or  due
such  tenant  for  the  same  period from any tenant of any part of such
premises:
  (i) as rent for premises which constitute  taxable  premises  of  such
tenant  except  where such tenant is exempt from tax thereon pursuant to
subdivision b or paragraph six of subdivision c  of  section  11-704  of
this  chapter;  provided, however, that for tax periods beginning on and
after June first, nineteen hundred eighty-five,  rent  received  or  due
from  a  tenant  exempt  from  tax  thereon pursuant to paragraph two of
subdivision b of section 11-704 of this chapter, as such  paragraph  two
was  in  effect  immediately  prior to its amendment by local law number
fifty-seven for the year nineteen hundred ninety-three, may be  deducted
if  such  tenant  occupies  or  uses  the premises pursuant to a written
agreement made prior to June first, nineteen  hundred  eighty-four,  the
terms  and  conditions  of  which  have not been changed or amended; and
provided, further, that for tax periods  beginning  on  and  after  June
first,  nineteen  hundred  eighty-five,  with respect to a tenant exempt
from tax pursuant to paragraph two of subdivision b of section 11-704 of
this chapter, as such paragraph two was in effect immediately  prior  to
its  amendment  by  local  law  number fifty-seven for the year nineteen
hundred ninety-three, because of the reduction in base rent provided for
in subdivision h of section 11-704 of this chapter, rent received or due
from such tenant may be deducted if such tenant  occupies  or  uses  the
premises  pursuant  to  a  written  agreement  made prior to June first,
nineteen hundred eighty-five, the terms and conditions of which have not
been changed or amended; and provided, further,  that  for  tax  periods

beginning  on  and  after June first, nineteen hundred ninety-four, with
respect to a tenant  exempt  from  tax  pursuant  to  paragraph  two  of
subdivision  b  of  section  11-704  of  this chapter as a result of the
amendment  of such paragraph two by local law number fifty-seven for the
year nineteen hundred ninety-three, whether or not such exemption is due
to the reduction in base rent provided for in subdivision h  of  section
11-704  of  this  chapter,  rent received or due from such tenant may be
deducted if such tenant occupies or uses  the  premises  pursuant  to  a
written   agreement   made   prior   to  June  first,  nineteen  hundred
ninety-three, the terms and conditions of which have not been changed or
amended; and provided, further, that for tax periods  beginning  on  and
after  July twenty-ninth, nineteen hundred eighty-seven, with respect to
a tenant exempt from tax pursuant to paragraph two of subdivision  b  of
section  11-704  of  this  chapter because of the reduction in base rent
provided for in subdivision f of section 11-704 of  this  chapter,  rent
received or due from such tenant may be deducted; and provided, further,
that,  notwithstanding  anything  in this paragraph to the contrary, for
tax  periods  beginning  on  and  after  June  first,  nineteen  hundred
ninety-five,  with  respect  to  a  tenant  exempt  from tax pursuant to
paragraph two of subdivision b of section 11-704 of this chapter,  rents
received or due from such tenant may be deducted;
  (ii) as rent for premises which do not constitute taxable premises and
which  are  used  by  such  tenant  as  lodging  or residential premises
(including such residential premises  in  hotels,  apartment  hotels  or
lodging  houses as defined in former title V of chapter forty-six of the
code);
  (iii) who is exempt from tax under subdivision a of section 11-704  of
this chapter;
  (iv)  as  rent  for  premises which do not constitute taxable premises
where such rent is, or to the extent that such rent is, deductible  from
the  base rent of such tenant by reason of paragraph five of subdivision
c of section 11-704 of this chapter; and
  (v) as rent for premises which do  not  constitute  taxable  premises,
pursuant   to   a   common  law  relationship  of  landlord  and  tenant
(notwithstanding the definition given to those terms by  paragraphs  two
and  three of this section) except where it is received as rent, whether
or not such landlord-tenant relationship exists, for premises which  are
occupied as or constitute:
  (a) a locker, safe deposit box or beach cabana;
  (b)  storage  space  in  part  of  a warehouse or in part of any other
structure or area in which goods are stored;
  (c) garage space or parking space in  any  part  of  a  garage,  of  a
parking lot or of a parking area where the entire garage, entire parking
lot or entire parking area accommodates more than two motor vehicles;
  (d)  an occupancy of a type which customarily has not been the subject
of such a common law relationship of landlord and tenant.
  Nothing contained in this chapter  shall  be  construed  to  permit  a
tenant to deduct the same rent from his or her base rent more than once.
  8.  "Premises  used for railroad transportation purposes." The portion
of any premises of any person actually operating  a  railroad,  used  by
such  person  for  normal or necessary railroad transportation purposes.
The words normal or necessary railroad transportation purposes, as  used
in  this definition, shall not include any activities which are normally
carried on by persons not engaged in furnishing railroad  transportation
service   such   as  the  operation  of  retail  stores,  barber  shops,
restaurants, theatres, hotels, and  newsstands;  nor  shall  such  words
include  any  activities  which  are  not deemed transportation purposes

under sections four hundred eighty-nine-b and four hundred eighty-nine-m
of the real property tax law.
  9. "Premises used for air transportation purposes." The portion of any
premises,  located  within  an  airport  or within an air transportation
terminal shared by more than  one  air  line,  of  any  person  actually
operating  an  air  line  as  a  common carrier, used by such person for
normal or necessary air transportation purposes.  The  words  normal  or
necessary air transportation purposes, as used in this definition, shall
not  include any activities which are normally carried on by persons not
engaged in furnishing air transportation service such as  the  operation
of  retail  stores,  barber  shops,  restaurants,  theatres,  hotels and
newsstands.
  10. "Return." Any return filed or  required  to  be  filed  as  herein
provided other than an information return.
  11.  "Tax  period."  The period for which any return is required to be
filed under this chapter.
  12.  "Tax  year."  June  first  of  any  calendar  year  through   May
thirty-first of the following calendar year.
  13. "Day." A calendar day or any part thereof.
  14. "City." The city of New York.
  15.  "Commissioner  of  finance."  The  commissioner of finance of the
city.
  16. "Comptroller." The comptroller of the city.
  17.  "Dramatic  or  musical  arts  performance."  A   performance   or
repetition  thereof  in a theatre, opera house or concert hall of a live
dramatic performance, whether or not musical in  part.  The  performance
encompassed  by  this  definition  shall  include  so-called  legitimate
theatre plays, musical comedies and operettas. They  shall  not  include
circuses,  ice  skating  shows  or  aquashows;  they  shall  not include
performances of any kind in a roof  garden,  cabaret  or  other  similar
place;  and  they  shall  not  include radio or television performances,
whether or not such performances are prerecorded for later broadcast.
  18. "Premises used for omnibus transportation purposes."  The  portion
of  any  premises  located  within  a  passenger  terminal of any person
actually operating an omnibus line or route as a common carrier, used by
such person for normal or necessary omnibus line or route transportation
purposes.  The  words  normal  or  necessary  omnibus  line   or   route
transportation  purposes,  as used in this definition, shall not include
any activities, which are normally carried on by persons not engaged  in
furnishing  omnibus  line  or  route transportation services such as the
operation of retail stores, barber shops, restaurants, theatres,  hotels
and newsstands.
  19.  "Tax  appeals  tribunal." The tax appeals tribunal established by
section one hundred sixty-eight of the charter.
  20. "Premises used for retail sales purposes." Premises primarily used
for the selling or otherwise disposing or furnishing of  tangible  goods
directly to the ultimate user or consumer.

Section 11-702

Section 11-702

  §  11-702 Imposition of tax. a. (1) For each tax year commencing on or
after June first, nineteen hundred sixty-three and ending on  or  before
May thirty-first, nineteen hundred seventy, every tenant shall pay a tax
of two and one-half per centum of his or her base rent for such tax year
where  his  or  her  base  rent  is not in excess of twenty-five hundred
dollars per year or where his or her base rent is for a period  of  less
than  one  year  and  would not exceed twenty-five hundred dollars for a
year if it were paid on an equivalent basis for an entire year or a  tax
of  five  per centum of his or her base rent for such tax year where his
or her base rent is in excess of twenty-five hundred dollars per year or
where his or her base rent is for a period of less  than  one  year  and
would  exceed  twenty-five  hundred dollars a year if it were paid on an
equivalent basis for an entire year.
  (2) For each tax year commencing on or  after,  June  first,  nineteen
hundred  seventy, every tenant shall pay a tax at the rates shown in the
following tables:

When the annual rent is:   But not more than:    The rate shall be:
0.....................         $2,499            2 1/2% of the rent
$ 2,500 or over.......         $4,999                5% of the rent
$ 5,000 or over.......         $7,999            6 1/4% of the rent
$ 8,000 or over.......        $10,999                7% of the rent
$11,000 and over......                           7 1/2% of the rent

  For  tax  years  embraced  within  the  period  beginning  after   May
thirty-first,    nineteen   hundred   seventy-seven   and   ending   May
thirty-first, nineteen hundred eighty, the tax shall be imposed at rates
equal to ninety percent of the rates shown in the foregoing table.
  For tax years  beginning  after  May  thirty-first,  nineteen  hundred
eighty and ending May thirty-first, nineteen hundred eighty-one, the tax
shall  be  imposed  at  rates  equal to eighty-five percent of the rates
shown in the foregoing table.
  For tax years  beginning  after  May  thirty-first,  nineteen  hundred
eighty-one, the tax shall be imposed at rates equal to eighty percent of
the rates shown in the foregoing table.
  Where  the  rent is for a period of less than one year, the rate shall
be determined by assuming that the rent is on an  equivalent  basis  for
the entire year.
  b.    Nothing  contained  in  this  chapter shall be deemed to require
payment of a double or multiple tax pursuant to this chapter on any part
of any taxable premises.
  c.  Where a tenant pays an undivided rent for premises used  both  for
residential   purposes  and  as  taxable  premises,  the  tax  shall  be
applicable to so much of the rent as is ascribable  to  the  portion  of
such  premises  used  as  taxable  premises.    Where, however, the rent
ascribable to so much of such premises as is used  as  taxable  premises
does  not exceed fifty dollars a month, such rent shall be excluded from
such tenant's base rent.  Nothing contained in this subdivision shall be
construed as indicating an intent to exclude any base rent from the  tax
imposed  by  this  chapter  merely  because  it  is  paid  as part of an
undivided rent for premises which are only  partially  used  as  taxable
premises.
  d.    The  tax imposed by this chapter shall be in addition to any and
all other taxes including the public housing tax imposed by chapter  ten
of this title.
  e.  Nothing contained in this section shall be construed as permitting
base  rent  of  a  tenant  for  one  taxable  premises  to be reduced by

deducting rents received by him or her for another taxable  premises  of
which he or she is also a tenant.

Section 11-703

Section 11-703

  §  11-703  Presumptions and burden of proof. a. For the purpose of the
proper administration of this chapter and to prevent evasion of the  tax
hereby  imposed  it  shall  be  presumed  that  all premises are taxable
premises and that all rent paid or required to be paid by  a  tenant  is
base  rent  until the contrary is established, and the burden of proving
that such presumptive base rent or any portion thereof is  not  included
in  the  measure  of  the  tax  imposed  by this chapter shall be on the
tenant.
  b. Where a tenant uses premises both for residential purposes  and  as
taxable  premises and the tenant pays an undivided rent for the premises
so used, it shall be conclusively presumed against such tenant that  the
rent  ascribable  to  so  much  of  such  premises as is used as taxable
premises shall be the amount which such tenant deducts as rent for  such
premises  in  determining the tenant's federal income tax (as reduced by
any disallowance of such deduction which is not being  contested)  which
is fairly attributable to the tax period or tax year.

Section 11-704

Section 11-704

  §  11-704  Exemptions  and deductions from base rent. a. The following
shall be exempt from the payment of the tax imposed by this chapter:
  1. The state of New York,  or  any  public  corporation  (including  a
public corporation created pursuant to agreement or compact with another
state  or  the  Dominion  of  Canada),  improvement  district  or  other
political subdivision of the state;
  2. The United  States  of  America,  insofar  as  it  is  immune  from
taxation;
  3.  The United Nations or other world-wide international organizations
of which the United States of America is a member;
  4. Any corporation, or association, or trust, or community chest, fund
or  foundation,  organized  and  operated  exclusively  for   religious,
charitable, or educational purposes, or for the prevention of cruelty to
children  or animals, and no part of the net earnings of which inures to
the benefit of any private shareholder or individual and no  substantial
part  of the activities of which is carrying on propaganda, or otherwise
attempting to influence legislation; provided, however, that nothing  in
this  paragraph  shall  include an organization operated for the primary
purpose of carrying on a trade or business for profit,  whether  or  not
all of its profits are payable to one or more organizations described in
this paragraph;
  5.  Any  tenant  who  would  be  subject  to  taxes under this chapter
aggregating not more than one dollar for a tax year with respect to  all
taxable premises used by the tenant; and
  6.  Any tenant located in the "World Trade Center Area," as defined as
follows: 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; running easterly along the center  line  of  Liberty
Street  to  the  intersection  of  Liberty Street and Washington Street;
running southerly along the center line  of  Washington  Street  to  the
intersection  of  Washington  Street and Albany Street; running easterly
along the center line of Albany Street to  the  intersection  of  Albany
Street  and Greenwich Street; running northerly along the center line of
Greenwich Street to Liberty  Street;  and  running  easterly  along  the
center  line of Liberty Street to the intersection of Liberty Street and
Church Street.
  b. (1) A tenant who uses premises for no more than fourteen days in  a
tax year whether or not consecutive, where his or her agreement with his
or  her  landlord  does  not require him or her to pay rent for a longer
period shall be exempt from the payment  of  the  tax  imposed  by  this
chapter in respect to the rent paid by him or her for such premises.
  (2)  A tenant whose base rent, (i) for tax years beginning on or after
June first, nineteen hundred eighty-one and  ending  on  or  before  May
thirty-first,  nineteen  hundred  eighty-four,  is not in excess of four
thousand nine hundred ninety-nine dollars per year,  (ii)  for  the  tax
year  beginning  June first, nineteen hundred eighty-four and ending May
thirty-first, nineteen hundred eighty-five, is not in  excess  of  seven

thousand  nine hundred ninety-nine dollars per year, (iii) for tax years
beginning on or after  June  first,  nineteen  hundred  eighty-five  and
ending  on  or before May thirty-first, nineteen hundred ninety-four, is
not in excess of ten thousand nine hundred ninety-nine dollars per year,
(iv) for the tax year beginning June first, nineteen hundred ninety-four
and  ending  May  thirty-first,  nineteen hundred ninety-five, is not in
excess of twenty thousand nine hundred ninety-nine dollars per year, (v)
for the tax year beginning June first, nineteen hundred ninety-five  and
ending  May  thirty-first, nineteen hundred ninety-six, is not in excess
of thirty thousand nine hundred ninety-nine dollars per year,  (vi)  for
the  tax  year  beginning  June  first,  nineteen hundred ninety-six and
ending May thirty-first, nineteen hundred ninety-seven, is not in excess
of thirty-nine thousand nine hundred ninety-nine dollars per year, (vii)
for tax years  beginning  on  or  after  June  first,  nineteen  hundred
ninety-seven  and ending on or before May thirty-first, two thousand, is
not in excess of ninety-nine thousand nine hundred  ninety-nine  dollars
per  year,  calculated  without  regard  to  any  reduction in base rent
allowed by paragraph two of subdivision h of this  section,  (viii)  for
the  period  beginning  June  first,  two  thousand  and ending November
thirtieth, two thousand, is not in excess of ninety-nine  thousand  nine
hundred  ninety-nine  dollars per year, calculated without regard to any
reduction in base rent allowed by paragraph two of subdivision h of this
section, (ix) for the period beginning December first, two thousand  and
ending  May  thirty-first,  two  thousand  one,  is not in excess of one
hundred forty-nine thousand nine hundred ninety-nine dollars  per  year,
calculated  without  regard  to  any  reduction  in base rent allowed by
paragraph two of subdivision h of this section, and (x)  for  tax  years
beginning  on or after June first, two thousand one, is not in excess of
two hundred forty-nine thousand nine  hundred  ninety-nine  dollars  per
year, calculated without regard to any reduction in base rent allowed by
paragraph two of subdivision h of this section, shall be exempt from the
payment  of  the  tax imposed by this chapter with respect to such rent,
provided, however, that where the base rent of  such  tenant  is  for  a
period of less than one year, such base rent shall, for purposes of this
paragraph,  be  determined  as if it had been on an equivalent basis for
the  entire  year;  and  provided,  further,  that   for   purposes   of
subparagraphs  (viii)  and  (ix)  of  this  paragraph, base rent for the
period specified in each  of  such  subparagraphs  shall  be  separately
annualized  as if it had been on an equivalent basis for an entire year,
irrespective of the actual base rent for  the  tax  year  including  the
period  specified  in  such  subparagraph. Notwithstanding the preceding
sentence, (xi) a tenant whose base rent for the tax year beginning  June
first,   nineteen  hundred  eighty-four  and  ending  May  thirty-first,
nineteen hundred eighty-five, is at least  eight  thousand  dollars  per
year, but not in excess of ten thousand nine hundred ninety-nine dollars
per  year,  shall  be exempt from the payment of the tax imposed by this
chapter with respect to such rent  for  the  period  beginning  December
first,   nineteen  hundred  eighty-four  and  ending  May  thirty-first,
nineteen hundred eighty-five, and (xii) a tenant whose base rent for the
tax year beginning June first, nineteen hundred ninety-five  and  ending
May  thirty-first,  nineteen  hundred ninety-six, is at least thirty-one
thousand dollars per year, but not in  excess  of  thirty-nine  thousand
nine  hundred  ninety-nine  dollars  per  year, shall be exempt from the
payment of the tax imposed by this chapter with respect to such rent for
the period beginning September first, nineteen hundred  ninety-five  and
ending May thirty-first, nineteen hundred ninety-six.

  c.  Base  rent  shall  be reduced by the amount of the taxpayer's rent
for, or  reasonably  ascribable  to,  the  taxpayer's  own  use  of  the
premises:
  1. As premises used for railroad transportation purposes.
  2. As premises used for air transportation purposes.
  3. As piers insofar as such premises are used in interstate or foreign
commerce.
  4.  Which  are  located  in,  upon,  above or under any public street,
highway or  other  public  place,  and  which  are  defined  as  special
franchise property in the real property tax law.
  5.  Which are taxed pursuant to subchapter one of chapter twenty-two-A
or chapter twenty of this title to the extent  that  such  premises  are
subject to, and during the period that they are subject to, such tax.
  6.  Which  are taxed pursuant to subdivision b or c of section 11-1005
of chapter ten of this title.
  7. Which are advertising signs, advertising space, vending machines or
newsstands  within  or  attached  to  stations,  platforms,   stairways,
entranceways,  passageways,  mezzanines  or  tracks  of  a rapid transit
subway or elevated railroad  operated  by  the  New  York  city  transit
authority  when  the  rent  of the tenant or of the tenant's landlord is
payable to such authority.
  8. As premises used for omnibus transportation purposes.
  9. As premises used for retail sales purposes where such premises  are
located in 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  lines  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. Any
tax lot which is partly located inside such area shall be deemed  to  be
entirely located inside such area.
  d.  A  tenant  who  uses  taxable  premises  for renting to others for
residential purposes to the extent of seventy-five per centum or more of
the rentable floor space shall be exempt from the tax  imposed  by  this
chapter in respect to the rent paid for such premises from the time that
construction  thereof  commences, provided, however, that this paragraph
shall not be applicable to hotels, apartment hotels or lodging houses as
defined in former title V of chapter forty-six of the code.
  e. (1) A tenant who uses taxable premises for a  dramatic  or  musical
arts  performance  for less than four weeks where there is no indication
prior to or at  the  time  that  such  performance  commences  that  the
performance  is  intended  to continue for less than four weeks shall be
exempt from the tax imposed by this chapter with  respect  to  the  rent
paid for such taxable premises.
  (2)  (i) Notwithstanding any other provision of law to the contrary, a
tenant who uses taxable premises for the production and performance of a
theatrical work shall be exempt from the tax  imposed  by  this  chapter
with respect to the rent paid for such taxable premises for a period not
exceeding  fifty-two  weeks beginning on the date that the production of
such  theatrical  work   commences,   provided,   however,   that   this

subparagraph  shall  not  apply to any theatrical work the production of
which commenced prior to June first, nineteen hundred ninety-five.
  (ii)  For purposes of this paragraph, the term "theatrical work" shall
mean a performance or repetition thereof in a theater of a live dramatic
performance (whether or not musical in  part)  that  contains  sustained
plots  or recognizable thematic material, including so-called legitimate
theater plays or musicals, dramas, melodramas,  comedies,  compilations,
farces or reviews, provided that such performance is intended to be open
to  the  public for at least two weeks. The term "theatrical work" shall
not include performances of any  kind  in  a  roof  garden,  cabaret  or
similar  place,  circuses, ice skating shows, aqua shows, variety shows,
magic  shows,  animal  acts,  concerts,  industrial  shows  or   similar
performances,  or  radio or television performances, whether or not such
performances are pre-recorded for later broadcast.
  f. (1) A tenant who is an  eligible  business  and  has  obtained  the
certifications  required  by paragraph four of this subdivision shall be
permitted to reduce his or her base  rent  for  particular  premises  to
which  he  or  she  has relocated by an amount determined by multiplying
such base rent by a fraction the numerator of which  is  the  number  of
eligible  aggregate  employment  shares  maintained  by such tenant with
respect to such premises in the tax year for which  such  tenant  claims
the  reduction  and  the  denominator  of which is a number equal to the
number of aggregate employment shares maintained by such tenant in  such
premises  in  the  tax  year  for which such tenant claims the reduction
allowed by this subdivision, provided, however,  that  such  denominator
shall  not  exceed  the  highest  number  of aggregate employment shares
maintained by such tenant in such premises  in  any  of  the  tax  years
described  below  which  commence  prior to or concurrently with the tax
year for  which  such  tenant  claims  the  reduction  allowed  by  this
subdivision: (i) the tax year during which such tenant relocates to such
particular  premises;  and  (ii) each of the three tax years immediately
succeeding the tax year during  which  such  tenant  relocates  to  such
premises. Base rent for a particular premises may be reduced as provided
in  this  subdivision for the tax year during which the tenant relocates
to such premises and for any of the twelve  immediately  succeeding  tax
years  during  which  the tenant maintains eligible aggregate employment
shares with respect to such  premises,  provided,  however,  that  there
shall be no such reduction with respect to base rent for any part of the
tax  year  preceding  the  date  of  relocation  to  such  premises, and
provided, further, however, in the twelfth  succeeding  tax  year  there
shall  be  a  reduction  only  with  respect to base rent for the period
(commencing on the first day of such tax year) equal to  the  difference
between  the  total number of days in the tax year of relocation and the
number of days in such  tax  year  of  relocation  commencing  with  and
following  the  date  of  relocation,  and provided, further, that there
shall be no such reduction with respect  to  premises  used  for  retail
activity or hotel services.
  (2)  (i)  For purposes of this subdivision, the terms "eligible area,"
"eligible aggregate employment shares,"  "relocate,"  "retail  activity"
and  "hotel services" shall have the meanings ascribed by section 22-621
of the code, provided that whenever the term "taxable year"  appears  in
such  section 22-621, such term shall be read as "tax year," as the term
"tax year" is defined in subdivision twelve of section  11-701  of  this
chapter  except  when  the  taxable year referred to is the taxable year
immediately  preceding  the  taxable  year  during  which  such   tenant
relocates.
  (ii)  For  purposes  of this subdivision, the term "eligible business"
shall have the meaning ascribed by section 22-621 of the code,  provided

that  such  term  shall  in addition include any person subject to a tax
imposed under subchapter four of chapter  six  of  this  title  and  any
person  who  is  an  insurance  corporation  as  defined  in section one
thousand  five  hundred  of  the tax law, which: (A) has been conducting
substantial business  operations  at  one  or  more  business  locations
outside  the  eligible  area  for  the  twenty-four  consecutive  months
immediately preceding  the  taxable  year  during  which  such  eligible
business  relocates;  and  (B)  on or after May twenty-seventh, nineteen
hundred eighty-seven relocates all or part of such business  operations;
and  (C)  on  or after May twenty-seventh, nineteen hundred eighty-seven
first enters into a lease for the premises to which it  relocates  or  a
parcel on which will be constructed such premises.
  (3)  The  reduction  allowed  by this subdivision may be claimed on an
estimated basis on the returns filed for the tax periods ending  on  the
last  days  of August, November and February of each year if, and to the
extent, permitted by regulations  promulgated  by  the  commissioner  of
finance.
  (4)  No tenant shall be authorized to receive a reduction in base rent
subject to tax under the  provisions  of  this  subdivision,  until  the
premises  with  respect to which it is claiming a reduction in base rent
meet the requirements in the definition of eligible premises  and  until
it  has  obtained  a  certification  of eligibility from the mayor or an
agency designated by the mayor, and an  annual  certification  from  the
mayor  or an agency designated by the mayor as to the number of eligible
aggregate employment shares maintained by such tenant which may  qualify
for  obtaining  a  base  rent  reduction  for the tenant's tax year. Any
written documentation submitted to the mayor or such agency or  agencies
in  order  to  obtain  any  such certification shall be deemed a written
instrument for purposes of section 175.00 of the penal law.  Application
fees  for  such  certifications shall be determined by the mayor or such
agency or agencies. No certification of eligibility shall be  issued  to
an   eligible   business  on  or  after  July  first,  nineteen  hundred
ninety-nine unless  such  business  meets  the  requirements  of  either
subparagraph (a) or (b) below:
  (a)  (1)  prior  to  such  date such business has purchased, leased or
entered into a contract to purchase or lease particular  premises  or  a
parcel  on which will be constructed such premises or already owned such
premises or parcel;
  (2) prior to such  date  improvements  have  been  commenced  on  such
premises  or  parcel  which  improvements  will meet the requirements of
subdivision (e) of section 22-621 of this code relating to  expenditures
for improvements;
  (3) prior to such date such business submits a preliminary application
for  a  certification  of  eligibility  to  such mayor or such agency or
agencies with respect  to  a  proposed  relocation  to  such  particular
premises; and
  (4) such business relocates to such particular premises not later than
thirty-six  months  or, in a case in which the expenditures made for the
improvements specified in clause two of this subparagraph are in  excess
of  fifty  million  dollars  within  seventy-two months from the date of
submission of such preliminary application; or
  (b) (1) not later than June thirtieth, two thousand two, such business
has purchased, leased or entered into a contract to  purchase  or  lease
particular  premises wholly contained in a building in which at least an
aggregate of forty per centum  or  two  hundred  thousand  square  feet,
whichever is less, of the nonresidential floor area of such building has
been  purchased or leased by a business or businesses which meet or will
meet the requirements of subparagraph (a) of this paragraph with respect

to such floor area and which are or will become certified as eligible to
receive a credit under section 22-622 of this code with respect to  such
floor area;
  (2)  not  later  than  June thirtieth, two thousand two, such business
submits a preliminary application for a certification of eligibility  to
such  mayor  or  such  agency  or  agencies  with  respect to a proposed
relocation to such particular premises; and
  (3) not later than June thirtieth, two  thousand  two,  such  business
relocates to such particular premises.
  Any  tenant subject to a tax imposed under chapter five, or subchapter
two or three of chapter six, of this title obtaining a certification  of
eligibility  pursuant  to  subdivision (b) of section 22-622 of the code
shall be deemed  to  have  obtained  the  certification  of  eligibility
required by this paragraph.
  g.  Whenever  the  rent  paid  by a tenant for his or her occupancy of
taxable premises is measured in whole or in part by the  gross  receipts
from  the  tenant's  sales  within such place, the tenant's rent, to the
extent paid on the basis of such gross receipts, shall be deemed not  to
exceed fifteen percent of such gross receipts.
  h.  (1)  In the case of any taxable premises located in the borough of
Manhattan north of the center line of  ninety-sixth  street  or  in  the
boroughs of the Bronx, Brooklyn, Queens and Staten Island, the base rent
for  such  premises  shall  be  reduced  by  ten  percent for the period
beginning on January first, nineteen hundred eighty-six and  ending  May
thirty-first,  nineteen  hundred eighty-seven, by twenty percent for the
period beginning June first, nineteen hundred  eighty-seven  and  ending
May  thirty-first,  nineteen  hundred eighty-nine, and by thirty percent
for the period beginning June first, nineteen  hundred  eighty-nine  and
ending August thirty-first, nineteen hundred ninety-five, such reduction
to  be made after all other exemptions and deductions authorized by this
chapter have been taken. For periods beginning September first, nineteen
hundred ninety-five and thereafter, a tenant of taxable premises located
in that part of the city specified in the preceding  sentence  shall  be
exempt  from the payment of the tax imposed by this chapter with respect
to the rent for such taxable premises.
  (2) In the case of any taxable premises  located  in  the  borough  of
Manhattan south of the center line of ninety-sixth street, the base rent
for such premises shall be reduced by (i) fifteen percent for the period
beginning  March  first,  nineteen  hundred  ninety-six  and  ending May
thirty-first, nineteen hundred ninety-six, (ii) twenty-five percent  for
the  period beginning June first, nineteen hundred ninety-six and ending
August  thirty-first,   nineteen   hundred   ninety-eight,   and   (iii)
thirty-five  percent  for  periods  beginning  September first, nineteen
hundred ninety-eight and thereafter, such reduction to be made after all
other exemptions and deductions authorized by  this  chapter  have  been
taken.
  i.  (1)  (a)  (i) For purposes of, and to the extent relevant to, this
subdivision, the following terms shall, except to the extent hereinafter
modified, have the definitions assigned to such terms  in  section  four
hundred ninety-nine-a of the real property tax law, and such definitions
shall apply with the same force and effect as if they had been set forth
in  full  in this subdivision: "abatement zone," "aggregate floor area,"
"applicant," "department of finance," "eligible building,"  "eligibility
period,"  "eligible premises," "expansion premises," "expansion tenant,"
"governmental agency," "landlord," "lease commencement date," "mixed-use
building," "new tenant," "person," "relocation area," "renewal  tenant,"
"rent commencement date," "subtenant" and "tenant."

  (ii)  For  purposes  of  this subdivision, the definitions assigned by
clause (i) of  this  subparagraph  to  the  terms  "eligible  premises,"
"expansion  tenant," "landlord," "new tenant" and "renewal tenant" shall
be modified as follows:
  (A)  whenever  the  term  "eligible  building"  appears in any of such
definitions, such term, notwithstanding anything to the contrary,  shall
be  deemed  to  include  an  eligible government-owned building and, for
purposes of subparagraph (b-2) of paragraph two of subdivision i of this
section, a non-residential or mixed-use building located  south  of  the
center  line  of Canal Street in the borough of Manhattan, regardless of
when it  received  its  initial  certificate  of  occupancy  or  initial
temporary  certificate  of  occupancy  and  regardless  of  when  it was
constructed and shall be deemed to include an eligible  government-owned
building; and
  (B)  a reference in any of such definitions to a lease which meets the
eligibility requirements of section four hundred  ninety-nine-c  of  the
real property tax law shall be deemed to include, in the case of a lease
of  premises  in  an  eligible  government-owned building, a lease which
meets  the  eligibility  requirements  of   paragraph   four   of   this
subdivision.
  (b)  When  used in this subdivision, the following terms shall mean or
include:
  (i) "Eligible government-owned building." A building that would be  an
eligible  building,  as  such  term  is  defined in section four hundred
ninety-nine-a of the real property tax law, but for the fact that it  is
owned by a governmental agency.
  (ii)  "Eligible  taxable premises." Taxable premises that are eligible
premises or expansion premises.
  (iii) "Eligible tenant." A tenant  with  respect  to  whose  lease  of
eligible  taxable  premises  there  has  been  issued  a  certificate of
abatement or a certificate of eligibility.
  (iv) "Base year." The twelve-month period that commences on  the  rent
commencement date.
  (v)  "Base  rent  for the base year." The total base rent for eligible
taxable premises for the base year, determined  without  regard  to  the
special reduction allowed by this subdivision.
  (vi)  "Certificate  of abatement." The certificate of abatement issued
pursuant to section four hundred ninety-nine-d of the real property  tax
law.
  (vii)  "Certificate  of  eligibility."  The certificate of eligibility
issued pursuant to paragraph five of this subdivision.
  (2) (a) An eligible tenant  of  eligible  taxable  premises  shall  be
allowed  a  special  reduction  in determining the taxable base rent for
such eligible taxable premises. Such special reduction shall be  allowed
with respect to the rent for such eligible taxable premises for a period
not  exceeding sixty months or, with respect to a lease commencing on or
after April first, nineteen hundred ninety-seven with an  initial  lease
term  of  less  than  five  years,  but not less than three years, for a
period  not  exceeding  thirty-six  months,  commencing  on   the   rent
commencement   date   applicable  to  such  eligible  taxable  premises,
provided, however, that in no  event  shall  any  special  reduction  be
allowed  for any period beginning after March thirty-first, two thousand
twenty. For purposes of applying such special reduction, the  base  rent
for  the base year shall, where necessary to determine the amount of the
special reduction allowable with respect to any number of months falling
within a tax period, be prorated by dividing the base rent for the  base
year by twelve and multiplying the result by such number of months.

  (a-1)  Notwithstanding paragraph one of this subdivision, for purposes
of, and to the extent relevant to, the special reduction allowed by this
subparagraph,  the  definitions  set  forth  in  section  four   hundred
ninety-nine-aa  of  the  real property tax law shall apply with the same
force  and  effect  as  if  they  had  been  set  forth  in full in this
subdivision, except as such definitions  are  hereinafter  modified.  An
eligible  tenant of eligible taxable premises shall be allowed a special
reduction in determining the taxable base rent for such eligible taxable
premises, provided, however, that (i) such eligible taxable premises are
eligible premises as defined in paragraph  (c)  of  subdivision  ten  of
section  four  hundred ninety-nine-aa of the real property tax law, (ii)
such eligible taxable premises are located in the special garment center
district identified in the abatement zone defined in  paragraph  (c)  of
subdivision  two  of  section  four  hundred  ninety-nine-aa of the real
property tax law, (iii) the lease for  such  eligible  taxable  premises
commences within the eligibility period applicable to the abatement zone
defined  in  paragraph  (c)  of  subdivision two of section four hundred
ninety-nine-aa of the real property tax law, (iv)  the  lease  for  such
eligible  taxable  premises  has an initial lease term of at least three
years and (v) such special reduction is limited to the  benefit  period,
as defined in subdivision five of section four hundred ninety-nine-aa of
the  real property tax law, applicable to a lease commencing on or after
July first, two thousand five for eligible premises located  within  the
abatement  zone  defined  in paragraph (c) of subdivision two of section
four hundred ninety-nine-aa of the real property tax law.
  (a-2) The amount of the  special  reduction  allowed  by  subparagraph
(a-1) of this paragraph shall be determined as follows:
  (i)  For  the  base year the amount of such special reduction shall be
equal to the base rent for the base year.
  (ii) For the first through ninth twelve-month  periods  following  the
base  year  the  amount  of such special reduction shall be equal to the
lesser of (A) the base rent for each such twelve-month period or (B) the
base rent for the base year.
  (a-3) When used in this  subdivision,  for  purposes  of  the  special
reduction allowed by subparagraph (a-1) of this paragraph, the following
terms shall mean or include:
  (i)  "Eligible  taxable  premises." Taxable premises that are eligible
premises or expansion premises.
  (ii) "Eligible tenant." A  tenant  with  respect  to  whose  lease  of
eligible  taxable  premises  there  has  been  issued  a  certificate of
abatement.
  (iii) "Base year." The twelve-month period that commences on the  rent
commencement date.
  (iv)  "Base  rent for the base year." The total base rent for eligible
taxable premises for the  base  year,  determined  without  the  special
reduction allowed by subparagraph (a-1) of this paragraph.
  (v)  "Certificate  of  abatement." The certificate of abatement issued
pursuant to section four hundred ninety-nine-dd of the real property tax
law.
  (b) Except as provided  in  subparagraphs  (b-1)  and  (b-2)  of  this
paragraph,   the  amount  of  the  special  reduction  allowed  by  this
subdivision shall be determined as follows:
  (i) For the base year the amount of such special  reduction  shall  be
equal to the base rent for the base year.
  (ii)  For the first and second twelve-month periods following the base
year the amount of such special reduction shall be equal to  the  lesser
of  (A)  the base rent for each such twelve-month period or (B) the base
rent for the base year.

  (iii) For the third twelve-month period following the  base  year  the
amount  of  such  special  reduction shall be equal to two-thirds of the
lesser of (A) the base rent for such twelve-month period or (B) the base
rent for the base year.
  (iv)  For  the  fourth twelve-month period following the base year the
amount of such special reduction shall be  equal  to  one-third  of  the
lesser of (A) the base rent for such twelve-month period or (B) the base
rent for the base year.
  (b-1)  The amount of the special reduction allowed by this subdivision
with respect to a lease commencing on or  after  April  first,  nineteen
hundred ninety-seven with an initial lease term of less than five years,
but not less than three years, shall be determined as follows:
  (i)  For  the  base year the amount of such special reduction shall be
equal to the base rent for the base year.
  (ii) For the first twelve-month period following  the  base  year  the
amount  of  such  special  reduction shall be equal to two-thirds of the
lesser of (A) the base rent for such twelve-month period or (B) the base
rent for the base year.
  (iii) For the second twelve-month period following the base  year  the
amount  of  such  special  reduction  shall be equal to one-third of the
lesser of (A) the base rent for such twelve-month period or (B) the base
rent for the base year.
  (b-2) The amount of the special reduction allowed by this  subdivision
with  respect  to  a lease other than a sublease commencing between July
first, two thousand five and June thirtieth, two thousand thirteen  with
an  initial  or  renewal  lease  term  of  at  least five years shall be
determined as follows:
  (i) For the base year the amount of such special  reduction  shall  be
equal to the base rent for the base year.
  (ii)  For  the  first,  second,  third and fourth twelve-month periods
following the base year the amount of such special  reduction  shall  be
equal  to  the  lesser  of  (A) the base rent for each such twelve-month
period or (B) the base rent for the base year.
  (c) For purposes of determining (i) whether a tenant is,  pursuant  to
the provisions of paragraph two of subdivision b of this section, exempt
from payment of the tax imposed by this chapter with respect to the base
rent  for  eligible  taxable premises or (ii) whether, and the extent to
which, a tenant is eligible for  the  credit  allowed  pursuant  to  the
provisions  of section 11-704.3 of this chapter with respect to eligible
taxable premises, the term "base rent" as used in such provisions  shall
be  the  base  rent  as determined prior to the allowance of any special
reduction allowed by this subdivision.
  (d) Notwithstanding anything to the contrary,  for  purposes  of  this
subdivision,  expansion  premises  shall  be  treated  as  separate  and
distinct from any other premises of the expansion  tenant  in  the  same
eligible building.
  (3) The special reduction allowed by this subdivision shall be allowed
commencing  on  the  rent commencement date; however, if the date of the
certificate of abatement or certificate of eligibility is later than the
rent commencement date, the tenant shall not,  in  the  first  instance,
claim the special reduction on any return required to be filed for a tax
period  ending  prior  to  the  date of such certificate of abatement or
certificate of eligibility. If the date of such certificate of abatement
or certificate of eligibility falls in a tax period  subsequent  to  the
tax  period  in  which  the  rent commencement date falls, but both such
dates fall within the same tax year, the special reduction that was  not
claimed  in the first instance for any period preceding the date of such
certificate  of  abatement  or  certificate  of  eligibility  shall   be

reflected  in  the  final  return  for  the tax year. If the date of the
certificate of abatement or certificate of eligibility falls in the  tax
year  following  the tax year in which the rent commencement date falls,
an  amended  final  return  shall  be filed for such earlier tax year in
which shall be reflected any special reduction allowable  for  such  tax
year;  in  addition,  the  final  return  for  such later tax year shall
reflect any special reduction that was not claimed in the first instance
for any period in such tax year preceding the date of the certificate of
abatement or certificate of eligibility.
  (4)  (a)  With  respect   to   premises   located   in   an   eligible
government-owned  building,  no special reduction shall be allowed under
this subdivision unless:
  (i) the landlord enters into a lease for eligible premises with a  new
tenant or a renewal tenant and:
  (A) the lease commencement date is within the eligibility period; and
  (B)  (I) if, by the sixtieth day following the rent commencement date,
such new or renewal tenant employs  fifty  or  fewer  employees  in  the
eligible  premises,  the  initial lease term is for a period of at least
five years, provided, however, that with respect to a  lease  commencing
on  or after July first, nineteen hundred ninety-six if, by the sixtieth
day following the rent commencement date, such  new  or  renewal  tenant
employs  one  hundred  twenty-five  or  fewer  employees in the eligible
premises, the initial lease term is for a period of at least five years,
and provided, further, that with respect to a  lease  commencing  on  or
after April first, nineteen hundred ninety-seven if, by the sixtieth day
following the rent commencement date, such new or renewal tenant employs
one hundred twenty-five or fewer employees in the eligible premises, the
initial  lease term is for a period of at least three years, or (II) if,
by the sixtieth day following the rent commencement date,  such  new  or
renewal  tenant  employs  more  than  fifty  employees  in  the eligible
premises, the initial lease term is for a period of at least ten  years,
provided,  however,  that with respect to a lease commencing on or after
July  first,  nineteen  hundred  ninety-six  if,  by  the  sixtieth  day
following the rent commencement date, such new or renewal tenant employs
more  than  one  hundred twenty-five employees in the eligible premises,
the initial lease term is for a period of at least ten years; or
  (ii) the landlord enters into a lease with  an  expansion  tenant  for
expansion premises and:
  (A) the lease commencement date is within the eligibility period;
  (B)  if  the  expansion  premises are located in the eligible building
previously occupied by such expansion tenant, the  lease  term  for  the
premises  in the eligible building previously occupied by such expansion
tenant will expire no earlier than the expiration date  of  the  initial
lease  term  for  the  expansion  premises,  provided  that  where  such
expansion tenant occupies premises in the eligible building  under  more
than  one  lease,  the  foregoing  provision  of this subclause shall be
applied with reference to the lease  for  the  premises  containing  the
largest  amount  of  square feet, provided, however, that this subclause
shall not apply to a lease commencing on or after July  first,  nineteen
hundred ninety-six; and
  (C)  (I) if, by the sixtieth day following the rent commencement date,
such expansion tenant employs fifty or fewer employees in  the  eligible
building  in which the expansion premises are located, the initial lease
term for the expansion premises is for a period of at least five  years,
provided,  however,  that with respect to a lease commencing on or after
July  first,  nineteen  hundred  ninety-six  if,  by  the  sixtieth  day
following  the rent commencement date, such expansion tenant employs one
hundred twenty-five or fewer employees in the  expansion  premises,  the

initial  lease  term  for  the  expansion premises is for a period of at
least five years, and provided, further, that with respect  to  a  lease
commencing on or after April first, nineteen hundred ninety-seven if, by
the  sixtieth  day  following the rent commencement date, such expansion
tenant employs  one  hundred  twenty-five  or  fewer  employees  in  the
expansion premises, the initial lease term for the expansion premises is
for  a  period  of at least three years, or (II) if, by the sixtieth day
following the rent commencement date, such expansion tenant employs more
than fifty employees in such eligible building, the initial  lease  term
for  the  expansion  premises  is  for  a  period of at least ten years,
provided, however, that with respect to a lease commencing on  or  after
July  first,  nineteen  hundred  ninety-six  if,  by  the  sixtieth  day
following the rent commencement date, such expansion tenant employs more
than one hundred twenty-five employees in the  expansion  premises,  the
initial  lease  term  for  the  expansion premises is for a period of at
least ten years.
  (b) Notwithstanding anything in this subdivision to the contrary, with
respect to premises located in an eligible government-owned building, no
certificate of eligibility shall be  issued  and  no  special  reduction
shall be allowed under this subdivision if:
  (i)  the  tenant  has  relocated to such premises from any area in the
borough of Manhattan north of the center line of 96th street or from any
portion of the boroughs  of  the  Bronx,  Brooklyn,  Queens,  or  Staten
Island; or
  (ii)  the  lease  for  such  premises provides that during the initial
lease term required under subparagraph (a) of this paragraph either  the
landlord  or the tenant may terminate such lease prior to the expiration
of such required initial  lease  term,  provided  that  such  lease  may
provide  that either the landlord or the tenant may terminate such lease
if (A) the other party is in default of any of such party's  obligations
under  the  lease, (B) the eligible premises are damaged or destroyed by
fire or other casualty, (C) the eligible premises are rendered  unusable
for  any  reason not attributable to any act or failure to act of either
tenant or landlord or (D) the eligible premises are acquired by  eminent
domain.
  (c)  For  purposes  of  this paragraph, the expiration date of a lease
shall be determined by the expiration date  set  forth  in  such  lease,
without  giving  effect  to  any rights of the landlord or the tenant to
terminate such lease prior to the expiration date set forth therein.
  (5)  (a)  (i)  With  respect  to  premises  located  in  an   eligible
government-owned   building,   an   application  for  a  certificate  of
eligibility entitling a tenant to claim the special reduction allowed by
this subdivision shall be filed by such tenant with  the  department  of
finance  on  or  after  the  date  on  which  the lease for the eligible
premises is executed by the landlord and tenant but  in  no  event  more
than   one   hundred  eighty  days  following  the  later  of  the  rent
commencement date or the date that chapter four of the laws of  nineteen
hundred ninety-five became a law, and no such certificate of eligibility
shall be issued unless such application is filed within such time.
  (ii)  Notwithstanding  clause  (i)  of this subparagraph and any other
provision of law to the contrary, with respect to a lease commencing  on
or  after July first, nineteen hundred ninety-six in premises located in
an eligible government-owned building, an application for a  certificate
of eligibility entitling a tenant to claim the special reduction allowed
by this subdivision shall be filed by such tenant with the department of
finance  on  or  after  the  date  on  which  the lease for the eligible
premises is executed by the landlord and tenant but  in  no  event  more
than  one  hundred  eighty  days following the rent commencement date or

sixty days following the date that the chapter of the laws  of  nineteen
hundred  ninety-seven  that added this clause became a law, whichever is
later, and no such certificate of eligibility  shall  be  issued  unless
such application is filed within such time.
  (b) In addition to any other information required by the department of
finance, such application for a certificate of eligibility shall include
(i)  an  abstract  of the lease for the eligible taxable premises, which
shall include the lease commencement date, the  rent  commencement  date
and the expiration date of such lease, (ii) a statement as to the number
of  persons employed by the tenant in the eligible taxable premises and,
where applicable, in the eligible building containing such premises,  by
the sixtieth day following the rent commencement date, (iii) a statement
as to the location of all office or retail space in the city occupied by
the  tenant prior to the execution of the lease for the eligible taxable
premises and the commencement and expiration dates  of  all  leases  for
such  office  or  retail  space  located  in  the  abatement  zone. Such
application shall also state that the tenant agrees to comply  with  and
be  subject  to  such  rules  as  may be issued from time to time by the
department of finance.
  (c) The department of finance shall issue a certificate of eligibility
upon determining that an application filed pursuant  to  this  paragraph
meets the requirements set forth in this subdivision, provided, however,
that  no such certificate of eligibility shall be issued if any payments
in lieu of taxes, water or sewer charges or other lienable  charges  are
due and owing with respect to such eligible government-owned building at
the  time  such  application is pending, unless such payments in lieu of
taxes or charges are at such time  being  paid  in  timely  installments
pursuant  to a written agreement with the department of finance or other
appropriate agency.
  (d) The burden of proof shall be on the tenant to show  by  clear  and
convincing  evidence that the requirements for granting a certificate of
eligibility have been satisfied. The department of  finance  shall  have
the authority to require that statements in connection with applications
pursuant to this paragraph be made under oath.
  (e)  The  department of finance may provide by rule for the payment by
tenants of premises in eligible government-owned buildings of reasonable
administrative  charges  or  fees  necessary  to  defray   expenses   in
connection  with the determination of initial and continuing eligibility
for the special reduction allowed by this subdivision.
  (6) (a) If an eligible tenant (i) sublets any portion of the  eligible
taxable premises to any other person, or (ii) otherwise ceases to occupy
or  use  any  portion of the premises as eligible taxable premises, such
tenant shall, immediately upon the occurrence of any such  event,  cease
to  be  eligible  for  the special reduction allowed by this subdivision
with respect to the portion of the premises which  is  sublet  or  which
ceases  to  be  occupied  or  used  by  such  tenant as eligible taxable
premises, and for any period following the occurrence of any such event,
the special reduction otherwise allowed by  this  subdivision  shall  be
reduced  by  an  amount  determined  by  multiplying  the amount of such
special reduction by the percentage of the premises which is  sublet  or
which  has  ceased  to be occupied or used as eligible taxable premises.
Such tenant shall give written notice of  the  occurrence  of  any  such
event  to  the  department of finance within thirty days thereof. If the
tenant fails to give such notice, an assessment of  any  additional  tax
that  may become due as a result of the occurrence of any such event may
be made at any time, notwithstanding anything in section 11-717 of  this
chapter to the contrary.

  (b) Notwithstanding anything in this chapter to the contrary, a tenant
claiming  the special reduction allowed by this subdivision shall file a
return for each tax period with respect to which such special  reduction
is  claimed.  Each  such  return  shall  contain  a certification by the
tenant,  in such form as the department of finance may prescribe, to the
effect that such tenant meets all the requirements of this  subdivision,
and  no  special  reduction  shall  be  allowed  if such return does not
contain such certification by such tenant.
  (c) If any  special  reduction  allowed  under  this  subdivision  was
obtained  by  a  tenant as a result of having made a false or misleading
statement as to a material fact or having omitted to state any  material
fact  necessary in order to make such statement not false or misleading,
no such special reduction shall be allowed and any additional  tax  that
becomes  due  as  a  result  of such disallowance may be assessed at any
time, notwithstanding anything in section 11-717 of this chapter to  the
contrary.  In  addition,  the department of finance may declare any such
tenant to be ineligible  to  claim  any  special  reduction  under  this
subdivision  in  the  future  with  respect  to  the  same  or any other
premises.
  7.  A  determination  by  the  department  of  finance   pursuant   to
subdivision  six  of  section  four  hundred  ninety-nine-f  of the real
property tax law to deny, terminate or revoke any abatement applied  for
or  granted  pursuant to title four of article four of the real property
tax law based on the relationship between the landlord  and  the  tenant
shall  not  be  dispositive  of  whether  such  tenant is eligible for a
special reduction under this subdivision. The department of finance  may
determine  that  such  tenant  is eligible for a special reduction under
this subdivision and may issue a  certificate  of  eligibility  to  such
tenant  in  accordance with the procedures and pursuant to the standards
applicable  to  a  tenant   of   premises   located   in   an   eligible
government-owned building, provided, however, that any application filed
pursuant  to  paragraph  five  of  this  subdivision  by  a tenant whose
application for a certificate of abatement pursuant  to  title  four  of
article  four  of the real property tax law was denied by the department
of  finance  pursuant  to  subdivision  six  of  section  four   hundred
ninety-nine-f  of  the  real  property tax law based on the relationship
between the landlord and the tenant, or by a  tenant  whose  application
for a certificate of abatement pursuant to title four of article four of
the  real property tax law was granted by the department of finance, but
whose abatement was terminated or revoked by the department  of  finance
pursuant to subdivision six of section four hundred ninety-nine-f of the
real property tax law based on the relationship between the landlord and
the  tenant,  may  be  deemed  by the department of finance to have been
filed on the date the application for such certificate of abatement  was
filed.  This paragraph shall only apply to leases commencing on or after
April first, nineteen hundred ninety-seven.

Section 11-704.2

Section 11-704.2

  §  11-704.2  Special credit. A tenant whose base rent for the tax year
beginning June first,  nineteen  hundred  ninety-three  and  ending  May
thirty-first,  nineteen  hundred ninety-four is at least eleven thousand
dollars per year but not in excess of  thirteen  thousand  nine  hundred
ninety-nine  dollars  per year shall be allowed a credit against the tax
imposed by this chapter for such tax year, such credit shall be equal to
twenty-five percent of the tax imposed on such base rent  for  such  tax
year.  Where  the base rent of a tenant is for a period of less than one
year, such base rent shall, for purposes of this section, be  determined
as if it had been on an equivalent basis for the entire year. The credit
allowed  under  this section shall be deducted prior to the deduction of
any credit allowable under section 11-704.1 of this chapter.

Section 11-704.3

Section 11-704.3

  §  11-704.3  Tax  credit.  (a)  (1) For the period beginning September
first,  nineteen  hundred  ninety-five  and  ending  May   thirty-first,
nineteen  hundred  ninety-six, a credit shall be allowed against the tax
imposed by this chapter, such credit to be determined in accordance with
the following table:

If the tenant's annualized           The credit shall be an amount equal
base rent for such period is:        to the following  percentage of the
                                     tax imposed on such annualized base
                                     rent for such period:
At least:                But not over:
$40,000                  $44,999                  80%
$45,000                  $49,999                  60%
$50,000                  $54,999                  40%
$55,000                  $59,999                  20%

  If  the  tenant's  annualized  base  rent  for  such  period  is  over
fifty-nine thousand nine hundred ninety-nine dollars, no credit shall be
allowed under this paragraph.
  (2) For the tax year beginning June first, nineteen hundred ninety-six
and  ending  May  thirty-first,  nineteen hundred ninety-seven, a credit
shall be allowed against the tax imposed by this chapter, such credit to
be determined in accordance with the following table:

If the tenant's base rent is:        The credit shall be an amount equal
                                     to the  following percentage of the
                                     tax imposed  on such  base rent for
                                     the tax year:
At least:                But not over:
$40,000                  $44,999                  80%
$45,000                  $49,999                  60%
$50,000                  $54,999                  40%
$55,000                  $59,999                  20%

  If the tenant's base rent is over  fifty-nine  thousand  nine  hundred
ninety-nine dollars, no credit shall be allowed under this paragraph.
  (3)  For  each  tax  year  beginning  on or after June first, nineteen
hundred ninety-seven and ending  on  or  before  May  thirty-first,  two
thousand,  a  credit  shall  be  allowed against the tax imposed by this
chapter, such credit to be determined in accordance with  the  following
table:

If the tenant's base rent is:        The credit shall be an amount equal
                                     to the following  percentage of the
                                     tax imposed by this chapter for the
                                     tax year:
At least:                But not over:
$100,000                 $109,999                 80%
$110,000                 $119,999                 60%
$120,000                 $129,999                 40%
$130,000                 $139,999                 20%

  If  the  tenant's  base  rent is over one hundred thirty-nine thousand
nine hundred ninety-nine dollars, no credit shall be allowed under  this
paragraph.  For  purposes  of  this  paragraph,  'base  rent'  shall  be
calculated without regard to any  reduction  in  base  rent  allowed  by
paragraph two of subdivision h of section 11-704 of this chapter.

  (4)  For  the  period  beginning  June  first, two thousand and ending
November thirtieth, two thousand, a credit shall be allowed against  the
tax  imposed by this chapter, such credit to be determined in accordance
with the following table:

If the tenant's annualized           The credit shall be an amount equal
base rent for such period is:        to the following percentage of the
                                     tax imposed on such annualized base
                                     rent for such period:
At least:                But not over:
$100,000                 $109,999                 80%
$110,000                 $119,999                 60%
$120,000                 $129,999                 40%
$130,000                 $139,999                 20%

  If  the  tenant's  annualized  base  rent  for such period is over one
hundred thirty-nine thousand nine hundred ninety-nine dollars, no credit
shall be allowed under this paragraph. For purposes  of  this  paragraph
'base  rent' shall be calculated without regard to any reduction in base
rent allowed by paragraph two of subdivision h of section 11-704 of this
chapter.
  (5) For the period beginning December first, two thousand  and  ending
May  thirty-first,  two  thousand one, a credit shall be allowed against
the tax imposed by  this  chapter,  such  credit  to  be  determined  in
accordance with the following table:

If the tenant's annualized           The credit shall be an amount equal
base rent for such period is:        to the following percentage of the
                                     tax imposed on such annualized base
                                     rent for such period:
At least:                But not over:
$150,000                 $159,999                 80%
$160,000                 $169,999                 60%
$170,000                 $179,999                 40%
$180,000                 $189,999                 20%

  If  the  tenant's  annualized  base  rent  for such period is over one
hundred eighty-nine thousand nine hundred ninety-nine dollars, no credit
shall be allowed under this paragraph. For purposes of  this  paragraph,
'base  rent' shall be calculated without regard to any reduction in base
rent allowed by paragraph two of subdivision h of section 11-704 of this
chapter.
  (6) For each tax year beginning on or after June first,  two  thousand
one,  a  credit shall be allowed against the tax imposed by this chapter
as follows: a tenant whose base rent is at least two hundred  and  fifty
thousand  dollars but not more than three hundred thousand dollars shall
be allowed a credit in an amount determined  by  multiplying  three  and
nine-tenths percent of base rent by a fraction the numerator of which is
three  hundred  thousand  dollars  minus the amount of base rent and the
denominator of which is fifty thousand dollars.  If  the  tenant's  base
rent  is over three hundred thousand dollars, no credit shall be allowed
under this paragraph. For purposes of this paragraph, 'base rent'  shall
be  calculated  without  regard to any reduction in base rent allowed by
paragraph two of subdivision h of section 11-704 of this chapter.
  (b) (1) Where the base rent of a tenant is for a period of  less  than
one  year,  such  base  rent  shall,  for  purposes  of this section, be
determined as if it had been on an equivalent basis for the entire year.
The credits allowed under this section shall be deducted  prior  to  the

deduction  of  any  credit  allowable  under  section  11-704.1  of this
chapter.
  (2)  For  purposes  of  paragraphs four and five of subdivision (a) of
this section, base rent  for  the  period  specified  in  each  of  such
paragraphs  shall  be  separately  annualized  as  if  it had been on an
equivalent basis for an entire year, irrespective  of  the  actual  base
rent for the tax year including the period specified in such paragraph.

Section 11-705

Section 11-705

  §  11-705 Returns.   a. Every tenant subject to tax under this chapter
shall file with the commissioner of finance a return with respect to the
taxes payable for the three month periods ending on  the  last  days  of
August,  November  and  February  of  each  year and a final return with
respect to the taxes payable for the tax year ending on the last day  of
May  of  each year.  Such returns shall be filed within twenty days from
the expiration of the period covered thereby. A  tenant  who  is  exempt
from  the  tax  by  reason  of paragraph two of subdivision b of section
11-704 of this chapter shall nevertheless be required to  file  a  final
return, provided, however, that for tax years beginning on or after June
first,  nineteen  hundred  ninety-five  and  ending  on  or  before  May
thirty-first, nineteen hundred ninety-seven, no such final return  shall
be  required from such exempt tenant with respect to taxable premises if
(1) the tenant's rent for such premises, determined  without  regard  to
any  deduction  from  or  reduction in rent or base rent allowed by this
chapter, does not exceed fifteen thousand dollars for the tax  year  and
(2)  in the case of a tenant who has more than one taxable premises, the
aggregate rents for all such premises, determined without regard to  any
deduction  from  or  reduction  in  rent  or  base  rent allowed by this
chapter, do not exceed fifteen thousand dollars for the  tax  year.  For
tax  years  beginning  on  June first, nineteen hundred ninety-seven and
ending on or before May thirty-first, two thousand one,  no  such  final
return  shall  be  required  from such exempt tenant with respect to any
taxable premises if (1) the tenant's rent for such premises,  determined
without  regard  to any deduction from or reduction in rent or base rent
allowed by this chapter, does not exceed seventy-five  thousand  dollars
for  the  tax  year  and (2) the amount of rent received or due from any
subtenant of such exempt tenant with respect to such premises  does  not
exceed  seventy-five  thousand  dollars  for the tax year. For tax years
beginning on or after June first, two thousand one, no such final return
shall be required from such exempt tenant with respect  to  any  taxable
premises  if (1) the tenant's rent for such premises, determined without
regard to any deduction from or reduction in rent or base  rent  allowed
by  this  chapter,  does not exceed two hundred thousand dollars for the
tax year and (2) the amount of rent received or due from  any  subtenant
of  such exempt tenant with respect to such premises does not exceed two
hundred thousand dollars for the tax year. Notwithstanding  anything  in
this  subdivision to the contrary, for tax periods beginning on or after
September first,  nineteen  hundred  ninety-five,  no  return  shall  be
required  pursuant  to  this  subdivision  with  respect  to any taxable
premises located in that part of the city specified in paragraph one  of
subdivision  h  of  section  11-704 of this chapter, and no such taxable
premises shall be taken into account for purposes of clause two  of  the
preceding  sentence.  The  commissioner of finance may permit or require
returns (including final returns) to be made for other periods and  upon
such  dates  as  the  commissioner may specify and if he or she deems it
necessary, in order to insure the payment of the  tax  imposed  by  this
chapter,  the  commissioner  may  require  such  returns  to be made for
shorter periods than those prescribed by  the  foregoing  provisions  of
this section, and upon such dates as he or she may specify.
  b. The commissioner of finance may by regulation require the filing of
information  returns  and  supplemental information returns by landlords
and by tenants of taxable premises, whether or not they are required  to
pay the tax imposed by this chapter, upon such dates or at such times as
the  commissioner  may  specify  if  he  or she deems the filing of such
information returns necessary for proper administration of this chapter.
  c. The form of returns and information returns shall be prescribed  by
the  commissioner  of  finance and shall contain such information as the

commissioner may deem necessary for the proper  administration  of  this
chapter.  The  commissioner  of  finance  may require amended returns or
amended information returns to be filed within twenty days after  notice
and to contain the information specified in the notice.
  d.  If  a return or information return is not filed, or if a return of
any kind when filed is  incorrect  or  insufficient  on  its  face,  the
commissioner  of  finance  shall take the necessary steps to enforce the
filing of such a return or of a corrected return.

Section 11-706

Section 11-706

  §  11-706  Payment of tax. a. The tax imposed by this chapter shall be
due and payable on or before the twentieth day  of  the  calendar  month
following  the  end  of  each  tax  period  and  shall  be  paid  to the
commissioner of finance, as follows: The tax to be  paid  at  such  time
shall  be based on the base rent for such tax period and the rate of tax
shall be the one which would be applicable if the  base  rent  for  such
period  were  the  same  for each tax period during the tax year, except
that the payment required to be made together with the final  return  or
at the time that the final return should be filed shall be the amount by
which  the  actual  tax  for the tax year exceeds the amounts previously
paid for the tax year.
  b. Where the final return shows that the amount of tax  paid  for  the
tax  year  exceeds  the  actual  tax  for such year, the commissioner of
finance shall make the  appropriate  refund  as  promptly  as  possible,
provided,  however, that where the commissioner of finance has reason to
believe that the  final  return  is  inaccurate,  the  commissioner  may
withhold the refund in whole or in part. The making of a refund pursuant
to  this  subdivision shall not prevent the commissioner of finance from
making a determination that additional tax is due or from  pursuing  any
other  method  to  recover the full amount of the actual tax due for the
tax year.
  c. Where a tenant ceases to do business the tax, as  measured  by  the
tenant's  base  rent  for  the  prior part of the tax year, shall be due
immediately, and the tenant shall file a final return, but,  should  the
tenant  continue  to pay rent for the taxable premises, the tenant shall
file the normally required returns and a final return for the tax  year,
provided,  however,  that  any  such  tax  payment  shall  be applied in
reduction of the tax payments required to be made with such  returns  or
with the final return for such tax year.

Section 11-707

Section 11-707

  §  11-707  Records  to be kept. Every landlord of taxable premises and
every tenant of taxable premises shall keep records  of  rent  paid  and
received  by  him or her in such form as the commissioner of finance may
by regulation require, all leases or agreements which fix the  rents  or
rights  of tenants of taxable premises, and such other records, receipts
and other papers relevant to the ascertainment of the tax due under this
chapter as the commissioner of finance may by regulation  require.  Such
records shall be offered for inspection and examination at any time upon
demand  by  the  commissioner  of  finance.  Such  records,  unless  the
commissioner of finance consents to a  sooner  destruction  or  requires
that  they be kept for a longer time, shall be preserved for a period of
three years except that leases or agreements  which  fix  the  rents  or
rights  of  a tenant shall be kept for a period of three years after the
expiration of the tenancy thereunder.

Section 11-708

Section 11-708

  § 11-708 Determination of tax. If a return required by this chapter is
not  filed,  or if a return when filed is incorrect or insufficient, the
commissioner of finance shall determine the amount of tax due from  such
information as may be obtainable and, if necessary, may estimate the tax
on  the basis of external indices. Notice of such determination shall be
given  to  the  person  liable  for  the  payment  of  the   tax.   Such
determination  shall  finally  and  irrevocably  fix  the tax unless the
person against whom it is assessed, within ninety days after the  giving
of  notice  of such determination or, if the commissioner of finance has
established a conciliation procedure pursuant to section 11-124  of  the
code  and  the  taxpayer  has  requested  a  conciliation  conference in
accordance  therewith,  within  ninety  days  from  the  mailing  of   a
conciliation  decision or the date of the commissioner's confirmation of
the discontinuance of the conciliation proceeding,  both  (1)  serves  a
petition  upon the conciliation of finance and (2) files a petition with
the tax appeals tribunal for a hearing, or unless  the  commissioner  of
finance  of  the  commissioner's  own motion shall redetermine the same.
Such hearing and any appeal to the tax appeals tribunal sitting en  banc
from  the  decision  rendered  in such hearing shall be conducted in the
manner and subject to the requirements prescribed  by  the  tax  appeals
tribunal  pursuant  to  sections  one  hundred  sixty-eight  through one
hundred seventy-two of the charter. After such hearing the  tax  appeals
tribunal  shall  give  notice of its decision to the person against whom
the tax is assessed and to the commissioner of finance.  A  decision  of
the  tax appeals tribunal sitting en banc shall be reviewable for error,
illegality or unconstitutionality or any other reason  whatsoever  by  a
proceeding  under  article  seventy-eight  of the civil practice law and
rules if application therefor is made to the supreme court by the person
against whom the tax was assessed within four months after the giving of
the notice of such tax appeals  tribunal  decision,  provided,  however,
that  any  such  proceeding  under  article  seventy-eight  of the civil
practice law and rules shall not be instituted by a taxpayer unless: (a)
the amount of any tax sought to be reviewed, with interest and penalties
thereon, if any,  shall  be  first  deposited  and  there  is  filed  an
undertaking with the commissioner of finance, issued by a surety company
authorized  to  transact  business  in  this  state  and approved by the
superintendent  of  insurance  of  this  state  as   to   solvency   and
responsibility,  in  such amount as a justice of the supreme court shall
approve to the effect that if such proceeding be dismissed  or  the  tax
confirmed  the  taxpayer will pay all costs and charges which may accrue
in the prosecution of such proceeding  or  (b)  at  the  option  of  the
taxpayer such undertaking may be in a sum sufficient to cover the taxes,
interest  and  penalties  stated  in  such  decision  plus the costs and
charges  which  may  accrue  against  it  in  the  prosecution  of   the
proceeding,  in  which  event  the taxpayer shall not be required to pay
such taxes, interest or  penalties  as  a  condition  precedent  to  the
application.

Section 11-709

Section 11-709

  §  11-709  Refunds.  a.  In  the  manner  provided in this section the
commissioner of finance shall refund or credit,  without  interest,  any
tax,  penalty  or  interest erroneously, illegally or unconstitutionally
collected or paid, if written application to the commissioner of finance
for such refund shall be made within eighteen months from the date fixed
by this chapter for filing the return on which such payment was based or
within six months of the payment  thereof,  whichever  of  such  periods
expire  the  later.  Whenever  a refund or credit is made or denied, the
commissioner of finance shall state his or her reason therefor and  give
notice  thereof  to the taxpayer in writing. The commissioner of finance
may, in lieu of any refund required to be made, allow credit therefor on
payments due from the applicant.
  b. Any determination of the commissioner of finance denying  a  refund
or  credit  pursuant to subdivision a of this section shall be final and
irrevocable unless the applicant  for  such  refund  or  credit,  within
ninety days from the mailing of notice of such determination, or, if the
commissioner   of  finance  has  established  a  conciliation  procedure
pursuant  to  section  11-124  and  the  applicant   has   requested   a
conciliation conference in accordance therewith, within ninety days from
the mailing of a conciliation decision or the date of the commissioner's
confirmation  of the discontinuance of the conciliation proceeding, both
(1) serves a petition upon the commissioner of finance and (2)  files  a
petition  with the tax appeals tribunal for a hearing. Such petition for
a refund or  credit,  made  as  herein  provided,  shall  be  deemed  an
application  for  a  revision of any tax, penalty or interest complained
of. Such hearing of any appeal to the tax appeals  tribunal  sitting  en
banc  from  the  decision rendered in such hearing shall be conducted in
the manner and subject to the requirements prescribed by the tax appeals
tribunal pursuant to section one hundred sixty-eight through one hundred
seventy-two of the charter. After such hearing, the tax appeals tribunal
shall  give  notice  of  its  decision  to  the  applicant  and  to  the
commissioner  of finance. The applicant shall be entitled to institute a
proceeding pursuant to article seventy-eight of the civil  practice  law
and  rules  to  review a decision of the tax appeals tribunal sitting en
banc if application to the supreme court be made  therefor  within  four
months after the giving of notice of such decision, and provided, in the
case  of an application by a taxpayer, that a final determination of tax
due was not previously made. Such a proceeding shall not  be  instituted
by  a  taxpayer  unless  an  undertaking  shall  first be filed with the
commissioner of finance, in such amount and  with  such  sureties  as  a
justice  of  the supreme court shall approve, to the effect that if such
proceeding be dismissed or the tax confirmed, the taxpayer will pay  all
costs and charges which may accrue in the prosecution of the proceeding.
  c.  A  person  shall  not  be entitled to a revision, refund or credit
under this section  of  a  tax,  interest  or  penalty  which  had  been
determined  to  be  due  pursuant to the provisions of section 11-708 of
this chapter where such person has had a hearing or an opportunity for a
hearing, as provided in said section, or has failed to avail himself  or
herself  of  the remedies therein provided. No refund or credit shall be
made of a tax, interest or penalty paid after  a  determination  by  the
commissioner  of finance made pursuant to section 11-708 of this chapter
unless it be found that such determination  was  erroneous,  illegal  or
unconstitutional,  or  otherwise  improper,  by the tax appeals tribunal
after a hearing, or, if such tax appeals tribunal affirms in whole or in
part the determination of the commissioner of finance, in  a  proceeding
under  article  seventy-eight  of  the  civil  practice  law  and rules,
pursuant to the provisions of said section, in  which  event  refund  or

credit  without  interest  shall be made of the tax, interest or penalty
found to have been overpaid.

Section 11-710

Section 11-710

  §  11-710  Remedies  exclusive.  The remedies provided by this chapter
shall be the exclusive remedies available to any person for  the  review
of  tax  liability  imposed  by  this  chapter;  and no determination or
proposed determination of tax or determination on  any  application  for
refund  by  the  commissioner  of  finance,  nor any decision by the tax
appeals tribunal or any of  its  administrative  law  judges,  shall  be
enjoined  or  reviewed  by an action for declaratory judgment, an action
for money had and received or by any action or proceeding other than, in
the case of a decision by the tax appeals tribunal sitting  en  banc,  a
proceeding  under  article  seventy-eight  of the civil practice law and
rules; provided, however, that a taxpayer  may  proceed  by  declaratory
judgment  if  he  or  she  institutes  suit  within  thirty days after a
deficiency assessment is made and pays  the  amount  of  the  deficiency
assessment  to  the  commissioner of finance prior to the institution of
such suit and posts a bond for costs as provided in  section  11-708  of
this chapter.

Section 11-711

Section 11-711

  §  11-711  Reserves.  In  cases  where  the taxpayer has applied for a
refund and has instituted a proceeding under  article  seventy-eight  of
the  civil  practice  law and rules to review a determination adverse to
the taxpayer on his or her application for refund, the comptroller shall
set up appropriate reserves to meet any decision adverse to the city.

Section 11-712

Section 11-712

  § 11-712 Proceedings to recover tax. a. Whenever any person shall fail
to  pay any tax or penalty or interest imposed by this chapter as herein
provided, the  corporation  counsel  shall,  upon  the  request  of  the
commissioner  of  finance,  bring  or  cause  to be brought an action to
enforce payment of the same against the person liable for  the  same  on
behalf  of the city of New York in any court of the state of New York or
of  any  other  state  or  of  the  United  States.  If,  however,   the
commissioner  of  finance  in  his  or  her  discretion  believes that a
taxpayer subject to the provisions of this chapter  is  about  to  cease
business, leave the state or remove or dissipate the assets out of which
tax  or  penalties  might  be satisfied and that any such tax or penalty
will not be paid when due, he or she may declare such tax or penalty  to
be immediately due and payable and may issue a warrant immediately.
  b.  As  an additional or alternate remedy, the commissioner of finance
may issue a warrant, directed to the city sheriff commanding the sheriff
to levy upon and sell the real and  personal  property  of  such  person
which  may  be  found  within  the  city,  for the payment of the amount
thereof, with any penalties and interest, and the cost of executing  the
warrant,  and  to return such warrant to the commissioner of finance and
to pay to the commissioner the money collected by virtue thereof  within
sixty  days  after  the receipt of such warrant. The city sheriff shall,
within five days after the receipt of the warrant, file with the  county
clerk  a  copy  thereof,  and  thereupon  such  clerk shall enter in the
judgment docket the name of the person mentioned in the warrant and  the
amount  of  the  tax,  penalties  and  interest for which the warrant is
issued and the date when such copy is filed.  Thereupon  the  amount  of
such  warrant  so  docketed  shall  become  a lien upon the title to and
interest in real and personal property of the person  against  whom  the
warrant  is issued. The city sheriff shall then proceed upon the warrant
in the same manner and with like effect  as  that  provided  by  law  in
respect  to executions issued against property upon judgments of a court
of record, and for services in executing the warrant the  sheriff  shall
be  entitled  to the same fees which the sheriff may collect in the same
manner. In the discretion of the commissioner of finance  a  warrant  of
like  terms,  force and effect may be issued and directed to any officer
or employee of the department of finance, and in the  execution  thereof
such officer or employee shall have all the powers conferred by law upon
sheriffs,  but  he or she shall be entitled to no fee or compensation in
excess of the actual expenses paid in the performance of such duty. If a
warrant is returned not satisfied in full, the commissioner  of  finance
may  from  time  to time issue new warrants and shall also have the same
remedies to enforce the  amount  due  thereunder  as  if  the  city  had
recovered  judgment  therefor  and  execution  thereon had been returned
unsatisfied.
  c. Whenever there is made a sale, transfer or assignment  in  bulk  of
any  part  or  the  whole  of  a stock of merchandise or of fixtures, or
merchandise and of fixtures pertaining to the conducting of the business
of the seller, transferor or assignor, otherwise than  in  the  ordinary
course  of  trade  and  in the regular prosecution of said business, the
purchaser, transferee or assignee shall at least ten days before  taking
possession  of  such merchandise, fixtures, or merchandise and fixtures,
or paying therefor, notify the commissioner  of  finance  by  registered
mail of the proposed sale and of the price, terms and conditions thereof
whether  or  not the seller, transferor or assignor, has represented to,
or informed the purchaser, transferee or assignee that it owes  any  tax
pursuant to this chapter and whether or not the purchaser, transferee or
assignee  has  knowledge that such taxes are owing, and whether any such
taxes are in fact owing.

  Whenever the purchaser, transferee or  assignee  shall  fail  to  give
notice  to  the  commissioner  of  finance  as required by the preceding
paragraph, or whenever the commissioner  of  finance  shall  inform  the
purchaser,  transferee or assignee that a possible claim for such tax or
taxes  exists, any sums of money, property or choses in action, or other
consideration, which the purchaser, transferee or assignee  is  required
to  transfer over to the seller, transferor or assignor shall be subject
to a first priority right and lien for any  such  taxes  theretofore  or
thereafter  determined to be due from the seller, transferor or assignor
to the city, and the purchaser, transferee or assignee is  forbidden  to
transfer  to  the seller, transferor or assignor any such sums of money,
property or choses in action to the extent of the amount of  the  city's
claim.  For  failure  to comply with the provisions of this subdivision,
the purchaser, transferee or assignee, in addition to being  subject  to
the  liabilities  and  remedies  imposed under the provisions of section
forty-four of the personal property law, shall be personally liable  for
the  payment  to  the  city  of any such taxes theretofore or thereafter
determined to be  due  to  the  city  from  the  seller,  transferor  or
assignor,  and  such  liability may be assessed and enforced in the same
manner as the liability for tax under this chapter.
  d. The commissioner of finance, if he or she finds that the  interests
of the city will not thereby be jeopardized, and upon such conditions as
the  commissioner  of finance may require, may release any property from
the lien of any  warrant  or  vacate  such  warrant  for  unpaid  taxes,
additions to tax, penalties and interest filed pursuant to subdivision b
of  this  section,  and  such  release or vacating of the warrant may be
recorded in the office of any recording officer in  which  such  warrant
has been filed. The clerk shall thereupon cancel and discharge as of the
original date of docketing the vacated warrant.

Section 11-713

Section 11-713

  § 11-713 General powers of the commissioner of finance. In addition to
the  powers  granted to the commissioner of finance in this chapter, the
commissioner is hereby authorized and empowered:
  1. To make, adopt and amend rules and regulations appropriate  to  the
carrying out of this chapter and the purposes thereof;
  2.  To  extend,  for cause shown, the time for filing any return for a
period not exceeding ninety days; and to compromise disputed  claims  in
connection with the taxes hereby imposed;
  3.  To request information from the tax commission of the state on New
York or the treasury department of the United  States  relative  to  any
person;  and  to  afford  information  to  such  tax  commission or such
treasury department relative to any person;
  4. To delegate the commissioner's  functions  hereunder  to  a  deputy
commissioner   of   finance  or  other  employee  or  employees  of  the
commissioner's department;
  5. To assess, determine, revise and adjust  the  taxes  imposed  under
this chapter;
  6.  To  require  any  tenant  who  uses  premises for both residential
purposes and as taxable premises and who pays an undivided rent for  the
entire  premises  so  used to provide the commissioner with a signed and
notarized request to the United States director of internal revenue  for
photostatic  copies  of the tenant's income tax return for any year when
the commissioner deems such income tax return necessary to determine the
rent ascribable to so much of  such  premises  as  is  used  as  taxable
premises;  and,  if  the tenant refuses to provide the commissioner with
such a signed written request, to treat the rent for the entire premises
as the rent for so much as is used as taxable premises;
  7. To prescribe methods for determining how much of any tenant's  base
rent  is  ascribable  to  a use which results in a reduction of the base
rent or for determining any other division of rent or of use of premises
necessary for the determination of the base rent or the amount  of  base
rent subject to tax under this chapter;
  8.  To  authorize  banks  or trust companies which are depositories or
financial agents of the city to receive and give a receipt for  any  tax
imposed under this chapter in such manner, at such times, and under such
conditions  as  the  commissioner  of  finance  may  prescribe;  and the
commissioner of finance shall prescribe the manner, times and conditions
under which the receipt of such tax by such banks and trust companies is
to be treated as payment of such tax to the commissioner of finance.

Section 11-714

Section 11-714

  §  11-714  Administration  of  oaths  and compelling testimony. a. The
commissioner of finance, the commissioner's  employees  duly  designated
and  authorized by the commissioner, the tax appeals tribunal and any of
its duly  designated  and  authorized  employees  shall  have  power  to
administer  oaths  and  take  affidavits  in  relation  to any matter or
proceeding in the  exercise  of  their  powers  and  duties  under  this
chapter.  The commissioner of finance and the tax appeals tribunal shall
have power to subpoena and require the attendance of witnesses  and  the
production   of  books,  papers  and  documents  to  secure  information
pertinent to the performance of the duties of the commissioner or of the
tax appeals tribunal hereunder and of the enforcement  of  this  chapter
and  to  examine  them in relation thereto, and to issue commissions for
the examination of witnesses who are out  of  the  state  or  unable  to
attend  before  the  commissioner or the tax appeals tribunal or excused
from attendance.
  b. A justice of the supreme court either in court or at chambers shall
have power summarily to enforce by proper proceedings the attendance and
testimony of witnesses and the  production  and  examination  of  books,
papers  and  documents called for by the subpoena of the commissioner of
finance or the tax appeals tribunal under this chapter.
  c. Cross-reference; criminal penalties. For failure to obey  subpoenas
or  for  testifying  falsely,  see  section  11-4007  of this title; for
supplying false or fraudulent information, see section 11-4002  of  this
title.
  d.  The officers who serve the summons or subpoena of the commissioner
of finance or the tax appeals tribunal hereunder and witnesses attending
in response thereto shall be entitled to the same fees as are allowed to
officers and witnesses in civil cases in courts  of  record,  except  as
herein  otherwise provided. Such officers shall be the city sheriff, and
the sheriff's duly appointed deputies or any officers  or  employees  of
the  department  of  finance  or the tax appeals tribunal, designated to
serve such process.

Section 11-715

Section 11-715

  §  11-715  Interest  and  penalties.  (a)  Interest  on  underpayment;
quarterly return. If any amount of tax required to be paid together with
a return, other than the final return for a tax year, is not paid on  or
before  the  last  date  prescribed  for  payment (without regard to any
extension of time granted for payment), interest on such amount  at  the
rate  set  by the commissioner of finance pursuant to subdivision (h) of
this section, or, if no rate is set, at the rate of seven  and  one-half
percent  per  annum,  shall  be  paid for the period from such last date
until twenty days after the end  of  the  tax  year  during  which  such
payments  were  due or until such prior time as the tax paid for the tax
year equals seventy-five percent of the full tax required to be paid for
the tax year. Such interest shall be paid with the final return for  the
tax  year to which it relates. In computing the amount of interest to be
paid, such interest shall  be  compounded  daily.  Interest  under  this
subdivision  shall  not  be  paid if the amount thereof is less than one
dollar.
  (b) Interest on underpayment; final  return.  If  any  amount  of  tax
required to be paid together with the final return for a tax year is not
paid  on  or before the last date prescribed for payment (without regard
to any extension of time granted for payment), interest on  such  amount
at  the  rate set by the commissioner of finance pursuant to subdivision
(h) of this section, or, if no rate is set, at the  rate  of  seven  and
one-half  percent per annum, shall be paid for the period from such last
date to the date of payment. In computing the amount of interest  to  be
paid,  such  interest  shall  be  compounded  daily. Interest under this
subdivision shall not be paid if the amount thereof  is  less  than  one
dollar.
  (c) * (1) Failure to file final return. (A) In case of failure to file
a  final  return  under  this  chapter  on or before the prescribed date
(determined with regard to any extension of time for filing), unless  it
is  shown  that  such  failure is due to reasonable cause and not due to
willful neglect, there shall be added to the amount required to be shown
as tax on such return five percent of the amount  of  such  tax  if  the
failure  is for not more than one month, with an additional five percent
for each additional month or fraction thereof during which such  failure
continues,  not  exceeding twenty-five percent in the aggregate, and, in
addition thereto, where a tenant, with respect to any taxable  premises,
is  exempt  from  tax  by  reason  of  paragraph two of subdivision b of
section 11-704 of this chapter, there shall be imposed a penalty of  one
hundred dollars.
  (B) In the case of a failure to file a return of tax within sixty days
of the date prescribed for filing of such return (determined with regard
to  any  extension  of  time  for  filing), unless it is shown that such
failure is due to reasonable cause and not due to willful  neglect,  the
addition  to  tax  under subparagraph (A) of this paragraph shall not be
less than the lesser of one hundred dollars or one  hundred  percent  of
the amount required to be shown as tax on such return.
  (C)  For  purposes of this paragraph, the amount of tax required to be
shown on the return shall be reduced by the amount of any  part  of  the
tax  which  is  paid on or before the date prescribed for payment of the
tax and by the amount of any credit against the tax which may be claimed
upon the return.
  * NB Amended Ch. 765/85 § 54, language juxtaposed per Ch. 907/85 § 14
  (2) Failure to pay tax shown on final return. In case  of  failure  to
pay the amount shown as tax on a final return required to be filed under
this chapter on or before the prescribed date (determined with regard to
any extension of time for payment), unless it is shown that such failure
is  due  to reasonable cause and not due to willful neglect, there shall

be added to the amount shown as tax  on  such  return  one-half  of  one
percent  of  the  amount of such tax if the failure is not for more than
one  month,  with  an  additional  one-half  of  one  percent  for  each
additional   month   or  fraction  thereof  during  which  such  failure
continues, not exceeding twenty-five percent in the aggregate.  For  the
purpose  of computing the addition for any month the amount of tax shown
on the return shall be reduced by the amount of  any  part  of  the  tax
which is paid on or before the beginning of such month and by the amount
of  any  credit against the tax which may be claimed upon the return. If
the amount of tax required to be shown on a  return  is  less  than  the
amount  shown  as tax on such return, this paragraph shall be applied by
substituting such lower amount.
  (3) Failure to pay tax required to be shown on final return.  In  case
of  failure to pay any amount in respect of any tax required to be shown
on a final return required to be filed under this chapter which  is  not
so  shown  (including a determination made pursuant to section 11-708 of
this chapter) within ten days  of  the  date  of  a  notice  and  demand
therefor,  unless  it  is  shown  that such failure is due to reasonable
cause and not due to willful neglect, there shall be added to the amount
of tax stated in such notice and demand one-half of one percent of  such
tax  if  the  failure is not for more than one month, with an additional
one-half of one percent for each additional month  or  fraction  thereof
during  which  such failure continues, not exceeding twenty-five percent
in the aggregate. For the purpose of  computing  the  addition  for  any
month,  the  amount  of  tax  stated  in  the notice and demand shall be
reduced by the amount of any part of the tax which is  paid  before  the
beginning of such month.
  * (4) Limitations on additions.
  (A) With respect to any final return, the amount of the addition under
paragraph  one of this subdivision shall be reduced by the amount of the
addition under paragraph two of this subdivision for any month to  which
an  addition  applies  under  both  paragraphs  one and two. In any case
described in subparagraph (B) of paragraph one of this subdivision,  the
amount  of  the  addition  under such paragraph one shall not be reduced
below the amount provided in such subparagraph.
  (B) With respect to any  final  return,  the  maximum  amount  of  the
addition  permitted  under  paragraph three of this subdivision shall be
reduced by the amount of  the  addition  under  paragraph  one  of  this
subdivision  (determined  without  regard  to  subparagraph  (B) of such
paragraph one) which is attributable to the tax for which the notice and
demand is made and which is not paid within ten days of such notice  and
demand.
  * NB Amended Ch. 765/85 § 54, language juxtaposed per Ch. 907/85 § 14
  * (d)   Underpayment  due  to  negligence.  (1)  If  any  part  of  an
underpayment of tax is due to negligence  or  intentional  disregard  of
this  chapter  or any rules or regulations hereunder (but without intent
to defraud), there shall be added to the tax a  penalty  equal  to  five
percent of the underpayment.
  (2)  There  shall  be  added  to  the  tax  (in addition to the amount
determined under paragraph one of this subdivision) an amount  equal  to
fifty  percent  of  the  interest  payable under subdivision (b) of this
section with respect to the portion of  the  underpayment  described  in
such   paragraph   one  which  is  attributable  to  the  negligence  or
intentional disregard referred to in such paragraph one, for the  period
beginning  on  the  last  date  prescribed  by  law  for payment of such
underpayment (determined without regard to any extension) and ending  on
the  date  of the assessment of the tax (or, if earlier, the date of the
payment of the tax).

  * NB Amended Ch. 765/85 § 54, language juxtaposed per Ch. 907/85 § 14
  * (e) Underpayment due to fraud. (1) If any part of an underpayment of
tax  is due to fraud, there shall be added to the tax a penalty equal to
fifty percent of the underpayment.
  (2) There shall be added to  the  tax  (in  addition  to  the  penalty
determined  under  paragraph one of this subdivision) an amount equal to
fifty percent of the interest payable  under  subdivision  (b)  of  this
section  with  respect  to  the portion of the underpayment described in
such paragraph one which  is  attributable  to  fraud,  for  the  period
beginning  on  the  last  date  prescribed  by  law  for payment of such
underpayment (determined without regard to any extension) and ending  on
the  date  of the assessment of the tax (or, if earlier, the date of the
payment of the tax).
  (3) The penalty under this subdivision shall be in lieu of  any  other
addition to tax imposed by subdivision (c) or (d) of this section.
  * NB Amended Ch. 765/85 § 54, language juxtaposed per Ch. 907/85 § 14
  (f)  Additional penalty. Any person who, with fraudulent intent, shall
fail to pay any tax imposed by this chapter, or to make, render, sign or
certify any return,  or  to  supply  any  information  within  the  time
required  by or under this chapter, shall be liable for a penalty of not
more than one  thousand  dollars,  in  addition  to  any  other  amounts
required under this chapter to be imposed, assessed and collected by the
commissioner  of  finance.  The  commissioner  of finance shall have the
power, in his or her discretion, to  waive,  reduce  or  compromise  any
penalty under this subdivision.
  (g)  The  interest and penalties imposed by this section shall be paid
and disposed of in the same manner as other revenues from this  chapter.
Unpaid  interest and penalties may be enforced in the same manner as the
tax imposed by this chapter.
  (h) (1) Authority to set interest rates. The commissioner  of  finance
shall  set  the rate of interest to be paid pursuant to subdivisions (a)
and (b) of this section, but if no such rate of interest  is  set,  such
rate  shall be deemed to be set at seven and one-half percent per annum.
Such rate shall be the same for each subdivision and shall be  the  rate
prescribed  in  paragraph  two of this subdivision but shall not be less
than seven and one-half percent per annum. Any  such  rate  set  by  the
commissioner  of  finance  shall apply to taxes, or any portion thereof,
which remain or become due on or after  the  date  on  which  such  rate
becomes effective and shall apply only with respect to interest computed
or computable for periods or portions of periods occurring in the period
in which such rate is in effect.
  (2)  General  rule.  The  rate  of interest set under this subdivision
shall be the sum of (i) the federal short-term rate  as  provided  under
paragraph three of this subdivision, plus (ii) seven percentage points.
  (3) Federal short-term rate. For purposes of this subdivision:
  (A)  The  federal  short-term  rate for any month shall be the federal
short-term rate  determined  by  the  United  States  secretary  of  the
treasury  during such month in accordance with subsection (d) of section
twelve hundred seventy-four of the internal  revenue  code  for  use  in
connection  with  section  six  thousand  six  hundred twenty-one of the
internal revenue code. Any such rate shall be  rounded  to  the  nearest
full  percent  (or,  if a multiple of one-half of one percent, such rate
shall be increased to the next highest full percent).
  (B) Period during which rate applies.
  (i)  In  general.  Except  as  provided  in  clause   (ii)   of   this
subparagraph,  the  federal  short-term rate for the first month in each
calendar quarter shall apply during the first calendar quarter beginning
after such month. (ii) Special rule for the month of September, nineteen

hundred eighty-nine. The federal short-term rate for the month of April,
nineteen hundred eighty-nine shall apply with  respect  to  setting  the
rate   of   interest  for  the  month  of  September,  nineteen  hundred
eighty-nine.
  (4)  Publication  of  interest rate. The commissioner of finance shall
cause to be published in the city record,  and  give  other  appropriate
general notice of, the interest rate to be set under this subdivision no
later  than  twenty days preceding the first day of the calendar quarter
during which such interest rate applies. The setting and publication  of
such  interest  rate  shall  not  be  included  within  paragraph (a) of
subdivision five of section one thousand forty-one of the  city  charter
relating to the definition of a rule.
  * (i)  Miscellaneous.  (1)  The  certificate  of  the  commissioner of
finance to the effect that a tax has not been paid, that  a  return  has
not  been  filed,  or that information has not been supplied pursuant to
the provisions of this chapter shall be prima facie evidence thereof.
  (2) Cross-reference: For criminal penalties, see chapter forty of this
title.
  * NB Amended Ch. 765/85 § 54, language juxtaposed per Ch. 907/85 § 14
  * (j)  Substantial  understatement  of  liability.  If  there   is   a
substantial understatement of tax for any tax year, there shall be added
to  the  tax  an  amount  equal  to  ten  percent  of  the amount of any
underpayment attributable to such understatement. For purposes  of  this
subdivision,  there  is  a substantial understatement of tax for any tax
year if the amount of the understatement for the tax  year  exceeds  the
greater  of  ten  percent  of  the tax required to be shown on the final
return for the tax year or five thousand dollars. For  purposes  of  the
preceding  sentence,  the  term "understatement" means the excess of the
amount of the tax required to be shown on the final return for  the  tax
year,  over  the amount of the tax imposed which is shown on the return,
reduced by any rebate.  The  amount  of  such  understatement  shall  be
reduced  by  that portion of the understatement which is attributable to
the tax treatment of any item  by  the  taxpayer  if  there  is  or  was
substantial  authority  for  such treatment, or any item with respect to
which  the  relevant  facts  affecting  the  item's  tax  treatment  are
adequately  disclosed  in  the  return or in a statement attached to the
return. The commissioner of finance may waive all or  any  part  of  the
addition  to  tax  provided  by  this  subdivision  on  a showing by the
taxpayer that there was reasonable cause for the understatement (or part
thereof) and that the taxpayer acted in good faith.
  * NB Added Ch. 765/85 § 54, language juxtaposed per Ch. 907/85 § 14
  * (k) Aiding  or  assisting  in  the  giving  of  fraudulent  returns,
reports,  statements  or  other  documents. (1) Any person who, with the
intent that tax be evaded, shall, for a fee or other compensation or  as
an  incident  to the performance of other services for which such person
receives compensation, aid or assist in, or procure, counsel, or  advise
the  preparation or presentation under, or in connection with any matter
arising under this chapter of any return,  report,  statement  or  other
document  which  is  fraudulent  or  false as to any material matter, or
supply any false or fraudulent information, whether or not such  falsity
or  fraud  is  with the knowledge or consent of the person authorized or
required to present such return, report,  statement  or  other  document
shall pay a penalty not exceeding ten thousand dollars.
  (2)  For  purposes  of  paragraph  one  of  this subdivision, the term
"procures" includes ordering (or otherwise causing) a subordinate to  do
an  act, and knowing of, and not attempting to prevent, participation by
a subordinate in an act. The term "subordinate" means any  other  person
(whether  or not a director, officer, employee, or agent of the taxpayer

involved) over whose activities the person has  direction,  supervision,
or control.
  (3)  For  purposes  of  paragraph  one  of  this subdivision, a person
furnishing typing, reproducing,  or  other  mechanical  assistance  with
respect  to  a document shall not be treated as having aided or assisted
in the preparation of such document by reason of such assistance.
  (4) The penalty imposed by this subdivision shall be  in  addition  to
any other penalty provided by law.
  * NB Added Ch. 765/85 § 54, language juxtaposed per Ch. 907/85 § 14

Section 11-716

Section 11-716

  §  11-716  Returns  to  be secret. a. Except in accordance with proper
judicial order or as otherwise provided by law, it shall be unlawful for
the commissioner of finance, the department of finance of the city,  any
officer or employee of the department of finance of the city, any person
engaged or retained by such department on an independent contract basis,
the tax appeals tribunal, any commissioner or employee of such tribunal,
or any person who, pursuant to this section, is permitted to inspect any
return  or  to  whom  a  copy, an abstract or a portion of any return is
furnished, or to  whom  any  information  contained  in  any  return  is
furnished,  to  divulge  or  make  known  in  any manner any information
relating to the business of a taxpayer contained in any return  required
under  this  chapter.  The  officers  charged  with  the custody of such
returns shall not be required to produce any  of  them  or  evidence  of
anything  contained  in  them  in any action or proceeding in any court,
except on behalf  of  the  commissioner  of  finance  in  an  action  or
proceeding  under  the  provisions  of this chapter, or on behalf of any
party to any action or proceeding under the provisions of  this  chapter
when  the  returns  or facts shown thereby are directly involved in such
action or proceeding, in either of which events the courts  may  require
the  production of, and may admit in evidence so much of said returns or
of the facts shown thereby, as are pertinent to the action or proceeding
and no more. Nothing herein shall be construed to prohibit the  delivery
to  a  taxpayer  or  the  taxpayer's duly authorized representative of a
certified copy of any return filed in connection with his  or  her  tax;
nor  to prohibit the delivery of such a certified copy of such return or
of any information contained in  or  relating  thereto,  to  the  United
States  of  America  or any department thereof, the state of New York or
any department thereof, any agency or any department of the city of  New
York  provided  the  same  is  requested  for  official business; nor to
prohibit the inspection for official business of  such  returns  by  the
corporation counsel or other legal representatives of the city or by the
district  attorney  of  any  county within the city; nor to prohibit the
publication of statistics so classified as to prevent the identification
of particular returns or items thereof.
  b. (1) Any officer or employee of the city who willfully violates  the
provisions  of  subdivision  a  of  this section shall be dismissed from
office and be incapable of holding any public office in this city for  a
period of five years thereafter.
  (2) Cross-reference: For criminal penalties, see chapter forty of this
title.
  c.  This  section  shall  be  deemed  a  state statute for purposes of
paragraph (a) of subdivision two of section eighty-seven of  the  public
officers law.
  d.  Notwithstanding  anything  in subdivision a of this section to the
contrary, if a taxpayer has petitioned  the  tax  appeals  tribunal  for
administrative  review as provided in section one hundred seventy of the
charter, the commissioner of finance shall be authorized to  present  to
the  tribunal  any report or return of such taxpayer, or any information
contained therein or relating thereto, which may be material or relevant
to the proceeding before the tribunal. The tax appeals tribunal shall be
authorized to publish a copy or  a  summary  of  any  decision  rendered
pursuant to section one hundred seventy-one of the charter.

Section 11-717

Section 11-717

  §  11-717  Notices and limitation of time. a. Any notice authorized or
required under the provisions of this chapter may be given to the person
for whom it is intended by mailing it in a postpaid  envelope  addressed
to  such  person  at  the address given in the last return filed by such
person pursuant to the provisions of this chapter or in any  application
made  by such person or if no return has been filed or application made,
then to such address as may be obtainable. The mailing of a notice as in
this paragraph provided for shall be presumptive evidence of the receipt
of the same by the person to whom addressed. Any period of time which is
determined according to the provisions of this chapter by the giving  of
notice  shall commence to run from the date of mailing of such notice as
in this subdivision provided.
  b. The provisions of the civil practice law and rules or any other law
relative to limitations of time for the enforcement of  a  civil  remedy
shall  not  apply to any proceeding or action taken by the city to levy,
appraise, assess, determine or enforce the  collection  of  any  tax  or
penalty  provided  by  this  chapter.  However,  except in the case of a
wilfully false or fraudulent return with intent to  evade  the  tax,  no
assessment  of additional tax shall be made after the expiration of more
than three years from the date of the final return for the tax  year  to
which  the  assessment  relates; provided, however, that where no return
has been made as provided by law, the tax may be assessed at any time.
  c. Where before the expiration of the period prescribed herein for the
assessment of an additional tax, a person has consented in writing  that
such  period  be  extended, the amount of such additional tax due may be
determined at any time  within  such  extended  period.  The  period  so
extended  may be further extended by subsequent consents in writing made
before the expiration of the extended period.
  d. If any return, claim,  statement,  notice,  application,  or  other
document  required  to  be  filed,  or  any payment required to be made,
within a prescribed period or on  or  before  a  prescribed  date  under
authority of any provision of this chapter is, after such period or such
date,  delivered  by  United States mail to the commissioner of finance,
the tax appeals tribunal, bureau, office, officer or person  with  which
or  with  whom  such document is required to be filed, or to which or to
whom such payment is required to be made, the date of the United  States
postmark  stamped  on  the  envelope  shall  be deemed to be the date of
delivery. This subdivision shall apply only if the postmark  date  falls
within the prescribed period or on or before the prescribed date for the
filing  of  such  document,  or  for  making  the payment, including any
extension granted for such filing or payment, and only if such  document
or  payment  was  deposited  in  the  mail,  postage  prepaid,  properly
addressed to the commissioner of  finance,  the  tax  appeals  tribunal,
bureau,  office,  officer or person with which or with whom the document
is required to be filed or to which or to whom such payment is  required
to  be  made.  If any document is sent by United States registered mail,
such registration shall be prima facie evidence that such  document  was
delivered  to  the  commissioner  of  finance, the tax appeals tribunal,
bureau, office, officer or person to which or to whom addressed, and the
date of registration shall be deemed the postmark date. The commissioner
of finance or, where relevant, the tax appeals tribunal is authorized to
provide by  regulation  the  extent  to  which  the  provisions  of  the
preceding  sentence with respect to prima facie evidence of delivery and
the postmark date shall apply to certified mail. Except as  provided  in
subdivision  f of this section, this subdivision shall apply in the case
of postmarks not made by the United States postal service only if and to
the extent provided by regulation of the  commissioner  of  finance  or,
where relevant, the tax appeals tribunal.

  e.  When  the  last  day  prescribed  under  authority of this chapter
(including any extension of time) for performing  any  act  falls  on  a
Saturday,  Sunday or legal holiday in the state, the performance of such
act shall be considered timely if it is performed on the next succeeding
day which is not a Saturday, Sunday or legal holiday.
  f.  (1)  Any  reference in subdivision d of this section to the United
States mail shall be treated as including a reference  to  any  delivery
service designated by the secretary of the treasury of the United States
pursuant  to  section  seventy-five  hundred two of the internal revenue
code and any reference in subdivision d of  this  section  to  a  United
States  postmark  shall  be treated as including a reference to any date
recorded or marked in  the  manner  described  in  section  seventy-five
hundred  two  of  the  internal  revenue  code  by a designated delivery
service. If the commissioner of finance finds that any delivery  service
designated  by  such  secretary is inadequate for the needs of the city,
the commissioner of finance may withdraw such designation  for  purposes
of this title. The commissioner of finance may also designate additional
delivery  services  meeting the criteria of section seventy-five hundred
two of the internal revenue code for purposes  of  this  title,  or  may
withdraw  any such designation if the commissioner of finance finds that
a delivery service so designated is inadequate  for  the  needs  of  the
city.  Any  reference  in  subdivision  d  of this section to the United
States mail shall be treated as including a reference  to  any  delivery
service  designated  by the commissioner of finance and any reference in
subdivision d of this section to  a  United  States  postmark  shall  be
treated  as  including a reference to any date recorded or marked in the
manner described in section seventy-five hundred  two  of  the  internal
revenue  code  by  a  delivery service designated by the commissioner of
finance. Notwithstanding the foregoing, any withdrawal of designation or
additional designation by the  commissioner  of  finance  shall  not  be
effective  for purposes of service upon the tax appeals tribunal, unless
and until such withdrawal of designation or  additional  designation  is
ratified by the president of the tax appeals tribunal.
  (2)  Any  equivalent of registered or certified mail designated by the
United States secretary of the treasury, or as may be designated by  the
commissioner  of  finance  pursuant  to  the  same criteria used by such
secretary for such designations pursuant to section seventy-five hundred
two of the internal revenue code, shall be included within  the  meaning
of  registered  or  certified  mail  as  used  in  subdivision d of this
section. If the commissioner of finance finds  that  any  equivalent  of
registered  or  certified  mail  designated  by  such  secretary  or the
commissioner of finance is inadequate for the needs  of  the  city,  the
commissioner  of  finance  may withdraw such designation for purposes of
this title. Notwithstanding the foregoing, any withdrawal of designation
or additional designation by the commissioner of finance  shall  not  be
effective  for purposes of service upon the tax appeals tribunal, unless
and until such withdrawal of designation or  additional  designation  is
ratified by the president of the tax appeals tribunal.

Section 11-718

Section 11-718

  § 11-718 Construction and enforcement. This chapter shall be construed
in  conformity  with  chapter  two  hundred  fifty-seven  of the laws of
nineteen hundred sixty-three, pursuant to which it is enacted.