NY State Senate Bill 2021-S7343

Senate Bill S7343

2021-2022 Legislative Session

Provides an extension of time to complete construction for certain building projects due to the COVID-19 pandemic

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities 1 Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to cities 1
Aug 25, 2021	referred to rules

2021-S7343 (ACTIVE) - Details

See Assembly Version of this Bill:: A9129
Current Committee:: Senate Cities 1
Law Section:: Real Property Tax Law
Laws Affected:: Amd §489-cccccc, RPT L

2021-S7343 (ACTIVE) - Summary

Provides an additional twenty-seven months to complete construction for certain building projects due to the COVID-19 pandemic; provides for the calculation of abatement.

2021-S7343 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7343

SPONSOR: STAVISKY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to providing an
extension of time to complete construction for certain building projects
due to the COVID-19 pandemic

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide an extension for businesses that were not able to comply with
the Industrial and Commercial Abatement Program (ICAP) construction
completion deadlines due to delays caused by the COVID-19 pandemic.

 
SUMMARY OF PROVISIONS:

Section 1. Amends section 489-cccccc of the real property tax law to
provide an additional twenty-seven month extension for all construction
projects where such projects' 5-year completion deadline fell within
March 17, 2020 and June 25, 2021. This time frame encompasses the 15

months during which New York State was in a declared state of emergency
due to the COVID-19 pandemic and adds an additional one year to account
for other pandemic related delays.

Section 2. Sets forth the effective date.

 
JUSTIFICATION:

The Industrial and Commercial Abatement Program (ICAP) provides property
tax abatements for industrial and commercial buildings that are built,
modernized, expanded or otherwise physically improved in certain desig-
nated areas in a city with a population of one million or more.

To be eligible for tax abatements under this program, certain
construction completion time frames must be met. The ICAP requires that
construction of buildings or structures for which benefits under the
program have been approved must be completed no later then five years
from the date of the issuance of the first building permit, or if no
permit was required, the commencement of construction. Failure to meet
this deadline results in the termination of inflationary protection
provided under this program for any tax year following the required
deadline.

This bill provides an additional 27 month extension for all construction
projects where such projects' 5-year completion deadline fell within
March 17, 2020 and June 25, 2021. This time frame encompasses the 15
months during which New York State was in a declared state of emergency
due to the COVID-19 pandemic and adds an additional one year to account
for other pandemic related delays. This legislation is necessary to
ensure that projects that would otherwise be eligible for the intended
tax benefits under the ICAP if not for the construction delays caused by
the COVID-19 pandemic can still receive such benefits.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.

 
EFFECTIVE DATE:
Immediately.

2021-S7343 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7343
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              August 25, 2021
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the real property tax law, in relation to  providing  an
   extension  of  time  to  complete  construction  for  certain building
   projects due to the COVID-19 pandemic

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  2 of section 489-cccccc of the real property
 tax law, as added by chapter 119 of the laws of 2008, is amended to read
 as follows:
   2. Time limit for completion  of  construction.  (A)  Construction  of
 buildings  or  structures for which benefits have been approved shall be
 completed no later than five years from the  date  of  issuance  of  the
 first building permit, or if no permit was required, the commencement of
 construction.    Failure to meet this requirement shall result in termi-
 nation of any inflation protection provided under subdivision  three  of
 section  four  hundred eighty-nine-bbbbbb of this title for any tax year
 that begins following the date by which completion  of  construction  is
 required under this paragraph.
   (B) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDI-
 VISION, AN ADDITIONAL TWENTY-SEVEN MONTH EXTENSION SHALL BE PROVIDED FOR
 ALL  PROJECTS  WHERE SUCH FIVE YEAR PERIOD WOULD HAVE TERMINATED BETWEEN
 MARCH SEVENTH, TWO THOUSAND TWENTY AND JUNE TWENTY-FIFTH,  TWO  THOUSAND
 TWENTY-ONE,  TO  PROVIDE  RELIEF FOR (A) THE FIFTEEN-MONTH PERIOD DURING
 WHICH A STATE DISASTER EMERGENCY WAS DECLARED BY THE  GOVERNOR  PURSUANT
 TO EXECUTIVE ORDER TWO HUNDRED TWO OF TWO THOUSAND TWENTY IN RESPONSE TO
 THE  COVID-19  PANDEMIC  AND  THE  ISSUANCE BY THE GOVERNOR OF EXECUTIVE
 ORDER TWO HUNDRED TEN OF TWO THOUSAND  TWENTY-ONE  WHICH  RESCINDED  ALL
 PREVIOUS  PANDEMIC  RELATED  EXECUTIVE  ORDERS  AND LIFTED SUCH STATE OF
 EMERGENCY, PLUS (B) AN ADDITIONAL TWELVE MONTHS FOR PROJECTS TO COMPLETE
 CONSTRUCTION AFTER THE EXPIRATION OF SUCH EXECUTIVE ORDERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13065-01-1

 S. 7343                             2
 
   (II) FOR SUCH PROJECTS, THE AMOUNT OF ABATEMENT SHALL BE CALCULATED AS
 PROVIDED HEREIN. THE FIRST YEAR OF THE ABATEMENT SHALL BE THE  TAX  YEAR
 WITH  THE  FIRST  TAXABLE STATUS DATE THAT FOLLOWS THE SOONER OF (A) THE
 COMPLETION OF CONSTRUCTION, OR (B) FOUR YEARS FROM THE  DATE  THE  FIRST
 BUILDING  PERMIT WAS ISSUED, OR IF NO PERMIT WAS REQUIRED, THE COMMENCE-
 MENT OF CONSTRUCTION. IN THE EVENT THAT THE FIRST YEAR OF THE  ABATEMENT
 OCCURRED  PRIOR  TO  THE  CURRENT  TAX YEAR, THE PROPERTY OWNER SHALL BE
 ENTITLED TO A REFUND OF THE AMOUNT OF THE ABATEMENT FOR ANY YEAR  OCCUR-
 RING AFTER THE ABATEMENT COMMENCED.
   § 2. This act shall take effect immediately.

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