Senate Bill S1085A

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1085--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 26, 2009
                               ___________

Introduced by Sens. OPPENHEIMER, DIAZ, PARKER, SAMPSON -- read twice and
  ordered  printed, and when printed to be committed to the Committee on
  Housing,  Construction  and   Community   Development   --   committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  real property tax law, in relation to exempting
  certain construction, reconstruction,  alteration  or  improvement  of
  multiple  dwelling  buildings  within certain cities from taxation and
  other assessments

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real  property  tax  law  is amended by adding a new
section 421-l to read as follows:
  S 421-L. EXEMPTION OF CERTAIN CONSTRUCTION OR IMPROVEMENTS IN  CERTAIN
CITIES.  1.  NEW  CONSTRUCTION  OF  A MULTIPLE DWELLING BUILDING, RECON-
STRUCTION, ALTERATION, OR IMPROVEMENT OF A PREEXISTING MULTIPLE DWELLING
BUILDING OR STRUCTURE WHICH IS TO BE OCCUPIED OR IS OCCUPIED AS A  RESI-
DENCE  OR  HOME  AND  CONSISTS  OF NO LESS THAN FOUR UNITS, WHETHER SUCH
DWELLING IS RENTED OR OWNED AS A  COOPERATIVE  OR  CONDOMINIUM,  AND  IS
LOCATED  IN  ANY CITY HAVING A POPULATION OF MORE THAN FIFTY-THREE THOU-
SAND SEVENTY BUT LESS THAN FIFTY-THREE THOUSAND ONE  HUNDRED  AS  DETER-
MINED  BY THE TWO THOUSAND FEDERAL DECENNIAL CENSUS SHALL BE EXEMPT FROM
TAXATION OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS,  TO  THE  EXTENT
PROVIDED IN THIS SECTION. AFTER A PUBLIC HEARING, THE GOVERNING BOARD OF
SUCH CITY MAY ADOPT A LOCAL LAW TO GRANT THE EXEMPTION AUTHORIZED PURSU-
ANT  TO  THIS  SECTION. A COPY OF SUCH LOCAL LAW SHALL BE FILED WITH THE
STATE BOARD AND THE ASSESSOR OF SUCH CITY WHO  PREPARES  THE  ASSESSMENT
ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
  2. (A) EXCEPT AS OTHERWISE PROVIDED HEREIN, SUCH BUILDINGS WITHIN SUCH
CITY  SHALL  BE EXEMPT DURING THE PERIOD OF CONSTRUCTION OR FOR A PERIOD
OF THREE YEARS IMMEDIATELY FOLLOWING THE COMMENCEMENT  OF  CONSTRUCTION,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03529-05-9
              

S. 1085--A                          2

WHICHEVER  OCCURS  EARLIER, AND THEN FOR A PERIOD OF ELEVEN YEARS THERE-
AFTER, TO THE EXTENT OF ONE HUNDRED PERCENT OF THE INCREASE IN  ASSESSED
VALUE  ATTRIBUTABLE  TO SUCH CONSTRUCTION, RECONSTRUCTION, ALTERATION OR
IMPROVEMENT,  AND  FOR  AN  ADDITIONAL  PERIOD OF FOUR YEARS AS PROVIDED
BELOW AND, SUBJECT, IN EACH CASE, TO THE FOLLOWING:
  (I) FOLLOWING SUCH ELEVEN YEAR PERIOD, THE EXTENT  OF  SUCH  EXEMPTION
SHALL  BE  DECREASED BY TWENTY PERCENT OF THE "EXEMPTION BASE" EACH YEAR
DURING SUCH ADDITIONAL FOUR YEAR PERIOD. THE "EXEMPTION BASE"  SHALL  BE
THE  INCREASE IN ASSESSED VALUE AS DETERMINED IN THE INITIAL YEAR OF THE
TERM OF THE EXEMPTION, EXCEPT AS PROVIDED IN SUBPARAGRAPH (II)  OF  THIS
PARAGRAPH.
  (II)  IN  ANY YEAR IN WHICH A CHANGE IN LEVEL OF ASSESSMENT OF FIFTEEN
PERCENT OR MORE IS CERTIFIED FOR A FINAL ASSESSMENT ROLL PURSUANT TO THE
RULES OF THE STATE BOARD, THE EXEMPTION BASE SHALL BE  MULTIPLIED  BY  A
FRACTION,  THE  NUMERATOR  OF WHICH SHALL BE THE TOTAL ASSESSED VALUE OF
THE PARCEL ON SUCH FINAL ASSESSMENT ROLL (AFTER ACCOUNTING FOR ANY PHYS-
ICAL OR QUANTITY CHANGES TO THE PARCEL SINCE THE  IMMEDIATELY  PRECEDING
ASSESSMENT  ROLL),  AND  THE  DENOMINATOR  OF  WHICH  SHALL BE THE TOTAL
ASSESSED VALUE OF THE PARCEL ON THE IMMEDIATELY PRECEDING FINAL  ASSESS-
MENT  ROLL.  THE  RESULT  SHALL BE THE NEW EXEMPTION BASE. THE EXEMPTION
SHALL THEREUPON BE RECOMPUTED TO TAKE INTO  ACCOUNT  THE  NEW  EXEMPTION
BASE,  NOTWITHSTANDING THE FACT THAT THE ASSESSOR RECEIVES CERTIFICATION
OF THE CHANGE IN LEVEL OF ASSESSMENT AFTER THE COMPLETION,  VERIFICATION
AND  FILING OF THE FINAL ASSESSMENT ROLL. IN THE EVENT THE ASSESSOR DOES
NOT HAVE CUSTODY OF THE ROLL WHEN SUCH CERTIFICATION  IS  RECEIVED,  THE
ASSESSOR  SHALL  CERTIFY  THE RECOMPUTED EXEMPTION TO THE LOCAL OFFICERS
HAVING CUSTODY AND CONTROL OF THE ROLL,  AND  SUCH  LOCAL  OFFICERS  ARE
HEREBY  DIRECTED AND AUTHORIZED TO ENTER THE RECOMPUTED EXEMPTION CERTI-
FIED BY THE ASSESSOR ON THE ROLL. THE ASSESSOR SHALL GIVE WRITTEN NOTICE
OF SUCH RECOMPUTED EXEMPTION TO THE PROPERTY OWNER, WHO MAY,  IF  HE  OR
SHE  BELIEVES THAT THE EXEMPTION WAS RECOMPUTED INCORRECTLY, APPLY FOR A
CORRECTION IN THE MANNER PROVIDED BY TITLE THREE OF ARTICLE FIVE OF THIS
CHAPTER FOR THE CORRECTION OF CLERICAL ERRORS.
  (B) NO SUCH  EXEMPTION  SHALL  BE  GRANTED  FOR  CONSTRUCTION,  RECON-
STRUCTION, ALTERATIONS OR IMPROVEMENTS UNLESS:
  (I)  SUCH  CONSTRUCTION, RECONSTRUCTION, ALTERATION OR IMPROVEMENT WAS
COMMENCED SUBSEQUENT TO THE EFFECTIVE DATE  OF  THE  LOCAL  LAW  ADOPTED
PURSUANT TO SUBDIVISION ONE OF THIS SECTION BY SUCH CITY; AND
  (II)  THE  VALUE  OF  THE  CONSTRUCTION, RECONSTRUCTION, ALTERATION OR
IMPROVEMENT EXCEEDS, ON AVERAGE, FIFTEEN THOUSAND DOLLARS  PER  DWELLING
UNIT; AND
  (III)  THE  CONSTRUCTION, RECONSTRUCTION, ALTERATION OR IMPROVEMENT IS
FINANCED IN WHOLE OR IN PART BY THE CITY, OR, WITH THE APPROVAL  OF  THE
GOVERNING BODY OF THE CITY, BY THE LOCAL URBAN RENEWAL AGENCY, THE LOCAL
HOUSING AUTHORITY OR ANOTHER PUBLIC BENEFIT CORPORATION; AND
  (IV)  EITHER THE CITY, THE LOCAL URBAN RENEWAL AGENCY, THE LOCAL HOUS-
ING AUTHORITY OR  ANOTHER  PUBLIC  BENEFIT  CORPORATION  HAS  IMPOSED  A
REQUIREMENT OR HAS CERTIFIED THAT TWENTY PERCENT OF THE UNITS BE AFFORD-
ABLE  TO  FAMILIES OF LOW AND MODERATE INCOME, FOR SUCH PERIOD AND UNDER
SUCH CONDITIONS AS MAY BE ESTABLISHED FROM TIME  TO  TIME  BY  THE  CITY
PURSUANT TO A LOCAL LAW.
  (C)  FOR  PURPOSES  OF  THIS  SECTION  THE  TERMS CONSTRUCTION, RECON-
STRUCTION, ALTERATION AND IMPROVEMENT SHALL NOT INCLUDE ORDINARY MAINTE-
NANCE AND REPAIRS.
  3. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE  OWNER
OF  SUCH  BUILDING ON A FORM PRESCRIBED BY THE STATE BOARD. THE APPLICA-

S. 1085--A                          3

TION SHALL BE FILED WITH THE ASSESSOR OF SUCH  CITY  ON  OR  BEFORE  THE
APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY.
  4.  IF SATISFIED THAT THE APPLICANT IS ENTITLED TO AN EXEMPTION PURSU-
ANT TO THIS SECTION, THE ASSESSOR SHALL APPROVE THE APPLICATION AND SUCH
BUILDING SHALL THEREAFTER BE EXEMPT FROM TAXATION AS  PROVIDED  IN  THIS
SECTION COMMENCING WITH THE ASSESSMENT ROLL PREPARED ON THE BASIS OF THE
TAXABLE  STATUS  DATE  REFERRED TO IN SUBDIVISION THREE OF THIS SECTION.
THE ASSESSED VALUE OF ANY EXEMPTION GRANTED  PURSUANT  TO  THIS  SECTION
SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL WITH THE TAXABLE
PROPERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
  5.  IN THE EVENT THAT A BUILDING GRANTED AN EXEMPTION PURSUANT TO THIS
SECTION CEASES TO BE USED PRIMARILY  FOR  RESIDENTIAL  PURPOSES  OR  ANY
CONDITION  TO  THE  EXEMPTION  ESTABLISHED  BY  A LOCAL LAW IS NO LONGER
SATISFIED, THE EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
  6. IN ADDITION TO THE ABOVE PAYMENTS, DURING ANY  PERIOD  IN  WHICH  A
FULL  OR  PARTIAL  EXEMPTION  ESTABLISHED  ABOVE IS STILL IN EFFECT, THE
OWNER SHALL PAY IN EACH TAX YEAR IN WHICH SUCH FULL OR PARTIAL EXEMPTION
IS IN EFFECT, REAL PROPERTY TAXES AND ASSESSMENTS AS FOLLOWS:
  (A) REAL PROPERTY TAXES ON THE ASSESSED VALUATION OF SUCH LAND AND ANY
IMPROVEMENTS THEREON  IN  EFFECT  DURING  THE  TAX  YEAR  PRECEDING  THE
COMMENCEMENT  OF  SUCH  CONSTRUCTION  WITHOUT REGARD TO ANY EXEMPTION OR
ABATEMENT  FROM  REAL  PROPERTY  TAXATION  IN  EFFECT  PRIOR   TO   SUCH
CONSTRUCTION  WHICH  REAL  PROPERTY TAXES SHALL BE CALCULATED ON THE TAX
RATE IN EFFECT AT THE TIME SUCH TAXES ARE DUE; AND
  (B) ALL ASSESSMENTS FOR LOCAL IMPROVEMENTS.
  7. (A) THE ENACTMENT OF A LOCAL LAW IN SUCH CITY MAY:
  (I) REDUCE THE PERCENT OR PERIOD OF EXEMPTION OTHERWISE ALLOWED PURSU-
ANT TO THIS SECTION;
  (II)  LIMIT  ELIGIBILITY  FOR  THE  EXEMPTION  TO   THOSE   FORMS   OF
CONSTRUCTION,   RECONSTRUCTION,   ALTERATIONS  OR  IMPROVEMENTS  AS  ARE
PRESCRIBED IN SUCH LAW OR RESOLUTION;
  (III) PROVIDE THAT THE EXEMPTION SHALL BE  APPLICABLE  ONLY  TO  THOSE
IMPROVEMENTS WHICH WOULD OTHERWISE RESULT IN AN INCREASE IN THE ASSESSED
VALUATION  OF THE REAL PROPERTY BUT WHICH CONSIST OF AN ADDITION, REMOD-
ELING OR MODERNIZATION TO AN EXISTING OWNER OCCUPIED MULTIPLE  RESIDENCE
STRUCTURE  TO  PREVENT  PHYSICAL  DETERIORATION  OF  THE STRUCTURE OR TO
COMPLY WITH APPLICABLE BUILDING, SANITARY, HEALTH AND/OR FIRE CODES; AND
  (IV) PROVIDE TERMS AND CONDITIONS UNDER WHICH THE CITY, OR, IF AUTHOR-
IZED BY A LOCAL LAW, A LOCAL  URBAN  RENEWAL  AGENCY,  MAY  REQUIRE  THE
RECAPTURE  OF  THE  BENEFITS  CONFERRED  HEREUNDER  IN WHOLE OR IN PART,
INCLUDING REQUIREMENTS TO MAINTAIN ALL OR A PORTION OF THE  BUILDING  AS
AFFORDABLE  UNITS  FOR  FAMILIES  OF LOW OR MODERATE INCOME FOR A PERIOD
WHICH MAY EXCEED THE PERIOD FOR WHICH AN EXEMPTION IS GRANTED.
  (B) NO SUCH LOCAL LAW SHALL REDUCE  OR  REPEAL  AN  EXEMPTION  GRANTED
PURSUANT  TO  THIS  SECTION UNTIL THE EXPIRATION OF THE PERIOD FOR WHICH
SUCH EXEMPTION WAS GRANTED.
  8. (A) AS USED IN THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (I) "BUILDING SERVICE EMPLOYEE" MEANS  ANY  PERSON  WHO  IS  REGULARLY
EMPLOYED  AT A BUILDING WHO PERFORMS WORK IN CONNECTION WITH THE CARE OR
MAINTENANCE OF SUCH BUILDING. "BUILDING SERVICE EMPLOYEE" INCLUDES,  BUT
IS  NOT  LIMITED  TO WATCHMAN, GUARD, DOORMAN, BUILDING CLEANER, PORTER,
HANDYMAN, JANITOR, GARDENER, GROUNDSKEEPER, ELEVATOR OPERATOR AND START-
ER, AND WINDOW CLEANER.

S. 1085--A                          4

  (II) "PREVAILING WAGE" MEANS THE WAGE DETERMINED BY THE FISCAL OFFICER
TO BE PREVAILING FOR THE VARIOUS CLASSES OF BUILDING  SERVICE  EMPLOYEES
IN THE LOCALITY PURSUANT TO SECTION TWO HUNDRED THIRTY OF THE LABOR LAW.
  (B)  NO  EXEMPTION  UNDER  THIS  SECTION  SHALL  BE  GRANTED  FOR  ANY
CONSTRUCTION, RECONSTRUCTION, ALTERATIONS, OR  IMPROVEMENTS  UNLESS  THE
APPLICANT  AGREES  THAT  ALL  BUILDING SERVICE EMPLOYEES EMPLOYED AT THE
BUILDING, WHETHER EMPLOYED DIRECTLY BY THE APPLICANT OR ITS  SUCCESSORS,
OR  THROUGH A PROPERTY MANAGEMENT COMPANY OR A CONTRACTOR, SHALL RECEIVE
THE APPLICABLE PREVAILING WAGE FOR THE DURATION OF  THE  BUILDING'S  TAX
EXEMPTION.
  9. NO ADDITIONAL EXEMPTIONS SHALL APPLY.
  S 2. This act shall take effect immediately.