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

                                   409

                      Seventh Extraordinary Session

                            I N  S E N A T E

                              June 28, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Rules

AN ACT to amend the administrative code of the city of New York and  the
  tax  law,  in relation to the temporary exemption from commercial rent
  or occupancy tax for premises used for retail sales in lower Manhattan
  and the World Trade Center area; and to amend part C of chapter  2  of
  the  laws  of  2005  amending  the tax law relating to exemptions from
  sales and use taxes, in relation to the  effectiveness  of  provisions
  thereof

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

  Section 1. Subparagraph (b-2) of  paragraph  2  of  subdivision  i  of
section  11-704  of  the administrative code of the city of New York, as
added by section 8 of part A of chapter  2  of  the  laws  of  2005,  is
amended to read as follows:
  (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 [nine] THIR-
TEEN 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.
  S  2.  Subparagraph  (A) of paragraph 7 of subdivision (ee) of section
1115 of the tax law, as added by section 1 of part C of chapter 2 of the
laws of 2005, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14335-02-9

              

S. 409                              2

  (A) "Tenant" means a person who, as lessee, enters into a space  lease
with  a  landlord for a term of ten years or more commencing on or after
September first, two thousand five, but not later than, in the case of a
space lease with respect to leased premises located in eligible areas as
defined  in  clause (i) of subparagraph (D) of this paragraph, September
first, two thousand [nine] THIRTEEN and, in the case of  a  space  lease
with  respect to leased premises located in eligible areas as defined in
clause (ii) of subparagraph (D) of this paragraph not later than Septem-
ber first, two thousand [eleven] FIFTEEN, of premises for use as commer-
cial office space in buildings located or to be located in the  eligible
areas.  A  person  who currently occupies premises for use as commercial
office space under an existing lease in a building in the eligible areas
shall not be eligible for exemption under this subdivision  unless  such
existing  lease,  in  the  case  of a space lease with respect to leased
premises located in eligible areas as defined in clause (i) of  subpara-
graph  (D)  of  this  paragraph  expires  according  to its terms before
September first, two thousand [nine] THIRTEEN or such existing lease, in
the case of a space lease with respect to  leased  premises  located  in
eligible  areas  as  defined  in clause (ii) of subparagraph (D) of this
paragraph and such person enters into a space lease, for a term  of  ten
years or more commencing on or after September first, two thousand five,
of  premises for use as commercial office space in a building located or
to be located in the eligible areas, provided that such space lease with
respect to leased premises located  in  eligible  areas  as  defined  in
clause (i) of subparagraph (D) of this paragraph commences no later than
September  first,  two  thousand [nine] THIRTEEN, and provided that such
space lease with respect to leased premises located in eligible areas as
defined in clause (ii) of subparagraph (D) of this  paragraph  commences
no  later  than  September  first,  two  thousand  [eleven]  FIFTEEN and
provided, further, that such space lease shall expire  no  earlier  than
ten years after the expiration of the original lease.
  S 3. Section 2 of part C of chapter 2 of the laws of 2005 amending the
tax  law  relating  to exemptions from sales and use taxes is amended to
read as follows:
  S 2. This act shall take effect September 1, 2005 and shall expire and
be deemed repealed on December 1, [2012] 2016, and shall apply to  sales
made,  uses  occurring  and services rendered on or after such effective
date, in accordance  with  the  applicable  transitional  provisions  of
sections 1106 and 1217 of the tax law; except that clause (i) of subpar-
agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the
tax law, as added by section one of this act, shall expire and be deemed
repealed December 1, [2010] 2014.
  S 4. This act shall take effect immediately; provided that if this act
shall  take  effect after June 30, 2009, it shall be deemed to have been
in full force and effect on and after June 30, 2009.