NY State Senate Bill 2011-S3846

Senate Bill S3846

2011-2012 Legislative Session

Creates real property tax abatement for certain commercial properties located within the Second Avenue subway project

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Archive: Last Bill Status - In Senate Committee Local Government 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 31, 2012	print number 3846a
Jan 31, 2012	amend and recommit to local government
Jan 04, 2012	referred to local government
Mar 07, 2011	referred to local government

Bill Amendments

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2011-S3846 - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add Art 4 Title 3-A §§496 - 496-g, RPT L
Versions Introduced in 2009-2010 Legislative Session:: S1393

2011-S3846 - Summary

Creates real property tax abatement for certain commercial properties located within the Second Avenue Subway project.

2011-S3846 - Sponsor Memo

                                BILL NUMBER:S3846

TITLE OF BILL:
An act
to amend the real property tax law, in relation to creating tax
abatements for certain commercial properties located within the Second
Avenue subway project

PURPOSE OF THE BILL:
Offers a property tax abatement to eligible property owners impacted
by the MTA Second Avenue Subway project if they are able to sign or
re-negotiate a reduced lease to current or prospective small business
commercial tenants.

SUMMARY OF SPECIFIC PROVISIONS:
The real property law is amended to add a new title 3-A.

§ 496 - Defines "abatement base," "abatement zone," aggregate floor
area," "applicant," benefit period," "billable assessed value,"
"department of finance," "eligible building," "eligibility period,"
eligible premises," fiscal year," "governmental agency," "landlord,"
lease commencement date," mixed-use building," "person," "rent
commencement date," "tax liability," "tax liability per square foot,"
"tenant," "tenant's percentage share," and "renewal tenant" for the
purposes of this title.

§ 496-a - Describes the procedures for calculation of the tax abatement.

§496-b - Outlines the eligibility requirements to qualify for the tax
abatement.

§ 496-c - Procedure for filing an application for the tax abatement.

§ 496-d - Allows the local department of finance to administer the tax
abatement and enforce the provisions of this title.

§ 496-e - Establishes reporting requirements for the applicant during
the benefit period and details conditions dictating the revocation of
the benefit.

§ 496-f - Describes the calculation of tax liens, interest, and
penalties pursuant to this title.

§ 496-g - Establishes the rights of the applicant with respect to
confidentiality in regards to information submitted.

JUSTIFICATION:
The log awaited second Avenue subway will bring great benefits to the
East Side of Manhattan as well as the entire Metropolitan area in the
long run, both in terms of local and regional economic stimulus and
in easing mass transportation crowding. But during the extended
construction, which will last well over two and a half decades,
residents, businesses, and property owners within the affected area
will suffer.


These New Yorkers are making a sacrifice for the betterment of the
rest of the East Side and the entire region, and it is important that
New York State extend a helping hand. Due to the increased costs of
the project, the MTA recently announced that the first stage of the
Second Avenue Subway - from 96th Street to 63rd be completed until
2015. This extended timeline makes the hardships of these business
owners even more pronounced. Construction projects of a similar
magnitude have left a wake of devastation which the East Side of
Manhattan cannot afford.

PRIOR LEGISLATIVE HISTORY:
S.8227 of 2008
S.1393 of 2009/2010

FISCAL IMPLICATIONS:
Unknown.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.

2011-S3846 - Bill Text download pdf

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

                                  3846

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 7, 2011
                               ___________

Introduced  by Sens. SERRANO, KRUEGER -- read twice and ordered printed,
  and when printed to be committed to the Committee on Local Government

AN ACT to amend the real property tax law, in relation to  creating  tax
  abatements for certain commercial properties located within the Second
  Avenue subway project

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

  Section 1. Article 4 of the real property tax law is amended by adding
a new title 3-A to read as follows:
                                 TITLE 3-A
                  TAX ABATEMENT FOR CERTAIN COMMERCIAL
       PROPERTIES LOCATED WITHIN THE SECOND AVENUE SUBWAY PROJECT
SECTION 496. DEFINITIONS.
        496-A. REAL PROPERTY TAX ABATEMENT.
        496-B. ELIGIBILITY REQUIREMENTS.
        496-C. APPLICATION FOR CERTIFICATE OF ABATEMENT.
        496-D. ENFORCEMENT AND ADMINISTRATION.
        496-E. REPORTING REQUIREMENTS; REVOCATION OF ABATEMENTS.
        496-F. TAX LIEN; INTEREST AND PENALTY.
        496-G. CONFIDENTIALITY.

  S 496. DEFINITIONS. WHEN USED IN THIS TITLE, THE FOLLOWING TERMS SHALL
MEAN OR INCLUDE:
  1. "ABATEMENT BASE." THE LESSER OF:  (A) TWO DOLLARS AND  FIFTY  CENTS
OR (B) FIFTY PER CENTUM OF THE TAX LIABILITY PER SQUARE FOOT.
  2.  "ABATEMENT ZONE." ANY AREA LOCATED WITHIN THE CONSTRUCTION AREA OF
THE SECOND AVENUE SUBWAY PROJECT AS DEFINED BY THE COMMISSIONER  OF  THE
METROPOLITAN  TRANSPORTATION  AUTHORITY,  WHICH HAS BEEN LOCATED IN SUCH
AREA AND CONTINUALLY BEEN DOING BUSINESS IN SUCH AREA  DURING  THE  YEAR
TWO THOUSAND EIGHT AND DURING THE CURRENT TAXABLE YEAR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00190-01-1

S. 3846                             2

  3.  "AGGREGATE  FLOOR AREA." THE SUM OF THE GROSS AREAS OF THE SEVERAL
FLOORS OF A BUILDING, MEASURED FROM THE EXTERIOR FACES OF EXTERIOR WALLS
OR FROM THE CENTER LINES OF WALLS SEPARATING TWO BUILDINGS.
  4. "APPLICANT." THE LANDLORD AND THE TENANT.
  5.  "BENEFIT  PERIOD." THE PERIOD COMMENCING WITH THE FIRST DAY OF THE
MONTH IMMEDIATELY FOLLOWING THE RENT COMMENCEMENT DATE  AND  TERMINATING
NO LATER THAN SIXTY MONTHS THEREAFTER.
  6.  "BILLABLE  ASSESSED VALUE." THE LESSER OF THE TAXABLE TRANSITIONAL
OR THE TAXABLE ACTUAL ASSESSED VALUE OF THE ELIGIBLE  BUILDING  AND  THE
LAND  ON  WHICH  THE ELIGIBLE BUILDING IS LOCATED FOR THE FISCAL YEAR IN
WHICH THE BENEFIT PERIOD COMMENCES, AS COMPUTED PURSUANT TO  SUBDIVISION
THREE OF SECTION EIGHTEEN HUNDRED FIVE OF THIS CHAPTER.
  7.  "DEPARTMENT  OF FINANCE." THE DEPARTMENT OF FINANCE OF THE CITY OF
NEW YORK.
  8.  "ELIGIBLE  BUILDING."  A  NON-RESIDENTIAL  OR  MIXED-USE  BUILDING
LOCATED  IN THE ABATEMENT ZONE. SUCH ELIGIBLE BUILDING SHALL NOT INCLUDE
ANY BUILDING OWNED BY A GOVERNMENTAL AGENCY.
  9. "ELIGIBILITY PERIOD." THE  PERIOD  COMMENCING  JANUARY  FIRST,  TWO
THOUSAND EIGHT AND TERMINATING JUNE FIRST, TWO THOUSAND SIXTEEN.
  10.  "ELIGIBLE  PREMISES."  PREMISES  LOCATED  IN AN ELIGIBLE BUILDING
WHICH ARE OCCUPIED OR USED AS OFFICES (INCLUDING ANCILLARY USES) OR  ARE
OCCUPIED OR USED AS RETAIL SPACE.
  11.  "FISCAL YEAR." THE FISCAL YEAR OF ANY CITY HAVING A POPULATION OF
ONE MILLION OR MORE.
  12. "GOVERNMENTAL AGENCY." THE UNITED STATES OF AMERICA OR ANY  AGENCY
OR INSTRUMENTALITY THEREOF, THE STATE OF NEW YORK, THE CITY OF NEW YORK,
ANY  PUBLIC  CORPORATION (INCLUDING A BODY CORPORATE AND POLITIC CREATED
PURSUANT TO AGREEMENT OR COMPACT BETWEEN THE STATE OF NEW YORK  AND  ANY
OTHER  STATE),  PUBLIC  BENEFIT  CORPORATION,  PUBLIC AUTHORITY OR OTHER
POLITICAL SUBDIVISION OF THE STATE.
  13. "LANDLORD." ANY PERSON WHO:    (A)  CONTROLS  ALL  NON-RESIDENTIAL
PORTIONS  OF  AN  ELIGIBLE  BUILDING, INCLUDING, WITHOUT LIMITATION, THE
RECORD OWNER,  THE  LESSEE  UNDER  A  GROUND  LEASE,  ANY  MORTGAGEE  IN
POSSESSION OR ANY RECEIVER, AND
  (B)  WHO  GRANTS  THE  RIGHT TO USE OR OCCUPY ELIGIBLE PREMISES TO ANY
TENANT, PROVIDED THAT LANDLORD SHALL NOT INCLUDE ANY LESSEE WHO  AT  ANY
TIME DURING THE LEASE TERM OCCUPIED OR USED OR OCCUPIES OR USES ANY PART
OF  THE  NON-RESIDENTIAL  PORTIONS OF SUCH ELIGIBLE BUILDING, OTHER THAN
PREMISES OCCUPIED OR USED BY SUCH LESSEE TO PROVIDE RENTAL OR MANAGEMENT
SERVICES TO SUCH BUILDING.
  14. "LEASE COMMENCEMENT DATE." THE DATE SET  FORTH  IN  THE  LEASE  ON
WHICH THE TERM OF THE LEASE COMMENCES.
  15.  "MIXED-USE  BUILDING."  A  BUILDING USED FOR BOTH RESIDENTIAL AND
COMMERCIAL PURPOSES, PROVIDED THAT MORE THAN TWENTY-FIVE PER  CENTUM  OF
THE AGGREGATE FLOOR AREA OF SUCH BUILDING IS USED OR HELD OUT FOR USE AS
COMMERCIAL, COMMUNITY FACILITY OR ACCESSORY USE SPACE.
  16.  "PERSON."  AN INDIVIDUAL, CORPORATION, LIMITED LIABILITY COMPANY,
PARTNERSHIP, ASSOCIATION, AGENCY, TRUST,  ESTATE,  FOREIGN  OR  DOMESTIC
GOVERNMENT OR SUBDIVISION THEREOF, OR OTHER ENTITY.
  17. "RENT COMMENCEMENT DATE." THE DATE SET FORTH IN THE LEASE ON WHICH
THE OBLIGATION TO PAY BASIC FIXED RENT SHALL COMMENCE.
  18.  "TAX LIABILITY." THE PRODUCT OBTAINED BY MULTIPLYING THE BILLABLE
ASSESSED VALUE FOR THE FISCAL YEAR IN WHICH THE BENEFIT PERIOD COMMENCES
BY THE TAX RATE APPLICABLE TO THE ELIGIBLE BUILDING FOR SUCH FISCAL YEAR
AS SET BY THE LOCAL LEGISLATIVE BODY OF ANY CITY HAVING A POPULATION  OF
ONE MILLION OR MORE.

S. 3846                             3

  19.  "TAX LIABILITY PER SQUARE FOOT." THE TAX LIABILITY DIVIDED BY THE
TOTAL NUMBER OF SQUARE FEET IN THE ELIGIBLE BUILDING, AS LISTED  ON  THE
RECORDS OF THE DEPARTMENT OF FINANCE.
  20.  "TENANT."  A  PERSON  (INCLUDING  ANY SUCCESSORS IN INTEREST) WHO
EXECUTES A LEASE WITH THE LANDLORD FOR THE RIGHT TO OCCUPY  OR  USE  THE
ELIGIBLE  PREMISES AND WHO OCCUPIES OR USES THE ELIGIBLE PREMISES PURSU-
ANT TO SUCH LEASE. TENANT SHALL NOT INCLUDE ANY SUBTENANT.
  21. "TENANT'S  PERCENTAGE  SHARE."  THE  PERCENTAGE  OF  THE  ELIGIBLE
BUILDING'S  AGGREGATE  FLOOR  AREA  ALLOCATED  TO THE ELIGIBLE PREMISES,
WHICH SHALL BE PRESUMED TO BE SUCH PERCENTAGE AS SET FORTH IN THE  LEASE
FOR  THE  ELIGIBLE  PREMISES;  PROVIDED THAT WHERE THE ELIGIBLE PREMISES
INCLUDES EXPANSION PREMISES, THE "TENANT'S PERCENTAGE  SHARE"  SHALL  BE
CALCULATED  ON  THE  BASIS  OF THE PERCENTAGE OF THE ELIGIBLE BUILDING'S
AGGREGATE FLOOR AREA ALLOCATED SOLELY TO THE EXPANSION PREMISES.
  22. "RENEWAL TENANT." A PERSON WHO HAS  AN  EXISTING  LEASE  WITH  THE
LANDLORD AND RENEGOTIATES OR RENEWS SUCH LEASE WITH THE LANDLORD FOR THE
RIGHT TO OCCUPY OR USE THE ELIGIBLE PREMISES.
  S  496-A. REAL PROPERTY TAX ABATEMENT. 1. WITHIN A CITY HAVING A POPU-
LATION OF ONE MILLION OR MORE, ELIGIBLE  BUILDINGS  CONTAINING  ELIGIBLE
PREMISES  SHALL  RECEIVE  AN ABATEMENT OF REAL PROPERTY TAXES DURING THE
BENEFIT PERIOD AS FOLLOWS:
  (A) FOR EACH OF THE FIRST THREE  YEARS  OF  THE  BENEFIT  PERIOD,  THE
ABATEMENT SHALL BE EQUAL TO THE PRODUCT OBTAINED BY:
  (1)  MULTIPLYING THE TENANT'S PERCENTAGE SHARE BY THE NUMBER OF SQUARE
FEET IN THE ELIGIBLE BUILDING, AS LISTED ON THE RECORDS OF  THE  DEPART-
MENT OF FINANCE AND
  (2) MULTIPLYING THE PRODUCT OBTAINED IN SUBPARAGRAPH ONE OF THIS PARA-
GRAPH BY THE ABATEMENT BASE;
  (B)  FOR THE FOURTH YEAR OF THE BENEFIT PERIOD, THE ABATEMENT SHALL BE
EQUAL TO TWO-THIRDS OF THE ABATEMENT IN THE FIRST YEAR  OF  THE  BENEFIT
PERIOD; AND
  (C)  FOR  THE FIFTH YEAR OF THE BENEFIT PERIOD, THE ABATEMENT SHALL BE
EQUAL TO ONE-THIRD OF THE ABATEMENT IN THE FIRST  YEAR  OF  THE  BENEFIT
PERIOD.
  2.  IF,  AS  A  RESULT OF APPLICATION TO THE TAX COMMISSION OR A COURT
ORDER OR ACTION BY THE DEPARTMENT  OF  FINANCE,  THE  BILLABLE  ASSESSED
VALUE IS REDUCED, THE DEPARTMENT OF FINANCE SHALL RECALCULATE THE ABATE-
MENT UTILIZING SUCH REDUCED BILLABLE ASSESSED VALUE. THE AMOUNT EQUAL TO
THE  DIFFERENCE  BETWEEN THE ABATEMENT ORIGINALLY GRANTED AND THE ABATE-
MENT AS SO RECALCULATED SHALL BE  DEDUCTED  FROM  ANY  REFUND  OTHERWISE
PAYABLE  OR  REMISSION  OTHERWISE  DUE  AS A RESULT OF SUCH REDUCTION IN
BILLABLE ASSESSED VALUE, AND ANY BALANCE OF SUCH AMOUNT REMAINING UNPAID
AFTER MAKING ANY SUCH DEDUCTION SHALL  BE  PAID  TO  THE  DEPARTMENT  OF
FINANCE WITHIN THIRTY DAYS FROM THE DATE OF MAILING BY THE DEPARTMENT OF
FINANCE  OF  A  NOTICE  OF THE AMOUNT PAYABLE. SUCH AMOUNT PAYABLE SHALL
CONSTITUTE A TAX LIEN ON THE ELIGIBLE BUILDING AS OF THE  DATE  OF  SUCH
NOTICE  AND,  IF  NOT  PAID  WITHIN  SUCH THIRTY-DAY PERIOD, PENALTY AND
INTEREST AT THE RATE APPLICABLE TO DELINQUENT  TAXES  ON  SUCH  ELIGIBLE
BUILDING  SHALL BE CHARGED AND COLLECTED ON SUCH AMOUNT FROM THE DATE OF
SUCH NOTICE TO THE DATE OF PAYMENT.
  3. IN NO EVENT SHALL THE ABATEMENT FOR THE ELIGIBLE  PREMISES  GRANTED
PURSUANT  TO THIS TITLE EXCEED THE TAX LIABILITY ALLOCABLE TO THE ELIGI-
BLE PREMISES.
  4. NOTWITHSTANDING THE  PROVISIONS  OF  ANY  LEASE  FOR  OCCUPANCY  OF
NON-ELIGIBLE PREMISES IN AN ELIGIBLE BUILDING OR FOR OCCUPANCY OF ELIGI-
BLE  PREMISES  FOR  WHICH  NO  CERTIFICATE  OF ABATEMENT HAS BEEN ISSUED

S. 3846                             4

PURSUANT TO THIS TITLE, A LESSEE OF NON-ELIGIBLE PREMISES OR OF ELIGIBLE
PREMISES FOR WHICH NO CERTIFICATE OF ABATEMENT HAS BEEN ISSUED  PURSUANT
TO  THIS TITLE SHALL NOT BE ENTITLED TO RECEIVE DIRECTLY OR INDIRECTLY A
REDUCTION IN EITHER THE REAL PROPERTY TAXES OR ANY RENT (INCLUDING ADDI-
TIONAL  RENT)  PAYABLE PURSUANT TO SUCH LEASE WHERE SUCH REDUCTION WOULD
RESULT FROM AN ABATEMENT OF REAL PROPERTY TAXES GRANTED PURSUANT TO THIS
TITLE. A LANDLORD OF AN ELIGIBLE BUILDING SHALL  NOT  ALLOCATE,  CREDIT,
ASSIGN  OR DISBURSE ANY PORTION OF AN ABATEMENT GRANTED PURSUANT TO THIS
TITLE TO A LESSEE OF NON-ELIGIBLE PREMISES OR OF ELIGIBLE  PREMISES  FOR
WHICH  NO  CERTIFICATE  OF  ABATEMENT  HAS  BEEN ISSUED PURSUANT TO THIS
TITLE. A LANDLORD SHALL NOT BE REQUIRED  TO  REDUCE  THE  REAL  PROPERTY
TAXES  OR  ANY  RENT  (INCLUDING  ADDITIONAL  RENT) PAYABLE BY EXPANSION
TENANTS, NEW TENANTS AND RENEWAL TENANTS BY AN AMOUNT THAT  EXCEEDS  THE
FULL AMOUNT OF THE ABATEMENT GRANTED PURSUANT TO THIS TITLE, BUT A LAND-
LORD  SHALL  BE  REQUIRED  TO REDUCE THE REAL PROPERTY TAXES OR ANY RENT
(INCLUDING ADDITIONAL RENT) PAYABLE BY EXPANSION  TENANTS,  NEW  TENANTS
AND RENEWAL TENANTS BY AN AMOUNT THAT, IN THE AGGREGATE, EQUALS THE FULL
AMOUNT  OF  THE ABATEMENT GRANTED PURSUANT TO THIS TITLE. SUCH REDUCTION
SHALL BE ALLOCATED IN ACCORDANCE WITH  THE  ABATEMENT  GRANTED  FOR  THE
ELIGIBLE PREMISES OCCUPIED BY EACH SUCH TENANT.
  S  496-B.  ELIGIBILITY  REQUIREMENTS. 1. NO ABATEMENT SHALL BE GRANTED
PURSUANT TO THIS TITLE UNLESS THE  LANDLORD  ENTERS  INTO  A  LEASE  FOR
ELIGIBLE PREMISES WITH A TENANT OR RENEWAL TENANT AND:
  (A) THE LEASE COMMENCEMENT DATE IS WITHIN THE ELIGIBILITY PERIOD;
  (B)  (1) IF, BY THE SIXTIETH DAY FOLLOWING THE RENT COMMENCEMENT DATE,
SUCH TENANT 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 OR
  (2) IF, BY THE SIXTIETH DAY FOLLOWING THE RENT COMMENCEMENT DATE, SUCH
TENANT 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.
  2. NO ABATEMENT SHALL BE GRANTED PURSUANT TO THIS TITLE IF  AN  APPLI-
CANT  SHALL  FAIL  TO  MEET ANY OF THE REQUIREMENTS OF THIS TITLE WITHIN
SIXTY DAYS OF THE RENT COMMENCEMENT DATE.
  3. FOR PURPOSES OF THIS TITLE, 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 IN SUCH LEASE.
  4. THE LEASE FOR THE ELIGIBLE PREMISES  SHALL  CONTAIN  THE  FOLLOWING
PROVISIONS:
  (A) A STATEMENT OF THE TENANT'S PERCENTAGE SHARE;
  (B)  A  STATEMENT  INFORMING  THE TENANT IN AT LEAST TWELVE-POINT TYPE
THAT:
  (1) AN APPLICATION FOR ABATEMENT OF REAL PROPERTY  TAXES  PURSUANT  TO
THIS TITLE WILL BE MADE FOR THE PREMISES;
  (2)  THE  RENT,  INCLUDING  AMOUNTS  PAYABLE  BY THE TENANT OR RENEWAL
TENANT FOR REAL PROPERTY TAXES, WILL ACCURATELY REFLECT ANY ABATEMENT OF
REAL PROPERTY TAXES GRANTED PURSUANT TO THIS TITLE FOR THE PREMISES; AND
  (3) ALL ABATEMENTS GRANTED WITH RESPECT TO A BUILDING PURSUANT TO THIS
TITLE WILL BE REVOKED IF, DURING THE BENEFIT PERIOD, REAL  ESTATE  TAXES
OR  WATER OR SEWER CHARGES OR OTHER LIENABLE CHARGES ARE UNPAID FOR MORE
THAN ONE YEAR, UNLESS SUCH DELINQUENT AMOUNTS ARE PAID  AS  PROVIDED  IN
SUBDIVISION FOUR OF SECTION FOUR HUNDRED NINETY-SIX-E OF THIS TITLE.
  5. NO ABATEMENT SHALL BE GRANTED PURSUANT TO THIS TITLE IF:

S. 3846                             5

  (A)  THE  LEASE  FOR  THE  ELIGIBLE  PREMISES PROVIDES THAT DURING THE
INITIAL LEASE TERM REQUIRED BY SUBDIVISION ONE OF  THIS  SECTION  EITHER
THE  LANDLORD  OR  THE TENANT OR RENEWAL TENANT MAY TERMINATE SUCH LEASE
PRIOR TO THE EXPIRATION  DATE  OF  SUCH  REQUIRED  INITIAL  LEASE  TERM;
PROVIDED  THAT  SUCH  LEASE  MAY PROVIDE THAT EITHER THE LANDLORD OR THE
TENANT MAY TERMINATE SUCH LEASE IF:
  (1) THE OTHER PARTY IS IN DEFAULT OF ANY OF SUCH  PARTY'S  OBLIGATIONS
UNDER THE LEASE,
  (2)  THE  ELIGIBLE  PREMISES ARE DAMAGED OR DESTROYED BY FIRE OR OTHER
CASUALTY,
  (3) THE ELIGIBLE PREMISES ARE RENDERED UNUSABLE  FOR  ANY  REASON  NOT
ATTRIBUTABLE  TO ANY ACT OR FAILURE TO ACT OF EITHER TENANT OR LANDLORD,
OR
  (4) THE ELIGIBLE PREMISES ARE ACQUIRED BY EMINENT DOMAIN; AND
  (B) THERE ARE REAL PROPERTY TAXES, WATER OR  SEWER  CHARGES  OR  OTHER
LIENABLE  CHARGES CURRENTLY DUE AND OWING ON THE ELIGIBLE BUILDING WHICH
IS THE SUBJECT OF AN APPLICATION FOR ABATEMENT PURSUANT TO  THIS  TITLE,
UNLESS  SUCH  REAL PROPERTY TAXES OR CHARGES ARE CURRENTLY BEING PAID IN
TIMELY INSTALLMENTS PURSUANT TO A WRITTEN AGREEMENT WITH THE  DEPARTMENT
OF FINANCE OR OTHER APPROPRIATE AGENCY.
  6.  NO  ABATEMENT  SHALL  BE GRANTED PURSUANT TO THIS TITLE UNLESS THE
APPLICANT SHALL  FILE,  TOGETHER  WITH  THE  APPLICATION,  AN  AFFIDAVIT
SETTING FORTH THE FOLLOWING INFORMATION:
  (A)  A STATEMENT THAT WITHIN THE SEVEN YEARS IMMEDIATELY PRECEDING THE
DATE OF APPLICATION FOR A CERTIFICATE OF ABATEMENT, NEITHER  THE  APPLI-
CANT NOR ANY PERSON OWNING A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILD-
ING  AS  DEFINED  IN PARAGRAPH (B) OF THIS SUBDIVISION, NOR ANY OFFICER,
DIRECTOR OR GENERAL PARTNER OF THE APPLICANT OR SUCH PERSON WAS  FINALLY
ADJUDICATED  BY  A  COURT  OF  COMPETENT  JURISDICTION  TO HAVE VIOLATED
SECTION TWO HUNDRED THIRTY-FIVE OF THE REAL PROPERTY LAW OR ANY  SECTION
OF  ARTICLE  ONE HUNDRED FIFTY OF THE PENAL LAW OR ANY SIMILAR ARSON LAW
OF ANOTHER JURISDICTION WITH RESPECT TO ANY BUILDING, OR WAS AN OFFICER,
DIRECTOR OR GENERAL PARTNER OF A PERSON AT  THE  TIME  SUCH  PERSON  WAS
FINALLY ADJUDICATED TO HAVE VIOLATED ANY SUCH LAW; AND
  (B)  A  STATEMENT SETTING FORTH ANY PENDING CHARGES ALLEGING VIOLATION
OF SECTION TWO HUNDRED THIRTY-FIVE OF  THE  REAL  PROPERTY  LAW  OR  ANY
SECTION  OF  ARTICLE  ONE  HUNDRED FIFTY OF THE PENAL LAW OR ANY SIMILAR
ARSON LAW OF ANOTHER JURISDICTION WITH RESPECT TO ANY  BUILDING  BY  THE
APPLICANT  OR  ANY  PERSON OWNING A SUBSTANTIAL INTEREST IN THE ELIGIBLE
BUILDING AS DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION, OR  ANY  OFFI-
CER, DIRECTOR OR GENERAL PARTNER OF THE APPLICANT OR SUCH PERSON, OR ANY
PERSON FOR WHOM THE APPLICANT OR PERSON OWNING A SUBSTANTIAL INTEREST IN
THE ELIGIBLE BUILDING IS AN OFFICER, DIRECTOR OR GENERAL PARTNER.
  (C)  FOR PURPOSES OF THIS SUBDIVISION AND SUBDIVISION SEVEN OF SECTION
FOUR HUNDRED NINETY-SIX-E OF THIS TITLE,  "SUBSTANTIAL  INTEREST"  SHALL
MEAN  OWNERSHIP  AND CONTROL OF AN INTEREST OF TEN PER CENTUM OR MORE IN
THE ELIGIBLE BUILDING OR IN ANY PERSON OWNING THE ELIGIBLE BUILDING.
  S 496-C. APPLICATION FOR CERTIFICATE OF ABATEMENT. 1. APPLICATION  FOR
A  CERTIFICATE  OF  ABATEMENT MAY BE MADE ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHT AND UNTIL SIXTY DAYS AFTER THE  END  OF  THE  ELIGIBILITY
PERIOD,  AND  SHALL BE FILED WITH THE DEPARTMENT OF FINANCE. NO APPLICA-
TION MAY BE FILED PRIOR TO THE DATE ON WHICH THE LEASE FOR THE  ELIGIBLE
PREMISES IS EXECUTED BY THE LANDLORD AND TENANT.
  2.  NO  ABATEMENT  PURSUANT  TO THIS TITLE SHALL BE GRANTED UNLESS THE
APPLICANT FILES AN APPLICATION FOR A  CERTIFICATE  OF  ABATEMENT  WITHIN

S. 3846                             6

SIXTY  DAYS  FOLLOWING  THE LEASE COMMENCEMENT DATE OR WITHIN SIXTY DAYS
FOLLOWING THE EFFECTIVE DATE OF THIS TITLE, WHICHEVER IS LATER.
  3.  IN ADDITION TO ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT OF
FINANCE, THE APPLICATION FOR A CERTIFICATE OF ABATEMENT SHALL INCLUDE AN
ABSTRACT OF THE LEASE FOR THE ELIGIBLE PREMISES FOR WHICH  AN  ABATEMENT
IS BEING SOUGHT WHICH ABSTRACT IS SIGNED BY THE LANDLORD AND THE TENANT.
SUCH  ABSTRACT  SHALL  INCLUDE  THE TENANT'S PERCENTAGE SHARE, THE LEASE
COMMENCEMENT DATE, THE RENT COMMENCEMENT DATE, THE EXPIRATION  DATE  FOR
SUCH  LEASE  AND  A  DESCRIPTION  OF  THE IMPROVEMENTS TO BE MADE TO THE
ELIGIBLE PREMISES AND THE COMMON AREAS OF THE ELIGIBLE BUILDING, INCLUD-
ING THE ESTIMATED VALUE OF SUCH  IMPROVEMENTS.  SUCH  APPLICATION  SHALL
ALSO INCLUDE:
  (A)  A  STATEMENT  OF  THE  NUMBER  OF  PERSONS  WHO WILL, ON THE RENT
COMMENCEMENT DATE, BE EMPLOYED IN THE ELIGIBLE PREMISES,
  (B) A STATEMENT OF THE LOCATION OF ALL OFFICE OR RETAIL SPACE  IN  THE
CITY  OF  NEW  YORK OCCUPIED BY THE TENANT PRIOR TO THE EXECUTION OF THE
LEASE FOR THE ELIGIBLE PREMISES,
  (C) THE COMMENCEMENT AND EXPIRATION DATES OF ALL LEASES  FOR  PREMISES
IN THE ABATEMENT ZONE USED OR OCCUPIED AS OFFICE OR RETAIL SPACE, AND
  (D)  THE  AGGREGATE FLOOR AREA OF THE ELIGIBLE BUILDING. SUCH APPLICA-
TION SHALL ALSO STATE THAT THE APPLICANT AGREES TO COMPLY  WITH  AND  BE
SUBJECT  TO  THE  RULES  ISSUED  FROM  TIME TO TIME BY THE DEPARTMENT OF
FINANCE.
  4. WITHIN SIXTY DAYS FOLLOWING THE RENT COMMENCEMENT DATE, THE  APPLI-
CANT SHALL PROVIDE, IN ADDITION TO ANY OTHER INFORMATION REQUIRED BY THE
DEPARTMENT  OF FINANCE, EVIDENCE ACCEPTABLE TO THE DEPARTMENT OF FINANCE
REGARDING THE NUMBER OF EMPLOYEES IN THE ELIGIBLE PREMISES. THE  DEPART-
MENT  OF FINANCE SHALL ISSUE A CERTIFICATE OF ABATEMENT UPON DETERMINING
THAT THE APPLICANT HAS SUBMITTED PROOF ACCEPTABLE TO THE  DEPARTMENT  OF
FINANCE  THAT  THE  APPLICANT HAS MET THE REQUIREMENTS SET FORTH IN THIS
TITLE.
  5. THE BURDEN OF PROOF SHALL BE ON THE APPLICANT TO SHOW BY CLEAR  AND
CONVINCING  EVIDENCE THAT THE REQUIREMENTS FOR GRANTING A CERTIFICATE OF
ABATEMENT HAVE BEEN SATISFIED. THE DEPARTMENT OF FINANCE SHALL HAVE  THE
AUTHORITY TO REQUIRE THAT STATEMENTS IN CONNECTION WITH SUCH APPLICATION
BE MADE UNDER OATH.
  6. THE DEPARTMENT OF FINANCE MAY PROVIDE BY RULE FOR REASONABLE ADMIN-
ISTRATIVE  CHARGES OR FEES NECESSARY TO DEFRAY EXPENSES IN ADMINISTERING
THE ABATEMENT PROGRAM PROVIDED BY THIS TITLE.
  S 496-D. ENFORCEMENT AND ADMINISTRATION.  THE  DEPARTMENT  OF  FINANCE
SHALL  HAVE, IN ADDITION TO ANY OTHER FUNCTIONS, POWERS AND DUTIES WHICH
HAVE BEEN OR MAY BE CONFERRED ON IT BY  LAW,  THE  FOLLOWING  FUNCTIONS,
POWERS AND DUTIES:
  1.  TO  RECEIVE  AND REVIEW APPLICATIONS FOR CERTIFICATES OF ABATEMENT
UNDER THIS TITLE AND ISSUE SUCH CERTIFICATES WHERE  AUTHORIZED  PURSUANT
TO THIS TITLE.
  2. TO RECEIVE EVIDENCE OF PREMISES AND BUILDING ELIGIBILITY.
  3.  TO  RECEIVE ALL CERTIFICATES OF CONTINUING ELIGIBILITY REQUIRED BY
SECTION FOUR HUNDRED NINETY-SIX-E OF THIS TITLE.
  4. TO COLLECT ALL REAL PROPERTY TAXES, WITH INTEREST AND PENALTY,  DUE
AND  OWING  AS  A  RESULT OF REDUCTION, TERMINATION OR REVOCATION OF ANY
ABATEMENT GRANTED PURSUANT TO THIS TITLE.
  5. TO MAKE AND PROMULGATE RULES TO CARRY  OUT  THE  PURPOSES  OF  THIS
TITLE.
  S  496-E. REPORTING REQUIREMENTS; REVOCATION OF ABATEMENTS. 1. FOR THE
DURATION OF THE APPLICANT'S BENEFIT PERIOD,  THE  APPLICANT  SHALL  FILE

S. 3846                             7

ANNUALLY WITH THE DEPARTMENT OF FINANCE, ON OR BEFORE JULY FIRST OF EACH
YEAR, A CERTIFICATE OF CONTINUING ELIGIBILITY CONFIRMING THAT THE ELIGI-
BLE  PREMISES  ARE  OCCUPIED  BY  THE TENANT WHO ORIGINALLY EXECUTED THE
LEASE  AND  THAT  THE  ELIGIBLE PREMISES ARE BEING USED FOR THE PURPOSES
DESCRIBED IN THE APPLICATION. SUCH CERTIFICATE OF CONTINUING ELIGIBILITY
SHALL BE ON A FORM PRESCRIBED BY THE DEPARTMENT  OF  FINANCE  AND  SHALL
CONTAIN  SUCH  ADDITIONAL INFORMATION AS THE DEPARTMENT OF FINANCE SHALL
REQUIRE. THE DEPARTMENT OF FINANCE SHALL HAVE THE AUTHORITY TO DETERMINE
THE ABATEMENTS GRANTED PURSUANT TO THIS TITLE UPON FAILURE OF AN  APPLI-
CANT TO FILE SUCH CERTIFICATE BY SUCH DATE. THE BURDEN OF PROOF SHALL BE
ON  THE  APPLICANT  TO ESTABLISH CONTINUING ELIGIBILITY FOR BENEFITS AND
THE DEPARTMENT OF FINANCE SHALL  HAVE  THE  AUTHORITY  TO  REQUIRE  THAT
STATEMENTS MADE IN SUCH CERTIFICATE SHALL BE MADE UNDER OATH.
  2. THE DEPARTMENT OF FINANCE SHALL REVOKE ANY ABATEMENT GRANTED PURSU-
ANT  TO  THIS TITLE WHEN THE TENANT WHO ORIGINALLY EXECUTED THE LEASE IS
NO LONGER OCCUPYING THE ELIGIBLE  PREMISES.  SUCH  REVOCATION  SHALL  BE
RETROACTIVE  TO  THE DATE THAT SUCH TENANT VACATED THE ELIGIBLE PREMISES
AND THE DEPARTMENT OF FINANCE SHALL REQUIRE THE LANDLORD  TO  PAY,  WITH
INTEREST, ANY TAXES WHICH BECOME PAYABLE AS A RESULT OF SUCH REVOCATION.
THE  LANDLORD  SHALL NOTIFY THE DEPARTMENT OF FINANCE WITHIN THIRTY DAYS
FOLLOWING THE DATE ON WHICH SUCH TENANT VACATED  THE  ELIGIBLE  PREMISES
AND,  FOR FAILURE TO COMPLY WITH THIS NOTIFICATION REQUIREMENT, SHALL BE
LIABLE FOR PENALTY CALCULATED FOR THE SAME PERIOD AS INTEREST IS  CALCU-
LATED PURSUANT TO THE PRECEDING SENTENCE.
  3.  IF  ANY  PORTION  OF  THE PREMISES FOR WHICH AN ABATEMENT HAS BEEN
GRANTED PURSUANT TO THIS TITLE CEASES TO BE OCCUPIED OR USED AS ELIGIBLE
PREMISES OR IS OCCUPIED BY A SUBTENANT, THE DEPARTMENT OF FINANCE  SHALL
REDUCE  THE  ABATEMENT GRANTED PURSUANT TO THIS TITLE BY AN AMOUNT EQUAL
TO THE PERCENTAGE OF SUCH ELIGIBLE PREMISES WHICH HAS CEASED TO BE OCCU-
PIED OR USED AS ELIGIBLE PREMISES OR IS OCCUPIED BY A SUBTENANT.    SUCH
REDUCTION  SHALL BE RETROACTIVE TO THE DATE THAT SUCH PREMISES CEASED TO
BE OCCUPIED OR USED AS ELIGIBLE PREMISES OR WAS OCCUPIED BY A SUBTENANT,
AND THE DEPARTMENT OF FINANCE SHALL REQUIRE THE LANDLORD  TO  PAY,  WITH
INTEREST,  ANY TAXES WHICH BECOME PAYABLE AS A RESULT OF SUCH REDUCTION.
THE LANDLORD SHALL NOTIFY THE DEPARTMENT OF FINANCE WITHIN  THIRTY  DAYS
FOLLOWING  THE  DATE ON WHICH THE PREMISES CEASED TO BE OCCUPIED OR USED
AS ELIGIBLE PREMISES OR WAS OCCUPIED BY A SUBTENANT AND, FOR FAILURE  TO
COMPLY  WITH  THIS NOTIFICATION REQUIREMENT, SHALL BE LIABLE FOR PENALTY
CALCULATED FOR THE SAME PERIOD AS INTEREST  IS  CALCULATED  PURSUANT  TO
THIS SUBDIVISION.
  4.  IF,  DURING  THE BENEFIT PERIOD, ANY REAL PROPERTY TAX OR WATER OR
SEWER CHARGE OR OTHER LIENABLE CHARGE DUE AND PAYABLE WITH RESPECT TO AN
ELIGIBLE BUILDING SHALL REMAIN UNPAID FOR AT LEAST  ONE  YEAR  FOLLOWING
THE  DATE  UPON  WHICH  SUCH  TAX  OR CHARGE BECAME DUE AND PAYABLE, ALL
ABATEMENTS GRANTED PURSUANT TO THIS TITLE WITH RESPECT TO SUCH  BUILDING
SHALL BE REVOKED, UNLESS WITHIN THIRTY DAYS FROM THE MAILING OF A NOTICE
OF  REVOCATION  BY  THE  DEPARTMENT  OF  FINANCE  SATISFACTORY  PROOF IS
PRESENTED TO THE DEPARTMENT OF FINANCE THAT ANY AND ALL DELINQUENT TAXES
AND CHARGES OWING WITH RESPECT TO SUCH BUILDING AS OF THE DATE  OF  SUCH
NOTICE  HAVE  BEEN  PAID  IN  FULL OR ARE CURRENTLY BEING PAID IN TIMELY
INSTALLMENTS PURSUANT TO A WRITTEN  AGREEMENT  WITH  THE  DEPARTMENT  OF
FINANCE  OR  OTHER APPROPRIATE AGENCY.   ANY REVOCATION PURSUANT TO THIS
SUBDIVISION SHALL BE EFFECTIVE WITH RESPECT TO REAL PROPERTY TAXES WHICH
BECOME DUE AND PAYABLE FOLLOWING THE DATE OF SUCH REVOCATION.
  5. THE DEPARTMENT OF FINANCE MAY DENY, REDUCE, SUSPEND,  TERMINATE  OR
REVOKE ANY ABATEMENT GRANTED PURSUANT TO THIS TITLE WHENEVER:

S. 3846                             8

  (A)  THE  LANDLORD  OR THE TENANT RECEIVING ABATEMENT PURSUANT TO THIS
TITLE FAILS TO COMPLY WITH THE REQUIREMENTS OF THIS TITLE OR  THE  RULES
PROMULGATED HEREUNDER; OR
  (B) AN APPLICATION, CERTIFICATE, REPORT OR OTHER DOCUMENT SUBMITTED BY
THE  APPLICANT CONTAINS A FALSE OR MISLEADING STATEMENT AS TO A MATERIAL
FACT OR OMITS TO STATE ANY MATERIAL FACT NECESSARY IN ORDER TO MAKE  THE
STATEMENT THEREIN NOT FALSE OR MISLEADING, AND MAY DECLARE ANY APPLICANT
WHO  MAKES SUCH FALSE OR MISLEADING STATEMENT OR OMISSION TO BE INELIGI-
BLE FOR FUTURE ABATEMENT PURSUANT TO THIS TITLE FOR THE  SAME  OR  OTHER
PROPERTY.  IN  ADDITION,  THE  DEPARTMENT  OF  FINANCE SHALL REQUIRE THE
APPLICANT TO PAY, WITH PENALTY  AND  INTEREST,  ANY  ABATEMENT  RECEIVED
PURSUANT TO THIS TITLE AS A RESULT OF SUCH FALSE OR MISLEADING STATEMENT
OR OMISSION OF A MATERIAL FACT.
  6.  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS TITLE, THE DEPARTMENT
OF FINANCE SHALL DENY, TERMINATE OR REVOKE ANY ABATEMENT APPLIED FOR  OR
GRANTED  PURSUANT  TO  THIS  TITLE  UPON  A DETERMINATION THAT THE LEASE
BETWEEN THE LANDLORD AND THE TENANT WAS ENTERED INTO PRIMARILY  FOR  THE
PURPOSE  OF  RECEIVING  AN  ABATEMENT  UNDER  THIS TITLE. IN MAKING SUCH
DETERMINATION, THE DEPARTMENT  OF  FINANCE  MAY  CONSIDER,  AMONG  OTHER
FACTORS,  THE  RELATIONSHIP, IF ANY, BETWEEN THE LANDLORD AND THE TENANT
AND WHETHER THE BUSINESS TERMS OF SUCH LEASE  ARE  CONSISTENT  WITH  THE
BUSINESS TERMS GENERALLY FOUND IN LEASES FOR COMPARABLE SPACE.
  7.  (A) IF ANY PERSON DESCRIBED IN THE STATEMENT REQUIRED BY PARAGRAPH
(B) OF SUBDIVISION SIX OF SECTION  FOUR  HUNDRED  NINETY-SIX-B  OF  THIS
TITLE  OR  PARAGRAPH (B) OF THIS SUBDIVISION IS FINALLY ADJUDICATED BY A
COURT OF COMPETENT JURISDICTION TO BE GUILTY OF  ANY  CHARGE  LISTED  IN
SUCH  STATEMENT,  THE  DEPARTMENT  OF FINANCE SHALL REVOKE THE ABATEMENT
GRANTED PURSUANT TO THIS TITLE  AND  SHALL  REQUIRE  THE  PAYMENT,  WITH
INTEREST, OF ANY ABATEMENT RECEIVED PURSUANT TO THIS TITLE.
  (B) THE APPLICANT SHALL, ON THE CERTIFICATE OF CONTINUING ELIGIBILITY,
STATE  WHETHER  ANY  CHARGES  ALLEGING VIOLATION BY THE APPLICANT OR ANY
PERSON OWNING A SUBSTANTIAL INTEREST IN THE ELIGIBLE  BUILDING,  OR  ANY
OFFICER, DIRECTOR OR GENERAL PARTNER OF THE APPLICANT OR PERSON OWNING A
SUBSTANTIAL  INTEREST  IN  THE ELIGIBLE BUILDING, OR ANY PERSON FOR WHOM
THE APPLICANT OR PERSON OWNING A SUBSTANTIAL INTEREST  IN  THE  ELIGIBLE
BUILDING  IS  AN  OFFICER,  DIRECTOR  OR GENERAL PARTNER, OF SECTION TWO
HUNDRED THIRTY-FIVE OF THE REAL PROPERTY LAW OR ANY SECTION  OF  ARTICLE
ONE  HUNDRED  FIFTY OF THE PENAL LAW OR ANY SIMILAR ARSON LAW OF ANOTHER
JURISDICTION, ARE PENDING. FOR PURPOSES OF THIS PARAGRAPH,  "SUBSTANTIAL
INTEREST"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN PARAGRAPH (C) OF
SUBDIVISION SIX OF SECTION FOUR HUNDRED NINETY-SIX-B OF THIS TITLE.
  S 496-F. TAX LIEN; INTEREST AND PENALTY.  ALL  TAXES,  WITH  INTEREST,
REQUIRED  TO  BE PAID RETROACTIVELY PURSUANT TO THIS TITLE SHALL CONSTI-
TUTE A TAX LIEN AS OF THE DATE IT IS DETERMINED SUCH TAXES AND  INTEREST
ARE OWED. ALL INTEREST SHALL BE CALCULATED FROM THE DATE THE TAXES WOULD
HAVE  BEEN  DUE  BUT FOR THE ABATEMENT GRANTED PURSUANT TO THIS TITLE AT
THE APPLICABLE RATE OR RATES OF INTEREST IMPOSED BY SUCH CITY  GENERALLY
FOR NON-PAYMENT OF REAL PROPERTY TAX WITH RESPECT TO THE ELIGIBLE BUILD-
ING  FOR THE PERIOD IN QUESTION. WHEN A PROVISION OF THIS TITLE REQUIRES
THE PAYMENT OF A PENALTY IN ADDITION TO INTEREST,  THE  AMOUNT  OF  SUCH
PENALTY  SHALL  BE  EQUAL TO THE AMOUNT OF INTEREST THAT WOULD HAVE BEEN
PAYABLE PURSUANT TO SUCH PROVISION HAD SUCH INTEREST BEEN CALCULATED  AT
THE RATE OF THREE PERCENT PER ANNUM.
  S  496-G. CONFIDENTIALITY. 1. EXCEPT IN ACCORDANCE WITH A PROPER JUDI-
CIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE
COMMISSIONER OF FINANCE, ANY OFFICER OR EMPLOYEE OF  THE  DEPARTMENT  OF

S. 3846                             9

FINANCE,  THE PRESIDENT OR A COMMISSIONER OR EMPLOYEE OF THE TAX COMMIS-
SION, ANY PERSON ENGAGED OR RETAINED BY SUCH DEPARTMENT OR SUCH  COMMIS-
SION  ON  AN  INDEPENDENT CONTRACT BASIS, OR ANY PERSON WHO, PURSUANT TO
THIS  TITLE,  IS  PERMITTED  TO  INSPECT ANY INFORMATION SUBMITTED BY AN
APPLICANT TO THE DEPARTMENT OF FINANCE PURSUANT TO THIS TITLE OR TO WHOM
A COPY, AN ABSTRACT OR A PORTION OF ANY SUCH INFORMATION  IS  FURNISHED,
TO  DIVULGE  OR  MAKE  KNOWN  IN  ANY MANNER ANY SUCH INFORMATION TO ANY
PERSON NOT AUTHORIZED PURSUANT TO THIS TITLE TO  INSPECT  SUCH  INFORMA-
TION. THE OFFICERS CHARGED WITH CUSTODY OF SUCH INFORMATION SHALL NOT BE
REQUIRED TO PRODUCE ANY OF IT OR EVIDENCE OF ANYTHING CONTAINED IN IT IN
ANY  ACTION  OR  PROCEEDING IN ANY COURT EXCEPT ON BEHALF OF THE COMMIS-
SIONER OF FINANCE IN AN ACTION OR PROCEEDING  UNDER  THE  PROVISIONS  OF
THIS  TITLE, OR ON BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER
THE PROVISIONS OF THIS TITLE WHEN SUCH INFORMATION OR FACTS SHOWN THERE-
BY  ARE DIRECTLY INVOLVED IN SUCH ACTION OR  PROCEEDING,  IN  EITHER  OF
WHICH  EVENTS  THE COURT MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN
EVIDENCE SO MUCH OF SUCH INFORMATION 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 INSPECTION  BY  THE  LEGAL  REPRESEN-
TATIVES  OF  THE  DEPARTMENT  OF  FINANCE  OR THE TAX COMMISSION OF SUCH
INFORMATION SUBMITTED BY ANY APPLICANT WHO  SHALL  BRING  AN  ACTION  TO
CORRECT  AN  ASSESSMENT.   NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT
THE DELIVERY TO AN APPLICANT OR THE APPLICANT'S DULY  AUTHORIZED  REPRE-
SENTATIVE  OF A CERTIFIED COPY OF ANY INFORMATION SUBMITTED BY AN APPLI-
CANT TO THE DEPARTMENT OF FINANCE PURSUANT TO  THIS  TITLE;  OR  TO  ANY
AGENCY  OR ANY DEPARTMENT OF ANY CITY HAVING A POPULATION OF ONE MILLION
OR MORE PROVIDED THE SAME IS REQUESTED FOR  OFFICIAL  BUSINESS;  NOR  TO
PROHIBIT THE INSPECTION FOR OFFICIAL BUSINESS OF SUCH INFORMATION BY THE
CORPORATION  COUNSEL  OR  OTHER LEGAL REPRESENTATIVES OF A CITY HAVING A
POPULATION  OF ONE MILLION OR MORE OR BY THE DISTRICT  ATTORNEY  OF  ANY
COUNTY  WITHIN  SUCH CITY; NOR TO PROHIBIT THE PUBLICATION OF STATISTICS
SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF  SUCH  INFORMATION  OR
PARTICULAR  ITEMS  THEREOF. INFORMATION SUBMITTED BY AN APPLICANT TO THE
DEPARTMENT OF FINANCE PURSUANT TO THIS TITLE SHALL  NOT  BE  SUBJECT  TO
DISCLOSURE PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
  2.  ANY VIOLATION OF THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION
SHALL BE PUNISHED BY A FINE NOT EXCEEDING ONE  THOUSAND  DOLLARS  OR  BY
IMPRISONMENT  NOT  EXCEEDING ONE YEAR, OR BOTH, AT THE DISCRETION OF THE
COURT, AND IF THE OFFENDER BE AN OFFICER OR EMPLOYEE OF  THE  DEPARTMENT
OF  FINANCE  OR  OF  THE TAX COMMISSION, THE OFFENDER SHALL BE DISMISSED
FROM OFFICE.
  S 2. This act shall take effect immediately, provided  that  this  act
shall be deemed to have been in full force and effect on and after Janu-
ary 1, 2008. Any actions, including the promulgation of rules, necessary
to  carry out the purposes of this act may be taken before the date this
act shall have become a law, provided that such  rules  shall  not  take
effect  before the effective date of this act, and provided further that
such rules, if necessary to carry out the purposes of this act,  may  be
made  retroactive to and deemed to have been in full force and effect on
and after January 1, 2008.

co-Sponsors

2011-S3846A (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add Art 4 Title 3-A §§496 - 496-g, RPT L
Versions Introduced in 2009-2010 Legislative Session:: S1393

2011-S3846A (ACTIVE) - Summary

Creates real property tax abatement for certain commercial properties located within the Second Avenue Subway project.

2011-S3846A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3846A

TITLE OF BILL:
An act
to amend the real property tax law, in relation to creating tax
abatements for certain commercial properties located within the Second
Avenue subway project

PURPOSE OF THE BILL:
Offers a property tax abatement to eligible property owners impacted
by the MTA Second Avenue Subway project if they are able to sign or
renegotiate a reduced lease to current or prospective small business
commercial tenants.

SUMMARY OF SPECIFIC PROVISIONS:
The real property law is amended to add a new title 3-A.

§ 497 - Defines "abatement base," "abatement zone," aggregate floor
area," "applicant," benefit period," "billable assessed value,"
"department of finance," "eligible building," "eligibility period,"
eligible premises," fiscal year," "governmental agency," "landlord,"
lease commencement date," mixed-use building," "person," "rent
commencement date," "tax liability," "tax liability per square foot,"
"tenant," "tenant's percentage share," and "renewal tenant" for the
purposes of this title.

§497-b - Outlines the eligibility requirements to qualify for the tax
abatement.

§ 497-a - Describes the procedures for calculation of the tax abatement.

§ 497-c - Procedure for filing an application for the tax abatement.

§ 497-d - Allows the local department of finance to administer the tax
abatement and enforce the provisions of this title.

§ 497-e - Establishes reporting requirements for the applicant during
the benefit period and details conditions dictating the revocation of
the benefit.

§ 497-f - Describes the calculation of tax liens, interest, and
penalties pursuant to this title.

§ 497-g - Establishes the rights of the applicant with respect to
confidentiality in regards to information submitted.

JUSTIFICATION:

The log awaited second Avenue subway will bring great benefits to the
East Side of Manhattan as well as the entire Metropolitan area in the
long run, both in terms of local and regional economic stimulus and

in easing mass transportation crowding. But during the extended
construction, which will last well over two and a half decades,
residents, businesses, and property owners within the affected area
will suffer.

These New Yorkers are making a sacrifice for the betterment of the
rest of the East Side and the entire region, and it is important that
New York State extend a helping hand. Due to the increased costs of
the project, the MTA recently announced that the first stage of the
Second Avenue Subway - from 96th Street to 63rd be completed until
2015. This extended timeline makes the hardships of these business
owners even more pronounced. Construction projects of a similar
magnitude have left a wake of devastation which the East Side of
Manhattan cannot afford.

PRIOR LEGISLATIVE HISTORY:
S.8227 of 2008
S.1393 of 2009/2010
S.3846 of 2011/2012

FISCAL IMPLICATIONS:
Unknown.

EFFECTIVE DATE:
This act shall take effect immediately, with provisions.

2011-S3846A (ACTIVE) - Bill Text download pdf

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

                                 3846--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              March 7, 2011
                               ___________

Introduced  by Sens. SERRANO, KRUEGER -- read twice and ordered printed,
  and when printed to be committed to the Committee on Local  Government
  -- recommitted to the Committee on Local Government in accordance with
  Senate  Rule  6, sec. 8 -- 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  creating  tax
  abatements for certain commercial properties located within the Second
  Avenue subway project

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

  Section 1. Article 4 of the real property tax law is amended by adding
a new title 3-A to read as follows:
                                 TITLE 3-A
                  TAX ABATEMENT FOR CERTAIN COMMERCIAL
       PROPERTIES LOCATED WITHIN THE SECOND AVENUE SUBWAY PROJECT
SECTION 497. DEFINITIONS.
        497-A. REAL PROPERTY TAX ABATEMENT.
        497-B. ELIGIBILITY REQUIREMENTS.
        497-C. APPLICATION FOR CERTIFICATE OF ABATEMENT.
        497-D. ENFORCEMENT AND ADMINISTRATION.
        497-E. REPORTING REQUIREMENTS; REVOCATION OF ABATEMENTS.
        497-F. TAX LIEN; INTEREST AND PENALTY.
        497-G. CONFIDENTIALITY.

  S 497. DEFINITIONS. WHEN USED IN THIS TITLE, THE FOLLOWING TERMS SHALL
MEAN OR INCLUDE:
  1. "ABATEMENT BASE." THE LESSER OF:  (A) TWO DOLLARS AND  FIFTY  CENTS
OR (B) FIFTY PER CENTUM OF THE TAX LIABILITY PER SQUARE FOOT.
  2.  "ABATEMENT ZONE." ANY AREA LOCATED WITHIN THE CONSTRUCTION AREA OF
THE SECOND AVENUE SUBWAY PROJECT AS DEFINED BY THE COMMISSIONER  OF  THE
METROPOLITAN  TRANSPORTATION  AUTHORITY,  WHICH HAS BEEN LOCATED IN SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00190-03-2

S. 3846--A                          2

AREA AND CONTINUALLY BEEN DOING BUSINESS IN SUCH AREA  DURING  THE  YEAR
TWO THOUSAND EIGHT AND DURING THE CURRENT TAXABLE YEAR.
  3.  "AGGREGATE  FLOOR AREA." THE SUM OF THE GROSS AREAS OF THE SEVERAL
FLOORS OF A BUILDING, MEASURED FROM THE EXTERIOR FACES OF EXTERIOR WALLS
OR FROM THE CENTER LINES OF WALLS SEPARATING TWO BUILDINGS.
  4. "APPLICANT." THE LANDLORD AND THE TENANT.
  5. "BENEFIT PERIOD." THE PERIOD COMMENCING WITH THE FIRST DAY  OF  THE
MONTH  IMMEDIATELY  FOLLOWING THE RENT COMMENCEMENT DATE AND TERMINATING
NO LATER THAN SIXTY MONTHS THEREAFTER.
  6. "BILLABLE ASSESSED VALUE." THE LESSER OF THE  TAXABLE  TRANSITIONAL
OR  THE  TAXABLE  ACTUAL ASSESSED VALUE OF THE ELIGIBLE BUILDING AND THE
LAND ON WHICH THE ELIGIBLE BUILDING IS LOCATED FOR THE  FISCAL  YEAR  IN
WHICH  THE BENEFIT PERIOD COMMENCES, AS COMPUTED PURSUANT TO SUBDIVISION
THREE OF SECTION EIGHTEEN HUNDRED FIVE OF THIS CHAPTER.
  7. "DEPARTMENT OF FINANCE." THE DEPARTMENT OF FINANCE OF THE  CITY  OF
NEW YORK.
  8.  "ELIGIBLE  BUILDING."  A  NON-RESIDENTIAL  OR  MIXED-USE  BUILDING
LOCATED IN THE ABATEMENT ZONE. SUCH ELIGIBLE BUILDING SHALL NOT  INCLUDE
ANY BUILDING OWNED BY A GOVERNMENTAL AGENCY.
  9.  "ELIGIBILITY  PERIOD."  THE  PERIOD  COMMENCING JANUARY FIRST, TWO
THOUSAND EIGHT AND TERMINATING JUNE FIRST, TWO THOUSAND SIXTEEN.
  10. "ELIGIBLE PREMISES." PREMISES  LOCATED  IN  AN  ELIGIBLE  BUILDING
WHICH  ARE OCCUPIED OR USED AS OFFICES (INCLUDING ANCILLARY USES) OR ARE
OCCUPIED OR USED AS RETAIL SPACE.
  11. "FISCAL YEAR." THE FISCAL YEAR OF ANY CITY HAVING A POPULATION  OF
ONE MILLION OR MORE.
  12.  "GOVERNMENTAL AGENCY." THE UNITED STATES OF AMERICA OR ANY AGENCY
OR INSTRUMENTALITY THEREOF, THE STATE OF NEW YORK, THE CITY OF NEW YORK,
ANY PUBLIC CORPORATION (INCLUDING A BODY CORPORATE AND  POLITIC  CREATED
PURSUANT  TO  AGREEMENT OR COMPACT BETWEEN THE STATE OF NEW YORK AND ANY
OTHER STATE), PUBLIC BENEFIT  CORPORATION,  PUBLIC  AUTHORITY  OR  OTHER
POLITICAL SUBDIVISION OF THE STATE.
  13.  "LANDLORD."  ANY  PERSON  WHO:   (A) CONTROLS ALL NON-RESIDENTIAL
PORTIONS OF AN ELIGIBLE BUILDING,  INCLUDING,  WITHOUT  LIMITATION,  THE
RECORD  OWNER,  THE  LESSEE  UNDER  A  GROUND  LEASE,  ANY  MORTGAGEE IN
POSSESSION OR ANY RECEIVER, AND
  (B) WHO GRANTS THE RIGHT TO USE OR OCCUPY  ELIGIBLE  PREMISES  TO  ANY
TENANT,  PROVIDED  THAT LANDLORD SHALL NOT INCLUDE ANY LESSEE WHO AT ANY
TIME DURING THE LEASE TERM OCCUPIED OR USED OR OCCUPIES OR USES ANY PART
OF THE NON-RESIDENTIAL PORTIONS OF SUCH ELIGIBLE  BUILDING,  OTHER  THAN
PREMISES OCCUPIED OR USED BY SUCH LESSEE TO PROVIDE RENTAL OR MANAGEMENT
SERVICES TO SUCH BUILDING.
  14.  "LEASE  COMMENCEMENT  DATE."  THE  DATE SET FORTH IN THE LEASE ON
WHICH THE TERM OF THE LEASE COMMENCES.
  15. "MIXED-USE BUILDING." A BUILDING USED  FOR  BOTH  RESIDENTIAL  AND
COMMERCIAL  PURPOSES,  PROVIDED THAT MORE THAN TWENTY-FIVE PER CENTUM OF
THE AGGREGATE FLOOR AREA OF SUCH BUILDING IS USED OR HELD OUT FOR USE AS
COMMERCIAL, COMMUNITY FACILITY OR ACCESSORY USE SPACE.
  16. "PERSON." AN INDIVIDUAL, CORPORATION, LIMITED  LIABILITY  COMPANY,
PARTNERSHIP,  ASSOCIATION,  AGENCY,  TRUST,  ESTATE, FOREIGN OR DOMESTIC
GOVERNMENT OR SUBDIVISION THEREOF, OR OTHER ENTITY.
  17. "RENT COMMENCEMENT DATE." THE DATE SET FORTH IN THE LEASE ON WHICH
THE OBLIGATION TO PAY BASIC FIXED RENT SHALL COMMENCE.
  18. "TAX LIABILITY." THE PRODUCT OBTAINED BY MULTIPLYING THE  BILLABLE
ASSESSED VALUE FOR THE FISCAL YEAR IN WHICH THE BENEFIT PERIOD COMMENCES
BY THE TAX RATE APPLICABLE TO THE ELIGIBLE BUILDING FOR SUCH FISCAL YEAR

S. 3846--A                          3

AS  SET BY THE LOCAL LEGISLATIVE BODY OF ANY CITY HAVING A POPULATION OF
ONE MILLION OR MORE.
  19.  "TAX LIABILITY PER SQUARE FOOT." THE TAX LIABILITY DIVIDED BY THE
TOTAL NUMBER OF SQUARE FEET IN THE ELIGIBLE BUILDING, AS LISTED  ON  THE
RECORDS OF THE DEPARTMENT OF FINANCE.
  20.  "TENANT."  A  PERSON  (INCLUDING  ANY SUCCESSORS IN INTEREST) WHO
EXECUTES A LEASE WITH THE LANDLORD FOR THE RIGHT TO OCCUPY  OR  USE  THE
ELIGIBLE  PREMISES AND WHO OCCUPIES OR USES THE ELIGIBLE PREMISES PURSU-
ANT TO SUCH LEASE. TENANT SHALL NOT INCLUDE ANY SUBTENANT.
  21. "TENANT'S  PERCENTAGE  SHARE."  THE  PERCENTAGE  OF  THE  ELIGIBLE
BUILDING'S  AGGREGATE  FLOOR  AREA  ALLOCATED  TO THE ELIGIBLE PREMISES,
WHICH SHALL BE PRESUMED TO BE SUCH PERCENTAGE AS SET FORTH IN THE  LEASE
FOR  THE  ELIGIBLE  PREMISES;  PROVIDED THAT WHERE THE ELIGIBLE PREMISES
INCLUDES EXPANSION PREMISES, THE "TENANT'S PERCENTAGE  SHARE"  SHALL  BE
CALCULATED  ON  THE  BASIS  OF THE PERCENTAGE OF THE ELIGIBLE BUILDING'S
AGGREGATE FLOOR AREA ALLOCATED SOLELY TO THE EXPANSION PREMISES.
  22. "RENEWAL TENANT." A PERSON WHO HAS  AN  EXISTING  LEASE  WITH  THE
LANDLORD AND RENEGOTIATES OR RENEWS SUCH LEASE WITH THE LANDLORD FOR THE
RIGHT TO OCCUPY OR USE THE ELIGIBLE PREMISES.
  S  497-A. REAL PROPERTY TAX ABATEMENT. 1. WITHIN A CITY HAVING A POPU-
LATION OF ONE MILLION OR MORE, ELIGIBLE  BUILDINGS  CONTAINING  ELIGIBLE
PREMISES  SHALL  RECEIVE  AN ABATEMENT OF REAL PROPERTY TAXES DURING THE
BENEFIT PERIOD AS FOLLOWS:
  (A) FOR EACH OF THE FIRST THREE  YEARS  OF  THE  BENEFIT  PERIOD,  THE
ABATEMENT SHALL BE EQUAL TO THE PRODUCT OBTAINED BY:
  (1)  MULTIPLYING THE TENANT'S PERCENTAGE SHARE BY THE NUMBER OF SQUARE
FEET IN THE ELIGIBLE BUILDING, AS LISTED ON THE RECORDS OF  THE  DEPART-
MENT OF FINANCE AND
  (2) MULTIPLYING THE PRODUCT OBTAINED IN SUBPARAGRAPH ONE OF THIS PARA-
GRAPH BY THE ABATEMENT BASE;
  (B)  FOR THE FOURTH YEAR OF THE BENEFIT PERIOD, THE ABATEMENT SHALL BE
EQUAL TO TWO-THIRDS OF THE ABATEMENT IN THE FIRST YEAR  OF  THE  BENEFIT
PERIOD; AND
  (C)  FOR  THE FIFTH YEAR OF THE BENEFIT PERIOD, THE ABATEMENT SHALL BE
EQUAL TO ONE-THIRD OF THE ABATEMENT IN THE FIRST  YEAR  OF  THE  BENEFIT
PERIOD.
  2.  IF,  AS  A  RESULT OF APPLICATION TO THE TAX COMMISSION OR A COURT
ORDER OR ACTION BY THE DEPARTMENT  OF  FINANCE,  THE  BILLABLE  ASSESSED
VALUE IS REDUCED, THE DEPARTMENT OF FINANCE SHALL RECALCULATE THE ABATE-
MENT UTILIZING SUCH REDUCED BILLABLE ASSESSED VALUE. THE AMOUNT EQUAL TO
THE  DIFFERENCE  BETWEEN THE ABATEMENT ORIGINALLY GRANTED AND THE ABATE-
MENT AS SO RECALCULATED SHALL BE  DEDUCTED  FROM  ANY  REFUND  OTHERWISE
PAYABLE  OR  REMISSION  OTHERWISE  DUE  AS A RESULT OF SUCH REDUCTION IN
BILLABLE ASSESSED VALUE, AND ANY BALANCE OF SUCH AMOUNT REMAINING UNPAID
AFTER MAKING ANY SUCH DEDUCTION SHALL  BE  PAID  TO  THE  DEPARTMENT  OF
FINANCE WITHIN THIRTY DAYS FROM THE DATE OF MAILING BY THE DEPARTMENT OF
FINANCE  OF  A  NOTICE  OF THE AMOUNT PAYABLE. SUCH AMOUNT PAYABLE SHALL
CONSTITUTE A TAX LIEN ON THE ELIGIBLE BUILDING AS OF THE  DATE  OF  SUCH
NOTICE  AND,  IF  NOT  PAID  WITHIN  SUCH THIRTY-DAY PERIOD, PENALTY AND
INTEREST AT THE RATE APPLICABLE TO DELINQUENT  TAXES  ON  SUCH  ELIGIBLE
BUILDING  SHALL BE CHARGED AND COLLECTED ON SUCH AMOUNT FROM THE DATE OF
SUCH NOTICE TO THE DATE OF PAYMENT.
  3. IN NO EVENT SHALL THE ABATEMENT FOR THE ELIGIBLE  PREMISES  GRANTED
PURSUANT  TO THIS TITLE EXCEED THE TAX LIABILITY ALLOCABLE TO THE ELIGI-
BLE PREMISES.

S. 3846--A                          4

  4. NOTWITHSTANDING THE  PROVISIONS  OF  ANY  LEASE  FOR  OCCUPANCY  OF
NON-ELIGIBLE PREMISES IN AN ELIGIBLE BUILDING OR FOR OCCUPANCY OF ELIGI-
BLE  PREMISES  FOR  WHICH  NO  CERTIFICATE  OF ABATEMENT HAS BEEN ISSUED
PURSUANT TO THIS TITLE, A LESSEE OF NON-ELIGIBLE PREMISES OR OF ELIGIBLE
PREMISES  FOR WHICH NO CERTIFICATE OF ABATEMENT HAS BEEN ISSUED PURSUANT
TO THIS TITLE SHALL NOT BE ENTITLED TO RECEIVE DIRECTLY OR INDIRECTLY  A
REDUCTION IN EITHER THE REAL PROPERTY TAXES OR ANY RENT (INCLUDING ADDI-
TIONAL  RENT)  PAYABLE PURSUANT TO SUCH LEASE WHERE SUCH REDUCTION WOULD
RESULT FROM AN ABATEMENT OF REAL PROPERTY TAXES GRANTED PURSUANT TO THIS
TITLE. A LANDLORD OF AN ELIGIBLE BUILDING SHALL  NOT  ALLOCATE,  CREDIT,
ASSIGN  OR DISBURSE ANY PORTION OF AN ABATEMENT GRANTED PURSUANT TO THIS
TITLE TO A LESSEE OF NON-ELIGIBLE PREMISES OR OF ELIGIBLE  PREMISES  FOR
WHICH  NO  CERTIFICATE  OF  ABATEMENT  HAS  BEEN ISSUED PURSUANT TO THIS
TITLE. A LANDLORD SHALL NOT BE REQUIRED  TO  REDUCE  THE  REAL  PROPERTY
TAXES  OR  ANY  RENT  (INCLUDING  ADDITIONAL  RENT) PAYABLE BY EXPANSION
TENANTS, NEW TENANTS AND RENEWAL TENANTS BY AN AMOUNT THAT  EXCEEDS  THE
FULL AMOUNT OF THE ABATEMENT GRANTED PURSUANT TO THIS TITLE, BUT A LAND-
LORD  SHALL  BE  REQUIRED  TO REDUCE THE REAL PROPERTY TAXES OR ANY RENT
(INCLUDING ADDITIONAL RENT) PAYABLE BY EXPANSION  TENANTS,  NEW  TENANTS
AND RENEWAL TENANTS BY AN AMOUNT THAT, IN THE AGGREGATE, EQUALS THE FULL
AMOUNT  OF  THE ABATEMENT GRANTED PURSUANT TO THIS TITLE. SUCH REDUCTION
SHALL BE ALLOCATED IN ACCORDANCE WITH  THE  ABATEMENT  GRANTED  FOR  THE
ELIGIBLE PREMISES OCCUPIED BY EACH SUCH TENANT.
  S  497-B.  ELIGIBILITY  REQUIREMENTS. 1. NO ABATEMENT SHALL BE GRANTED
PURSUANT TO THIS TITLE UNLESS THE  LANDLORD  ENTERS  INTO  A  LEASE  FOR
ELIGIBLE PREMISES WITH A TENANT OR RENEWAL TENANT AND:
  (A) THE LEASE COMMENCEMENT DATE IS WITHIN THE ELIGIBILITY PERIOD;
  (B)  (1) IF, BY THE SIXTIETH DAY FOLLOWING THE RENT COMMENCEMENT DATE,
SUCH TENANT 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 OR
  (2) IF, BY THE SIXTIETH DAY FOLLOWING THE RENT COMMENCEMENT DATE, SUCH
TENANT 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.
  2. NO ABATEMENT SHALL BE GRANTED PURSUANT TO THIS TITLE IF  AN  APPLI-
CANT  SHALL  FAIL  TO  MEET ANY OF THE REQUIREMENTS OF THIS TITLE WITHIN
SIXTY DAYS OF THE RENT COMMENCEMENT DATE.
  3. FOR PURPOSES OF THIS TITLE, 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 IN SUCH LEASE.
  4. THE LEASE FOR THE ELIGIBLE PREMISES  SHALL  CONTAIN  THE  FOLLOWING
PROVISIONS:
  (A) A STATEMENT OF THE TENANT'S PERCENTAGE SHARE;
  (B)  A  STATEMENT  INFORMING  THE TENANT IN AT LEAST TWELVE-POINT TYPE
THAT:
  (1) AN APPLICATION FOR ABATEMENT OF REAL PROPERTY  TAXES  PURSUANT  TO
THIS TITLE WILL BE MADE FOR THE PREMISES;
  (2)  THE  RENT,  INCLUDING  AMOUNTS  PAYABLE  BY THE TENANT OR RENEWAL
TENANT FOR REAL PROPERTY TAXES, WILL ACCURATELY REFLECT ANY ABATEMENT OF
REAL PROPERTY TAXES GRANTED PURSUANT TO THIS TITLE FOR THE PREMISES; AND
  (3) ALL ABATEMENTS GRANTED WITH RESPECT TO A BUILDING PURSUANT TO THIS
TITLE WILL BE REVOKED IF, DURING THE BENEFIT PERIOD, REAL  ESTATE  TAXES
OR  WATER OR SEWER CHARGES OR OTHER LIENABLE CHARGES ARE UNPAID FOR MORE

S. 3846--A                          5

THAN ONE YEAR, UNLESS SUCH DELINQUENT AMOUNTS ARE PAID  AS  PROVIDED  IN
SUBDIVISION FOUR OF SECTION FOUR HUNDRED NINETY-SEVEN-E OF THIS TITLE.
  5. NO ABATEMENT SHALL BE GRANTED PURSUANT TO THIS TITLE IF:
  (A)  THE  LEASE  FOR  THE  ELIGIBLE  PREMISES PROVIDES THAT DURING THE
INITIAL LEASE TERM REQUIRED BY SUBDIVISION ONE OF  THIS  SECTION  EITHER
THE  LANDLORD  OR  THE TENANT OR RENEWAL TENANT MAY TERMINATE SUCH LEASE
PRIOR TO THE EXPIRATION  DATE  OF  SUCH  REQUIRED  INITIAL  LEASE  TERM;
PROVIDED  THAT  SUCH  LEASE  MAY PROVIDE THAT EITHER THE LANDLORD OR THE
TENANT MAY TERMINATE SUCH LEASE IF:
  (1) THE OTHER PARTY IS IN DEFAULT OF ANY OF SUCH  PARTY'S  OBLIGATIONS
UNDER THE LEASE,
  (2)  THE  ELIGIBLE  PREMISES ARE DAMAGED OR DESTROYED BY FIRE OR OTHER
CASUALTY,
  (3) THE ELIGIBLE PREMISES ARE RENDERED UNUSABLE  FOR  ANY  REASON  NOT
ATTRIBUTABLE  TO ANY ACT OR FAILURE TO ACT OF EITHER TENANT OR LANDLORD,
OR
  (4) THE ELIGIBLE PREMISES ARE ACQUIRED BY EMINENT DOMAIN; AND
  (B) THERE ARE REAL PROPERTY TAXES, WATER OR  SEWER  CHARGES  OR  OTHER
LIENABLE  CHARGES CURRENTLY DUE AND OWING ON THE ELIGIBLE BUILDING WHICH
IS THE SUBJECT OF AN APPLICATION FOR ABATEMENT PURSUANT TO  THIS  TITLE,
UNLESS  SUCH  REAL PROPERTY TAXES OR CHARGES ARE CURRENTLY BEING PAID IN
TIMELY INSTALLMENTS PURSUANT TO A WRITTEN AGREEMENT WITH THE  DEPARTMENT
OF FINANCE OR OTHER APPROPRIATE AGENCY.
  6.  NO  ABATEMENT  SHALL  BE GRANTED PURSUANT TO THIS TITLE UNLESS THE
APPLICANT SHALL  FILE,  TOGETHER  WITH  THE  APPLICATION,  AN  AFFIDAVIT
SETTING FORTH THE FOLLOWING INFORMATION:
  (A)  A STATEMENT THAT WITHIN THE SEVEN YEARS IMMEDIATELY PRECEDING THE
DATE OF APPLICATION FOR A CERTIFICATE OF ABATEMENT, NEITHER  THE  APPLI-
CANT NOR ANY PERSON OWNING A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILD-
ING  AS  DEFINED  IN PARAGRAPH (C) OF THIS SUBDIVISION, NOR ANY OFFICER,
DIRECTOR OR GENERAL PARTNER OF THE APPLICANT OR SUCH PERSON WAS  FINALLY
ADJUDICATED  BY  A  COURT  OF  COMPETENT  JURISDICTION  TO HAVE VIOLATED
SECTION TWO HUNDRED THIRTY-FIVE OF THE REAL PROPERTY LAW OR ANY  SECTION
OF  ARTICLE  ONE HUNDRED FIFTY OF THE PENAL LAW OR ANY SIMILAR ARSON LAW
OF ANOTHER JURISDICTION WITH RESPECT TO ANY BUILDING, OR WAS AN OFFICER,
DIRECTOR OR GENERAL PARTNER OF A PERSON AT  THE  TIME  SUCH  PERSON  WAS
FINALLY ADJUDICATED TO HAVE VIOLATED ANY SUCH LAW; AND
  (B)  A  STATEMENT SETTING FORTH ANY PENDING CHARGES ALLEGING VIOLATION
OF SECTION TWO HUNDRED THIRTY-FIVE OF  THE  REAL  PROPERTY  LAW  OR  ANY
SECTION  OF  ARTICLE  ONE  HUNDRED FIFTY OF THE PENAL LAW OR ANY SIMILAR
ARSON LAW OF ANOTHER JURISDICTION WITH RESPECT TO ANY  BUILDING  BY  THE
APPLICANT  OR  ANY  PERSON OWNING A SUBSTANTIAL INTEREST IN THE ELIGIBLE
BUILDING AS DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION, OR  ANY  OFFI-
CER, DIRECTOR OR GENERAL PARTNER OF THE APPLICANT OR SUCH PERSON, OR ANY
PERSON FOR WHOM THE APPLICANT OR PERSON OWNING A SUBSTANTIAL INTEREST IN
THE ELIGIBLE BUILDING IS AN OFFICER, DIRECTOR OR GENERAL PARTNER.
  (C)  FOR PURPOSES OF THIS SUBDIVISION AND SUBDIVISION SEVEN OF SECTION
FOUR HUNDRED NINETY-SEVEN-E OF THIS TITLE, "SUBSTANTIAL INTEREST"  SHALL
MEAN  OWNERSHIP  AND CONTROL OF AN INTEREST OF TEN PER CENTUM OR MORE IN
THE ELIGIBLE BUILDING OR IN ANY PERSON OWNING THE ELIGIBLE BUILDING.
  S 497-C. APPLICATION FOR CERTIFICATE OF ABATEMENT. 1. APPLICATION  FOR
A  CERTIFICATE  OF  ABATEMENT MAY BE MADE ON OR AFTER JANUARY FIRST, TWO
THOUSAND EIGHT AND UNTIL SIXTY DAYS AFTER THE  END  OF  THE  ELIGIBILITY
PERIOD,  AND  SHALL BE FILED WITH THE DEPARTMENT OF FINANCE. NO APPLICA-
TION MAY BE FILED PRIOR TO THE DATE ON WHICH THE LEASE FOR THE  ELIGIBLE
PREMISES IS EXECUTED BY THE LANDLORD AND TENANT.

S. 3846--A                          6

  2.  NO  ABATEMENT  PURSUANT  TO THIS TITLE SHALL BE GRANTED UNLESS THE
APPLICANT FILES AN APPLICATION FOR A  CERTIFICATE  OF  ABATEMENT  WITHIN
SIXTY  DAYS  FOLLOWING  THE LEASE COMMENCEMENT DATE OR WITHIN SIXTY DAYS
FOLLOWING THE EFFECTIVE DATE OF THIS TITLE, WHICHEVER IS LATER.
  3.  IN ADDITION TO ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT OF
FINANCE, THE APPLICATION FOR A CERTIFICATE OF ABATEMENT SHALL INCLUDE AN
ABSTRACT OF THE LEASE FOR THE ELIGIBLE PREMISES FOR WHICH  AN  ABATEMENT
IS BEING SOUGHT WHICH ABSTRACT IS SIGNED BY THE LANDLORD AND THE TENANT.
SUCH  ABSTRACT  SHALL  INCLUDE  THE TENANT'S PERCENTAGE SHARE, THE LEASE
COMMENCEMENT DATE, THE RENT COMMENCEMENT DATE, THE EXPIRATION  DATE  FOR
SUCH  LEASE  AND  A  DESCRIPTION  OF  THE IMPROVEMENTS TO BE MADE TO THE
ELIGIBLE PREMISES AND THE COMMON AREAS OF THE ELIGIBLE BUILDING, INCLUD-
ING THE ESTIMATED VALUE OF SUCH  IMPROVEMENTS.  SUCH  APPLICATION  SHALL
ALSO INCLUDE:
  (A)  A  STATEMENT  OF  THE  NUMBER  OF  PERSONS  WHO WILL, ON THE RENT
COMMENCEMENT DATE, BE EMPLOYED IN THE ELIGIBLE PREMISES,
  (B) A STATEMENT OF THE LOCATION OF ALL OFFICE OR RETAIL SPACE  IN  THE
CITY  OF  NEW  YORK OCCUPIED BY THE TENANT PRIOR TO THE EXECUTION OF THE
LEASE FOR THE ELIGIBLE PREMISES,
  (C) THE COMMENCEMENT AND EXPIRATION DATES OF ALL LEASES  FOR  PREMISES
IN THE ABATEMENT ZONE USED OR OCCUPIED AS OFFICE OR RETAIL SPACE, AND
  (D)  THE  AGGREGATE FLOOR AREA OF THE ELIGIBLE BUILDING. SUCH APPLICA-
TION SHALL ALSO STATE THAT THE APPLICANT AGREES TO COMPLY  WITH  AND  BE
SUBJECT  TO  THE  RULES  ISSUED  FROM  TIME TO TIME BY THE DEPARTMENT OF
FINANCE.
  4. WITHIN SIXTY DAYS FOLLOWING THE RENT COMMENCEMENT DATE, THE  APPLI-
CANT SHALL PROVIDE, IN ADDITION TO ANY OTHER INFORMATION REQUIRED BY THE
DEPARTMENT  OF FINANCE, EVIDENCE ACCEPTABLE TO THE DEPARTMENT OF FINANCE
REGARDING THE NUMBER OF EMPLOYEES IN THE ELIGIBLE PREMISES. THE  DEPART-
MENT  OF FINANCE SHALL ISSUE A CERTIFICATE OF ABATEMENT UPON DETERMINING
THAT THE APPLICANT HAS SUBMITTED PROOF ACCEPTABLE TO THE  DEPARTMENT  OF
FINANCE  THAT  THE  APPLICANT HAS MET THE REQUIREMENTS SET FORTH IN THIS
TITLE.
  5. THE BURDEN OF PROOF SHALL BE ON THE APPLICANT TO SHOW BY CLEAR  AND
CONVINCING  EVIDENCE THAT THE REQUIREMENTS FOR GRANTING A CERTIFICATE OF
ABATEMENT HAVE BEEN SATISFIED. THE DEPARTMENT OF FINANCE SHALL HAVE  THE
AUTHORITY TO REQUIRE THAT STATEMENTS IN CONNECTION WITH SUCH APPLICATION
BE MADE UNDER OATH.
  6. THE DEPARTMENT OF FINANCE MAY PROVIDE BY RULE FOR REASONABLE ADMIN-
ISTRATIVE  CHARGES OR FEES NECESSARY TO DEFRAY EXPENSES IN ADMINISTERING
THE ABATEMENT PROGRAM PROVIDED BY THIS TITLE.
  S 497-D. ENFORCEMENT AND ADMINISTRATION.  THE  DEPARTMENT  OF  FINANCE
SHALL  HAVE, IN ADDITION TO ANY OTHER FUNCTIONS, POWERS AND DUTIES WHICH
HAVE BEEN OR MAY BE CONFERRED ON IT BY  LAW,  THE  FOLLOWING  FUNCTIONS,
POWERS AND DUTIES:
  1.  TO  RECEIVE  AND REVIEW APPLICATIONS FOR CERTIFICATES OF ABATEMENT
UNDER THIS TITLE AND ISSUE SUCH CERTIFICATES WHERE  AUTHORIZED  PURSUANT
TO THIS TITLE.
  2. TO RECEIVE EVIDENCE OF PREMISES AND BUILDING ELIGIBILITY.
  3.  TO  RECEIVE ALL CERTIFICATES OF CONTINUING ELIGIBILITY REQUIRED BY
SECTION FOUR HUNDRED NINETY-SEVEN-E OF THIS TITLE.
  4. TO COLLECT ALL REAL PROPERTY TAXES, WITH INTEREST AND PENALTY,  DUE
AND  OWING  AS  A  RESULT OF REDUCTION, TERMINATION OR REVOCATION OF ANY
ABATEMENT GRANTED PURSUANT TO THIS TITLE.
  5. TO MAKE AND PROMULGATE RULES TO CARRY  OUT  THE  PURPOSES  OF  THIS
TITLE.

S. 3846--A                          7

  S  497-E. REPORTING REQUIREMENTS; REVOCATION OF ABATEMENTS. 1. FOR THE
DURATION OF THE APPLICANT'S BENEFIT PERIOD,  THE  APPLICANT  SHALL  FILE
ANNUALLY WITH THE DEPARTMENT OF FINANCE, ON OR BEFORE JULY FIRST OF EACH
YEAR, A CERTIFICATE OF CONTINUING ELIGIBILITY CONFIRMING THAT THE ELIGI-
BLE  PREMISES  ARE  OCCUPIED  BY  THE TENANT WHO ORIGINALLY EXECUTED THE
LEASE AND THAT THE ELIGIBLE PREMISES ARE BEING  USED  FOR  THE  PURPOSES
DESCRIBED IN THE APPLICATION. SUCH CERTIFICATE OF CONTINUING ELIGIBILITY
SHALL  BE  ON  A  FORM PRESCRIBED BY THE DEPARTMENT OF FINANCE AND SHALL
CONTAIN SUCH ADDITIONAL INFORMATION AS THE DEPARTMENT OF  FINANCE  SHALL
REQUIRE. THE DEPARTMENT OF FINANCE SHALL HAVE THE AUTHORITY TO DETERMINE
THE  ABATEMENTS GRANTED PURSUANT TO THIS TITLE UPON FAILURE OF AN APPLI-
CANT TO FILE SUCH CERTIFICATE BY SUCH DATE. THE BURDEN OF PROOF SHALL BE
ON THE APPLICANT TO ESTABLISH CONTINUING ELIGIBILITY  FOR  BENEFITS  AND
THE  DEPARTMENT  OF  FINANCE  SHALL  HAVE  THE AUTHORITY TO REQUIRE THAT
STATEMENTS MADE IN SUCH CERTIFICATE SHALL BE MADE UNDER OATH.
  2. THE DEPARTMENT OF FINANCE SHALL REVOKE ANY ABATEMENT GRANTED PURSU-
ANT TO THIS TITLE WHEN THE TENANT WHO ORIGINALLY EXECUTED THE  LEASE  IS
NO  LONGER  OCCUPYING  THE  ELIGIBLE  PREMISES. SUCH REVOCATION SHALL BE
RETROACTIVE TO THE DATE THAT SUCH TENANT VACATED THE  ELIGIBLE  PREMISES
AND  THE  DEPARTMENT  OF FINANCE SHALL REQUIRE THE LANDLORD TO PAY, WITH
INTEREST, ANY TAXES WHICH BECOME PAYABLE AS A RESULT OF SUCH REVOCATION.
THE LANDLORD SHALL NOTIFY THE DEPARTMENT OF FINANCE WITHIN  THIRTY  DAYS
FOLLOWING  THE  DATE  ON WHICH SUCH TENANT VACATED THE ELIGIBLE PREMISES
AND, FOR FAILURE TO COMPLY WITH THIS NOTIFICATION REQUIREMENT, SHALL  BE
LIABLE  FOR PENALTY CALCULATED FOR THE SAME PERIOD AS INTEREST IS CALCU-
LATED PURSUANT TO THE PRECEDING SENTENCE.
  3. IF ANY PORTION OF THE PREMISES FOR  WHICH  AN  ABATEMENT  HAS  BEEN
GRANTED PURSUANT TO THIS TITLE CEASES TO BE OCCUPIED OR USED AS ELIGIBLE
PREMISES  OR IS OCCUPIED BY A SUBTENANT, THE DEPARTMENT OF FINANCE SHALL
REDUCE THE ABATEMENT GRANTED PURSUANT TO THIS TITLE BY AN  AMOUNT  EQUAL
TO THE PERCENTAGE OF SUCH ELIGIBLE PREMISES WHICH HAS CEASED TO BE OCCU-
PIED  OR  USED AS ELIGIBLE PREMISES OR IS OCCUPIED BY A SUBTENANT.  SUCH
REDUCTION SHALL BE RETROACTIVE TO THE DATE THAT SUCH PREMISES CEASED  TO
BE OCCUPIED OR USED AS ELIGIBLE PREMISES OR WAS OCCUPIED BY A SUBTENANT,
AND  THE  DEPARTMENT  OF FINANCE SHALL REQUIRE THE LANDLORD TO PAY, WITH
INTEREST, ANY TAXES WHICH BECOME PAYABLE AS A RESULT OF SUCH  REDUCTION.
THE  LANDLORD  SHALL NOTIFY THE DEPARTMENT OF FINANCE WITHIN THIRTY DAYS
FOLLOWING THE DATE ON WHICH THE PREMISES CEASED TO BE OCCUPIED  OR  USED
AS  ELIGIBLE PREMISES OR WAS OCCUPIED BY A SUBTENANT AND, FOR FAILURE TO
COMPLY WITH THIS NOTIFICATION REQUIREMENT, SHALL BE LIABLE  FOR  PENALTY
CALCULATED  FOR  THE  SAME  PERIOD AS INTEREST IS CALCULATED PURSUANT TO
THIS SUBDIVISION.
  4. IF, DURING THE BENEFIT PERIOD, ANY REAL PROPERTY TAX  OR  WATER  OR
SEWER CHARGE OR OTHER LIENABLE CHARGE DUE AND PAYABLE WITH RESPECT TO AN
ELIGIBLE  BUILDING  SHALL  REMAIN UNPAID FOR AT LEAST ONE YEAR FOLLOWING
THE DATE UPON WHICH SUCH TAX OR  CHARGE  BECAME  DUE  AND  PAYABLE,  ALL
ABATEMENTS  GRANTED PURSUANT TO THIS TITLE WITH RESPECT TO SUCH BUILDING
SHALL BE REVOKED, UNLESS WITHIN THIRTY DAYS FROM THE MAILING OF A NOTICE
OF REVOCATION  BY  THE  DEPARTMENT  OF  FINANCE  SATISFACTORY  PROOF  IS
PRESENTED TO THE DEPARTMENT OF FINANCE THAT ANY AND ALL DELINQUENT TAXES
AND  CHARGES  OWING WITH RESPECT TO SUCH BUILDING AS OF THE DATE OF SUCH
NOTICE HAVE BEEN PAID IN FULL OR ARE  CURRENTLY  BEING  PAID  IN  TIMELY
INSTALLMENTS  PURSUANT  TO  A  WRITTEN  AGREEMENT WITH THE DEPARTMENT OF
FINANCE OR OTHER APPROPRIATE AGENCY.   ANY REVOCATION PURSUANT  TO  THIS
SUBDIVISION SHALL BE EFFECTIVE WITH RESPECT TO REAL PROPERTY TAXES WHICH
BECOME DUE AND PAYABLE FOLLOWING THE DATE OF SUCH REVOCATION.

S. 3846--A                          8

  5.  THE  DEPARTMENT OF FINANCE MAY DENY, REDUCE, SUSPEND, TERMINATE OR
REVOKE ANY ABATEMENT GRANTED PURSUANT TO THIS TITLE WHENEVER:
  (A)  THE  LANDLORD  OR THE TENANT RECEIVING ABATEMENT PURSUANT TO THIS
TITLE FAILS TO COMPLY WITH THE REQUIREMENTS OF THIS TITLE OR  THE  RULES
PROMULGATED HEREUNDER; OR
  (B) AN APPLICATION, CERTIFICATE, REPORT OR OTHER DOCUMENT SUBMITTED BY
THE  APPLICANT CONTAINS A FALSE OR MISLEADING STATEMENT AS TO A MATERIAL
FACT OR OMITS TO STATE ANY MATERIAL FACT NECESSARY IN ORDER TO MAKE  THE
STATEMENT THEREIN NOT FALSE OR MISLEADING, AND MAY DECLARE ANY APPLICANT
WHO  MAKES SUCH FALSE OR MISLEADING STATEMENT OR OMISSION TO BE INELIGI-
BLE FOR FUTURE ABATEMENT PURSUANT TO THIS TITLE FOR THE  SAME  OR  OTHER
PROPERTY.  IN  ADDITION,  THE  DEPARTMENT  OF  FINANCE SHALL REQUIRE THE
APPLICANT TO PAY, WITH PENALTY  AND  INTEREST,  ANY  ABATEMENT  RECEIVED
PURSUANT TO THIS TITLE AS A RESULT OF SUCH FALSE OR MISLEADING STATEMENT
OR OMISSION OF A MATERIAL FACT.
  6.  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS TITLE, THE DEPARTMENT
OF FINANCE SHALL DENY, TERMINATE OR REVOKE ANY ABATEMENT APPLIED FOR  OR
GRANTED  PURSUANT  TO  THIS  TITLE  UPON  A DETERMINATION THAT THE LEASE
BETWEEN THE LANDLORD AND THE TENANT WAS ENTERED INTO PRIMARILY  FOR  THE
PURPOSE  OF  RECEIVING  AN  ABATEMENT  UNDER  THIS TITLE. IN MAKING SUCH
DETERMINATION, THE DEPARTMENT  OF  FINANCE  MAY  CONSIDER,  AMONG  OTHER
FACTORS,  THE  RELATIONSHIP, IF ANY, BETWEEN THE LANDLORD AND THE TENANT
AND WHETHER THE BUSINESS TERMS OF SUCH LEASE  ARE  CONSISTENT  WITH  THE
BUSINESS TERMS GENERALLY FOUND IN LEASES FOR COMPARABLE SPACE.
  7.  (A) IF ANY PERSON DESCRIBED IN THE STATEMENT REQUIRED BY PARAGRAPH
(B) OF SUBDIVISION SIX OF SECTION FOUR HUNDRED  NINETY-SEVEN-B  OF  THIS
TITLE  IS FINALLY ADJUDICATED BY A COURT OF COMPETENT JURISDICTION TO BE
GUILTY OF ANY CHARGE LISTED IN SUCH STATEMENT, THE DEPARTMENT OF FINANCE
SHALL REVOKE THE ABATEMENT GRANTED PURSUANT  TO  THIS  TITLE  AND  SHALL
REQUIRE  THE  PAYMENT, WITH INTEREST, OF ANY ABATEMENT RECEIVED PURSUANT
TO THIS TITLE.
  (B) THE APPLICANT SHALL, ON THE CERTIFICATE OF CONTINUING ELIGIBILITY,
STATE WHETHER ANY CHARGES ALLEGING VIOLATION BY  THE  APPLICANT  OR  ANY
PERSON  OWNING  A  SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING, OR ANY
OFFICER, DIRECTOR OR GENERAL PARTNER OF THE APPLICANT OR PERSON OWNING A
SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING, OR ANY  PERSON  FOR  WHOM
THE  APPLICANT  OR  PERSON OWNING A SUBSTANTIAL INTEREST IN THE ELIGIBLE
BUILDING IS AN OFFICER, DIRECTOR OR  GENERAL  PARTNER,  OF  SECTION  TWO
HUNDRED  THIRTY-FIVE  OF THE REAL PROPERTY LAW OR ANY SECTION OF ARTICLE
ONE HUNDRED FIFTY OF THE PENAL LAW OR ANY SIMILAR ARSON LAW  OF  ANOTHER
JURISDICTION,  ARE PENDING. FOR PURPOSES OF THIS PARAGRAPH, "SUBSTANTIAL
INTEREST" SHALL HAVE THE SAME MEANING AS SET FORTH IN PARAGRAPH  (C)  OF
SUBDIVISION SIX OF SECTION FOUR HUNDRED NINETY-SEVEN-B OF THIS TITLE.
  S  497-F.  TAX  LIEN;  INTEREST AND PENALTY. ALL TAXES, WITH INTEREST,
REQUIRED TO BE PAID RETROACTIVELY PURSUANT TO THIS TITLE  SHALL  CONSTI-
TUTE  A TAX LIEN AS OF THE DATE IT IS DETERMINED SUCH TAXES AND INTEREST
ARE OWED. ALL INTEREST SHALL BE CALCULATED FROM THE DATE THE TAXES WOULD
HAVE BEEN DUE BUT FOR THE ABATEMENT GRANTED PURSUANT TO  THIS  TITLE  AT
THE  APPLICABLE RATE OR RATES OF INTEREST IMPOSED BY SUCH CITY GENERALLY
FOR NON-PAYMENT OF REAL PROPERTY TAX WITH RESPECT TO THE ELIGIBLE BUILD-
ING FOR THE PERIOD IN QUESTION. WHEN A PROVISION OF THIS TITLE  REQUIRES
THE  PAYMENT  OF  A  PENALTY IN ADDITION TO INTEREST, THE AMOUNT OF SUCH
PENALTY SHALL BE EQUAL TO THE AMOUNT OF INTEREST THAT  WOULD  HAVE  BEEN
PAYABLE  PURSUANT TO SUCH PROVISION HAD SUCH INTEREST BEEN CALCULATED AT
THE RATE OF THREE PERCENT PER ANNUM.

S. 3846--A                          9

  S 497-G. CONFIDENTIALITY. 1. EXCEPT IN ACCORDANCE WITH A PROPER  JUDI-
CIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE
COMMISSIONER  OF  FINANCE,  ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT OF
FINANCE, THE PRESIDENT OR A COMMISSIONER OR EMPLOYEE OF THE TAX  COMMIS-
SION,  ANY PERSON ENGAGED OR RETAINED BY SUCH DEPARTMENT OR SUCH COMMIS-
SION ON AN INDEPENDENT CONTRACT BASIS, OR ANY PERSON  WHO,  PURSUANT  TO
THIS  TITLE,  IS  PERMITTED  TO  INSPECT ANY INFORMATION SUBMITTED BY AN
APPLICANT TO THE DEPARTMENT OF FINANCE PURSUANT TO THIS TITLE OR TO WHOM
A COPY, AN ABSTRACT OR A PORTION OF ANY SUCH INFORMATION  IS  FURNISHED,
TO  DIVULGE  OR  MAKE  KNOWN  IN  ANY MANNER ANY SUCH INFORMATION TO ANY
PERSON NOT AUTHORIZED PURSUANT TO THIS TITLE TO  INSPECT  SUCH  INFORMA-
TION. THE OFFICERS CHARGED WITH CUSTODY OF SUCH INFORMATION SHALL NOT BE
REQUIRED TO PRODUCE ANY OF IT OR EVIDENCE OF ANYTHING CONTAINED IN IT IN
ANY  ACTION  OR  PROCEEDING IN ANY COURT EXCEPT ON BEHALF OF THE COMMIS-
SIONER OF FINANCE IN AN ACTION OR PROCEEDING  UNDER  THE  PROVISIONS  OF
THIS  TITLE, OR ON BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER
THE PROVISIONS OF THIS TITLE WHEN SUCH INFORMATION OR FACTS SHOWN THERE-
BY  ARE DIRECTLY INVOLVED IN SUCH ACTION OR  PROCEEDING,  IN  EITHER  OF
WHICH  EVENTS  THE COURT MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN
EVIDENCE SO MUCH OF SUCH INFORMATION 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 INSPECTION  BY  THE  LEGAL  REPRESEN-
TATIVES  OF  THE  DEPARTMENT  OF  FINANCE  OR THE TAX COMMISSION OF SUCH
INFORMATION SUBMITTED BY ANY APPLICANT WHO  SHALL  BRING  AN  ACTION  TO
CORRECT  AN  ASSESSMENT.   NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT
THE DELIVERY TO AN APPLICANT OR THE APPLICANT'S DULY  AUTHORIZED  REPRE-
SENTATIVE  OF A CERTIFIED COPY OF ANY INFORMATION SUBMITTED BY AN APPLI-
CANT TO THE DEPARTMENT OF FINANCE PURSUANT TO  THIS  TITLE;  OR  TO  ANY
AGENCY  OR ANY DEPARTMENT OF ANY CITY HAVING A POPULATION OF ONE MILLION
OR MORE PROVIDED THE SAME IS REQUESTED FOR  OFFICIAL  BUSINESS;  NOR  TO
PROHIBIT THE INSPECTION FOR OFFICIAL BUSINESS OF SUCH INFORMATION BY THE
CORPORATION  COUNSEL  OR  OTHER LEGAL REPRESENTATIVES OF A CITY HAVING A
POPULATION  OF ONE MILLION OR MORE OR BY THE DISTRICT  ATTORNEY  OF  ANY
COUNTY  WITHIN  SUCH CITY; NOR TO PROHIBIT THE PUBLICATION OF STATISTICS
SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF  SUCH  INFORMATION  OR
PARTICULAR  ITEMS  THEREOF. INFORMATION SUBMITTED BY AN APPLICANT TO THE
DEPARTMENT OF FINANCE PURSUANT TO THIS TITLE SHALL  NOT  BE  SUBJECT  TO
DISCLOSURE PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
  2.  ANY VIOLATION OF THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION
SHALL BE PUNISHED BY A FINE NOT EXCEEDING ONE  THOUSAND  DOLLARS  OR  BY
IMPRISONMENT  NOT  EXCEEDING ONE YEAR, OR BOTH, AT THE DISCRETION OF THE
COURT, AND IF THE OFFENDER BE AN OFFICER OR EMPLOYEE OF  THE  DEPARTMENT
OF  FINANCE  OR  OF  THE TAX COMMISSION, THE OFFENDER SHALL BE DISMISSED
FROM OFFICE.
  S 2. This act shall take effect immediately, provided  that  this  act
shall be deemed to have been in full force and effect on and after Janu-
ary 1, 2008. Any actions, including the promulgation of rules, necessary
to  carry out the purposes of this act may be taken before the date this
act shall have become a law, provided that such  rules  shall  not  take
effect  before the effective date of this act, and provided further that
such rules, if necessary to carry out the purposes of this act,  may  be
made  retroactive to and deemed to have been in full force and effect on
and after January 1, 2008.

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Senate Bill S3846

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Sponsored By

Jose M. Serrano

Archive: Last Bill Status - In Senate Committee Local Government Committee

Bill Amendments

co-Sponsors

Liz Krueger

2011-S3846 - Details

2011-S3846 - Summary

2011-S3846 - Sponsor Memo

2011-S3846 - Bill Text download pdf

co-Sponsors

Liz Krueger

2011-S3846A (ACTIVE) - Details

2011-S3846A (ACTIVE) - Summary

2011-S3846A (ACTIVE) - Sponsor Memo

2011-S3846A (ACTIVE) - Bill Text download pdf

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