S T A T E O F N E W Y O R K
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7737
I N S E N A T E
June 15, 2012
___________
Introduced by Sen. YOUNG -- 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 restoration of
tax exemption benefits to high density zoning districts, tax exemption
benefits for new multiple dwellings and an exemption for certain
multiple dwellings
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 2 of section 421-a of the real property tax
law is amended by adding a new paragraph (j) to read as follows:
(J) THE PROVISIONS OF SUBDIVISION (C) OF SECTION 11-245 OF THE ADMIN-
ISTRATIVE CODE OF THE CITY OF NEW YORK SHALL NOT BE APPLICABLE TO ANY
MULTIPLE DWELLING WHICH CONSTRUCTION COMMENCED ON OR AFTER DECEMBER
THIRTY-FIRST, TWO THOUSAND SEVEN PROVIDED THAT SUCH MULTIPLE DWELLING
(I) IS LOCATED ON A TAX LOT EXISTING OR CREATED IN THE BOROUGH OF
MANHATTAN NORTH OF A LINE DESCRIBED AS FOLLOWS: BEGINNING AT THE INTER-
SECTION OF VESEY STREET AND NORTH END AVENUE, THENCE EASTERLY ALONG
VESEY STREET TO BROADWAY, THENCE SOUTHERLY ALONG BROADWAY TO FULTON
STREET, THENCE EASTERLY ALONG FULTON STREET TO THE INTERSECTION WITH
WATER STREET, THENCE EASTERLY ALONG FORMER FULTON STREET TO THE EAST
RIVER PIERHEAD LINE; OR (II) LOCATED ON A TAX LOT EXISTING OR CREATED
THAT IS LOCATED ENTIRELY WITHIN THE GEOGRAPHIC AREA IN THE BOROUGH OF
MANHATTAN DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF WEST
STREET AND ALBANY STREET, THENCE EASTERLY ALONG ALBANY STREET TO GREEN-
WICH STREET, THENCE NORTHERLY ON GREENWICH STREET TO CEDAR STREET,
THENCE EASTERLY ON CEDAR STREET TO BROADWAY, THENCE SOUTHERLY ALONG
BROADWAY TO BATTERY PLACE, THENCE WESTERLY ALONG BATTERY PLACE TO WEST
STREET, THENCE NORTHERLY ALONG WEST STREET TO THE POINT OF BEGINNING.
S 2. Subparagraph (i) of paragraph (a) of subdivision 2 of section
421-a of the real property tax law, as amended by section 38 of part B
of chapter 97 of the laws of 2011, is amended to read as follows:
(i) Within a city having a population of one million or more, new
multiple dwellings, except hotels, shall be exempt from taxation for
local purposes, other than assessments for local improvements, for the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13380-06-2
S. 7737 2
tax year or years immediately following taxable status dates occurring
subsequent to the commencement and prior to the completion of
construction, but not to exceed three such tax years, [except for new
multiple dwellings the construction of which commenced between January
first, two thousand seven, and June thirtieth, two thousand nine, shall
have an additional thirty-six months to complete construction and shall
be eligible for full exemption from taxation for the first three years
of the period of construction; any eligible project that seeks to
utilize the six-year period of construction authorized by this section
must apply for a preliminary certificate of eligibility within one year
of the effective date of the rent act of 2011, provided, however that
such multiple dwellings shall be eligible for a maximum of three years
of benefits during the construction period,] and shall continue to be
exempt from such taxation in tax years immediately following the taxable
status date first occurring after the expiration of the exemption herein
conferred during construction so long as used at the completion of
construction for dwelling purposes for a period not to exceed ten years
in the aggregate after the taxable status date immediately following the
completion thereof, as follows:
(A) except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, [except for new multiple dwellings the construction of
which commenced between January first, two thousand seven, and June
thirtieth, two thousand nine, shall have an additional thirty-six months
to complete construction and shall be eligible for full exemption from
taxation for the first three years of the period of construction; any
eligible project that seeks to utilize the six-year period of
construction authorized by this section must apply for a preliminary
certificate of eligibility within one year of the effective date of the
rent act of 2011, provided, however that such multiple dwellings shall
be eligible for a maximum of three years of benefits during the
construction period,] and for two years following such period;
(B) followed by two years of exemption from eighty per cent of such
taxation;
(C) followed by two years of exemption from sixty per cent of such
taxation;
(D) followed by two years of exemption from forty per cent of such
taxation;
(E) followed by two years of exemption from twenty per cent of such
taxation;
The following table shall illustrate the computation of the tax
exemption:
CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
Exemption
During Construction (maximum three years)[;] 100%
[except construction commenced between January
first, two thousand seven and June
thirtieth, two thousand nine (maximum
three years)]
Following completion of work
Year:
1 100%
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2 100
3 80
4 80
5 60
6 60
7 40
8 40
9 20
10 20
S 3. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
of section 421-a of the real property tax law, as amended by section 39
of part B of chapter 97 of the laws of 2011, is amended to read as
follows:
(A) Within a city having a population of one million or more the local
housing agency may adopt rules and regulations providing that except in
areas excluded by local law new multiple dwellings, except hotels, shall
be exempt from taxation for local purposes, other than assessments for
local improvements, for the tax year or years immediately following
taxable status dates occurring subsequent to the commencement and prior
to the completion of construction, but not to exceed three such tax
years, [except for new multiple dwellings the construction of which
commenced between January first, two thousand seven, and June thirtieth,
two thousand nine, shall have an additional thirty-six months to
complete construction and shall be eligible for full exemption from
taxation for the first three years of the period of construction; any
eligible project that seeks to utilize the six-year period of
construction authorized by this section must apply for a preliminary
certificate of eligibility within one year of the effective date of the
rent act of 2011, provided, however that such multiple dwellings shall
be eligible for a maximum of three years of benefits during the
construction period,] and shall continue to be exempt from such taxation
in tax years immediately following the taxable status date first occur-
ring after the expiration of the exemption herein conferred during such
construction so long as used at the completion of construction for
dwelling purposes for a period not to exceed fifteen years in the aggre-
gate, as follows:
a. except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, [except for new multiple dwellings the construction of
which commenced between January first, two thousand seven, and June
thirtieth, two thousand nine, shall have an additional thirty-six months
to complete construction and shall be eligible for full exemption from
taxation for the first three years of the period of construction; any
eligible project that seeks to utilize the six-year period of
construction authorized by this section must apply for a preliminary
certificate of eligibility within one year of the effective date of the
rent act of 2011, provided, however that such multiple dwellings shall
be eligible for a maximum of three years of benefits during the
construction period,] and for eleven years following such period;
b. followed by one year of exemption from eighty percent of such taxa-
tion;
c. followed by one year of exemption from sixty percent of such taxa-
tion;
S. 7737 4
d. followed by one year of exemption from forty percent of such taxa-
tion;
e. followed by one year of exemption from twenty percent of such taxa-
tion.
S 4. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
2 of section 421-a of the real property tax law, as amended by section
40 of part B of chapter 97 of the laws of 2011, is amended to read as
follows:
(A) Within a city having a population of one million or more the local
housing agency may adopt rules and regulations providing that new multi-
ple dwellings, except hotels, shall be exempt from taxation for local
purposes, other than assessments for local improvements, for the tax
year or years immediately following taxable status dates occurring
subsequent to the commencement and prior to the completion of
construction, but not to exceed three such tax years, [except for new
multiple dwellings the construction of which commenced between January
first, two thousand seven, and June thirtieth, two thousand nine, shall
have an additional thirty-six months to complete construction and shall
be eligible for full exemption from taxation for the first three years
of the period of construction; any eligible project that seeks to
utilize the six-year period of construction authorized by this section
must apply for a preliminary certificate of eligibility within one year
of the effective date of the rent act of 2011, provided, however that
such multiple dwellings shall be eligible for a maximum of three years
of benefits during the construction period,] and shall continue to be
exempt from such taxation in tax years immediately following the taxable
status date first occurring after the expiration of the exemption herein
conferred during such construction so long as used at the completion of
construction for dwelling purposes for a period not to exceed twenty-
five years in the aggregate, provided that the area in which the project
is situated is a neighborhood preservation program area as determined by
the local housing agency as of June first, nineteen hundred eighty-five,
or is a neighborhood preservation area as determined by the New York
city planning commission as of June first, nineteen hundred eighty-five,
or is an area that was eligible for mortgage insurance provided by the
rehabilitation mortgage insurance corporation as of May first, nineteen
hundred ninety-two or is an area receiving funding for a neighborhood
preservation project pursuant to the neighborhood reinvestment corpo-
ration act (42 U.S.C. SS180 et seq.) as of June first, nineteen hundred
eighty-five, as follows:
a. except as otherwise provided herein there shall be full exemption
from taxation during the period of construction or the period of three
years immediately following commencement of construction, whichever
expires sooner, [except for new multiple dwellings the construction of
which commenced between January first, two thousand seven, and June
thirtieth, two thousand nine, shall have an additional thirty-six months
to complete construction and shall be eligible for full exemption from
taxation for the first three years of the period of construction; any
eligible project that seeks to utilize the six-year period of
construction authorized by this section must apply for a preliminary
certificate of eligibility within one year of the effective date of the
rent act of 2011, provided, however that such multiple dwellings shall
be eligible for a maximum of three years of benefits during the
construction period,] and for twenty-one years following such period;
b. followed by one year of exemption from eighty percent of such taxa-
tion;
S. 7737 5
c. followed by one year of exemption from sixty percent of such taxa-
tion;
d. followed by one year of exemption from forty percent of such taxa-
tion;
e. followed by one year of exemption from twenty percent of such taxa-
tion.
S 5. This act shall take effect immediately; except that section one
of this act shall be deemed to have been in full force and effect on and
after December 31, 2007; and provided that with respect to any applica-
tion for a preliminary certificate of eligibility that is filed no later
than June 24, 2012, or that is filed for a project that was the subject
of mortgage foreclosure proceedings or other lien enforcement litigation
by a lender on or before June 24, 2012, such project shall be subject to
that portion of the definition of "commence" contained in item (1) of
clause (iv) of subparagraph (2) of paragraph (b) of subdivision (a) of
section 6-09 of title twenty-eight of the rules of the city of New York.
