S T A T E O F N E W Y O R K
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4643--A
2011-2012 Regular Sessions
I N A S S E M B L Y
February 4, 2011
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Introduced by M. of A. BURLING -- read once and referred to the Commit-
tee on Real Property Taxation -- 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 establishing a
residential-commercial exemption program in certain counties; and
providing for the repeal of such provisions upon the expiration there-
of
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 485-n to read as follows:
S 485-N. RESIDENTIAL-COMMERCIAL EXEMPTION PROGRAM. 1. DEFINITIONS. AS
USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
INGS:
(A) "APPLICANT" MEANS ANY PERSON OBLIGATED TO PAY REAL PROPERTY TAXES
ON REAL PROPERTY FOR WHICH AN EXEMPTION FROM TAXES UNDER THIS SECTION IS
SOUGHT.
(B) "BENEFIT AREA" MEANS THE AREA WITHIN A MUNICIPALITY, DESIGNATED BY
LOCAL LAW, TO WHICH AN EXEMPTION, ESTABLISHED PURSUANT TO THIS SECTION,
APPLIES.
(C) "COMMERCIAL CONSTRUCTION WORK" MEANS THE MODERNIZATION, REHABILI-
TATION, EXPANSION OR OTHER IMPROVEMENT OF COMMERCIAL USE PROPERTY OR THE
PORTION OF MIXED-USE PROPERTY TO BE USED FOR COMMERCIAL PURPOSES.
(D) "COMMERCIAL PURPOSE OR USE" MEANS THE BUYING, SELLING OR OTHERWISE
PROVIDING OF GOODS OR SERVICES, INCLUDING HOTEL SERVICES, OR OTHER
LAWFUL BUSINESS OR COMMERCIAL ACTIVITIES PERMITTED UPON MIXED-USE PROP-
ERTY.
(E) "COMMERCIAL USE PROPERTY" MEANS REAL PROPERTY ON WHICH WILL EXIST,
AFTER COMPLETION OF COMMERCIAL CONSTRUCTION WORK, A BUILDING USED FOR
COMMERCIAL PURPOSES OR USE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02688-07-1
A. 4643--A 2
(F) "MIXED-USE PROPERTY" MEANS REAL PROPERTY ON WHICH WILL EXIST,
AFTER COMPLETION OF RESIDENTIAL CONSTRUCTION WORK OR A COMBINATION OF
RESIDENTIAL CONSTRUCTION WORK AND COMMERCIAL CONSTRUCTION WORK, A BUILD-
ING OR STRUCTURE USED FOR BOTH RESIDENTIAL AND COMMERCIAL PURPOSES.
(G) "MUNICIPALITY" MEANS ANY TOWN, CITY, VILLAGE OR OTHER TAXING ENTI-
TY LOCATED IN A COUNTY HAVING A POPULATION OF NOT LESS THAN SIXTY-FIVE
THOUSAND THREE HUNDRED NINETY AND NOT MORE THAN SIXTY-FIVE THOUSAND FOUR
HUNDRED AS DETERMINED BY THE FEDERAL DECENNIAL CENSUS FOR THE YEAR TWO
THOUSAND TEN.
(H) "RESIDENTIAL CONSTRUCTION WORK" MEANS THE CREATION, MODERNIZATION,
REHABILITATION, EXPANSION OR OTHER IMPROVEMENT OF DWELLING UNITS, OTHER
THAN DWELLING UNITS IN A HOTEL, IN THE PORTION OF MIXED-USE PROPERTY TO
BE USED FOR RESIDENTIAL PURPOSES.
2. (A) A MUNICIPALITY, OTHER THAN A COUNTY OR SCHOOL DISTRICT AS
PROVIDED IN THIS SECTION, MAY, BY LOCAL LAW, PROVIDE FOR THE EXEMPTION
OF REAL PROPERTY IN A DESIGNATED BENEFIT AREA FROM TAXATION AS PROVIDED
IN THIS SECTION. SUBSEQUENT TO THE ADOPTION OF SUCH A LOCAL LAW, THE
COUNTY IN WHICH SUCH MUNICIPALITY IS LOCATED MAY, BY LOCAL LAW, AND ANY
SCHOOL DISTRICT, ALL OR PART OF WHICH IS LOCATED IN SUCH MUNICIPALITY,
MAY, BY RESOLUTION, EXEMPT SUCH PROPERTY FROM ITS TAXATION IN THE SAME
MANNER AND TO THE SAME EXTENT AS SUCH MUNICIPALITY HAS DONE.
(B) SUCH LOCAL LAW SHALL PROVIDE FOR THE APPOINTMENT OF A
COMMERCIAL/MIXED USE INCENTIVE BOARD WHICH SHALL BE RESPONSIBLE FOR
DESIGNATING THE BENEFIT AREA TO BE EXEMPT FROM TAXATION AS PROVIDED IN
THIS SECTION. THE MEMBERSHIP AND COMPOSITION OF SUCH BOARD SHALL BE SET
FORTH IN LOCAL LAW. SUCH BOARD SHALL PRESENT A PLAN TO THE LOCAL GOVERN-
ING BODY CONCERNING THE VARIOUS TYPES OF COMMERCIAL AND/OR MIXED-USE
PROPERTIES WHICH MAY BE GRANTED AN EXEMPTION PURSUANT TO THIS SECTION.
IN ADDITION SUCH PLAN SHALL IDENTIFY DESIGNATED BENEFIT AREAS, WITHIN
WHICH SUCH EXEMPTION MAY BE OFFERED. IN DEVELOPING SUCH PLAN THE
COMMERCIAL/MIXED USE INCENTIVE BOARD SHALL CONSIDER THE PLANNING OBJEC-
TIVES OF THE MUNICIPALITY AND THE NECESSITY OF THE EXEMPTION TO THE
ATTRACTION OF COMMERCIAL AND MIXED USE DEVELOPMENT AS IDENTIFIED BY THE
MUNICIPALITY AND THE ECONOMIC BENEFIT TO THE AREA OF PROVIDING
EXEMPTIONS TO COMMERCIAL AND MIXED-USE PROPERTIES. IN INSTANCES WHERE A
MUNICIPALITY HAS PREVIOUSLY DESIGNED A BUSINESS DISTRICT ENCOMPASSING A
DEFINED AREA WHICH WAS SUBJECT TO PUBLIC INPUT AND WAS APPROVED BY AND
RECEIVED FUNDING FOR ECONOMIC DEVELOPMENT PURPOSES FROM A STATE AGENCY,
THE MUNICIPALITY MAY UTILIZE THE DEFINED BOUNDARIES OF SUCH PREVIOUSLY
DEFINED AREA, OR A COMBINATION OF SUCH BOUNDARIES SUBJECT TO REVIEW BY
THE COMMERCIAL/MIXED-USE INCENTIVE BOARD.
3. UPON THE ADOPTION OF SUCH A LOCAL LAW THE COMMERCIAL USE PROPERTY
OR MIXED-USE PROPERTY THAT WAS CONVERTED, CREATED, MODERNIZED, REHABILI-
TATED, EXPANDED OR OTHERWISE IMPROVED, SHALL BE EXEMPT FROM TAXATION AND
SPECIAL AD VALOREM LEVIES AS PROVIDED FOR IN SUBDIVISION FOUR OF THIS
SECTION.
4. (A) (I) FOR A PERIOD OF TWELVE YEARS FOLLOWING THE APPROVAL OF AN
APPLICATION, THE INCREASE IN ASSESSED VALUE OF SUCH PROPERTY ATTRIBUT-
ABLE TO SUCH CONVERSION, CREATION, MODERNIZATION, REHABILITATION, EXPAN-
SION OR OTHER IMPROVEMENT SHALL BE EXEMPT AS PROVIDED IN SUBPARAGRAPH
(II) OF THIS PARAGRAPH. SUCH EXEMPTION SHALL BE COMPUTED WITH RESPECT TO
THE "EXEMPTION BASE". THE EXEMPTION BASE SHALL BE DETERMINED FOR EACH
YEAR IN WHICH THERE IS AN INCREASE IN ASSESSED VALUE SO ATTRIBUTABLE
FROM THAT OF THE PREVIOUS YEAR'S ASSESSED VALUE.
(II) THE FOLLOWING SHALL DETERMINE THE COMPUTATION OF THE TAX
EXEMPTION:
A. 4643--A 3
YEAR OF EXEMPTION PERCENTAGE OF EXEMPTION
1 THROUGH 8 100% OF EXEMPTION BASE
9 80% OF EXEMPTION BASE
10 60% OF EXEMPTION BASE
11 40% OF EXEMPTION BASE
12 20% OF EXEMPTION BASE
(B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
(I) SUCH CONVERSION, CREATION, MODERNIZATION, REHABILITATION, EXPAN-
SION OR OTHER IMPROVEMENT WAS COMMENCED SUBSEQUENT TO THE DATE ON WHICH
THE MUNICIPALITY'S LOCAL LAW TOOK EFFECT; AND
(II) THE COST OF SUCH CONVERSION EXCEEDS THE SUM OF TEN THOUSAND
DOLLARS OR SUCH GREATER AMOUNT AS MAY BE SPECIFIED BY LOCAL LAW.
(C) FOR PURPOSES OF THIS SECTION THE TERM "CONVERSION, CREATION,
MODERNIZATION, REHABILITATION, EXPANSION OR OTHER IMPROVEMENT" SHALL NOT
INCLUDE ORDINARY MAINTENANCE AND REPAIRS.
(D) NO SUCH EXEMPTION SHALL BE GRANTED CONCURRENT WITH OR SUBSEQUENT
TO ANY OTHER REAL PROPERTY TAX EXEMPTION GRANTED TO THE SAME IMPROVE-
MENTS TO REAL PROPERTY, EXCEPT, WHERE DURING THE PERIOD OF SUCH PREVIOUS
EXEMPTION, PAYMENTS IN LIEU OF TAXES OR OTHER PAYMENTS WERE MADE TO THE
MUNICIPALITY IN AN AMOUNT THAT WOULD HAVE BEEN EQUAL TO OR GREATER THAN
THE AMOUNT OF REAL PROPERTY TAXES THAT WOULD HAVE BEEN PAID ON SUCH
IMPROVEMENTS HAD SUCH PROPERTY BEEN GRANTED AN EXEMPTION PURSUANT TO
THIS SECTION. IN SUCH CASE, AN EXEMPTION SHALL BE GRANTED FOR A NUMBER
OF YEARS EQUAL TO THE TWELVE YEAR EXEMPTION GRANTED PURSUANT TO THIS
SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
EXEMPT FROM REAL PROPERTY TAXES.
5. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF REAL PROPERTY ON A FORM PRESCRIBED BY THE COMMISSIONER. SUCH APPLICA-
TION SHALL BE FILED WITH THE ASSESSOR OF THE MUNICIPALITY OR COUNTY
HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE THE APPRO-
PRIATE TAXABLE STATUS DATE OF SUCH MUNICIPALITY OR COUNTY.
6. IF THE ASSESSOR IS SATISFIED THAT THE APPLICANT IS ENTITLED TO AN
EXEMPTION PURSUANT TO THIS SECTION, HE OR SHE SHALL APPROVE THE APPLICA-
TION AND SUCH REAL PROPERTY SHALL THEREAFTER BE EXEMPT FROM TAXATION AND
SPECIAL AD VALOREM LEVIES AS PROVIDED IN THIS SECTION COMMENCING WITH
THE ASSESSMENT ROLL PREPARED AFTER THE TAXABLE STATUS DATE REFERRED TO
IN SUBDIVISION FIVE 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.
S 2. This act shall take effect immediately, and shall expire and be
deemed repealed twelve years after such date.