senate Bill S6689A

2013-2014 Legislative Session

Relates to a property investment exemption in certain villages

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 committed to rules
May 05, 2014 advanced to third reading
Apr 30, 2014 2nd report cal.
Apr 29, 2014 1st report cal.447
Mar 20, 2014 print number 6689a
amend and recommit to local government
Feb 27, 2014 referred to local government

Votes

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Apr 29, 2014 - Local Government committee Vote

S6689A
7
0
committee
7
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Local Government Committee Vote: Apr 29, 2014

aye wr (2)

Bill Amendments

Original
A (Active)
Original
A (Active)

S6689 - Bill Details

See Assembly Version of this Bill:
A9328
Current Committee:
Senate Rules
Law Section:
Real Property Tax Law
Laws Affected:
Add §485-q, RPT L

S6689 - Bill Texts

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Relates to a property investment exemption in certain villages.

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BILL NUMBER:S6689

TITLE OF BILL: An act to amend the real property tax law, in relation
to a property investment exemption in certain villages

PURPOSE:

To allow Wappingers Village in New York State to grant a property
investment exemption for the purpose of promoting re-development of
vacant and blighted properties for commercial, residential and
mix-used.

SUMMARY OF PROVISIONS:

Section 1 adds a new section 485-q to the real property tax law that
would allow villages with a population of not less than 5,000 and not
more than 6,000 in counties with a population of not less than 290,000
and not more than 300,000 to grant a property investment exemption to
real property that was constructed, altered, installed, or improved
subsequent to July 1, 2013 for the purpose of commercial, business, or
industrial activity. These properties would be exempt from taxation
and special ad valorem levies, except for special ad valorem levies
for fire district, fire protection district and fire alarm district
purposes as provided in this section.

Such real property would be exempt for a period of one year to the
extent of 60% of the increase in assessed value attributable to such
construction, alteration, installation or improvement and for a period
of 9 years where the percentage of the exemption would decrease by no
less than 5% each year during the additional period of 9 years.
Exemption shall be computed with respect to the "exemption base."
Exemption base shall be increase in assessed value as determined in
initial year of such ten year period following the filing of original
application.

Cost of such construction, alteration, installation or improvement
must exceed the sum of $10,000 or such greater amount as may be
specified in local law or resolution. Does not include ordinary
maintenance or repairs.

No such exemption shall be granted concurrently with or subsequent to
any other real property tax exemption granted to the same improvement,
except where during period of previous exemption, payments in lieu of
taxes or other payments were made to the local government 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 in
relation to this proposed section.

Such exemption shall only be granted upon application by the owner of
such real property on a form prescribed by the state board.
Application must be filed with appropriate local assessor. Assessor
can approve application for tax exemption.

Provides definitions for mixed use property.

Allows municipalities to raise or reduce percentage of exemption;
provided, however, that a project in course of construction and that


has existing exemptions prior to passage of any local law or
resolution changing exemption, shall not be subject any such
reduction.

Allows municipalities to establish by resolution a date for the
commencement of effectiveness of exemptions.

Allows municipalities to establish an Industrial and Commercial
Incentive Board that would be responsible for coordinating local plan
for business real property and making recommendations concerning how
to use tax exemptions. Outlines structure and responsibilities of the
Industrial and Commercial Incentive Board.

Section 2 sets an immediate effective date

JUSTIFICATION:

New York State has a variety of tax exemptions meant to give
municipalities the ability to grant real property tax exemptions for
residential, mixed-use, and commercial purposes. There are many areas
of real property tax law that currently allow cities, towns, and
villages to provide real property tax exemptions. Section 421-c
exempts certain new multiple dwellings from local taxation in relation
to affordable housing in cities, towns, and villages of less than I
million. Section 421-f provides an exemption of capital improvements
to residential buildings. Section 488-a allows for the rehabilitation
of certain class B multiple dwellings and class A multiple dwellings
used for single room occupancy and Section 489 allows for an exemption
from taxation of alterations and improvements to multiple dwellings to
eliminate fire and health hazards.

New York State has recognized that appropriate tax exemptions offer
municipalities the flexibility to allow local property owners
opportunity to improve the quality of their property and community
without being the anxiety of being punished with higher property taxes
in the short-term. With high property taxes, it is vital that New York
State continues to empower municipalities to take positive steps to
create jobs, grow their economies, and improve their tax base.

This new section 485-q adds to over a dozen other Real Property Tax
Exemptions that currently allow municipalities in New York State these
types of incentives to property owners. It specifically recognizes
that more villages in New York State should be able to take control of
their economic future by creating effective public-private
partnerships that build new businesses and create more economic
opportunity for their residents. This legislation is in line with this
principle.

LEGISLATIVE HISTORY:

This is a new bill

LOCAL FISCAL IMPLICATIONS:

Allows local municipalities to offer tax exemptions which would exempt
only the increased value in assessment related to improvements. Has no


impact on current revenues. Would likely raise other forms of local
and state revenue related to increased economic activity.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  6689

                            I N  S E N A T E

                            February 27, 2014
                               ___________

Introduced  by  Sen.  GIPSON -- 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  a  property
  investment exemption in certain villages

  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-q to read as follows:
  S  485-Q.  PROPERTY  INVESTMENT  EXEMPTION; CERTAIN VILLAGES. 1.  REAL
PROPERTY CONSTRUCTED, ALTERED, INSTALLED OR IMPROVED SUBSEQUENT  TO  THE
FIRST  DAY OF JULY, TWO THOUSAND THIRTEEN FOR THE PURPOSE OF MULTI-FAMI-
LY, RESIDENTIAL, MIXED USE, COMMERCIAL, BUSINESS OR INDUSTRIAL  ACTIVITY
IN  VILLAGES  WITH  A  POPULATION OF NOT LESS THAN FIVE THOUSAND AND NOT
MORE THAN SIX THOUSAND IN COUNTIES WITH A POPULATION OF  NOT  LESS  THAN
TWO  HUNDRED  NINETY THOUSAND AND NOT MORE THAN THREE HUNDRED FIVE THOU-
SAND MAY BE EXEMPT FROM TAXATION AND SPECIAL AD VALOREM  LEVIES,  EXCEPT
FOR  SPECIAL  AD  VALOREM  LEVIES  FOR  FIRE  DISTRICT,  FIRE PROTECTION
DISTRICT AND FIRE ALARM DISTRICT PURPOSES AS PROVIDED IN THIS SECTION.
  2. (A) (I) SUCH REAL PROPERTY SHALL BE EXEMPT FOR A PERIOD OF ONE YEAR
TO THE EXTENT OF SIXTY PER CENTUM OF  THE  INCREASE  IN  ASSESSED  VALUE
THEREOF  ATTRIBUTABLE  TO SUCH CONSTRUCTION, ALTERATION, INSTALLATION OR
IMPROVEMENT AND FOR AN ADDITIONAL PERIOD OF NINE YEARS PROVIDED,  HOWEV-
ER, THAT THE EXTENT OF SUCH EXEMPTION SHALL BE DECREASED BY NO LESS THAN
FIVE  PER  CENTUM  EACH YEAR DURING SUCH ADDITIONAL PERIOD OF NINE YEARS
AND SUCH EXEMPTION SHALL BE COMPUTED  WITH  RESPECT  TO  THE  "EXEMPTION
BASE."  THE  EXEMPTION  BASE  SHALL BE THE INCREASE IN ASSESSED VALUE AS
DETERMINED IN THE INITIAL YEAR OF SUCH TEN  YEAR  PERIOD  FOLLOWING  THE
FILING  OF  AN  ORIGINAL APPLICATION, EXCEPT AS PROVIDED IN SUBPARAGRAPH
(II) OF THIS PARAGRAPH.
  (II) IN ANY YEAR IN WHICH A CHANGE IN LEVEL OF ASSESSMENT  OF  FIFTEEN
PERCENT OR MORE IS CERTIFIED FOR A FINAL ASSESSMENT ROLL PURSUANT TO THE
RULES  OF  THE  STATE BOARD, THE EXEMPTION BASE SHALL BE MULTIPLIED BY A
FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TOTAL  ASSESSED  VALUE  OF
THE PARCEL ON SUCH FINAL ASSESSMENT ROLL (AFTER ACCOUNTING FOR ANY PHYS-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13708-02-4

S. 6689                             2

ICAL  OR  QUANTITY CHANGES TO THE PARCEL SINCE THE IMMEDIATELY PRECEDING
ASSESSMENT ROLL), AND THE  DENOMINATOR  OF  WHICH  SHALL  BE  THE  TOTAL
ASSESSED  VALUE OF THE PARCEL ON THE IMMEDIATELY PRECEDING FINAL ASSESS-
MENT  ROLL.  THE  RESULT  SHALL BE THE NEW EXEMPTION BASE. THE EXEMPTION
SHALL THEREUPON BE RECOMPUTED TO TAKE INTO  ACCOUNT  THE  NEW  EXEMPTION
BASE,  NOTWITHSTANDING  THE  FACT THAT THE ASSESSOR RECEIVES THE CERTIF-
ICATION OF THE CHANGE IN  LEVEL  OF  ASSESSMENT  AFTER  THE  COMPLETION,
VERIFICATION  AND  FILING OF THE FINAL ASSESSMENT ROLL. IN THE EVENT THE
ASSESSOR DOES NOT HAVE CUSTODY OF THE ROLL WHEN  SUCH  CERTIFICATION  IS
RECEIVED,  THE  ASSESSOR  SHALL  CERTIFY THE RECOMPUTED EXEMPTION TO THE
LOCAL OFFICERS HAVING CUSTODY AND CONTROL OF THE ROLL,  AND  SUCH  LOCAL
OFFICERS  ARE  HEREBY  DIRECTED  AND  AUTHORIZED TO ENTER THE RECOMPUTED
EXEMPTION CERTIFIED BY THE ASSESSOR ON THE ROLL. THE ASSESSOR SHALL GIVE
WRITTEN NOTICE OF SUCH RECOMPUTED EXEMPTION TO THE PROPERTY  OWNER,  WHO
MAY,  IF HE OR SHE BELIEVES THAT THE EXEMPTION WAS RECOMPUTED INCORRECT-
LY, APPLY FOR A CORRECTION IN THE MANNER  PROVIDED  BY  TITLE  THREE  OF
ARTICLE FIVE OF THIS CHAPTER FOR THE CORRECTION OF CLERICAL ERRORS.
  (III)  THE FOLLOWING TABLE SHALL ILLUSTRATE THE COMPUTATION OF THE TAX
EXEMPTION:
YEAR OF EXEMPTION            PERCENTAGE OF EXEMPTION TO BE NO MORE THAN:
         1                                      60
         2                                      55
         3                                      50
         4                                      45
         5                                      40
         6                                      35
         7                                      30
         8                                      25
         9                                      20
         10                                     15
  (B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
  (1) SUCH CONSTRUCTION, ALTERATION,  INSTALLATION  OR  IMPROVEMENT  WAS
COMMENCED  SUBSEQUENT TO THE FIRST DAY OF JULY, TWO THOUSAND THIRTEEN OR
SUCH LATER DATE AS MAY BE SPECIFIED BY LOCAL LAW OR RESOLUTION;
  (2)  THE  COST  OF  SUCH  CONSTRUCTION,  ALTERATION,  INSTALLATION  OR
IMPROVEMENT  EXCEEDS  THE  SUM  OF  TEN THOUSAND DOLLARS OR SUCH GREATER
AMOUNT AS MAY BE SPECIFIED BY LOCAL LAW OR RESOLUTION; AND
  (3) SUCH CONSTRUCTION,  ALTERATION,  INSTALLATION  OR  IMPROVEMENT  IS
COMPLETED  AS  MAY  BE  EVIDENCED BY A CERTIFICATE OF OCCUPANCY OR OTHER
APPROPRIATE DOCUMENTATION AS PROVIDED BY THE OWNER.
  (C) FOR PURPOSES OF THIS SECTION THE TERMS  CONSTRUCTION,  ALTERATION,
INSTALLATION  AND 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
LOCAL  GOVERNMENT  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  TEN  YEAR  EXEMPTION  GRANTED  PURSUANT  TO  THIS
SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
EXEMPT FROM REAL PROPERTY TAXES.
  3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH REAL PROPERTY ON A FORM PRESCRIBED  BY  THE  STATE  BOARD.  SUCH

S. 6689                             3

APPLICATION SHALL BE FILED WITH THE ASSESSOR OF THE CITY, TOWN, VILLAGE,
OR  COUNTY HAVING THE POWER TO ASSESS PROPERTY FOR TAXATION ON OR BEFORE
THE APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY, TOWN, VILLAGE OR COUN-
TY AND WITHIN ONE YEAR FROM THE DATE OF COMPLETION OF SUCH CONSTRUCTION,
ALTERATION, INSTALLATION OR IMPROVEMENT.
  4.  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, EXCEPT FOR SPECIAL AD VALOREM LEVIES FOR FIRE
DISTRICT, FIRE PROTECTION DISTRICT AND FIRE ALARM DISTRICT PURPOSES,  AS
HEREIN  PROVIDED  COMMENCING WITH THE ASSESSMENT ROLL PREPARED AFTER THE
TAXABLE STATUS DATE REFERRED TO IN SUBDIVISION THREE  OF  THIS  SECTION.
THE  ASSESSED  VALUE  OF  ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION
SHALL BE ENTERED BY THE ASSESSOR ON THE ASSESSMENT ROLL WITH THE TAXABLE
PROPERTY, WITH THE AMOUNT OF THE EXEMPTION SHOWN IN A SEPARATE COLUMN.
  5. THE PROVISIONS OF THIS SECTION SHALL APPLY TO  MIXED  USE  PROPERTY
WHERE  THE  FOLLOWING  IS POSSIBLE: (A) REAL PROPERTY USED PRIMARILY FOR
THE BUYING, SELLING, STORING OR DEVELOPING GOODS OR SERVICES, THE  MANU-
FACTURE OR ASSEMBLY OF GOODS OR THE PROCESSING OF RAW MATERIALS; AND (B)
REAL  PROPERTY  USED  PRIMARILY  FOR THE FURNISHING OF DWELLING SPACE OR
ACCOMMODATIONS TO EITHER RESIDENTS OR TRANSIENTS OTHER  THAN  HOTELS  OR
MOTELS.
  6.  IN  THE  EVENT THAT REAL PROPERTY GRANTED AN EXEMPTION PURSUANT TO
THIS SECTION CEASES TO BE USED  PRIMARILY  FOR  ELIGIBLE  PURPOSES,  THE
EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
  7.  A  COUNTY,  CITY,  TOWN OR VILLAGE MAY, BY LOCAL LAW, AND A SCHOOL
DISTRICT, EXCEPT A CITY SCHOOL DISTRICT TO WHICH  ARTICLE  FIFTY-TWO  OF
THE  EDUCATION LAW APPLIES, MAY, BY RESOLUTION, REDUCE THE PER CENTUM OF
EXEMPTION OTHERWISE ALLOWED PURSUANT TO THIS SECTION; PROVIDED, HOWEVER,
THAT A PROJECT IN COURSE OF CONSTRUCTION AND EXEMPTIONS  EXISTING  PRIOR
IN  TIME  TO  PASSAGE  OF  ANY SUCH LOCAL LAW OR RESOLUTION SHALL NOT BE
SUBJECT TO ANY SUCH REDUCTION  SO  EFFECTED.  ANY  COUNTY,  CITY,  TOWN,
VILLAGE  OR SCHOOL DISTRICT THAT HAS REDUCED THE PER CENTUM OF EXEMPTION
PURSUANT TO THIS SUBDIVISION MAY THEREAFTER, BY LOCAL LAW OR  RESOLUTION
AS  THE  CASE MAY BE, INCREASE THE PER CENTUM OF EXEMPTION UP TO ANY PER
CENTUM NOT EXCEEDING THE MAXIMUM ALLOWED BY SUBDIVISION TWO OR TWELVE OF
THIS SECTION, WHICHEVER IS APPLICABLE, PROVIDED, HOWEVER, THAT ANY  SUCH
LOCAL  LAW  OR RESOLUTION SHALL APPLY ONLY TO CONSTRUCTION, ALTERATIONS,
INSTALLATIONS, OR IMPROVEMENTS COMMENCED  SUBSEQUENT  TO  THE  EFFECTIVE
DATE  OF  SUCH LOCAL LAW OR RESOLUTION. A COPY OF ALL SUCH LOCAL LAWS OR
RESOLUTIONS SHALL BE FILED WITH THE STATE BOARD AND THE ASSESSOR OF EACH
ASSESSING UNIT WHICH COMPRISES THE COUNTY, CITY, TOWN OR SCHOOL DISTRICT
OR, IN THE CASE OF A VILLAGE, THE VILLAGE ASSESSOR,  OR  THE  APPLICABLE
TOWN  OR  COUNTY  ASSESSOR  OF  A  VILLAGE WHICH HAS ADOPTED A LOCAL LAW
PROVIDED IN SUBDIVISION THREE OF SECTION FOURTEEN HUNDRED  TWO  OF  THIS
CHAPTER.
  8.  A  COUNTY,  CITY,  TOWN OR VILLAGE MAY, BY LOCAL LAW, AND A SCHOOL
DISTRICT, EXCEPT A CITY SCHOOL DISTRICT TO WHICH  ARTICLE  FIFTY-TWO  OF
THE  EDUCATION  LAW APPLIES MAY, BY RESOLUTION, ESTABLISH A DATE FOR THE
COMMENCEMENT OF EFFECTIVENESS OF EXEMPTIONS  OFFERED  PURSUANT  TO  THIS
SECTION  AND MAY PROVIDE THAT THE PROVISIONS OF THIS SECTION SHALL APPLY
ONLY TO CONSTRUCTION, ALTERATION, INSTALLATION OR IMPROVEMENTS HAVING  A
GREATER VALUE THAN THAT SPECIFIED BY SUBDIVISION TWO OF THIS SECTION.
  9.  (A)  A  COUNTY, CITY OUTSIDE THE CITY OF NEW YORK, TOWN OR VILLAGE
MAY, BY LOCAL LAW, AND A SCHOOL DISTRICT WHICH LEVIES SCHOOL TAXES  MAY,
BY  RESOLUTION,  ESTABLISH  A  BOARD  TO  BE KNOWN AS THE INDUSTRIAL AND

S. 6689                             4

COMMERCIAL INCENTIVE BOARD. THE MEMBERSHIP AND COMPOSITION OF SUCH BOARD
SHALL BE SET FORTH IN THE LOCAL LAW OR RESOLUTION.
  (B) THE INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD SHALL PRESENT A PLAN
TO THE APPOINTING LOCAL LEGISLATIVE BODY CONCERNING THE VARIOUS TYPES OF
BUSINESS,  MULTI-FAMILY OR MIXED USE RESIDENTIAL CONSTRUCTION REAL PROP-
ERTY WHICH SHOULD BE GRANTED ELIGIBILITY FOR AN  EXEMPTION  PURSUANT  TO
SUBDIVISION  ONE  OF  THIS SECTION. SUCH PLAN SHALL MAKE RECOMMENDATIONS
CONCERNING THE APPLICABILITY OF THE EXEMPTION TO  SPECIFIC  SECTORS  AND
SUBSECTORS,  AS  DEFINED  IN  THE NORTH AMERICAN INDUSTRY CLASSIFICATION
SYSTEM PUBLISHED BY THE UNITED STATES GOVERNMENT. SUCH PLAN  SHALL  ALSO
MAKE  A  RECOMMENDATION  AS  TO  WHETHER  THE  EXEMPTION  BE COMPUTED AS
PROVIDED IN SUBDIVISION TWO OR TWELVE OF THIS SECTION. IN ADDITION, SUCH
PLAN  SHALL  IDENTIFY  SPECIFIC  GEOGRAPHIC  AREAS  WITHIN  WHICH   SUCH
EXEMPTIONS  SHOULD  BE  OFFERED. IN DEVELOPING THE PLAN REQUIRED BY THIS
PARAGRAPH, THE BOARD SHALL CONSIDER  THE  PLANNING  OBJECTIVES  OF  EACH
MUNICIPALITY  WITHIN WHICH SUCH EXEMPTIONS MAY BE OFFERED, THE NECESSITY
OF THE EXEMPTION TO THE ATTRACTION OR RETENTION OF SUCH BUSINESS AND THE
ECONOMIC BENEFIT TO THE AREA OF PROVIDING EXEMPTIONS TO VARIOUS TYPES OF
BUSINESSES.
  (C) IN ADDITION, THE BOARD MAY MAKE RECOMMENDATIONS TO THE  APPOINTING
LOCAL  LEGISLATIVE  BODY  WITH  RESPECT TO ACTIONS IT DEEMS DESIRABLE TO
IMPROVE THE ECONOMIC CLIMATE THEREIN.
  (D) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
SION,  WHERE A COUNTY ESTABLISHES AN INDUSTRIAL AND COMMERCIAL INCENTIVE
BOARD, THE MEMBERS OF SUCH BOARD SHALL BE APPOINTED  AS  FOLLOWS:  THREE
REPRESENTATIVES  OF THE COUNTY: THE APPOINTMENT OF ONE SHALL BE RESERVED
TO THE COUNTY EXECUTIVE OF THE COUNTY WHO SHALL SERVE AS CHAIR, AND  ONE
EACH FOR THE MAJORITY AND THE MINORITY PARTIES OF THE COUNTY LEGISLATIVE
BODY;  ONE  REPRESENTATIVE  FOR EACH CITY LOCATED WITHIN THE COUNTY UPON
THE RECOMMENDATION OF THE MAYOR; ONE  REPRESENTATIVE  FOR  EACH  OF  THE
TOWNS  LOCATED WITHIN THE COUNTY UPON THE RECOMMENDATION OF THE SUPERVI-
SOR; ONE REPRESENTATIVE TO COLLECTIVELY REPRESENT ALL  OF  THE  VILLAGES
LOCATED  WITHIN  THE COUNTY UPON THE RECOMMENDATION OF THE MAYORS OF THE
VILLAGES IN THE COUNTY; AND ONE REPRESENTATIVE TO COLLECTIVELY REPRESENT
ALL OF THE SCHOOL DISTRICTS LOCATED WITHIN THE COUNTY  UPON  RECOMMENDA-
TION  OF THE COUNTY SCHOOL BOARDS ASSOCIATION. THE MEMBERS OF SUCH BOARD
SHALL SERVE AT THE PLEASURE OF THE GOVERNING BODY WHICH THEY  REPRESENT.
THE  MEMBERS SHALL SERVE WITHOUT SALARY, BUT THE COUNTY LEGISLATIVE BODY
MAY ENTITLE EACH SUCH MEMBER TO REIMBURSEMENT FOR HIS OR HER ACTUAL  AND
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF HIS OR HER DUTIES.
  10.  WHERE A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT HAS ESTAB-
LISHED AN INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD, PURSUANT TO  SUBDI-
VISION  NINE OF THIS SECTION, SUCH COUNTY, CITY, TOWN OR VILLAGE MAY, BY
LOCAL LAW, AND A SCHOOL DISTRICT, EXCEPT A CITY SCHOOL DISTRICT TO WHICH
ARTICLE FIFTY-TWO OF THE EDUCATION  LAW  APPLIES,  MAY,  BY  RESOLUTION,
RESTRICT REAL PROPERTY ELIGIBLE TO RECEIVE THE EXEMPTION TO REAL PROPER-
TY  CONSTRUCTED, ALTERED, INSTALLED OR IMPROVED FOR THOSE PURPOSES IDEN-
TIFIED IN THE PLAN PRESENTED BY THE BOARD. SUCH LAW OR RESOLUTION  SHALL
IDENTIFY  THE  SPECIFIC  SECTORS AND SUBSECTORS, AS DEFINED IN THE NORTH
AMERICAN INDUSTRY CLASSIFICATION SYSTEM PUBLISHED BY THE  UNITED  STATES
GOVERNMENT  TO  WHICH  THE  EXEMPTION  SHALL  BE APPLICABLE. SUCH LAW OR
RESOLUTION SHALL ALSO RESTRICT THE AVAILABILITY OF SUCH EXEMPTION TO THE
SPECIFIC GEOGRAPHIC AREAS IDENTIFIED IN THE PLAN PRESENTED BY THE BOARD.
  11. WHERE A COUNTY, BY  LAW,  RESTRICTS  EXEMPTIONS  PURSUANT  TO  THE
RECOMMENDATIONS  OF AN INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD, ESTAB-
LISHED PURSUANT TO SUBDIVISION NINE OF  THIS  SECTION,  SUCH  RESTRICTED

S. 6689                             5

EXEMPTIONS SHALL BE APPLICABLE TO TAXES AND SPECIAL AD VALOREM LEVIES OF
EACH  CITY,  TOWN,  VILLAGE  AND SCHOOL DISTRICT LOCATED WITHIN THE AREA
WITHIN WHICH THE RESTRICTED EXEMPTIONS ARE OFFERED BY THE COUNTY, UNLESS
SUCH  CITY,  TOWN  OR  VILLAGE  SHALL,  BY LAW, OR SUCH SCHOOL DISTRICT,
SHALL, BY RESOLUTION, DETERMINE THAT SUCH  RESTRICTED  EXEMPTIONS  SHALL
NOT  BE  APPLICABLE  TO  ITS TAX AND AD VALOREM LEVIES. UPON ADOPTION OF
SUCH LAW, THE COUNTY SHALL NOTIFY EACH AFFECTED CITY, TOWN, VILLAGE  AND
SCHOOL  DISTRICT OF ITS ACTIONS AND INFORM THEM OF THEIR OPTIONS REGARD-
ING SUCH RESTRICTED EXEMPTIONS.
  12. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, WHERE  A  COUNTY,
CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT ADOPTS RESTRICTED EXEMPTIONS
PURSUANT TO SUBDIVISION TEN OF THIS SECTION, THE LAW OR  RESOLUTION  MAY
PROVIDE THAT SUCH EXEMPTIONS SHALL BE COMPUTED PURSUANT TO THE FOLLOWING
ACCELERATED STRATEGIC EXEMPTION SCHEDULE:
YEAR OF EXEMPTION            PERCENTAGE OF EXEMPTION TO BE NO MORE THAN:
         1                                      60
         2                                      60
         3                                      60
         4                                      50
         5                                      50
         6                                      45
         7                                      40
         8                                      35
         9                                      25
         10                                     15
PROVIDED HOWEVER, THAT SUCH LAW OR RESOLUTION SHALL:
  (I)  CONTAIN  FINDINGS THAT THE ADOPTION OF THIS ACCELERATED STRATEGIC
EXEMPTION SCHEDULE IS NECESSARY TO ENCOURAGE TARGETED ECONOMIC  DEVELOP-
MENT, CREATE OR RETAIN PERMANENT PRIVATE SECTOR JOBS, AND THAT THE VALUE
OF  THE  EXEMPTIONS  TO  BE PROVIDED IS JUSTIFIED BY THE NEED TO PROVIDE
EMPLOYMENT OPPORTUNITIES AND BROADEN THE TAX BASE; AND
  (II) LIMIT THE APPLICABILITY OF SUCH SCHEDULE TO  PROJECTS  WHERE  THE
COST  OF  SUCH  CONSTRUCTION,  ALTERATION,  INSTALLATION  OR IMPROVEMENT
EXCEEDS THE SUM OF FIFTY THOUSAND DOLLARS; AND
  (III) PROVIDE THAT SUCH EXEMPTIONS ARE RESTRICTED BY GEOGRAPHIC  AREAS
AND/OR  GROUPS  AND MAJOR DIVISIONS AS IS PROVIDED BY SUBDIVISION TEN OF
THIS SECTION.
  13. A COUNTY, CITY, OR TOWN WITH A VILLAGE WITH A  POPULATION  OF  NOT
LESS  THAN FIVE THOUSAND AND NOT MORE THAN SIX THOUSAND IN COUNTIES WITH
A POPULATION OF NOT LESS THEN TWO HUNDRED NINETY THOUSAND AND  NOT  MORE
THAN THREE HUNDRED FIVE THOUSAND MAY, BY LOCAL LAW, ESTABLISH A DATE FOR
THE  COMMENCEMENT OF THE EFFECTIVENESS OF THE EXEMPTION OFFERED PURSUANT
TO THIS SECTION. A COPY OF THE  LOCAL  LAWS  SHALL  BE  FILED  WITH  THE
COMMISSIONER, THE ASSESSOR OF THE MUNICIPALITY, THE CLERK OF THE MUNICI-
PALITY, AND THE SECRETARY OF STATE.
  14. A VILLAGE WITH A POPULATION OF NOT LESS THAN FIVE THOUSAND AND NOT
MORE  THAN  SIX  THOUSAND IN COUNTIES WITH A POPULATION OF NOT LESS THAN
TWO HUNDRED NINETY THOUSAND AND NOT MORE THAN THREE HUNDRED  FIVE  THOU-
SAND  MAY,  BY  LOCAL  LAW,  AND  ANY  SCHOOL DISTRICT WHICH SERVES SUCH
VILLAGE, MAY, BY RESOLUTION ESTABLISH A DATE FOR THE COMMENCEMENT OF THE
EFFECTIVENESS OF THE EXEMPTION OFFERED PURSUANT TO THIS SECTION. A  COPY
OF  THE LOCAL LAWS SHALL BE FILED WITH THE COMMISSIONER, THE ASSESSOR OF
THE MUNICIPALITY, THE CLERK OF THE MUNICIPALITY, AND  THE  SECRETARY  OF
STATE.
  S 2. This act shall take effect immediately.

S6689A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9328
Current Committee:
Senate Rules
Law Section:
Real Property Tax Law
Laws Affected:
Add §485-q, RPT L

S6689A (ACTIVE) - Bill Texts

view summary

Relates to a property investment exemption in certain villages.

view sponsor memo
BILL NUMBER:S6689A

TITLE OF BILL: An act to amend the real property tax law, in relation
to a property investment exemption in certain villages

PURPOSE: The measure is intended to authorize the Wappingers Village in
New York State to grant a property investment exemption for the purpose
of promoting re-development of vacant and blighted properties for
commercial, residential and mix-used.

SUMMARY OF PROVISIONS:

Section 1 adds a new section 485-q to the real property tax law that
would allow villages with a population of not less than 5,000 and not
more than 6,000 in counties with a population of not less than 290,000
and not more than 300,000 to grant a property investment exemption to
real property that was constructed, altered, installed, or improved
subsequent to July 1, 2013 for the purpose multi-family residential,
mixed use, commercial, business or industrial activity. These proper-
ties would be exempt from taxation and special ad valorem levies, except
for special ad valorem levies for fire district, fire protection
district and fire alarm district purposes as provided in this section.

Such real property would be exempt for a period of one year to the
extent of 60% of the increase in assessed value attributable to such
construction, alteration, installation or improvement and for a period
of 9 years where the percentage of the exemption would decrease by no
less than 5% each year during the additional period of 9 years.
Exemption shall be computed with respect to the "exemption base."
Exemption base shall be increase in assessed value as determined in
initial year of such ten year period following the filing of original
application.

Cost of such construction, alteration, installation or improvement must
exceed the sum of $10,000 or such greater amount as may be specified in
local law or resolution. Does not include ordinary maintenance or
repairs.

No such exemption shall be granted concurrently with or subsequent to
any other real property tax exemption granted to the same improvement,
except where during period of previous exemption, payments in lieu of
taxes or other payments were made to the local government in an amount
that would have been equal to or greater than the amount of real proper-
ty taxes that would have been paid on such improvements in relation to
this proposed section.

Such exemption shall only be granted upon application by the owner of
such real property on a form prescribed by the state board. Application
must be filed with appropriate local assessor or Treasurer. Assessor or
Treasurer can approve the application for tax exemption.

Provides definitions for mixed use property.

Allows municipalities to raise or reduce percentage of exemption;
provided, however, that a project in course of construction and that has
existing exemptions prior to passage of any local law or resolution
changing exemption, shall not be subject any such reduction.

Allows municipalities to establish by resolution a date for the
commencement of effectiveness of exemptions.

Allows municipalities to establish an Industrial and Commercial Incen-
tive Board that would be responsible for coordinating local plan for
business real property and making recommendations concerning how to use
tax exemptions. Outlines structure and responsibilities of the Indus-
trial and Commercial Incentive Board.

Section 2 sets an immediate effective date

JUSTIFICATION: New York State has a variety of tax exemptions meant to
give municipalities the ability to grant real property tax exemptions
for multi-family residential, mixed use, commercial, business or indus-
trial purposes. There are many areas of real property tax law that
currently allow cities, towns, and villages to provide real property tax
exemptions. Section 421-c exempts certain new multiple dwellings from
local taxation in relation to affordable housing in cities, towns, and
villages of less than 1 million. Section 421-f provides an exemption of
capital improvements to residential buildings. Section 488-a allows for
the rehabilitation of certain class B multiple dwellings and class A
multiple dwellings used for single room occupancy and Section 489 allows
for an exemption from taxation of alterations and improvements to multi-
ple dwellings to eliminate fire and health hazards.

New York State has recognized that appropriate tax exemptions offer
municipalities the flexibility to allow local property owners opportu-
nity to improve the quality of their property and community without
having the anxiety of being punished with higher property taxes in the
short-term. With high property taxes, it is vital that New York State
continues to empower municipalities to take positive steps to create
jobs, grow their economies, and improve their tax base.

This new section 485-q adds to over a dozen other Real Property Tax
Exemptions that currently allow municipalities in New York State these
types of incentives to property owners. It specifically recognizes that
more villages in New York State should be able to take control of their
economic future by creating effective public-private partnerships that
build new businesses and create more economic opportunity for their
residents. This legislation is in line with this principle.

LEGISLATIVE HISTORY: This is a new bill

LOCAL FISCAL IMPLICATIONS: Allows local municipalities to offer tax
exemptions which would exempt only the increased value in assessment
related to improvements. Has no impact on current revenues. Would likely

raise other forms of local and state revenue related to increased
economic activity.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                 6689--A

                            I N  S E N A T E

                            February 27, 2014
                               ___________

Introduced  by  Sen.  GIPSON -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Local  Government  --
  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  a  property
  investment exemption in certain villages

  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-q to read as follows:
  S  485-Q.  PROPERTY  INVESTMENT  EXEMPTION; CERTAIN VILLAGES. 1.  REAL
PROPERTY CONSTRUCTED, ALTERED, INSTALLED OR IMPROVED SUBSEQUENT  TO  THE
FIRST DAY OF JULY, TWO THOUSAND THIRTEEN FOR THE PURPOSE OF MULTI-FAMILY
RESIDENTIAL,  MIXED  USE, COMMERCIAL, BUSINESS OR INDUSTRIAL ACTIVITY IN
VILLAGES WITH A POPULATION OF NOT LESS THAN FIVE THOUSAND AND  NOT  MORE
THAN  SIX  THOUSAND  IN  COUNTIES WITH A POPULATION OF NOT LESS THAN TWO
HUNDRED NINETY THOUSAND AND NOT MORE THAN THREE  HUNDRED  FIVE  THOUSAND
MAY  BE  EXEMPT  FROM TAXATION AND SPECIAL AD VALOREM LEVIES, EXCEPT FOR
SPECIAL AD VALOREM LEVIES FOR FIRE DISTRICT,  FIRE  PROTECTION  DISTRICT
AND FIRE ALARM DISTRICT PURPOSES AS PROVIDED IN THIS SECTION.
  2. (A) (I) SUCH REAL PROPERTY SHALL BE EXEMPT FOR A PERIOD OF ONE YEAR
TO  THE  EXTENT  OF  SIXTY  PER CENTUM OF THE INCREASE IN ASSESSED VALUE
THEREOF ATTRIBUTABLE TO SUCH CONSTRUCTION, ALTERATION,  INSTALLATION  OR
IMPROVEMENT  AND FOR AN ADDITIONAL PERIOD OF NINE YEARS PROVIDED, HOWEV-
ER, THAT THE EXTENT OF SUCH EXEMPTION SHALL BE DECREASED BY NO LESS THAN
FIVE PER CENTUM EACH YEAR DURING SUCH ADDITIONAL PERIOD  OF  NINE  YEARS
AND  SUCH  EXEMPTION  SHALL  BE  COMPUTED WITH RESPECT TO THE "EXEMPTION
BASE." THE EXEMPTION BASE SHALL BE THE INCREASE  IN  ASSESSED  VALUE  AS
DETERMINED  IN  THE  INITIAL  YEAR OF SUCH TEN YEAR PERIOD FOLLOWING THE
FILING OF AN ORIGINAL APPLICATION, EXCEPT AS  PROVIDED  IN  SUBPARAGRAPH
(II) OF THIS PARAGRAPH.
  (II)  IN  ANY YEAR IN WHICH A CHANGE IN LEVEL OF ASSESSMENT OF FIFTEEN
PERCENT OR MORE IS CERTIFIED FOR A FINAL ASSESSMENT ROLL PURSUANT TO THE
RULES OF THE STATE BOARD, THE EXEMPTION BASE SHALL BE  MULTIPLIED  BY  A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13708-03-4

S. 6689--A                          2

FRACTION,  THE  NUMERATOR  OF WHICH SHALL BE THE TOTAL ASSESSED VALUE OF
THE PARCEL ON SUCH FINAL ASSESSMENT ROLL (AFTER ACCOUNTING FOR ANY PHYS-
ICAL OR QUANTITY CHANGES TO THE PARCEL SINCE THE  IMMEDIATELY  PRECEDING
ASSESSMENT  ROLL),  AND  THE  DENOMINATOR  OF  WHICH  SHALL BE THE TOTAL
ASSESSED VALUE OF THE PARCEL ON THE IMMEDIATELY PRECEDING FINAL  ASSESS-
MENT  ROLL.  THE  RESULT  SHALL BE THE NEW EXEMPTION BASE. THE EXEMPTION
SHALL THEREUPON BE RECOMPUTED TO TAKE INTO  ACCOUNT  THE  NEW  EXEMPTION
BASE,  NOTWITHSTANDING  THE FACT THAT THE ASSESSOR OR TREASURER RECEIVES
THE CERTIFICATION OF  THE  CHANGE  IN  LEVEL  OF  ASSESSMENT  AFTER  THE
COMPLETION, VERIFICATION AND FILING OF THE FINAL ASSESSMENT ROLL. IN THE
EVENT  THE  ASSESSOR OR TREASURER DOES NOT HAVE CUSTODY OF THE ROLL WHEN
SUCH CERTIFICATION IS RECEIVED, THE ASSESSOR OR TREASURER SHALL  CERTIFY
THE  RECOMPUTED  EXEMPTION  TO  THE  LOCAL  OFFICERS  HAVING CUSTODY AND
CONTROL OF THE ROLL, AND SUCH LOCAL OFFICERS  ARE  HEREBY  DIRECTED  AND
AUTHORIZED  TO  ENTER THE RECOMPUTED EXEMPTION CERTIFIED BY THE ASSESSOR
OR TREASURER ON THE ROLL. THE ASSESSOR OR TREASURER SHALL  GIVE  WRITTEN
NOTICE  OF  SUCH RECOMPUTED EXEMPTION TO THE PROPERTY OWNER, WHO MAY, IF
HE OR SHE BELIEVES THAT THE EXEMPTION WAS RECOMPUTED INCORRECTLY,  APPLY
FOR  A  CORRECTION IN THE MANNER PROVIDED BY TITLE THREE OF ARTICLE FIVE
OF THIS CHAPTER FOR THE CORRECTION OF CLERICAL ERRORS.
  (III) THE FOLLOWING TABLE SHALL ILLUSTRATE THE COMPUTATION OF THE  TAX
EXEMPTION:
YEAR OF EXEMPTION            PERCENTAGE OF EXEMPTION TO BE NO MORE THAN:
         1                                      60
         2                                      55
         3                                      50
         4                                      45
         5                                      40
         6                                      35
         7                                      30
         8                                      25
         9                                      20
         10                                     15
  (B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
  (1)  SUCH  CONSTRUCTION,  ALTERATION,  INSTALLATION OR IMPROVEMENT WAS
COMMENCED SUBSEQUENT TO THE FIRST DAY OF JULY, TWO THOUSAND THIRTEEN  OR
SUCH LATER DATE AS MAY BE SPECIFIED BY LOCAL LAW OR RESOLUTION;
  (2)  THE  COST  OF  SUCH  CONSTRUCTION,  ALTERATION,  INSTALLATION  OR
IMPROVEMENT EXCEEDS THE SUM OF TEN  THOUSAND  DOLLARS  OR  SUCH  GREATER
AMOUNT AS MAY BE SPECIFIED BY LOCAL LAW OR RESOLUTION; AND
  (3)  SUCH  CONSTRUCTION,  ALTERATION,  INSTALLATION  OR IMPROVEMENT IS
COMPLETED AS MAY BE EVIDENCED BY A CERTIFICATE  OF  OCCUPANCY  OR  OTHER
APPROPRIATE DOCUMENTATION AS PROVIDED BY THE OWNER.
  (C)  FOR  PURPOSES OF THIS SECTION THE TERMS CONSTRUCTION, ALTERATION,
INSTALLATION AND 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
LOCAL GOVERNMENT 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  TEN  YEAR  EXEMPTION GRANTED PURSUANT TO THIS

S. 6689--A                          3

SECTION LESS THE NUMBER OF YEARS THE PROPERTY WOULD HAVE BEEN PREVIOUSLY
EXEMPT FROM REAL PROPERTY TAXES.
  3.  SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY THE OWNER
OF SUCH REAL PROPERTY ON A FORM PRESCRIBED  BY  THE  STATE  BOARD.  SUCH
APPLICATION  SHALL  BE FILED WITH THE ASSESSOR OR TREASURER OF THE CITY,
TOWN, VILLAGE, OR COUNTY HAVING THE POWER TO ASSESS PROPERTY  FOR  TAXA-
TION  ON  OR  BEFORE  THE  APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY,
TOWN, VILLAGE OR COUNTY AND WITHIN ONE YEAR FROM THE DATE OF  COMPLETION
OF SUCH CONSTRUCTION, ALTERATION, INSTALLATION OR IMPROVEMENT.
  4.  IF  THE  ASSESSOR  OR TREASURER IS SATISFIED THAT THE APPLICANT IS
ENTITLED TO AN EXEMPTION PURSUANT TO  THIS  SECTION,  HE  OR  SHE  SHALL
APPROVE  THE  APPLICATION  AND  SUCH  REAL  PROPERTY SHALL THEREAFTER BE
EXEMPT FROM TAXATION AND SPECIAL AD VALOREM LEVIES, EXCEPT  FOR  SPECIAL
AD  VALOREM  LEVIES FOR FIRE DISTRICT, FIRE PROTECTION DISTRICT AND FIRE
ALARM DISTRICT PURPOSES, AS HEREIN PROVIDED COMMENCING WITH THE  ASSESS-
MENT ROLL PREPARED AFTER THE TAXABLE STATUS DATE REFERRED TO IN SUBDIVI-
SION  THREE OF THIS SECTION. THE ASSESSED VALUE OF ANY EXEMPTION GRANTED
PURSUANT TO THIS SECTION SHALL BE ENTERED BY THE ASSESSOR  OR  TREASURER
ON THE ASSESSMENT ROLL WITH THE TAXABLE PROPERTY, WITH THE AMOUNT OF THE
EXEMPTION SHOWN IN A SEPARATE COLUMN.
  5.  THE  PROVISIONS  OF THIS SECTION SHALL APPLY TO MIXED USE PROPERTY
WHERE THE FOLLOWING IS POSSIBLE: (A) REAL PROPERTY  USED  PRIMARILY  FOR
THE  BUYING, SELLING, STORING OR DEVELOPING GOODS OR SERVICES, THE MANU-
FACTURE OR ASSEMBLY OF GOODS OR THE PROCESSING OF RAW MATERIALS; AND (B)
REAL PROPERTY USED PRIMARILY FOR THE FURNISHING  OF  DWELLING  SPACE  OR
ACCOMMODATIONS  TO  EITHER  RESIDENTS OR TRANSIENTS OTHER THAN HOTELS OR
MOTELS.
  6. IN THE EVENT THAT REAL PROPERTY GRANTED AN  EXEMPTION  PURSUANT  TO
THIS  SECTION  CEASES  TO  BE  USED PRIMARILY FOR ELIGIBLE PURPOSES, THE
EXEMPTION GRANTED PURSUANT TO THIS SECTION SHALL CEASE.
  7. A COUNTY, CITY, TOWN OR VILLAGE MAY, BY LOCAL  LAW,  AND  A  SCHOOL
DISTRICT,  EXCEPT  A  CITY SCHOOL DISTRICT TO WHICH ARTICLE FIFTY-TWO OF
THE EDUCATION LAW APPLIES, MAY, BY RESOLUTION, REDUCE THE PER CENTUM  OF
EXEMPTION OTHERWISE ALLOWED PURSUANT TO THIS SECTION; PROVIDED, HOWEVER,
THAT  A  PROJECT IN COURSE OF CONSTRUCTION AND EXEMPTIONS EXISTING PRIOR
IN TIME TO PASSAGE OF ANY SUCH LOCAL LAW  OR  RESOLUTION  SHALL  NOT  BE
SUBJECT  TO  ANY  SUCH  REDUCTION  SO  EFFECTED. ANY COUNTY, CITY, TOWN,
VILLAGE OR SCHOOL DISTRICT THAT HAS REDUCED THE PER CENTUM OF  EXEMPTION
PURSUANT  TO THIS SUBDIVISION MAY THEREAFTER, BY LOCAL LAW OR RESOLUTION
AS THE CASE MAY BE, INCREASE THE PER CENTUM OF EXEMPTION UP TO  ANY  PER
CENTUM NOT EXCEEDING THE MAXIMUM ALLOWED BY SUBDIVISION TWO OR TWELVE OF
THIS  SECTION, WHICHEVER IS APPLICABLE, PROVIDED, HOWEVER, THAT ANY SUCH
LOCAL LAW OR RESOLUTION SHALL APPLY ONLY TO  CONSTRUCTION,  ALTERATIONS,
INSTALLATIONS,  OR  IMPROVEMENTS  COMMENCED  SUBSEQUENT TO THE EFFECTIVE
DATE OF SUCH LOCAL LAW OR RESOLUTION. A COPY OF ALL SUCH LOCAL  LAWS  OR
RESOLUTIONS  SHALL  BE  FILED  WITH  THE STATE BOARD AND THE ASSESSOR OR
TREASURER OF EACH ASSESSING UNIT WHICH COMPRISES THE COUNTY, CITY,  TOWN
OR SCHOOL DISTRICT OR, IN THE CASE OF A VILLAGE, THE VILLAGE ASSESSOR OR
TREASURER,  OR  THE APPLICABLE TOWN OR COUNTY ASSESSOR OR TREASURER OF A
VILLAGE WHICH HAS ADOPTED A LOCAL LAW PROVIDED IN SUBDIVISION  THREE  OF
SECTION FOURTEEN HUNDRED TWO OF THIS CHAPTER.
  8.  A  COUNTY,  CITY,  TOWN OR VILLAGE MAY, BY LOCAL LAW, AND A SCHOOL
DISTRICT, EXCEPT A CITY SCHOOL DISTRICT TO WHICH  ARTICLE  FIFTY-TWO  OF
THE  EDUCATION  LAW APPLIES MAY, BY RESOLUTION, ESTABLISH A DATE FOR THE
COMMENCEMENT OF EFFECTIVENESS OF EXEMPTIONS  OFFERED  PURSUANT  TO  THIS
SECTION  AND MAY PROVIDE THAT THE PROVISIONS OF THIS SECTION SHALL APPLY

S. 6689--A                          4

ONLY TO CONSTRUCTION, ALTERATION, INSTALLATION OR IMPROVEMENTS HAVING  A
GREATER VALUE THAN THAT SPECIFIED BY SUBDIVISION TWO OF THIS SECTION.
  9.  (A)  A  COUNTY, CITY OUTSIDE THE CITY OF NEW YORK, TOWN OR VILLAGE
MAY, BY LOCAL LAW, AND A SCHOOL DISTRICT WHICH LEVIES SCHOOL TAXES  MAY,
BY  RESOLUTION,  ESTABLISH  A  BOARD  TO  BE KNOWN AS THE INDUSTRIAL AND
COMMERCIAL INCENTIVE BOARD. THE MEMBERSHIP AND COMPOSITION OF SUCH BOARD
SHALL BE SET FORTH IN THE LOCAL LAW OR RESOLUTION.
  (B) THE INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD SHALL PRESENT A PLAN
TO THE APPOINTING LOCAL LEGISLATIVE BODY CONCERNING THE VARIOUS TYPES OF
BUSINESS, MULTI-FAMILY OR MIXED USE RESIDENTIAL CONSTRUCTION REAL  PROP-
ERTY  WHICH  SHOULD  BE GRANTED ELIGIBILITY FOR AN EXEMPTION PURSUANT TO
SUBDIVISION ONE OF THIS SECTION. SUCH PLAN  SHALL  MAKE  RECOMMENDATIONS
CONCERNING  THE  APPLICABILITY  OF THE EXEMPTION TO SPECIFIC SECTORS AND
SUBSECTORS, AS DEFINED IN THE  NORTH  AMERICAN  INDUSTRY  CLASSIFICATION
SYSTEM  PUBLISHED  BY THE UNITED STATES GOVERNMENT. SUCH PLAN SHALL ALSO
MAKE A RECOMMENDATION  AS  TO  WHETHER  THE  EXEMPTION  BE  COMPUTED  AS
PROVIDED IN SUBDIVISION TWO OR TWELVE OF THIS SECTION. IN ADDITION, SUCH
PLAN   SHALL  IDENTIFY  SPECIFIC  GEOGRAPHIC  AREAS  WITHIN  WHICH  SUCH
EXEMPTIONS SHOULD BE OFFERED. IN DEVELOPING THE PLAN  REQUIRED  BY  THIS
PARAGRAPH,  THE  BOARD  SHALL  CONSIDER  THE PLANNING OBJECTIVES OF EACH
MUNICIPALITY WITHIN WHICH SUCH EXEMPTIONS MAY BE OFFERED, THE  NECESSITY
OF THE EXEMPTION TO THE ATTRACTION OR RETENTION OF SUCH BUSINESS AND THE
ECONOMIC BENEFIT TO THE AREA OF PROVIDING EXEMPTIONS TO VARIOUS TYPES OF
BUSINESSES.
  (C)  IN ADDITION, THE BOARD MAY MAKE RECOMMENDATIONS TO THE APPOINTING
LOCAL LEGISLATIVE BODY WITH RESPECT TO ACTIONS  IT  DEEMS  DESIRABLE  TO
IMPROVE THE ECONOMIC CLIMATE THEREIN.
  (D)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, WHERE A COUNTY ESTABLISHES AN INDUSTRIAL AND COMMERCIAL  INCENTIVE
BOARD,  THE  MEMBERS  OF SUCH BOARD SHALL BE APPOINTED AS FOLLOWS: THREE
REPRESENTATIVES OF THE COUNTY: THE APPOINTMENT OF ONE SHALL BE  RESERVED
TO  THE COUNTY EXECUTIVE OF THE COUNTY WHO SHALL SERVE AS CHAIR, AND ONE
EACH FOR THE MAJORITY AND THE MINORITY PARTIES OF THE COUNTY LEGISLATIVE
BODY; ONE REPRESENTATIVE FOR EACH CITY LOCATED WITHIN  THE  COUNTY  UPON
THE  RECOMMENDATION  OF  THE  MAYOR;  ONE REPRESENTATIVE FOR EACH OF THE
TOWNS LOCATED WITHIN THE COUNTY UPON THE RECOMMENDATION OF THE  SUPERVI-
SOR;  ONE  REPRESENTATIVE  TO COLLECTIVELY REPRESENT ALL OF THE VILLAGES
LOCATED WITHIN THE COUNTY UPON THE RECOMMENDATION OF THE MAYORS  OF  THE
VILLAGES IN THE COUNTY; AND ONE REPRESENTATIVE TO COLLECTIVELY REPRESENT
ALL  OF  THE SCHOOL DISTRICTS LOCATED WITHIN THE COUNTY UPON RECOMMENDA-
TION OF THE COUNTY SCHOOL BOARDS ASSOCIATION. THE MEMBERS OF SUCH  BOARD
SHALL  SERVE AT THE PLEASURE OF THE GOVERNING BODY WHICH THEY REPRESENT.
THE MEMBERS SHALL SERVE WITHOUT SALARY, BUT THE COUNTY LEGISLATIVE  BODY
MAY  ENTITLE EACH SUCH MEMBER TO REIMBURSEMENT FOR HIS OR HER ACTUAL AND
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF HIS OR HER DUTIES.
  10. WHERE A COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT HAS  ESTAB-
LISHED  AN INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD, PURSUANT TO SUBDI-
VISION NINE OF THIS SECTION, SUCH COUNTY, CITY, TOWN OR VILLAGE MAY,  BY
LOCAL LAW, AND A SCHOOL DISTRICT, EXCEPT A CITY SCHOOL DISTRICT TO WHICH
ARTICLE  FIFTY-TWO  OF  THE  EDUCATION  LAW APPLIES, MAY, BY RESOLUTION,
RESTRICT REAL PROPERTY ELIGIBLE TO RECEIVE THE EXEMPTION TO REAL PROPER-
TY CONSTRUCTED, ALTERED, INSTALLED OR IMPROVED FOR THOSE PURPOSES  IDEN-
TIFIED  IN THE PLAN PRESENTED BY THE BOARD. SUCH LAW OR RESOLUTION SHALL
IDENTIFY THE SPECIFIC SECTORS AND SUBSECTORS, AS DEFINED  IN  THE  NORTH
AMERICAN  INDUSTRY  CLASSIFICATION SYSTEM PUBLISHED BY THE UNITED STATES
GOVERNMENT TO WHICH THE EXEMPTION  SHALL  BE  APPLICABLE.  SUCH  LAW  OR

S. 6689--A                          5

RESOLUTION SHALL ALSO RESTRICT THE AVAILABILITY OF SUCH EXEMPTION TO THE
SPECIFIC GEOGRAPHIC AREAS IDENTIFIED IN THE PLAN PRESENTED BY THE BOARD.
  11.  WHERE  A  COUNTY,  BY  LAW,  RESTRICTS EXEMPTIONS PURSUANT TO THE
RECOMMENDATIONS OF AN INDUSTRIAL AND COMMERCIAL INCENTIVE BOARD,  ESTAB-
LISHED  PURSUANT  TO  SUBDIVISION  NINE OF THIS SECTION, SUCH RESTRICTED
EXEMPTIONS SHALL BE APPLICABLE TO TAXES AND SPECIAL AD VALOREM LEVIES OF
EACH CITY, TOWN, VILLAGE AND SCHOOL DISTRICT  LOCATED  WITHIN  THE  AREA
WITHIN WHICH THE RESTRICTED EXEMPTIONS ARE OFFERED BY THE COUNTY, UNLESS
SUCH  CITY,  TOWN  OR  VILLAGE  SHALL,  BY LAW, OR SUCH SCHOOL DISTRICT,
SHALL, BY RESOLUTION, DETERMINE THAT SUCH  RESTRICTED  EXEMPTIONS  SHALL
NOT  BE  APPLICABLE  TO  ITS TAX AND AD VALOREM LEVIES. UPON ADOPTION OF
SUCH LAW, THE COUNTY SHALL NOTIFY EACH AFFECTED CITY, TOWN, VILLAGE  AND
SCHOOL  DISTRICT OF ITS ACTIONS AND INFORM THEM OF THEIR OPTIONS REGARD-
ING SUCH RESTRICTED EXEMPTIONS.
  12. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION, WHERE  A  COUNTY,
CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT ADOPTS RESTRICTED EXEMPTIONS
PURSUANT TO SUBDIVISION TEN OF THIS SECTION, THE LAW OR  RESOLUTION  MAY
PROVIDE THAT SUCH EXEMPTIONS SHALL BE COMPUTED PURSUANT TO THE FOLLOWING
ACCELERATED STRATEGIC EXEMPTION SCHEDULE:
YEAR OF EXEMPTION            PERCENTAGE OF EXEMPTION TO BE NO MORE THAN:
         1                                      60
         2                                      60
         3                                      60
         4                                      50
         5                                      50
         6                                      45
         7                                      40
         8                                      35
         9                                      25
         10                                     15
PROVIDED HOWEVER, THAT SUCH LAW OR RESOLUTION SHALL:
  (I)  CONTAIN  FINDINGS THAT THE ADOPTION OF THIS ACCELERATED STRATEGIC
EXEMPTION SCHEDULE IS NECESSARY TO ENCOURAGE TARGETED ECONOMIC  DEVELOP-
MENT, CREATE OR RETAIN PERMANENT PRIVATE SECTOR JOBS, AND THAT THE VALUE
OF  THE  EXEMPTIONS  TO  BE PROVIDED IS JUSTIFIED BY THE NEED TO PROVIDE
EMPLOYMENT OPPORTUNITIES AND BROADEN THE TAX BASE; AND
  (II) LIMIT THE APPLICABILITY OF SUCH SCHEDULE TO  PROJECTS  WHERE  THE
COST  OF  SUCH  CONSTRUCTION,  ALTERATION,  INSTALLATION  OR IMPROVEMENT
EXCEEDS THE SUM OF FIFTY THOUSAND DOLLARS; AND
  (III) PROVIDE THAT SUCH EXEMPTIONS ARE RESTRICTED BY GEOGRAPHIC  AREAS
AND/OR  GROUPS  AND MAJOR DIVISIONS AS IS PROVIDED BY SUBDIVISION TEN OF
THIS SECTION.
  13. A COUNTY, CITY, OR TOWN WITH A VILLAGE WITH A  POPULATION  OF  NOT
LESS  THAN FIVE THOUSAND AND NOT MORE THAN SIX THOUSAND IN COUNTIES WITH
A POPULATION OF NOT LESS THEN TWO HUNDRED NINETY THOUSAND AND  NOT  MORE
THAN THREE HUNDRED FIVE THOUSAND MAY, BY LOCAL LAW, ESTABLISH A DATE FOR
THE  COMMENCEMENT OF THE EFFECTIVENESS OF THE EXEMPTION OFFERED PURSUANT
TO THIS SECTION. A COPY OF THE  LOCAL  LAWS  SHALL  BE  FILED  WITH  THE
COMMISSIONER,  THE  ASSESSOR OR TREASURER OF THE MUNICIPALITY, THE CLERK
OF THE MUNICIPALITY, AND THE SECRETARY OF STATE.
  14. A VILLAGE WITH A POPULATION OF NOT LESS THAN FIVE THOUSAND AND NOT
MORE THAN SIX THOUSAND IN COUNTIES WITH A POPULATION OF  NOT  LESS  THAN
TWO  HUNDRED  NINETY THOUSAND AND NOT MORE THAN THREE HUNDRED FIVE THOU-
SAND MAY, BY LOCAL LAW,  AND  ANY  SCHOOL  DISTRICT  WHICH  SERVES  SUCH
VILLAGE, MAY, BY RESOLUTION ESTABLISH A DATE FOR THE COMMENCEMENT OF THE
EFFECTIVENESS  OF THE EXEMPTION OFFERED PURSUANT TO THIS SECTION. A COPY

S. 6689--A                          6

OF THE LOCAL LAWS SHALL BE FILED WITH THE COMMISSIONER, THE ASSESSOR  OR
TREASURER  OF  THE  MUNICIPALITY, THE CLERK OF THE MUNICIPALITY, AND THE
SECRETARY OF STATE.
  S 2. This act shall take effect immediately.

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