S T A T E O F N E W Y O R K
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9589
I N A S S E M B L Y
March 21, 2016
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Introduced by M. of A. RA -- read once and referred to the Committee on
Real Property Taxation
AN ACT to amend the real property tax law and the tax law, in relation
to vacant redeveloped commercial property exemptions
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 421-o to read as follows:
S 421-O. VACANT REDEVELOPED COMMERCIAL PROPERTY EXEMPTIONS. 1. REAL
PROPERTY THAT IS CONSTRUCTED, ALTERED, OR IMPROVED UPON VACANT LAND
SUBSEQUENT TO THE FIRST DAY OF JANUARY, TWO THOUSAND SEVENTEEN FOR THE
PURPOSE OF COMMERCIAL, BUSINESS OR INDUSTRIAL ACTIVITY SHALL BE EXEMPT
FROM TAXATION AND SPECIAL AD VALOREM LEVIES, TO THE EXTENT HEREINAFTER
PROVIDED. FOR THE PURPOSES OF THESE EXEMPTIONS, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS: (A) "VACANT LAND" MEANS LAND, INCLUD-
ING LAND UNDER WATER, WHICH CONTAINS NO ENCLOSED, PERMANENT IMPROVEMENT
THAT HAS BEEN NEGLECTED OR ABANDONED FOR A PERIOD OF EIGHTEEN MONTHS OR
MORE; AND (B) "PREDOMINANTLY VACANT LAND" MEANS LAND, INCLUDING LAND
UNDER WATER, THAT HAS BEEN NEGLECTED OR ABANDONED FOR A PERIOD OF EIGH-
TEEN MONTHS OR MORE ON WHICH NOT MORE THAN FIFTEEN PERCENT OF THE LOT
AREA CONTAINS ENCLOSED, PERMANENT IMPROVEMENTS; IN ADDITION, SUCH LAND
MAY INCLUDE EXISTING FOUNDATIONS.
2. (A) (I) FOR REAL PROPERTY THAT IS NEWLY CONSTRUCTED, IMPROVED AND
ON VACANT LAND AND THE VALUE OF THE CONSTRUCTION EXCEEDS TWO MILLION,
SUCH REAL PROPERTY SHALL BE EXEMPT FOR A PERIOD OF FIVE YEARS TO THE
EXTENT OF FIFTY PER CENTUM OF THE INCREASE IN ASSESSED VALUE THEREOF
ATTRIBUTABLE TO SUCH CONSTRUCTION AND FOR AN ADDITIONAL PERIOD OF FIVE
YEARS PROVIDED, HOWEVER, THAT THE EXTENT OF SUCH EXEMPTION SHALL BE
DECREASED BY TWENTY-FIVE PER CENTUM. 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.
THE FOLLOWING TABLE SHALL ILLUSTRATE THE COMPUTATION OF THE TAX
EXEMPTION:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13522-05-6
A. 9589 2
YEAR OF EXEMPTION PERCENTAGE OF EXEMPTION
1 50
2 50
3 50
4 50
5 50
6 25
7 25
8 25
9 25
10 25
(II) FOR REAL PROPERTY THAT IS NEWLY CONSTRUCTED, IMPROVED AND ON
VACANT LAND AND THE VALUE OF THE CONSTRUCTION DOES NOT EXCEED TWO
MILLION DOLLARS, SUCH REAL PROPERTY SHALL BE EXEMPT FOR A PERIOD OF
THREE YEARS TO THE EXTENT OF FIFTY PER CENTUM OF THE INCREASE IN
ASSESSED VALUE THEREOF ATTRIBUTABLE TO SUCH CONSTRUCTION AND FOR AN
ADDITIONAL PERIOD OF TWO YEARS PROVIDED, HOWEVER, THAT THE EXTENT OF
SUCH EXEMPTION SHALL BE DECREASED BY TWENTY-FIVE PER CENTUM 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 FIVE YEAR PERIOD FOLLOWING THE FILING OF AN
ORIGINAL APPLICATION.
THE FOLLOWING TABLE SHALL ILLUSTRATE THE COMPUTATION OF THE TAX
EXEMPTION:
YEAR OF EXEMPTION PERCENTAGE OF EXEMPTION
1 50
2 50
3 50
4 25
5 25
(B) NO SUCH EXEMPTION SHALL BE GRANTED UNLESS:
(1) SUCH CONSTRUCTION, ALTERATION OR IMPROVEMENT WAS COMMENCED SUBSE-
QUENT TO THE FIRST DAY OF JANUARY, TWO THOUSAND SEVENTEEN OR SUCH LATER
DATE AS MAY BE SPECIFIED BY LOCAL LAW OR RESOLUTION;
(2) THE COST OF SUCH CONSTRUCTION, ALTERATION, OR IMPROVEMENT EXCEEDS
THE SUM OF TEN THOUSAND DOLLARS OR SUCH GREATER AMOUNT AS MAY BE SPECI-
FIED BY LOCAL LAW OR RESOLUTION; AND
(3) SUCH CONSTRUCTION, ALTERATION, OR IMPROVEMENT IS COMPLETED AS MAY
BE EVIDENCED BY A CERTIFICATE OF OCCUPANCY OR OTHER APPROPRIATE DOCUMEN-
TATION AS PROVIDED BY THE OWNER.
(C) FOR PURPOSES OF THIS SECTION THE TERMS CONSTRUCTION, ALTERATION,
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 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 COMMISSIONER. SUCH
APPLICATION SHALL BE FILED WITH THE ASSESSOR OF THE CITY, TOWN, VILLAGE,
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SCHOOL DISTRICT, OR COUNTY HAVING THE POWER TO ASSESS PROPERTY FOR TAXA-
TION ON OR BEFORE THE APPROPRIATE TAXABLE STATUS DATE OF SUCH CITY,
TOWN, VILLAGE, SCHOOL DISTRICT OR COUNTY AND WITHIN ONE YEAR FROM THE
DATE OF COMPLETION OF SUCH CONSTRUCTION, ALTERATION, 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 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 ON THE ASSESS-
MENT 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 REAL PROPERTY USED
PRIMARILY FOR THE BUYING, SELLING, STORING OR DEVELOPING GOODS OR
SERVICES, THE MANUFACTURE OR ASSEMBLY OF GOODS OR THE PROCESSING OF RAW
MATERIALS FOR BUSINESSES WITH BETWEEN ONE AND ONE HUNDRED EMPLOYEES WITH
A TAXABLE INCOME OF NO MORE THAN THREE HUNDRED NINETY THOUSAND DOLLARS.
THIS SECTION SHALL NOT APPLY TO PROPERTY USED PRIMARILY FOR THE FURNISH-
ING OF DWELLING SPACE OR ACCOMMODATIONS TO EITHER RESIDENTS OR TRAN-
SIENTS 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 OF THIS
SECTION, PROVIDED, HOWEVER, THAT ANY SUCH LOCAL LAW OR RESOLUTION SHALL
APPLY ONLY TO CONSTRUCTION, ALTERATIONS, 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 COMMIS-
SIONER AND THE ASSESSOR OF EACH ASSESSING UNIT WHICH COMPRISES THE COUN-
TY, 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.
S 2. Subsection (d) of section 615 of the tax law is amended by adding
a new paragraph 5 to read as follows:
(5) SMALL BUSINESS RELOCATING TO VACANT OR PREDOMINANTLY VACANT REDE-
VELOPED COMMERCIAL PROPERTY. A TWENTY PERCENT DEDUCTION IS ALLOWED FOR
SMALL BUSINESSES WITH BETWEEN ONE AND ONE HUNDRED EMPLOYEES AND A TAXA-
BLE INCOME OF NO MORE THAN THREE HUNDRED NINETY THOUSAND DOLLARS. THE
SMALL BUSINESS IS ELIGIBLE FOR THE DEDUCTION IF IT HAS RELOCATED TO A
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VACANT LAND OR PREDOMINANTLY VACANT LAND, AS DEFINED IN SUBDIVISION ONE
OF SECTION FOUR HUNDRED TWENTY-ONE-O OF THE REAL PROPERTY TAX LAW, WITH-
IN THE PREVIOUS TAXABLE YEAR. HOWEVER, THE SMALL BUSINESS MAY ONLY
RECEIVE THE DEDUCTION UPON THE APPROVAL OF THE REAL PROPERTY TAXATION
EXEMPTION DESCRIBED IN SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-
ONE-O OF THE REAL PROPERTY TAX LAW. THE DEDUCTION MAY BE ALLOWED FOR THE
SAME DURATION OF TIME AS THE REAL PROPERTY TAX EXEMPTION PROVIDED.
S 3. Section 209 of the tax law is amended by adding a new subdivision
13 to read as follows:
13. FOR ANY TAXABLE YEAR BEGINNING AFTER TWO THOUSAND SIXTEEN, AN
ELIGIBLE BUSINESS WITH BETWEEN ONE AND ONE HUNDRED EMPLOYEES AND A TAXA-
BLE INCOME OF NO MORE THAN THREE HUNDRED NINETY THOUSAND DOLLARS MAY BE
ALLOWED TO DEDUCT TWENTY PERCENT OF ITS TAXABLE INCOME. A BUSINESS IS
ELIGIBLE IF IT HAS RELOCATED ON VACANT LAND OR PREDOMINANTLY VACANT
LAND, AS DEFINED IN SUBDIVISION ONE OF SECTION FOUR HUNDRED TWENTY-ONE-O
OF THE REAL PROPERTY TAX LAW, WITHIN THE LAST YEAR, AND HAS RECEIVED
APPROVAL FOR THE REAL PROPERTY TAXATION EXEMPTION DESCRIBED IN SUBDIVI-
SION FOUR OF SECTION FOUR HUNDRED TWENTY-ONE-O OF THE REAL PROPERTY TAX
LAW. THE DEDUCTION MAY BE ALLOWED FOR THE SAME DURATION OF TIME AS THE
REAL PROPERTY TAX EXEMPTION PROVIDED.
S 4. This act shall take effect immediately.