S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6271
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 Introduced  by  Sen.  FELDER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  extending  certain provisions relating to exemptions and
   deductions from base rent; to amend the  real  property  tax  law,  in
   relation to extending certain provisions relating to eligibility peri-
   ods  and requirements; to amend the real property tax law, in relation
   to extending certain provisions relating to  eligibility  periods  and
   requirements,  benefit periods and applications for abatements; and to
   amend the administrative code of the city of New York, in relation  to
   extending certain provisions relating to a special reduction in deter-
   mining the taxable base rent
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (b-2) of  paragraph  2  of  subdivision  i  of
 section  11-704  of  the administrative code of the city of New York, as
 amended by section 50 of part A of chapter 20 of the laws  of  2015,  is
 amended to read as follows:
   (b-2)  The amount of the special reduction allowed by this subdivision
 with respect to a lease other than a sublease  commencing  between  July
 first,  two  thousand  five and June thirtieth, two thousand [seventeen]
 TWENTY-ONE with an initial or renewal lease term of at least five  years
 shall be determined as follows:
   (i)  For  the  base year the amount of such special reduction shall be
 equal to the base rent for the base year.
   (ii) For the first, second,  third  and  fourth  twelve-month  periods
 following  the  base  year the amount of such special reduction shall be
 equal to the lesser of (A) the base  rent  for  each  such  twelve-month
 period or (B) the base rent for the base year.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11614-02-7

              

 S. 6271                             2
 
   §  2. Subdivision 9 of section 499-aa of the real property tax law, as
 amended by section 51 of part A of chapter 20 of the laws  of  2015,  is
 amended to read as follows:
   9.  "Eligibility  period." The period commencing April first, nineteen
 hundred ninety-five and terminating  March  thirty-first,  two  thousand
 one,  provided,  however, that with respect to eligible premises defined
 in subparagraph (i) of paragraph (b) of subdivision ten of this section,
 the period commencing July first,  two  thousand  and  terminating  June
 thirtieth,  two  thousand  [eighteen] TWENTY-TWO, and provided, further,
 however, that with respect to eligible premises defined in  subparagraph
 (ii)  of  paragraph  (b)  or  paragraph  (c)  of subdivision ten of this
 section, the period commencing July first, two thousand five and  termi-
 nating June thirtieth, two thousand [eighteen] TWENTY-TWO.
   §  3.  Subparagraph (iii) of paragraph (a) of subdivision 3 of section
 499-cc of the real property tax law, as amended by section 52 of part  A
 of chapter 20 of the laws of 2015, is amended to read as follows:
   (iii)  With  respect  to the eligible premises defined in subparagraph
 (ii) of paragraph (b) or paragraph (c) of  subdivision  ten  of  section
 four  hundred ninety-nine-aa of this title and for purposes of determin-
 ing whether the amount of expenditures required by  subdivision  one  of
 this  section  have  been satisfied, expenditures on improvements to the
 common areas of an eligible building shall be included only if  work  on
 such  improvements  commenced  and the expenditures are made on or after
 July first, two thousand five and on or  before  December  thirty-first,
 two thousand [eighteen] TWENTY-TWO; provided, however, that expenditures
 on  improvements  to the common areas of an eligible building made prior
 to three years before the lease commencement date shall not be included.
   § 4. Subdivisions 5 and 9 of section 499-a of the  real  property  tax
 law,  as  amended  by  section 53 of part A of chapter 20 of the laws of
 2015, are amended to read as follows:
   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,  provided,  however,  that  with
 respect  to a lease commencing on or after April first, nineteen hundred
 ninety-seven with an initial lease term of less than five years, but not
 less than three years, the period commencing with the first day  of  the
 month  immediately  following the rent commencement date and terminating
 no later than thirty-six months thereafter. Notwithstanding the  forego-
 ing  sentence, a benefit period shall expire no later than March thirty-
 first, two thousand [twenty-four] TWENTY-EIGHT.
   9. "Eligibility period." The period commencing April  first,  nineteen
 hundred  ninety-five  and  terminating  March thirty-first, two thousand
 [eighteen] TWENTY-TWO.
   § 5. Paragraph (a) of subdivision 3 of section 449-c of the real prop-
 erty tax law, as amended by section 54 of part A of chapter  20  of  the
 laws of 2015, is amended to read as follows:
   (a)  For  purposes  of  determining whether the amount of expenditures
 required by subdivision one of this section have been satisfied, expend-
 itures on improvements to the common areas of an eligible building shall
 be included only if work on such improvements commenced and the expendi-
 tures are made on or after April first, nineteen hundred ninety-five and
 on or before September thirtieth, two  thousand  [eighteen]  TWENTY-TWO;
 provided, however, that expenditures on improvements to the common areas
 of  an  eligible  building  made  prior  to three years before the lease
 commencement date shall not be included.

 S. 6271                             3
 
   § 6. Subdivision 8 of section 499-d of the real property tax  law,  as
 amended  by  section  55 of part A of chapter 20 of the laws of 2015, is
 amended to read as follows:
   8.  Leases  commencing on or after April first, nineteen hundred nine-
 ty-seven shall be subject to the provisions of this title as amended  by
 chapter  six hundred twenty-nine of the laws of nineteen hundred ninety-
 seven, chapter one hundred eighteen of the laws  of  two  thousand  one,
 chapter  four  hundred  forty of the laws of two thousand three, chapter
 sixty of the laws of two thousand seven, chapter twenty-two of the  laws
 of  two  thousand  ten,  chapter  fifty-nine of the laws of two thousand
 fourteen, CHAPTER TWENTY OF THE LAWS OF TWO  THOUSAND  FIFTEEN  and  the
 chapter  of the laws of two thousand [fifteen] SEVENTEEN that added this
 phrase. Notwithstanding any other provision of law to the contrary, with
 respect to leases commencing on or after April first,  nineteen  hundred
 ninety-seven,  an  application  for  a certificate of abatement shall be
 considered timely filed if filed within one hundred eighty days  follow-
 ing  the lease commencement date or within sixty days following the date
 chapter six hundred twenty-nine of the laws of nineteen hundred  ninety-
 seven became a law, whichever is later.
   §  7.  Subparagraph  (a)  of  paragraph  2 of subdivision i of section
 11-704 of the administrative code of the city of New York, as amended by
 section 56 of part A of chapter 20 of the laws of 2015,  is  amended  to
 read as follows:
   (a) An eligible tenant of eligible taxable premises shall be allowed a
 special reduction in determining the taxable base rent for such eligible
 taxable  premises.  Such special reduction shall be allowed with respect
 to the rent for such eligible taxable premises for a period not  exceed-
 ing  sixty  months  or,  with  respect to a lease commencing on or after
 April first, nineteen hundred ninety-seven with an initial lease term of
 less than five years, but not less than three years, for  a  period  not
 exceeding  thirty-six  months,  commencing on the rent commencement date
 applicable to such eligible taxable premises, provided, however, that in
 no event shall any special reduction be allowed for any period beginning
 after March thirty-first, two thousand [twenty-four] TWENTY-EIGHT.   For
 purposes  of applying such special reduction, the base rent for the base
 year shall, where necessary to  determine  the  amount  of  the  special
 reduction  allowable with respect to any number of months falling within
 a tax period, be prorated by dividing the base rent for the base year by
 twelve and multiplying the result by such number of months.
   § 8. This act shall take effect immediately.