The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10936
 
                           I N  A S S E M B L Y
 
                              August 17, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Niou) --
   read once and referred to the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation  to  establishing
   the COVID-19 small business recovery lease act of 2020
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "COVID-19 small business recovery lease act of 2020".
   § 2. Article 4 of the real property tax law is amended by adding a new
 title 6 to read as follows:
                                  TITLE 6
         AUTHORIZATION OF REAL PROPERTY TAX ABATEMENT FOR CERTAIN
             PROPERTIES ENTERING INTO COVID-19 RECOVERY LEASES
 SECTION 499-AAAAA. DEFINITIONS.
         499-BBBBB. REAL PROPERTY TAX ABATEMENT.
   § 499-AAAAA. DEFINITIONS. FOR THE PURPOSE OF THIS TITLE:
   1.  "ELIGIBLE  COMMERCIAL  TENANT"  SHALL  MEAN  A  SMALL BUSINESS, AS
 DEFINED BY SECTION ONE HUNDRED THIRTY-ONE OF  THE  ECONOMIC  DEVELOPMENT
 LAW,  THAT  ENTERS INTO OR SEEKS TO ENTER INTO A COVID-19 RECOVERY LEASE
 FOR PROPERTY SUCH TENANT CURRENTLY OCCUPIES, OR  FOR  PROPERTY  THAT  IS
 VACANT FOR REASONS OTHER THAN EVICTION.
   2.  "COVID-19  RECOVERY LEASE" SHALL MEAN A COMMERCIAL LEASE AGREEMENT
 THAT: (A) IS ENTERED INTO WITHIN TWO YEARS OF THE EFFECTIVE DATE OF THIS
 TITLE BETWEEN AN ELIGIBLE COMMERCIAL TENANT AND A PROPERTY OWNER,  WHERE
 EITHER THE ELIGIBLE COMMERCIAL TENANT OR THE PROPERTY OWNER HAS SUFFERED
 A  FINANCIAL  HARDSHIP  DURING THE COVID-19 COVERED PERIOD, OR BOTH HAVE
 SUFFERED SUCH A HARDSHIP; (B) HAS A TERM OF NOT LESS THAN TEN YEARS; (C)
 PROVIDES FOR ANNUAL RENT INCREASES DURING A TERM OF  NOT  LESS  THAN  AT
 LEAST  TEN  YEARS THAT DO NOT EXCEED THE AMOUNTS PERMITTED PURSUANT TO A
 LOCAL LAW ENACTED FOR THE PURPOSE OF SETTING SUCH MAXIMUM INCREASES; (D)
 SETTLES ANY ARREARS OWED BY THE TENANT PURSUANT TO  ANY  PREVIOUS  LEASE
 AGREEMENT  FOR  THE  LEASED  PROPERTY;  AND  (E) INCLUDES ANY ADDITIONAL
 PROVISIONS THAT MAY BE REQUIRED PURSUANT TO LOCAL LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD17094-02-0

 A. 10936                            2
 
   3. "BENEFIT PERIOD" SHALL MEAN THE AMOUNT OF TIME ESTABLISHED BY LOCAL
 LAW DURING WHICH AN ELIGIBLE PROPERTY SHALL RECEIVE AN ABATEMENT OF REAL
 PROPERTY TAXES PURSUANT TO SECTION  FOUR  HUNDRED  NINETY-NINE-BBBBB  OF
 THIS TITLE, PROVIDED THAT IN NO EVENT SHALL THE BENEFIT PERIOD BE LONGER
 THAN TEN YEARS.
   4.  "COVID-19  COVERED  PERIOD"  SHALL MEAN THE PERIOD BEGINNING MARCH
 SEVENTH, TWO THOUSAND TWENTY, UNTIL THE END OF THE COVID-19 STATE DISAS-
 TER EMERGENCY DECLARED BY EXECUTIVE ORDER NUMBER TWO HUNDRED TWO AND ANY
 FURTHER AMENDMENTS OR MODIFICATIONS  THERETO,  AND  AS  MAY  BE  FURTHER
 EXTENDED  PURSUANT  TO SECTION TWENTY-EIGHT OF THE EXECUTIVE LAW, ISSUED
 IN RESPONSE TO THE COVID-19 PANDEMIC,  CONTINUES  TO  APPLY  IN  A  CITY
 HAVING A POPULATION OF ONE MILLION OR MORE.
   § 499-BBBBB. REAL PROPERTY TAX ABATEMENT. 1. NOTWITHSTANDING ANY OTHER
 PROVISION  OF  LAW  TO  THE  CONTRARY, A CITY HAVING A POPULATION OF ONE
 MILLION OR MORE MAY, BY ADOPTING OR AMENDING A LOCAL LAW,  OFFER  ABATE-
 MENTS OF REAL PROPERTY TAXES DURING A PRESCRIBED BENEFIT PERIOD TO PROP-
 ERTIES  IN WHICH THE PROPERTY OWNER ENTERS INTO A RECOVERY LEASE WITH AN
 ELIGIBLE COMMERCIAL TENANT. SUCH LOCAL LAW SHALL PROVIDE  FOR:  (A)  THE
 MANNER  IN  WHICH  IT SHALL BE DETERMINED WHETHER AN ELIGIBLE COMMERCIAL
 TENANT OR A PROPERTY OWNER HAS SUFFERED A FINANCIAL HARDSHIP DURING  THE
 COVID-19 COVERED PERIOD; (B) THE MAXIMUM ANNUAL RENT INCREASES PERMITTED
 DURING  THE  TERM  OF  A RECOVERY LEASE; (C) THE DURATION OF THE BENEFIT
 PERIOD; (D) THE MANNER IN WHICH THE AMOUNT OF  THE  ABATEMENT  SHALL  BE
 CALCULATED; AND (E) ANY OTHER TERMS AND CONDITIONS THE CITY DEEMS NECES-
 SARY  TO  EFFECTUATE THE PURPOSES OF THIS TITLE. SUCH LOCAL LAW MAY ALSO
 PROVIDE FOR A MAXIMUM AGGREGATE VALUE OF ALL TAX ABATEMENTS THAT MAY  BE
 GRANTED UNDER THIS TITLE.
   2.  IN  NO  EVENT  SHALL  AN  ABATEMENT GRANTED PURSUANT TO THIS TITLE
 EXCEED THE TAX LIABILITY OF THE PROPERTY  FOR  WHICH  THE  ABATEMENT  IS
 GRANTED.
   §  3.  This  act shall take effect immediately and shall expire and be
 deemed repealed 12 years after it shall have become a law.