S T A T E   O F   N E W   Y O R K
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                                  8091--A
                                                         Cal. No. 310
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 31, 2019
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI,  RYAN,  SIMOTAS -- read once and
   referred to the Committee on Real  Property  Taxation  --  ordered  to
   third reading passed by Assembly and delivered to the Senate, recalled
   from  the  Senate, vote reconsidered, bill amended, ordered reprinted,
   retaining its place on the order of third reading
 
 AN ACT to amend the real property tax law, in relation to  the  residen-
   tial-commercial urban exemption program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 485-a of the real property tax law, as  amended  by
 chapter  632  of  the  laws of 2004, subdivision 5 as further amended by
 subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
 2010, is amended to read as follows:
   §  485-a.  Residential-commercial  urban  exemption  program. 1. Defi-
 nitions.  As used in this section, the following terms  shall  have  the
 following meanings:
   (a)  "Municipality"  means any town, city or village except for a city
 having more than one million inhabitants.
   (b) "Applicant" means any person obligated to pay real property  taxes
 on  the  property  for which an exemption from real property taxes under
 this section is sought.
   (c) "Commercial construction work" means the modernization,  rehabili-
 tation, expansion or other improvement of the portion of mixed-use prop-
 erty to be used for commercial purposes.
   (d) "Commercial purpose or use" means the buying, selling or otherwise
 providing  of  goods or services DIRECTLY TO THE PUBLIC, including hotel
 services, [or other lawful business or commercial  activities  permitted
 in  mixed-use  property] RETAIL STORES, OFFICE SPACE, RESTAURANTS, BARS,
 GYMS, THEATERS, AND CAFES.
   (e) "Mixed-use property" means property on  which  will  exist,  after
 completion of residential construction work or a combination of residen-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13130-04-0

 A. 8091--A                          2
 
 tial  construction  work and commercial construction work, a building or
 structure used for both residential and commercial purposes   OF  WHICH,
 AT  LEAST FIFTY PERCENT OF THE BUILDING OR STRUCTURE'S SQUARE FOOTAGE IS
 DEVOTED  TO  RESIDENTIAL PURPOSES OR USE AND AT LEAST FIFTEEN PERCENT OF
 THE BUILDING OR STRUCTURE'S SQUARE  FOOTAGE  IS  DEVOTED  TO  COMMERCIAL
 PURPOSES  OR  USE.  ONLY  SQUARE FOOTAGE EXISTING IN A STORY ABOVE GRADE
 SHALL BE USED IN THE DETERMINATION OF THE BUILDING'S PERCENTAGE OF RESI-
 DENTIAL PURPOSES OR USE AND COMMERCIAL PURPOSES OR USE.
   (f) "Person"  means  an  individual,  corporation,  limited  liability
 company,  partnership,  association,  agency,  trust, estate, foreign or
 domestic government or subdivision thereof, or other entity.
   (g) "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.
   (H) "FLOOR AREA" MEANS THE HORIZONTAL AREAS OF THE SEVERAL  FLOORS  OR
 ANY  PORTION  THEREOF OF A MIXED-USE PROPERTY MEASURED FROM THE EXTERIOR
 FACES OF EXTERIOR WALLS OR FROM THE CENTER LINE OF PARTY  WALLS,  EXCLU-
 SIVE OF ANY AREA EXISTING BELOW-GRADE.
   (I)  "STORY  ABOVE  GRADE"  MEANS  ANY STORY HAVING ITS FINISHED FLOOR
 SURFACE ENTIRELY ABOVE GRADE.
   (J) "GRADE" SHALL MEAN THE FINISHED GROUND LEVEL ADJOINING THE  BUILD-
 ING AT ALL EXTERIOR WALLS.
   2.  Any  municipality  may, by local law, provide for the exemption of
 real property from taxation  as  provided  in  this  section.  Upon  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 proper-
 ty from its taxation in the same manner and to the same extent  as  such
 municipality has done.
   3. Upon the adoption of such a local law, non-residential real proper-
 ty, upon conversion to mixed-use property, shall be exempt from taxation
 and  special  ad  valorem  levies as provided for in subdivision four of
 this section. LAND WHICH WAS VACANT PRIOR TO THE RESIDENTIAL OR  COMMER-
 CIAL CONSTRUCTION WORK FOR WHICH A TAX EXEMPTION IS SOUGHT, SHALL NOT BE
 ELIGIBLE TO RECEIVE BENEFITS PURSUANT TO THIS SECTION.
   4. (a) (i) For a period of twelve years from the approval of an appli-
 cation,  the increase in assessed value of such property attributable to
 such conversion 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 table shall illustrate the computation of the tax
 exemption:

       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

 A. 8091--A                          3
 
   (i) such conversion 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[.];
   (III) AT LEAST SEVENTY-FIVE PERCENT OF THE FLOOR AREA OF THE MIXED-USE
 PROPERTY CONSISTS OF THE PRE-EXISTING BUILDING OR STRUCTURE;
   (IV) THE PORTION OF THE  BUILDING  USED  FOR  COMMERCIAL  PURPOSES  IS
 CURRENTLY,  AS DEMONSTRATED BY DOCUMENTATION SUBMITTED BY THE APPLICANT,
 USED AS SUCH OR IS IN GOOD FAITH CONTEMPLATED.
   (c) For purposes of this section the term conversion 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 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 such real property on a form prescribed  by  the  commissioner.  Such
 application  shall  be  filed  with  the assessor of the municipality or
 county having the power to assess property for taxation on or before the
 appropriate 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 in this  section  provided  [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.
   7. (A) DURING THE PERIOD OF EXEMPTION PURSUANT TO  THIS  SECTION,  THE
 OWNER  SHALL  SUBMIT  AN  ANNUAL CERTIFICATION TO THE ASSESSOR ATTESTING
 THAT THE PROPERTY COMPLIES WITH THE PROVISIONS OR REQUIREMENTS  OF  THIS
 SECTION AND ANY ADDITIONAL PROVISIONS OR REQUIREMENTS AS MAY BE PROVIDED
 BY LOCAL LAW. FAILURE TO SUBMIT SUCH CERTIFICATION SHALL RESULT IN REVO-
 CATION  OF  BENEFITS.  SUCH CERTIFICATION SHALL INCLUDE AT A MINIMUM THE
 FOLLOWING:
   (I) THE TYPES OF RESIDENTIAL USE  AND  THE  TOTAL  ABOVE-GRADE  SQUARE
 FOOTAGE OF SUCH USE;
   (II)  THE  TYPES  OF  COMMERCIAL  USE AND THE TOTAL ABOVE-GRADE SQUARE
 FOOTAGE OF SUCH USE;
   (III) ATTESTATION THAT THE PORTION OF THE BUILDING USED FOR COMMERCIAL
 PURPOSES IS CURRENTLY, AS DEMONSTRATED BY DOCUMENTATION SUBMITTED BY THE
 APPLICANT, USED AS SUCH OR IS IN GOOD FAITH CONTEMPLATED; AND
   (IV) ALL SUCH OTHER INFORMATION REQUIRED BY THE MUNICIPALITY.
   (B) IF THE ASSESSOR IS SATISFIED THAT THE APPLICANT  CONTINUES  TO  BE
 ENTITLED  TO  THE EXEMPTION PURSUANT TO THIS SECTION, THE ASSESSOR SHALL
 APPROVE THE CERTIFICATION AND THE REAL PROPERTY SHALL REMAIN EXEMPT FROM
 TAXATION AND SPECIAL AD VALOREM LEVIES FOR ANOTHER YEAR AS  PROVIDED  IN
 THIS SECTION.

 A. 8091--A                          4
 
   8. (A) THE BENEFITS OF THIS SECTION SHALL BE REVOKED UPON A FINDING BY
 THE ASSESSOR THAT:
   (I) THE APPLICATION FOR BENEFITS HEREUNDER OR THE ANNUAL CERTIFICATION
 REQUIRED HEREUNDER CONTAINS A FALSE STATEMENT OR FALSE INFORMATION AS TO
 A MATERIAL MATTER OR OMITS A MATERIAL MATTER; OR
   (II)  THE  ELIGIBLE  REAL PROPERTY FAILS TO COMPLY WITH ONE OR MORE OF
 THE PROVISIONS OR REQUIREMENTS OF THIS  SECTION  OR  ANY  PROVISIONS  OR
 REQUIREMENTS PROVIDED BY LOCAL LAW.
   (B) SUCH REVOCATION SHALL REQUIRE THE REPAYMENT OF ANY BENEFITS PREVI-
 OUSLY GRANTED PURSUANT TO THIS SECTION.
   9.  IF  THE ASSESSOR DETERMINES THAT THERE WAS A MATERIAL MISSTATEMENT
 IN AN APPLICATION FILED BY OR ON BEHALF OF THE OWNERS FOR  AN  EXEMPTION
 PURSUANT  TO  THIS SECTION AND THAT SUCH MISSTATEMENT PROVIDED THE BASIS
 FOR THE GRANTING OF SUCH EXEMPTION, THE MUNICIPALITY  SHALL  PROCEED  TO
 IMPOSE A PENALTY ON THE APPLICANT OF ONE THOUSAND DOLLARS IN ADDITION TO
 RECOVERING THE AMOUNT OF ANY PRIOR EXEMPTION GRANTED.
   §  2.  This  act  shall take effect January 1, 2021 and shall apply to
 properties for which the initial application for exemption are  received
 on and after such date.