NY State Senate Bill 2019-S5254

Archive: Last Bill Status Via A8091 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 23, 2020	approval memo.59 signed chap.357
Dec 11, 2020	delivered to governor
Jul 22, 2020	returned to assembly passed senate 3rd reading cal.884 substituted for s5254b
Jul 21, 2020	committed to rules returned to senate repassed assembly
Jun 08, 2020	amended on third reading 8091a
Jun 08, 2020	vote reconsidered - restored to third reading returned to assembly recalled from senate
Feb 13, 2020	referred to local government delivered to senate passed assembly
Jan 08, 2020	ordered to third reading cal.310 returned to assembly died in senate
Jun 20, 2019	recommitted to rules substitution reconsidered
Jun 19, 2019	3rd reading cal.1776 substituted for s5254a
Jul 22, 2020	substituted by a8091a ordered to third reading cal.884
Jul 20, 2020	reported and committed to rules
Jul 08, 2020	print number 5254b
Jul 08, 2020	amend and recommit to local government
Jan 08, 2020	referred to local government
Jun 20, 2019	recommitted to rules vote reconsidered - restored to third reading substitution reconsidered
Jun 19, 2019	substituted by a8091 ordered to third reading cal.1776 committee discharged and committed to rules
Jun 11, 2019	print number 5254a
Jun 11, 2019	amend (t) and recommit to local government
Apr 18, 2019	referred to local government

Votes

- Jul 22, 2020 - Floor Vote
  A8091
  
  Aye
  
  44
  
  Nay
  
  16
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Floor Vote: Jul 22, 2020
      
      aye (44)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Funke
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rivera
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      nay (16)
      
      Akshar
      
      Amedore
      
      Borrello
      
      Gallivan
      
      Griffo
      
      Helming
      
      Jordan
      
      LaValle
      
      Little
      
      O'Mara
      
      Ortt
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Serino
      
      Seward
  Jul 22, 2020 - Rules Committee Vote
  S5254
  
  Aye
  
  13
  
  Nay
  
  6
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Rules Committee Vote: Jul 22, 2020
      
      aye (13)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Gianaris
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Martinez
      
      Parker
      
      Savino
      
      Stewart-Cousins
      
      nay (6)
      
      Griffo
      
      LaValle
      
      Little
      
      Ortt
      
      Robach
      
      Seward
  Jun 19, 2019 - Rules Committee Vote
  S5254
  
  Aye
  
  17
  
  Nay
  
  1
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Rules Committee Vote: Jun 19, 2019
      
      aye (17)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Flanagan
      
      Gianaris
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      Parker
      
      Robach
      
      Savino
      
      Stewart-Cousins
      
      nay (1)
      
      Griffo
      
      aye wr (1)
      
      Seward
  Jul 20, 2020 - Local Government Committee Vote
  S5254
  
  Aye
  
  5
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Local Government Committee Vote: Jul 20, 2020
      
      aye (5)
      
      Brooks
      
      Gaughran
      
      Harckham
      
      Metzger
      
      Skoufis
      
      nay (2)
      
      Borrello
      
      Ritchie

Bill Amendments

Original

B (Active)

co-Sponsors

2019-S5254 - Details

See Assembly Version of this Bill:: A3483
Law Section:: Real Property Tax Law
Laws Affected:: Amd §485-a, RPT L

2019-S5254 - Summary

Relates to the residential-commercial urban exemption program; requires the owner to submit an annual certification to the assessor attesting that the property complies with the requirements of this section.

2019-S5254 - Sponsor Memo

                                
 
BILL NUMBER: S5254

SPONSOR: BRESLIN
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to authorizing municipalities to restrict the definitions of "commercial
purpose or use" and "mixed-use property"

 
PURPOSE OF THE BILL:

To provide municipalities utilizing the § 485-a property tax exemption
for mixed-use development authority to better define what an acceptable
mixed-use or commercial purpose is for a project to be eligible.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends subdivision 2 of § 485-a of the Real Property Tax Law
to give municipalities further authority to define what is a "commercial
purpose or use" and "mixed-use" property to determine which properties
or projects are eligible to receive a § 485-a property tax abatement.

Section 2: Establishes the effective date.

 
JUSTIFICATION:

§ 485-a of the Real Property Tax Law was enacted in 2002 to encourage
redevelopment of non-residential properties in New York State. It allows
municipalities to offer a 12 year partial exemption of property and
special ad valorem taxes to non-residential properties converted to a
mix of residential and commercial uses.

Unfortunately, the current statute does not provide a clear definition
of "commercial purpose or use" and "mixed-use". This has allowed some
projects to receive a § 485-a exemption without truly including a
commercial or mixed-use element in the property. An example of this is a
property attempting to apply for the exemption with the only commercial
use being vending machines in the lobby. While local assessors do not
wish to provide exemptions to these types of projects, State law is
vague on what qualifies as an acceptable use.

This legislation would give localities utilizing § 485-a additional
authority to more strictly define what qualifies as an acceptable
commercial or mixed-use. Allowing localities this authority will help
reign in abuses under § 485-a, while giving them the flexibility to
determine what is best for their particular program. The goal is to
ensure that § 485-a exemptions are going to projects that are truly
mixed-use and beneficial to their communities.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE:

Immediately

2019-S5254 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5254
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 18, 2019
                                ___________
 
 Introduced  by  Sen. BRESLIN -- 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  authorizing
   municipalities  to  restrict the definitions of "commercial purpose or
   use" and "mixed-use property"

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  2  of section 485-a of the real property tax
 law, as amended by chapter 632 of the laws of 2004, is amended  to  read
 as follows:
   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. FURTHER, SUCH MUNICIPALITY MAY BY LOCAL LAW SPEC-
 IFY  A  MORE  RESTRICTIVE  DEFINITION OF "COMMERCIAL PURPOSE OR USE" AND
 "MIXED-USE PROPERTY" THAN IS DEFINED BY PARAGRAPHS (D) AND (E) OF SUBDI-
 VISION ONE OF THIS SECTION.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06087-01-9

co-Sponsors

2019-S5254A - Details

See Assembly Version of this Bill:: A3483
Law Section:: Real Property Tax Law
Laws Affected:: Amd §485-a, RPT L

2019-S5254A - Summary

2019-S5254A - Sponsor Memo

                                
 
BILL NUMBER: S5254A

SPONSOR: BRESLIN
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to the residential-commercial urban exemption program

 
PURPOSE:

To amend the § 485-a property tax exemption for mixed-use development to
better align the program to its original intent, which was to provide a
property tax incentive for the rehabilitation of underutilized build-
ings.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill would make the following updates to the § 485-a
property tax exemption program for mixed-use development:

*limit the types of commercial purposes and uses that can qualify for
the exemption and require them to be publicly accessible;

*require at least 50% of a building be used for residential purposes and
at least 15% of the building be used for commercial purposes exclusive
of below-grade floor areas;

*disallow the exemption on land that was vacant prior to construction;

*require at least seventy-five percent of the floor area to consist of
pre-existing building or structure;

*require the portion of the building used for commercial purposes to be
currently used as such or in good faith contemplated;

*require an annual certification to the assessor attesting that the
property complies with the eligibility requirements;

*require a revocation of benefits if the property is non-compliant; and

*impose penalties if a material misstatement is made on an application.

Section 2 provides an effective date.

 
JUSTIFICATION:

The "485-A" program provides tax exemptions for twelve years following
the conversion of nonresidential real property into mixed-use (i.e.,
commercial and residential) property. The program incentivizes the rede-
velopment of older building stock and, when applied correctly, reener-
gizes flagging areas through an injection of both new residents and new
business activity. However, across upstate New York, both the letter and
the spirit of the law have been circumvented by unqualified applicants
receiving this benefit--at great cost to localities who forego signif-
icant tax revenues. The statute must be amended in order to ensure that
the original intent and scope of the program are heeded.

This bill reaffirms the original intent and scope of the 485-A program
by mandating minimum portions of commercial and residential uses and
purposes, clarifying that only above-grade areas of the converted struc-
tures and buildings count toward calculation of those minimum, and
disallowing exemptions for land that was vacant prior to the
construction work. The bill also adds a new annual certification
requirement to ensure that the converted properties continue to apply
for the exemption, and specifies conditions under which an exemption can
be revoked and requires the imposition of penalties in instances where a
material misstatement is made.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
The thirtieth day after it Shall have become a law and shall apply to
properties for which the initial application for exemption are received
on and after such date.

2019-S5254A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5254--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 18, 2019
                                ___________
 
 Introduced  by Sens. BRESLIN, MAY -- 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  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-
 tial  construction  work and commercial construction work, a building or

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

                                                            LBD06087-02-9

 S. 5254--A                          2
 
 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
   (i)  such conversion was commenced subsequent to the date on which the
 municipality's local law took effect; [and]

 S. 5254--A                          3
 
   (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.
   8. (A) THE BENEFITS OF THIS SECTION SHALL BE REVOKED UPON A FINDING BY
 THE ASSESSOR THAT:

 S. 5254--A                          4
 
   (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 on the thirtieth day after it shall
 have become a law and shall apply to properties for  which  the  initial
 application for exemption are received on and after such date.

co-Sponsors

2019-S5254B (ACTIVE) - Details

See Assembly Version of this Bill:: A3483
Law Section:: Real Property Tax Law
Laws Affected:: Amd §485-a, RPT L

2019-S5254B (ACTIVE) - Summary

2019-S5254B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5254B

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the residen-
tial-commercial urban exemption program

 
PURPOSE:  To amend the § 485-a property tax exemption for mixed-use
development to better align the program to its original intent, which
was to provide a property tax incentive for the rehabilitation of under-
utilized buildings.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill would make the following updates to the § 485-a
property tax exemption program for mixed-use development:  *limit the
types of commercial purposes and uses that can qualify for the exemption
and require them to be publicly accessible;

*require at least 50% of a building be used for residential purposes and

at least 15% of the building be used for commercial purposes exclusive
of below-grade floor areas;
*disallow the exemption on land that was vacant prior to construction;
*require at least seventy-five percent of the floor area to consist of
pre-existing building or structure;
*require the portion of the building used for commercial purposes to be
currently used as such or in good faith contemplated;
*require an annual certification to the assessor attesting that the
property complies with the eligibility requirements;
*require a revocation of benefits if the property is non-compliant; and
*impose penalties if a material misstatement is made on an application.

Section 2 provides an effective date.

 
JUSTIFICATION:

The "485-A" program provides tax exemptions for twelve years following
the conversion of nonresidential real property into mixed-use (i.e.,
commercial and residential) property. The program incentivizes the rede-
velopment of older building stock and, when applied correctly, reener-
gizes flagging areas through an injection of both new residents and new
business activity. However, across upstate New York, both the letter and
the spirit of the law have been circumvented by unqualified applicants
receiving this benefit-- at great cost to localities who forego signif-
icant tax revenues. The statute must be amended in order to ensure that
the original intent and scope of the program are heeded.

This bill reaffirms the original intent and scope of the 485-A program
by mandating minimum portions of commercial and residential uses and
purposes, clarifying that only above-grade areas of the converted struc-
tures and buildings count toward calculation of those minimum, and
disallowing exemptions for land that was vacant prior to the
construction work.  The bill also adds a new annual certification
requirement to ensure that the converted properties continue to apply
for the exemption, and specifies conditions under which an exemption can
be revoked and requires the imposition of penalties in instances where a
material misstatement is made.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
January 1, 2021 and shall apply to properties for which the initial
application for exemption are received on and after such date.

2019-S5254B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5254--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 18, 2019
                                ___________
 
 Introduced  by Sens. BRESLIN, MAY -- 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 -- recommitted to the Committee on Local
   Government in accordance with Senate  Rule  6,  sec.  8  --  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 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06087-03-0

 S. 5254--B                          2
 
   (e)  "Mixed-use  property"  means  property on which will exist, after
 completion of residential construction work or a combination of residen-
 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

 S. 5254--B                          3
 
   (b) No such exemption shall be granted unless
   (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

 S. 5254--B                          4
 
 TAXATION  AND  SPECIAL AD VALOREM LEVIES FOR ANOTHER YEAR AS PROVIDED IN
 THIS SECTION.
   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.

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Neil D. Breslin

Archive: Last Bill Status Via A8091 - Signed by Governor

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