S T A T E O F N E W Y O R K
________________________________________________________________________
2380
2021-2022 Regular Sessions
I N A S S E M B L Y
January 19, 2021
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Introduced by M. of A. NIOU, ROZIC, FRONTUS, SIMON -- 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 2021; and providing
for the repeal of such provisions upon expiration thereof
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 2021".
§ 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)
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04955-01-1
A. 2380 2
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.
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.