The New York State Senate

 
                     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
                                ___________
 
 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.