S T A T E O F N E W Y O R K
________________________________________________________________________
2257
2023-2024 Regular Sessions
I N A S S E M B L Y
January 25, 2023
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to clarifying the
definition of "first building permit" for purposes of filing require-
ments to qualify for an abatement of tax payments for certain indus-
trial and commercial properties located in a city of one million or
more persons
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 1 and 2 and paragraph (a) of subdivision 5 of
section 489-cccccc of the real property tax law, as added by chapter 119
of the laws of 2008, subparagraph (ii) of paragraph (a) of subdivision 5
as amended by chapter 397 of the laws of 2017, subparagraph (iii) of
paragraph (a) of subdivision 5 as added by chapter 361 of the laws of
2021, are amended to read as follows:
1. Time limit for meeting minimum required expenditure. Applicants
must meet the appropriate minimum required expenditure as provided in
subdivision three of section four hundred eighty-nine-bbbbbb of this
title relating to the abatement for which such project qualifies as
follows:
(a) No later than four years from the date of issuance of the first
building permit THAT ALLOWS ACTUAL CONSTRUCTION WORK ON THE PROPOSED
PROJECT, NOT MERELY SITE PREPARATION, TO COMMENCE, or if no permit was
required, the commencement of construction.
(b) Mixed use properties. Expenditures for construction work related
to the common areas and systems of such property shall be allocated
under rules promulgated by the department between the residential,
nonresidential and retail, if any, portions of the property.
2. Time limit for completion of construction. Construction of build-
ings or structures for which benefits have been approved shall be
completed no later than five years from the date of issuance of the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03678-01-3
A. 2257 2
first building permit THAT ALLOWS ACTUAL CONSTRUCTION WORK ON THE
PROPOSED PROJECT, NOT MERELY SITE PREPARATION, TO COMMENCE, or if no
permit was required, the commencement of construction. Failure to meet
this requirement shall result in termination of any inflation protection
provided under subdivision three of section four hundred eighty-nine-
bbbbbb of this title for any tax year that begins following the date by
which completion of construction is required under this paragraph.
(a) Time to file. (i) Preliminary application. (A) Building permit.
No benefits pursuant to this title shall be granted for any construction
work unless the applicant filed a preliminary application for such bene-
fits on or before the date of issuance of the first building permit THAT
ALLOWS ACTUAL CONSTRUCTION WORK ON THE PROPOSED PROJECT, NOT MERELY SITE
PREPARATION, TO COMMENCE for such work. This requirement may be satis-
fied where the applicant's architect, contractor or other representative
authorized to file the application for such building permit files with
the department on behalf of the applicant a preliminary application
containing such information as the department shall prescribe by rule.
(B) No building permit required. Where construction work does not
require a building permit, a notarized letter from the project's archi-
tect or engineer notifying the department of this fact shall be filed
within thirty calendar days of the commencement of construction. In
such circumstance, such letter shall also satisfy the requirement of a
preliminary application if the letter contains all of the information
required for a preliminary application under rules prescribed by the
department.
(ii) Final application. Applicants shall file a final application for
benefits no later than one year from the date of issuance of the first
building permit [for construction work] THAT ALLOWS ACTUAL CONSTRUCTION
WORK ON THE PROPOSED PROJECT, NOT MERELY SITE PREPARATION, TO COMMENCE,
or, where construction work does not require a building permit, no later
than one year from the date of commencement of construction. Abatement
benefits shall not be granted until the applicant files the final appli-
cation. If the final application is not filed within such one year peri-
od, abatement benefits shall not be granted until such application is
filed, and the department may delay the granting of such benefits, at
the department's discretion, to investigate the reason for the late
filing.
(iii) TIME LIMIT; FINAL APPLICATION. Notwithstanding any provision of
law to the contrary, the time limit to file a final application for
benefits as specified in subparagraph (ii) of this paragraph shall not
apply to brand-new construction from the ground up located on property
purchased from the city of New York where such property which is the
site of the new construction was purchased from the city of New York for
the purposes of an eligible development pursuant to this article and
where the sales agreement with the city of New York for such property
includes a restriction preventing the sale or transfer of such property
for a period of five years or more and where the first valuation and
assessment for the purposes of property taxes occurred within that peri-
od of restriction from sale, provided the project meets the other
requirements of this title.
§ 2. This act shall take effect immediately and shall apply to
construction projects that:
(i) were delayed as a result of environmental damage due to Hurricane
Sandy in the fall of 2012; and
(ii) for which a decision is under contested review by a court of
competent jurisdiction or by the New York City Department of Finance.