* § 485-p. Economic transformation area exemption. 1. (a) Real
property constructed, altered, installed or improved in an economic
transformation area as defined in subdivision ten of section four
hundred of the economic development law which is used for business,
commercial or industrial purposes and which is owned by a business
entity that has been issued a certificate of eligibility pursuant to
subdivision three of section four hundred two of the economic
development law shall be exempt from taxation and special ad valorem
levies by any municipal corporation in which located, for the period and
to the extent herein provided, provided that the governing board of such
municipal corporation, after public hearing, adopts a local law,
ordinance or resolution providing therefore. Such local law, ordinance
or resolution must be adopted within three years of the date of the
closure of a closed facility (as that term is defined in subdivision
eleven of section four hundred of the economic development law) located
in the economic transformation area.

(b) The exemption so authorized shall be for a term of five years. The
amount of such exemption shall be as follows:

(i) If the construction, alteration, installation or improvement
occurs on or at the site of the closed facility in the economic
transformation area, then the exemption in the first year of its term
shall be fifty percent of the "base amount," determined pursuant to
subdivision two of this section. The amount of the exemption in the
second, third, fourth and fifth year of its term shall be forty percent,
thirty percent, twenty percent and ten percent, respectively, of such
base amount.

(ii) If the construction, alteration, installation or improvement
occurs in the economic transformation area outside of the closed
facility, then the exemption in the first year of its term shall be
twenty-five percent of the "base amount," determined pursuant to
subdivision two of this section. The amount of the exemption in the
second, third, fourth and fifth year of its term shall be twenty
percent, fifteen percent, ten percent and five percent, respectively, of
such base amount.

2. (a) The base amount of the exemption shall be the extent of the
increase in assessed value attributable to such construction,
alteration, installation or improvement as determined in the initial
year for which application for exemption is made pursuant to this
section. The base amount shall remain constant for the authorized term
of the exemption, subject to the following:

(i) If there is subsequent construction, alteration, installation or
improvement during the term of the exemption, the base amount shall be
revised to include the increase in assessed value attributable to such
construction, alteration, installation or improvement.

(ii) If a change in level of assessment of fifteen percent or more is
certified for an assessment roll pursuant to the rules of the
commissioner, the base amount shall be adjusted by such change in level
of assessment. The exemption on that assessment roll shall thereupon be
recomputed, notwithstanding the fact that the assessor receives the
certification after the completion, verification and filing of the final
assessment roll. In the event the assessor does not have custody of the
roll when such certification is received, the assessor shall certify the
recomputed exemption to the local officers having custody and control of
the roll, and such local officers are hereby directed and authorized to
enter the recomputed exemption certified by the assessor on the roll.

(b) No such exemption shall be granted unless the construction,
alteration, installation or improvement commenced within one year of the
date of the issuance of the certificate of eligibility to the property
owner.

(c) For purposes of this section the terms construction, alteration,
installation and improvement shall not include ordinary maintenance and
repairs.

(d) No such exemption shall be granted concurrently with or subsequent
to any other real property tax exemption granted to the same
improvements 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 five year exemption granted pursuant
to this section less the number of years the property would have been
previously exempt from real property taxes.

3. Such exemption shall be granted only upon application by the owner
of such real property on a form prescribed by the commissioner. The
original of such application shall be filed with the assessor of the
assessing unit. Such original application shall be filed on or before
the appropriate taxable status date of such assessing unit and no later
than one year from the date of completion of such construction,
alteration, installation or improvement.

4. If the assessor receives an application by the owner of the real
property, he or she shall approve the application and such real property
shall thereafter be exempt from taxation as herein provided commencing
with the assessment roll prepared after the taxable status date referred
to in subdivision three 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 entered in a separate column.

* NB Repealed December 31, 2026