Legislation
SECTION 489-BBBB
Power to enact local law; real property tax exemption; deferral of tax payments
Real Property Tax (RPT) CHAPTER 50-A, ARTICLE 4, TITLE 2-D
§ 489-bbbb. Power to enact local law; real property tax exemption;
deferral of tax payments. Any city having a population of one million or
more, acting through its local legislative body, is authorized and
empowered to determine that incentives in the form of exemption from or
abatement or deferral of payment of real property taxes are necessary to
encourage industrial and commercial development in such city and to
enact a local law providing that such benefits shall be provided in the
manner set forth in this title. Such city shall be divided into six
classes of areas as provided in this title and pursuant to designation
of areas to be made by a temporary commercial incentive area boundary
commission. Within such areas, the following benefits shall be available
to qualified recipients:
1. (a) A recipient who, following the effective date of a certificate
of eligibility, has performed industrial construction work in any area
of such city shall be eligible for an exemption from real property taxes
as follows: For the first thirteen tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the fourteenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for industrial construction work:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 13 Tax on 100% of exemption base
14 Tax on 90% of exemption base
15 Tax on 80% of exemption base
16 Tax on 70% of exemption base
17 Tax on 60% of exemption base
18 Tax on 50% of exemption base
19 Tax on 40% of exemption base
20 Tax on 30% of exemption base
21 Tax on 20% of exemption base
22 Tax on 10% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed an application for a certificate of eligibility for industrial
construction work in any area of such city on or after July first,
nineteen hundred ninety-five, and who, following the effective date of
such certificate of eligibility, has performed such industrial
construction work shall be eligible for an exemption from real property
taxes as follows: For the first sixteen tax years, the recipient shall
be exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the seventeenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for industrial construction work pursuant to this paragraph:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 Through 16 Tax on 100% of exemption base
17 Tax on 90% of exemption base
18 Tax on 80% of exemption base
19 Tax on 70% of exemption base
20 Tax on 60% of exemption base
21 Tax on 50% of exemption base
22 Tax on 40% of exemption base
23 Tax on 30% of exemption base
24 Tax on 20% of exemption base
25 Tax on 10% of exemption base
(c)(i) A recipient who filed an application for a certificate of
eligibility for industrial construction work in any area of such city on
or after July first, nineteen hundred ninety-five, and who, following
the effective date of such certificate of eligibility, both commenced
and completed such work, shall be eligible for an abatement of real
property taxes as follows: For the first tax year immediately following
completion of such work, and for the second, third and fourth tax years
following completion of such work, the abatement shall equal fifty per
centum of the real property tax that was imposed on the property which
is the subject of the certificate of eligibility for the tax year
immediately preceding the effective date of such certificate of
eligibility, provided, however, that if such property was fully or
partially exempt from real property taxes during such tax year, then the
abatement shall equal fifty per centum of the real property tax that
would have been imposed on such property but for such full or partial
exemption. For the fifth and sixth tax years, the abatement shall equal
forty per centum of such amount; for the seventh and eighth tax years,
the abatement shall equal thirty per centum of such amount; for the
ninth and tenth tax years, the abatement shall equal twenty per centum
of such amount; and for the eleventh and twelfth tax years, the
abatement shall equal ten per centum of such amount. Notwithstanding any
inconsistent provision of this paragraph, a recipient shall not be
eligible for an abatement for the first tax year following completion of
such work, unless the recipient submits proof satisfactory to the
department of finance that such work was completed on or before the
taxable status date for such first tax year no later than thirty days
after such taxable status date. Where the recipient fails to submit such
proof in accordance with the foregoing sentence, a recipient shall not
be eligible for an abatement until the second tax year following
completion of such work. In such case, a recipient shall submit proof
satisfactory to the department of finance that such work was completed
on or before the taxable status date for such first tax year no later
than thirty days after the taxable status date for such second tax year.
A recipient whose abatement begins in the second tax year following
completion of such work shall not thereby have his or her twelve-year
benefit period shortened.
The following table shall illustrate the computation of the abatement
for industrial construction work pursuant to this paragraph:
Tax year following
completion of industrial
construction work: Amount of abatement:
1 50%
2 50%
3 50%
4 50%
5 40%
6 40%
7 30%
8 30%
9 20%
10 20%
11 10%
12 10%
(ii) If, due to a determination of the department of finance or tax
commission of such city or a court, the real property tax imposed on
such property for the tax year immediately preceding the effective date
of such certificate of eligibility is changed, then any abatement that
was granted in accordance with this paragraph prior to such reduction
shall be recalculated and any abatement to be granted in accordance with
this paragraph shall be based on the real property tax imposed on such
property for the tax year immediately preceding the effective date of
such certificate of eligibility, as changed by such determination. The
amount equal to the difference between the abatement originally granted
and the abatement as so recalculated shall be deducted from any refund
otherwise payable or remission otherwise due as a result of a change due
to such determination, and any balance of such amount remaining unpaid
after making any such deduction shall be paid to the department of
finance within thirty days from the date of mailing by the department of
finance of a notice of the amount payable. Such amount payable shall
constitute a tax lien on such property as of the date of such notice
and, if not paid within such thirty-day period, penalty and interest at
the rate applicable to delinquent taxes on such property shall be
charged and collected on such amount from the date of such notice to the
date of payment.
(iii) No property which is the subject of a certificate of eligibility
pursuant to this title shall receive more than one abatement pursuant to
this title and no abatement shall exceed one consecutive twelve-year
period as specified in subparagraph (i) of this paragraph.
(iv) In no event shall an abatement granted pursuant to this title
exceed in any tax year the real property taxes imposed on the property
which is the subject of a certificate of eligibility pursuant to this
title.
(v) For the purpose of calculating an abatement of real property taxes
pursuant to this title, where a tax lot contains more than one building
or structure and not all of the buildings or structures comprising such
tax lot are the subject of a certificate of eligibility for industrial
construction work pursuant to this title, the real property taxes
imposed on such tax lot for the tax year immediately preceding the
effective date of such certificate of eligibility shall be apportioned
among the buildings, structures and land comprising such tax lot and
only such real property taxes as are allocable to the property which is
the subject of the certificate of eligibility pursuant to this title
shall be abated in accordance with this paragraph. Such apportionment
shall be in accordance with rules promulgated by the department of
finance.
(vi) A recipient who filed an application for a certificate of
eligibility for industrial construction work in the commercial
revitalization area on or after July first, two thousand, and who,
following the effective date of such certificate of eligibility, both
commenced and completed such work, shall be eligible for an abatement of
real property taxes in accordance with subparagraph (i) of this
paragraph, provided, however, that where the total net square footage of
the industrial property used or immediately available and held out for
use for manufacturing activities involving the assembly of goods or the
fabrication or processing of raw materials is less than seventy-five per
centum of the total net square footage of the industrial property, the
abatement of real property taxes shall be determined in accordance with
rules promulgated by the department of finance. Notwithstanding the
foregoing sentence, no such abatement shall be allowed where the total
net square footage of the industrial property used or immediately
available and held out for use for such manufacturing actives after
completion of industrial construction work is less than the total net
square footage used or immediately available and held out for use for
such manufacturing activities before the commencement of such
construction work. For purposes of this subparagraph only, the term
"industrial construction work" shall mean the modernization,
rehabilitation, expansion or improvement of an existing building or
structure for use as industrial property and the term "industrial
property" shall mean nonresidential property on which will exist after
completion of industrial construction work a building or structure
wherein at least twenty-five per centum of the total net square footage
is used or immediately available and held out for use for manufacturing
activities involving the assembly of goods or the fabrication or
processing of raw materials.
2. (a) A recipient who, following the effective date of a certificate
of eligibility, has performed commercial construction work in a special
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first thirteen tax years, the recipient shall
be exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the fourteenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a special exemption area:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 13 Tax on 100% of exemption base
14 Tax on 90% of exemption base
15 Tax on 80% of exemption base
16 Tax on 70% of exemption base
17 Tax on 60% of exemption base
18 Tax on 50% of exemption base
19 Tax on 40% of exemption base
20 Tax on 30% of exemption base
21 Tax on 20% of exemption base
22 Tax on 10% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed an application for a certificate of eligibility for commercial
construction work in a special exemption area on or after July first,
nineteen hundred ninety-five, and who, following the effective date of
such certificate of eligibility, has performed such commercial
construction work shall be eligible for an exemption from real property
taxes as follows: For the first sixteen tax years, the recipient shall
be exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the seventeenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a special exemption area pursuant to
this paragraph:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 16 Tax on 100% of exemption base
17 Tax on 90% of exemption base
18 Tax on 80% of exemption base
19 Tax on 70% of exemption base
20 Tax on 60% of exemption base
21 Tax on 50% of exemption base
22 Tax on 40% of exemption base
23 Tax on 30% of exemption base
24 Tax on 20% of exemption base
25 Tax on 10% of exemption base
3. (a) A recipient who, following the effective date of a certificate
of eligibility, has performed commercial construction work in a regular
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first eight tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following four tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at eighty per
centum thereof in the ninth tax year and decreasing by twenty per centum
of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a regular exemption area:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 8 Tax on 100% of exemption base
9 Tax on 80% of exemption base
10 Tax on 60% of exemption base
11 Tax on 40% of exemption base
12 Tax on 20% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed an application for a certificate of eligibility for commercial
construction work in a regular exemption area on or after July first,
nineteen hundred ninety-five, and who, following the effective date of
such certificate of eligibility, has performed such commercial
construction work shall be eligible for an exemption from real property
taxes as follows: For the first eleven tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following four tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at eighty per
centum thereof in the twelfth tax year and decreasing by twenty per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a regular exemption area pursuant to
this paragraph:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 11 Tax on 100% of exemption base
12 Tax on 80% of exemption base
13 Tax on 60% of exemption base
14 Tax on 40% of exemption base
15 Tax on 20% of exemption base
4. Except as provided in paragraphs (b) and (c) of subdivision five of
section four hundred eighty-nine-cccc of this title, a recipient who,
following the effective date of a certificate of eligibility, has
performed commercial construction work in a deferral area shall be
eligible for a deferral of tax payments as follows: For the first three
tax years following the effective date of a certificate of eligibility,
the tax payment on one hundred per centum of the exemption base shall be
deferred. For the following four tax years, the tax payment on a
percentage of the exemption base beginning at eighty per centum thereof
in the fourth tax year and decreasing by twenty per centum each year
shall be deferred. The total amount of tax payments deferred pursuant to
this title shall be paid subsequently over the course of ten tax years
as follows: Commencing in the eleventh tax year following the effective
date of the certificate of eligibility, through and including the
twentieth tax year following such effective date, an amount equal to ten
per centum of the total amount of tax payments deferred pursuant to this
section shall be added to the amount of tax otherwise assessed and
payable in each such tax year on the property subject to such deferral.
The following table shall illustrate the computation of deferral and
payment of taxes for commercial construction work in a deferral area:
Tax year following effective
date of certificate of Amount of tax payments to
eligibility: be deferred or paid:
1 through 3 Deferral of tax payment on 100%
of the exemption base
4 Deferral of tax payment on 80%
of the exemption base
5 Deferral of tax payment on 60%
of the exemption base
6 Deferral of tax payment on 40%
of the exemption base
7 Deferral of tax payment on 20%
of the exemption base
11 through 20 Payment each year of 10% of
total dollar amount of tax
payments deferred pursuant
to this title
5. A recipient who, following the effective date of a certificate of
eligibility, has performed renovation construction work in a renovation
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first eight tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following four tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at eighty per
centum thereof in the ninth tax year and decreasing by twenty per centum
of said exemption base each year.
The following table shall illustrate the computation of the exemption
for renovation construction work in a renovation exemption area:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 8 Tax on 100% of exemption base
9 Tax on 80% of exemption base
10 Tax on 60% of exemption base
11 Tax on 40% of exemption base
12 Tax on 20% of exemption base
5-a. A recipient who, following the effective date of a certificate of
eligibility, constructs a new building or structure that meets the
requirements set forth in subdivision nine of section four hundred
eighty-nine-dddd of this title in the new construction exemption area
specified in paragraph (a), (b) or (c) of subdivision six of section
four hundred eighty-nine-cccc of this title shall be eligible for an
exemption from real property taxes as follows: For the first four tax
years, the recipient shall be exempt from taxation on one hundred per
centum of the exemption base. For the following four tax years, the
recipient shall be exempt from taxation on a percentage of the exemption
base beginning at eighty per centum thereof in the fifth tax year and
decreasing by twenty per centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for the construction of a new building or structure that meets the
requirements set forth in subdivision nine of section four hundred
eighty-nine-dddd of this title in the new construction exemption area
specified in paragraph (a), (b) or (c) of subdivision six of section
four hundred eighty-nine-cccc of this title:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 4 Tax on 100% of exemption base
5 Tax on 80% of exemption base
6 Tax on 60% of exemption base
7 Tax on 40% of exemption base
8 Tax on 20% of exemption base
6. There shall be no exemption from or deferral of a payment of real
property taxes available pursuant to this title to any person who
performs commercial or renovation construction work in an excluded area,
except as provided in paragraphs (b) and (c) of subdivision five of
section four hundred eighty-nine-cccc of this title.
7. The benefits of this title shall be granted exclusively for
industrial, commercial or renovation construction work described in
approved plans. No benefits shall be granted for residential
construction work. Any parcel which is partly located in an excluded
area shall be deemed to be entirely located in such area.
8. No benefits pursuant to this title shall be granted for work which
is the subject of a certificate of eligibility issued pursuant to title
two-C of this article.
deferral of tax payments. Any city having a population of one million or
more, acting through its local legislative body, is authorized and
empowered to determine that incentives in the form of exemption from or
abatement or deferral of payment of real property taxes are necessary to
encourage industrial and commercial development in such city and to
enact a local law providing that such benefits shall be provided in the
manner set forth in this title. Such city shall be divided into six
classes of areas as provided in this title and pursuant to designation
of areas to be made by a temporary commercial incentive area boundary
commission. Within such areas, the following benefits shall be available
to qualified recipients:
1. (a) A recipient who, following the effective date of a certificate
of eligibility, has performed industrial construction work in any area
of such city shall be eligible for an exemption from real property taxes
as follows: For the first thirteen tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the fourteenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for industrial construction work:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 13 Tax on 100% of exemption base
14 Tax on 90% of exemption base
15 Tax on 80% of exemption base
16 Tax on 70% of exemption base
17 Tax on 60% of exemption base
18 Tax on 50% of exemption base
19 Tax on 40% of exemption base
20 Tax on 30% of exemption base
21 Tax on 20% of exemption base
22 Tax on 10% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed an application for a certificate of eligibility for industrial
construction work in any area of such city on or after July first,
nineteen hundred ninety-five, and who, following the effective date of
such certificate of eligibility, has performed such industrial
construction work shall be eligible for an exemption from real property
taxes as follows: For the first sixteen tax years, the recipient shall
be exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the seventeenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for industrial construction work pursuant to this paragraph:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 Through 16 Tax on 100% of exemption base
17 Tax on 90% of exemption base
18 Tax on 80% of exemption base
19 Tax on 70% of exemption base
20 Tax on 60% of exemption base
21 Tax on 50% of exemption base
22 Tax on 40% of exemption base
23 Tax on 30% of exemption base
24 Tax on 20% of exemption base
25 Tax on 10% of exemption base
(c)(i) A recipient who filed an application for a certificate of
eligibility for industrial construction work in any area of such city on
or after July first, nineteen hundred ninety-five, and who, following
the effective date of such certificate of eligibility, both commenced
and completed such work, shall be eligible for an abatement of real
property taxes as follows: For the first tax year immediately following
completion of such work, and for the second, third and fourth tax years
following completion of such work, the abatement shall equal fifty per
centum of the real property tax that was imposed on the property which
is the subject of the certificate of eligibility for the tax year
immediately preceding the effective date of such certificate of
eligibility, provided, however, that if such property was fully or
partially exempt from real property taxes during such tax year, then the
abatement shall equal fifty per centum of the real property tax that
would have been imposed on such property but for such full or partial
exemption. For the fifth and sixth tax years, the abatement shall equal
forty per centum of such amount; for the seventh and eighth tax years,
the abatement shall equal thirty per centum of such amount; for the
ninth and tenth tax years, the abatement shall equal twenty per centum
of such amount; and for the eleventh and twelfth tax years, the
abatement shall equal ten per centum of such amount. Notwithstanding any
inconsistent provision of this paragraph, a recipient shall not be
eligible for an abatement for the first tax year following completion of
such work, unless the recipient submits proof satisfactory to the
department of finance that such work was completed on or before the
taxable status date for such first tax year no later than thirty days
after such taxable status date. Where the recipient fails to submit such
proof in accordance with the foregoing sentence, a recipient shall not
be eligible for an abatement until the second tax year following
completion of such work. In such case, a recipient shall submit proof
satisfactory to the department of finance that such work was completed
on or before the taxable status date for such first tax year no later
than thirty days after the taxable status date for such second tax year.
A recipient whose abatement begins in the second tax year following
completion of such work shall not thereby have his or her twelve-year
benefit period shortened.
The following table shall illustrate the computation of the abatement
for industrial construction work pursuant to this paragraph:
Tax year following
completion of industrial
construction work: Amount of abatement:
1 50%
2 50%
3 50%
4 50%
5 40%
6 40%
7 30%
8 30%
9 20%
10 20%
11 10%
12 10%
(ii) If, due to a determination of the department of finance or tax
commission of such city or a court, the real property tax imposed on
such property for the tax year immediately preceding the effective date
of such certificate of eligibility is changed, then any abatement that
was granted in accordance with this paragraph prior to such reduction
shall be recalculated and any abatement to be granted in accordance with
this paragraph shall be based on the real property tax imposed on such
property for the tax year immediately preceding the effective date of
such certificate of eligibility, as changed by such determination. The
amount equal to the difference between the abatement originally granted
and the abatement as so recalculated shall be deducted from any refund
otherwise payable or remission otherwise due as a result of a change due
to such determination, and any balance of such amount remaining unpaid
after making any such deduction shall be paid to the department of
finance within thirty days from the date of mailing by the department of
finance of a notice of the amount payable. Such amount payable shall
constitute a tax lien on such property as of the date of such notice
and, if not paid within such thirty-day period, penalty and interest at
the rate applicable to delinquent taxes on such property shall be
charged and collected on such amount from the date of such notice to the
date of payment.
(iii) No property which is the subject of a certificate of eligibility
pursuant to this title shall receive more than one abatement pursuant to
this title and no abatement shall exceed one consecutive twelve-year
period as specified in subparagraph (i) of this paragraph.
(iv) In no event shall an abatement granted pursuant to this title
exceed in any tax year the real property taxes imposed on the property
which is the subject of a certificate of eligibility pursuant to this
title.
(v) For the purpose of calculating an abatement of real property taxes
pursuant to this title, where a tax lot contains more than one building
or structure and not all of the buildings or structures comprising such
tax lot are the subject of a certificate of eligibility for industrial
construction work pursuant to this title, the real property taxes
imposed on such tax lot for the tax year immediately preceding the
effective date of such certificate of eligibility shall be apportioned
among the buildings, structures and land comprising such tax lot and
only such real property taxes as are allocable to the property which is
the subject of the certificate of eligibility pursuant to this title
shall be abated in accordance with this paragraph. Such apportionment
shall be in accordance with rules promulgated by the department of
finance.
(vi) A recipient who filed an application for a certificate of
eligibility for industrial construction work in the commercial
revitalization area on or after July first, two thousand, and who,
following the effective date of such certificate of eligibility, both
commenced and completed such work, shall be eligible for an abatement of
real property taxes in accordance with subparagraph (i) of this
paragraph, provided, however, that where the total net square footage of
the industrial property used or immediately available and held out for
use for manufacturing activities involving the assembly of goods or the
fabrication or processing of raw materials is less than seventy-five per
centum of the total net square footage of the industrial property, the
abatement of real property taxes shall be determined in accordance with
rules promulgated by the department of finance. Notwithstanding the
foregoing sentence, no such abatement shall be allowed where the total
net square footage of the industrial property used or immediately
available and held out for use for such manufacturing actives after
completion of industrial construction work is less than the total net
square footage used or immediately available and held out for use for
such manufacturing activities before the commencement of such
construction work. For purposes of this subparagraph only, the term
"industrial construction work" shall mean the modernization,
rehabilitation, expansion or improvement of an existing building or
structure for use as industrial property and the term "industrial
property" shall mean nonresidential property on which will exist after
completion of industrial construction work a building or structure
wherein at least twenty-five per centum of the total net square footage
is used or immediately available and held out for use for manufacturing
activities involving the assembly of goods or the fabrication or
processing of raw materials.
2. (a) A recipient who, following the effective date of a certificate
of eligibility, has performed commercial construction work in a special
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first thirteen tax years, the recipient shall
be exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the fourteenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a special exemption area:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 13 Tax on 100% of exemption base
14 Tax on 90% of exemption base
15 Tax on 80% of exemption base
16 Tax on 70% of exemption base
17 Tax on 60% of exemption base
18 Tax on 50% of exemption base
19 Tax on 40% of exemption base
20 Tax on 30% of exemption base
21 Tax on 20% of exemption base
22 Tax on 10% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed an application for a certificate of eligibility for commercial
construction work in a special exemption area on or after July first,
nineteen hundred ninety-five, and who, following the effective date of
such certificate of eligibility, has performed such commercial
construction work shall be eligible for an exemption from real property
taxes as follows: For the first sixteen tax years, the recipient shall
be exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the seventeenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a special exemption area pursuant to
this paragraph:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 16 Tax on 100% of exemption base
17 Tax on 90% of exemption base
18 Tax on 80% of exemption base
19 Tax on 70% of exemption base
20 Tax on 60% of exemption base
21 Tax on 50% of exemption base
22 Tax on 40% of exemption base
23 Tax on 30% of exemption base
24 Tax on 20% of exemption base
25 Tax on 10% of exemption base
3. (a) A recipient who, following the effective date of a certificate
of eligibility, has performed commercial construction work in a regular
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first eight tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following four tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at eighty per
centum thereof in the ninth tax year and decreasing by twenty per centum
of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a regular exemption area:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 8 Tax on 100% of exemption base
9 Tax on 80% of exemption base
10 Tax on 60% of exemption base
11 Tax on 40% of exemption base
12 Tax on 20% of exemption base
(b) Notwithstanding paragraph (a) of this subdivision, a recipient who
filed an application for a certificate of eligibility for commercial
construction work in a regular exemption area on or after July first,
nineteen hundred ninety-five, and who, following the effective date of
such certificate of eligibility, has performed such commercial
construction work shall be eligible for an exemption from real property
taxes as follows: For the first eleven tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following four tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at eighty per
centum thereof in the twelfth tax year and decreasing by twenty per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a regular exemption area pursuant to
this paragraph:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 11 Tax on 100% of exemption base
12 Tax on 80% of exemption base
13 Tax on 60% of exemption base
14 Tax on 40% of exemption base
15 Tax on 20% of exemption base
4. Except as provided in paragraphs (b) and (c) of subdivision five of
section four hundred eighty-nine-cccc of this title, a recipient who,
following the effective date of a certificate of eligibility, has
performed commercial construction work in a deferral area shall be
eligible for a deferral of tax payments as follows: For the first three
tax years following the effective date of a certificate of eligibility,
the tax payment on one hundred per centum of the exemption base shall be
deferred. For the following four tax years, the tax payment on a
percentage of the exemption base beginning at eighty per centum thereof
in the fourth tax year and decreasing by twenty per centum each year
shall be deferred. The total amount of tax payments deferred pursuant to
this title shall be paid subsequently over the course of ten tax years
as follows: Commencing in the eleventh tax year following the effective
date of the certificate of eligibility, through and including the
twentieth tax year following such effective date, an amount equal to ten
per centum of the total amount of tax payments deferred pursuant to this
section shall be added to the amount of tax otherwise assessed and
payable in each such tax year on the property subject to such deferral.
The following table shall illustrate the computation of deferral and
payment of taxes for commercial construction work in a deferral area:
Tax year following effective
date of certificate of Amount of tax payments to
eligibility: be deferred or paid:
1 through 3 Deferral of tax payment on 100%
of the exemption base
4 Deferral of tax payment on 80%
of the exemption base
5 Deferral of tax payment on 60%
of the exemption base
6 Deferral of tax payment on 40%
of the exemption base
7 Deferral of tax payment on 20%
of the exemption base
11 through 20 Payment each year of 10% of
total dollar amount of tax
payments deferred pursuant
to this title
5. A recipient who, following the effective date of a certificate of
eligibility, has performed renovation construction work in a renovation
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first eight tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following four tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at eighty per
centum thereof in the ninth tax year and decreasing by twenty per centum
of said exemption base each year.
The following table shall illustrate the computation of the exemption
for renovation construction work in a renovation exemption area:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 8 Tax on 100% of exemption base
9 Tax on 80% of exemption base
10 Tax on 60% of exemption base
11 Tax on 40% of exemption base
12 Tax on 20% of exemption base
5-a. A recipient who, following the effective date of a certificate of
eligibility, constructs a new building or structure that meets the
requirements set forth in subdivision nine of section four hundred
eighty-nine-dddd of this title in the new construction exemption area
specified in paragraph (a), (b) or (c) of subdivision six of section
four hundred eighty-nine-cccc of this title shall be eligible for an
exemption from real property taxes as follows: For the first four tax
years, the recipient shall be exempt from taxation on one hundred per
centum of the exemption base. For the following four tax years, the
recipient shall be exempt from taxation on a percentage of the exemption
base beginning at eighty per centum thereof in the fifth tax year and
decreasing by twenty per centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for the construction of a new building or structure that meets the
requirements set forth in subdivision nine of section four hundred
eighty-nine-dddd of this title in the new construction exemption area
specified in paragraph (a), (b) or (c) of subdivision six of section
four hundred eighty-nine-cccc of this title:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 4 Tax on 100% of exemption base
5 Tax on 80% of exemption base
6 Tax on 60% of exemption base
7 Tax on 40% of exemption base
8 Tax on 20% of exemption base
6. There shall be no exemption from or deferral of a payment of real
property taxes available pursuant to this title to any person who
performs commercial or renovation construction work in an excluded area,
except as provided in paragraphs (b) and (c) of subdivision five of
section four hundred eighty-nine-cccc of this title.
7. The benefits of this title shall be granted exclusively for
industrial, commercial or renovation construction work described in
approved plans. No benefits shall be granted for residential
construction work. Any parcel which is partly located in an excluded
area shall be deemed to be entirely located in such area.
8. No benefits pursuant to this title shall be granted for work which
is the subject of a certificate of eligibility issued pursuant to title
two-C of this article.