S T A T E O F N E W Y O R K
________________________________________________________________________
5880
2009-2010 Regular Sessions
I N S E N A T E
June 15, 2009
___________
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the administrative code of the city of New York and the
tax law, in relation to the temporary exemption from commercial rent
or occupancy tax for premises used for retail sales in lower Manhattan
and the World Trade Center area; and to amend part C of chapter 2 of
the laws of 2005 amending the tax law relating to exemptions from
sales and use taxes, in relation to the effectiveness of provisions
thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (b-2) of paragraph 2 of subdivision i of
section 11-704 of the administrative code of the city of New York, as
added by section 8 of part A of chapter 2 of the laws of 2005, is
amended to read as follows:
(b-2) The amount of the special reduction allowed by this subdivision
with respect to a lease other than a sublease commencing between July
first, two thousand five and June thirtieth, two thousand [nine] THIR-
TEEN with an initial or renewal lease term of at least five years shall
be determined as follows:
(i) For the base year the amount of such special reduction shall be
equal to the base rent for the base year.
(ii) For the first, second, third and fourth twelve-month periods
following the base year the amount of such special reduction shall be
equal to the lesser of (A) the base rent for each such twelve-month
period or (B) the base rent for the base year.
S 2. Subparagraph (A) of paragraph 7 of subdivision (ee) of section
1115 of the tax law, as added by section 1 of part C of chapter 2 of the
laws of 2005, is amended to read as follows:
(A) "Tenant" means a person who, as lessee, enters into a space lease
with a landlord for a term of ten years or more commencing on or after
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14335-02-9
S. 5880 2
September first, two thousand five, but not later than, in the case of a
space lease with respect to leased premises located in eligible areas as
defined in clause (i) of subparagraph (D) of this paragraph, September
first, two thousand [nine] THIRTEEN and, in the case of a space lease
with respect to leased premises located in eligible areas as defined in
clause (ii) of subparagraph (D) of this paragraph not later than Septem-
ber first, two thousand [eleven] FIFTEEN, of premises for use as commer-
cial office space in buildings located or to be located in the eligible
areas. A person who currently occupies premises for use as commercial
office space under an existing lease in a building in the eligible areas
shall not be eligible for exemption under this subdivision unless such
existing lease, in the case of a space lease with respect to leased
premises located in eligible areas as defined in clause (i) of subpara-
graph (D) of this paragraph expires according to its terms before
September first, two thousand [nine] THIRTEEN or such existing lease, in
the case of a space lease with respect to leased premises located in
eligible areas as defined in clause (ii) of subparagraph (D) of this
paragraph and such person enters into a space lease, for a term of ten
years or more commencing on or after September first, two thousand five,
of premises for use as commercial office space in a building located or
to be located in the eligible areas, provided that such space lease with
respect to leased premises located in eligible areas as defined in
clause (i) of subparagraph (D) of this paragraph commences no later than
September first, two thousand [nine] THIRTEEN, and provided that such
space lease with respect to leased premises located in eligible areas as
defined in clause (ii) of subparagraph (D) of this paragraph commences
no later than September first, two thousand [eleven] FIFTEEN and
provided, further, that such space lease shall expire no earlier than
ten years after the expiration of the original lease.
S 3. Section 2 of part C of chapter 2 of the laws of 2005 amending the
tax law relating to exemptions from sales and use taxes is amended to
read as follows:
S 2. This act shall take effect September 1, 2005 and shall expire and
be deemed repealed on December 1, [2012] 2016, and shall apply to sales
made, uses occurring and services rendered on or after such effective
date, in accordance with the applicable transitional provisions of
sections 1106 and 1217 of the tax law; except that clause (i) of subpar-
agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the
tax law, as added by section one of this act, shall expire and be deemed
repealed December 1, [2010] 2014.
S 4. This act shall take effect immediately; provided that if this act
shall take effect after June 30, 2009, it shall be deemed to have been
in full force and effect on and after June 30, 2009.