S T A T E O F N E W Y O R K
________________________________________________________________________
6271
2017-2018 Regular Sessions
I N S E N A T E
May 11, 2017
___________
Introduced by Sen. FELDER -- read twice and ordered printed, and when
printed to be committed to the Committee on Cities
AN ACT to amend the administrative code of the city of New York, in
relation to extending certain provisions relating to exemptions and
deductions from base rent; to amend the real property tax law, in
relation to extending certain provisions relating to eligibility peri-
ods and requirements; to amend the real property tax law, in relation
to extending certain provisions relating to eligibility periods and
requirements, benefit periods and applications for abatements; and to
amend the administrative code of the city of New York, in relation to
extending certain provisions relating to a special reduction in deter-
mining the taxable base rent
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
amended by section 50 of part A of chapter 20 of the laws of 2015, 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 [seventeen]
TWENTY-ONE 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11614-02-7
S. 6271 2
§ 2. Subdivision 9 of section 499-aa of the real property tax law, as
amended by section 51 of part A of chapter 20 of the laws of 2015, is
amended to read as follows:
9. "Eligibility period." The period commencing April first, nineteen
hundred ninety-five and terminating March thirty-first, two thousand
one, provided, however, that with respect to eligible premises defined
in subparagraph (i) of paragraph (b) of subdivision ten of this section,
the period commencing July first, two thousand and terminating June
thirtieth, two thousand [eighteen] TWENTY-TWO, and provided, further,
however, that with respect to eligible premises defined in subparagraph
(ii) of paragraph (b) or paragraph (c) of subdivision ten of this
section, the period commencing July first, two thousand five and termi-
nating June thirtieth, two thousand [eighteen] TWENTY-TWO.
§ 3. Subparagraph (iii) of paragraph (a) of subdivision 3 of section
499-cc of the real property tax law, as amended by section 52 of part A
of chapter 20 of the laws of 2015, is amended to read as follows:
(iii) With respect to the eligible premises defined in subparagraph
(ii) of paragraph (b) or paragraph (c) of subdivision ten of section
four hundred ninety-nine-aa of this title and for purposes of determin-
ing whether the amount of expenditures required by subdivision one of
this section have been satisfied, expenditures on improvements to the
common areas of an eligible building shall be included only if work on
such improvements commenced and the expenditures are made on or after
July first, two thousand five and on or before December thirty-first,
two thousand [eighteen] TWENTY-TWO; provided, however, that expenditures
on improvements to the common areas of an eligible building made prior
to three years before the lease commencement date shall not be included.
§ 4. Subdivisions 5 and 9 of section 499-a of the real property tax
law, as amended by section 53 of part A of chapter 20 of the laws of
2015, are amended to read as follows:
5. "Benefit period." The period commencing with the first day of the
month immediately following the rent commencement date and terminating
no later than sixty months thereafter, provided, however, that with
respect to a lease commencing on or after April first, nineteen hundred
ninety-seven with an initial lease term of less than five years, but not
less than three years, the period commencing with the first day of the
month immediately following the rent commencement date and terminating
no later than thirty-six months thereafter. Notwithstanding the forego-
ing sentence, a benefit period shall expire no later than March thirty-
first, two thousand [twenty-four] TWENTY-EIGHT.
9. "Eligibility period." The period commencing April first, nineteen
hundred ninety-five and terminating March thirty-first, two thousand
[eighteen] TWENTY-TWO.
§ 5. Paragraph (a) of subdivision 3 of section 449-c of the real prop-
erty tax law, as amended by section 54 of part A of chapter 20 of the
laws of 2015, is amended to read as follows:
(a) For purposes of determining whether the amount of expenditures
required by subdivision one of this section have been satisfied, expend-
itures on improvements to the common areas of an eligible building shall
be included only if work on such improvements commenced and the expendi-
tures are made on or after April first, nineteen hundred ninety-five and
on or before September thirtieth, two thousand [eighteen] TWENTY-TWO;
provided, however, that expenditures on improvements to the common areas
of an eligible building made prior to three years before the lease
commencement date shall not be included.
S. 6271 3
§ 6. Subdivision 8 of section 499-d of the real property tax law, as
amended by section 55 of part A of chapter 20 of the laws of 2015, is
amended to read as follows:
8. Leases commencing on or after April first, nineteen hundred nine-
ty-seven shall be subject to the provisions of this title as amended by
chapter six hundred twenty-nine of the laws of nineteen hundred ninety-
seven, chapter one hundred eighteen of the laws of two thousand one,
chapter four hundred forty of the laws of two thousand three, chapter
sixty of the laws of two thousand seven, chapter twenty-two of the laws
of two thousand ten, chapter fifty-nine of the laws of two thousand
fourteen, CHAPTER TWENTY OF THE LAWS OF TWO THOUSAND FIFTEEN and the
chapter of the laws of two thousand [fifteen] SEVENTEEN that added this
phrase. Notwithstanding any other provision of law to the contrary, with
respect to leases commencing on or after April first, nineteen hundred
ninety-seven, an application for a certificate of abatement shall be
considered timely filed if filed within one hundred eighty days follow-
ing the lease commencement date or within sixty days following the date
chapter six hundred twenty-nine of the laws of nineteen hundred ninety-
seven became a law, whichever is later.
§ 7. Subparagraph (a) of paragraph 2 of subdivision i of section
11-704 of the administrative code of the city of New York, as amended by
section 56 of part A of chapter 20 of the laws of 2015, is amended to
read as follows:
(a) An eligible tenant of eligible taxable premises shall be allowed a
special reduction in determining the taxable base rent for such eligible
taxable premises. Such special reduction shall be allowed with respect
to the rent for such eligible taxable premises for a period not exceed-
ing sixty months or, with respect to a lease commencing on or after
April first, nineteen hundred ninety-seven with an initial lease term of
less than five years, but not less than three years, for a period not
exceeding thirty-six months, commencing on the rent commencement date
applicable to such eligible taxable premises, provided, however, that in
no event shall any special reduction be allowed for any period beginning
after March thirty-first, two thousand [twenty-four] TWENTY-EIGHT. For
purposes of applying such special reduction, the base rent for the base
year shall, where necessary to determine the amount of the special
reduction allowable with respect to any number of months falling within
a tax period, be prorated by dividing the base rent for the base year by
twelve and multiplying the result by such number of months.
§ 8. This act shall take effect immediately.