S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2298
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2019
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities
 
 AN ACT to amend the real property tax law, in relation to  creating  the
   Mom and Pop Rent Increase Exemption
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as  the  "Mom  and
 Pop Rent Increase Exemption".
   § 2. Article 4 of the real property tax law is amended by adding a new
 title 6 to read as follows:
                                  TITLE 6
       TAX ABATEMENT FOR LIMITING RENT INCREASES ON SMALL BUSINESSES
                 IN A CITY OF ONE MILLION OR MORE PERSONS
 SECTION 499-AAAAA. DEFINITIONS.
         499-BBBBB. REAL PROPERTY TAX ABATEMENT.
         499-CCCCC. ELIGIBILITY REQUIREMENTS.
         499-DDDDD. APPLICATION FOR CERTIFICATE OF ABATEMENT.
         499-EEEEE. ENFORCEMENT AND ADMINISTRATION.
         499-FFFFF. REPORTING REQUIREMENTS; REVOCATION OF ABATEMENTS.
         499-GGGGG. TAX LIEN; INTEREST AND PENALTY.
         499-HHHHH. CONFIDENTIALITY.
   § 499-AAAAA. DEFINITIONS. WHEN USED IN THIS TITLE, THE FOLLOWING TERMS
 SHALL MEAN OR INCLUDE:
   1.  "ABATEMENT BASE." THE LESSER OF (I) TWO DOLLARS AND FIFTY CENTS OF
 THE TAX LIABILITY PER SQUARE FOOT OR (II) FIFTY PER CENTUM  OF  THE  TAX
 LIABILITY PER SQUARE FOOT.
   2.  "ABATEMENT  ZONE."  ANY  AREA OF A CITY HAVING A POPULATION OF ONE
 MILLION OR MORE. ANY TAX LOT THAT IS PARTLY LOCATED INSIDE AN  ABATEMENT
 ZONE SHALL BE DEEMED TO BE ENTIRELY LOCATED INSIDE SUCH ZONE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02379-01-9

              

 S. 2298                             2
 
   3.  "AGGREGATE  FLOOR AREA." THE SUM OF THE GROSS AREAS OF THE SEVERAL
 FLOORS OF A BUILDING, MEASURED FROM THE EXTERIOR FACES OF EXTERIOR WALLS
 OR FROM THE CENTER LINES OF WALLS SEPARATING TWO BUILDINGS.
   4. "APPLICANT." THE LANDLORD AND THE TENANT.
   5.  "BENEFIT  PERIOD." THE PERIOD COMMENCING WITH THE FIRST DAY OF THE
 MONTH IMMEDIATELY FOLLOWING THE RENT COMMENCEMENT DATE  AND  TERMINATING
 NO LATER THAN ONE HUNDRED TWENTY MONTHS THEREAFTER.
   6.  "BILLABLE  ASSESSED VALUE." THE LESSER OF THE TAXABLE TRANSITIONAL
 OR THE TAXABLE ACTUAL ASSESSED VALUE OF THE ELIGIBLE  BUILDING  AND  THE
 LAND  ON  WHICH  THE ELIGIBLE BUILDING IS LOCATED FOR THE FISCAL YEAR IN
 WHICH THE BENEFIT PERIOD COMMENCES.
   7. "COMMERCIAL ACTIVITIES." THE BUYING, SELLING OR OTHERWISE PROVIDING
 OF GOODS OR SERVICES BY A SMALL BUSINESS.
   8. "DEPARTMENT OF FINANCE." THE DEPARTMENT  OF  FINANCE  OF  ANY  CITY
 HAVING A POPULATION OF ONE MILLION OR MORE.
   9.  "ELIGIBLE BUILDING." WITH RESPECT TO THE ABATEMENT ZONE DEFINED IN
 SUBDIVISION TWO OF THIS SECTION, A NON-RESIDENTIAL OR MIXED-USE BUILDING
 WHICH SHALL NOT INCLUDE ANY BUILDING OWNED  BY  A  GOVERNMENTAL  AGENCY.
 EACH  CONDOMINIUM UNIT IN A BUILDING THAT MEETS THE REQUIREMENTS OF THIS
 SUBDIVISION SHALL BE CONSIDERED A SEPARATE ELIGIBLE BUILDING.
   10. "ELIGIBILITY PERIOD." THE PERIOD COMMENCING APRIL FIRST, TWO THOU-
 SAND NINETEEN AND TERMINATING MARCH THIRTY-FIRST, TWO  THOUSAND  TWENTY-
 NINE.
   11. "ELIGIBLE PREMISES." WITH RESPECT TO THE ABATEMENT ZONE DEFINED IN
 SUBDIVISION  TWO OF THIS SECTION, PREMISES LOCATED IN AN ELIGIBLE BUILD-
 ING THAT (A) ARE OCCUPIED OR USED FOR COMMERCIAL ACTIVITIES AND (B)  ARE
 OCCUPIED  OR  USED  BY A TENANT UNDER A LEASE THAT MEETS THE ELIGIBILITY
 REQUIREMENTS OF SECTION FOUR HUNDRED NINETY-NINE-CCCCC OF THIS TITLE.
   12. "FISCAL YEAR." THE FISCAL YEAR OF ANY CITY HAVING A POPULATION  OF
 ONE MILLION OR MORE.
   13.  "GOVERNMENTAL AGENCY." THE UNITED STATES OF AMERICA OR ANY AGENCY
 OR INSTRUMENTALITY THEREOF, THE STATE OF NEW YORK, THE CITY OF NEW YORK,
 ANY PUBLIC CORPORATION (INCLUDING A BODY CORPORATE AND  POLITIC  CREATED
 PURSUANT  TO  AGREEMENT OR COMPACT BETWEEN THE STATE OF NEW YORK AND ANY
 OTHER STATE), PUBLIC BENEFIT  CORPORATION,  PUBLIC  AUTHORITY  OR  OTHER
 POLITICAL SUBDIVISION OF THE STATE.
   14.  "LANDLORD."  ANY  PERSON  WHO  (A)  CONTROLS  ALL NON-RESIDENTIAL
 PORTIONS OF AN ELIGIBLE BUILDING,  INCLUDING,  WITHOUT  LIMITATION,  THE
 RECORD  OWNER,  THE  LESSEE  UNDER  A  GROUND  LEASE,  ANY  MORTGAGEE IN
 POSSESSION OR ANY RECEIVER, AND (B) WHO GRANTS THE RIGHT TO USE OR OCCU-
 PY ELIGIBLE PREMISES TO ANY TENANT, PROVIDED  THAT  LANDLORD  SHALL  NOT
 INCLUDE  ANY  LESSEE  WHO  AT ANY TIME DURING THE LEASE TERM OCCUPIED OR
 USED OR OCCUPIES OR USES ANY PART OF  THE  NON-RESIDENTIAL  PORTIONS  OF
 SUCH  ELIGIBLE  BUILDING,  OTHER  THAN PREMISES OCCUPIED OR USED BY SUCH
 LESSEE TO PROVIDE RENTAL OR MANAGEMENT SERVICES TO SUCH BUILDING.
   15. "LEASE COMMENCEMENT DATE." THE DATE SET  FORTH  IN  THE  LEASE  ON
 WHICH THE TERM OF THE LEASE COMMENCES.
   16.  "MIXED-USE  BUILDING."  A  BUILDING USED FOR BOTH RESIDENTIAL AND
 COMMERCIAL ACTIVITIES, PROVIDED THAT MORE THAN TWENTY-FIVE PER CENTUM OF
 THE AGGREGATE FLOOR AREA OF SUCH BUILDING IS USED OR HELD OUT FOR USE AS
 COMMERCIAL, COMMUNITY FACILITY OR ACCESSORY USE SPACE.
   17. "PERSON." AN INDIVIDUAL, CORPORATION, LIMITED  LIABILITY  COMPANY,
 PARTNERSHIP,  ASSOCIATION,  AGENCY,  TRUST,  ESTATE, FOREIGN OR DOMESTIC
 GOVERNMENT OR SUBDIVISION THEREOF, OR OTHER ENTITY.
   18. "RENEWAL TENANT." A PERSON WHO (A) OCCUPIES PREMISES IN AN  ELIGI-
 BLE  BUILDING  UNDER A LEASE WHICH EXPIRES DURING THE ELIGIBILITY PERIOD

 S. 2298                             3
 
 AND (B) EXECUTES A LEASE FOR THE CONTINUED OCCUPANCY OF ALL OR  PART  OF
 SUCH PREMISES OR ALL OR PART OF SUCH PREMISES AND ADDITIONAL PREMISES IN
 SUCH ELIGIBLE BUILDING, PROVIDED SUCH PREMISES ARE ELIGIBLE PREMISES AND
 SUCH  LEASE  MEETS  THE ELIGIBILITY REQUIREMENTS OF SECTION FOUR HUNDRED
 NINETY-NINE-CCCCC OF THIS TITLE.
   19. "RENT COMMENCEMENT DATE." THE DATE SET FORTH IN THE LEASE ON WHICH
 THE OBLIGATION TO PAY BASIC FIXED RENT SHALL COMMENCE.
   20. "SMALL BUSINESS." A BUSINESS ENGAGED IN COMMERCIAL ACTIVITIES THAT
 EMPLOYS FIFTY OR FEWER PERSONS.
   21. "SUBTENANT." A PERSON WHOSE RIGHT TO OCCUPY AND USE  THE  ELIGIBLE
 PREMISES IS NOT DERIVED FROM A LEASE WITH THE LANDLORD.
   22.  "TAX  COMMISSION."  THE TAX COMMISSION IN ANY CITY HAVING A POPU-
 LATION OF ONE MILLION OR MORE.
   23. "TAX LIABILITY." THE PRODUCT OBTAINED BY MULTIPLYING THE  BILLABLE
 ASSESSED VALUE FOR THE FISCAL YEAR IN WHICH THE BENEFIT PERIOD COMMENCES
 BY THE TAX RATE APPLICABLE TO THE ELIGIBLE BUILDING FOR SUCH FISCAL YEAR
 AS  SET BY THE LOCAL LEGISLATIVE BODY OF ANY CITY HAVING A POPULATION OF
 ONE MILLION OR MORE.
   24. "TAX LIABILITY PER SQUARE FOOT." THE TAX LIABILITY DIVIDED BY  THE
 TOTAL  NUMBER  OF SQUARE FEET IN THE ELIGIBLE BUILDING, AS LISTED ON THE
 RECORDS OF THE DEPARTMENT OF FINANCE.
   25. "TENANT." A PERSON, INCLUDING  ANY  SUCCESSORS  IN  INTEREST,  WHO
 EXECUTES  A  LEASE  WITH THE LANDLORD FOR THE RIGHT TO OCCUPY OR USE THE
 ELIGIBLE PREMISES AND WHO OCCUPIES OR USES THE ELIGIBLE PREMISES  PURSU-
 ANT  TO SUCH LEASE. TENANT SHALL NOT INCLUDE ANY SUBTENANT. WHEN USED IN
 THIS TITLE, "TENANT" INCLUDES "RENEWAL TENANT."
   26. "TENANT'S  PERCENTAGE  SHARE."  THE  PERCENTAGE  OF  THE  ELIGIBLE
 BUILDING'S  AGGREGATE  FLOOR  AREA  ALLOCATED  TO THE ELIGIBLE PREMISES,
 WHICH SHALL BE PRESUMED TO BE SUCH PERCENTAGE AS SET FORTH IN THE  LEASE
 FOR THE ELIGIBLE PREMISES.
   §  499-BBBBB.  REAL  PROPERTY TAX ABATEMENT. 1. WITHIN A CITY HAVING A
 POPULATION OF ONE MILLION OR MORE, ELIGIBLE BUILDINGS CONTAINING  ELIGI-
 BLE  PREMISES  SHALL  RECEIVE AN ABATEMENT OF REAL PROPERTY TAXES DURING
 THE BENEFIT PERIOD AS FOLLOWS:
   (A) FOR EACH OF THE FIRST FIVE YEARS OF THE BENEFIT PERIOD, THE ABATE-
 MENT SHALL BE EQUAL TO THE  PRODUCT  OBTAINED  BY  (I)  MULTIPLYING  THE
 TENANT'S  PERCENTAGE  SHARE BY THE NUMBER OF SQUARE FEET IN THE ELIGIBLE
 BUILDING, AS LISTED ON THE RECORDS OF THE DEPARTMENT OF FINANCE AND (II)
 MULTIPLYING THE PRODUCT OBTAINED IN SUBPARAGRAPH (I) OF  THIS  PARAGRAPH
 BY THE ABATEMENT BASE;
   (B) FOR THE SIXTH, SEVENTH, AND EIGHTH YEAR OF THE BENEFIT PERIOD, THE
 ABATEMENT  SHALL  BE  EQUAL  TO TWO-THIRDS OF THE ABATEMENT IN THE FIRST
 YEAR OF THE BENEFIT PERIOD; AND
   (C) FOR THE NINTH AND TENTH YEAR OF THE BENEFIT PERIOD, THE  ABATEMENT
 SHALL  BE  EQUAL  TO ONE-THIRD OF THE ABATEMENT IN THE FIRST YEAR OF THE
 BENEFIT PERIOD.
   2. IF, AS A RESULT OF APPLICATION TO THE TAX  COMMISSION  OR  A  COURT
 ORDER  OR  ACTION  BY  THE  DEPARTMENT OF FINANCE, THE BILLABLE ASSESSED
 VALUE IS REDUCED, THE DEPARTMENT OF FINANCE SHALL RECALCULATE THE ABATE-
 MENT UTILIZING SUCH REDUCED BILLABLE ASSESSED VALUE. THE AMOUNT EQUAL TO
 THE DIFFERENCE BETWEEN THE ABATEMENT ORIGINALLY GRANTED AND  THE  ABATE-
 MENT  AS  SO  RECALCULATED  SHALL  BE DEDUCTED FROM ANY REFUND OTHERWISE
 PAYABLE OR REMISSION OTHERWISE DUE AS A  RESULT  OF  SUCH  REDUCTION  IN
 BILLABLE ASSESSED VALUE, 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

 S. 2298                             4
 
 FINANCE OF A NOTICE OF THE AMOUNT PAYABLE.  SUCH  AMOUNT  PAYABLE  SHALL
 CONSTITUTE  A  TAX  LIEN ON THE ELIGIBLE BUILDING 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 ELIGIBLE
 BUILDING SHALL BE CHARGED AND COLLECTED ON SUCH AMOUNT FROM THE DATE  OF
 SUCH NOTICE TO THE DATE OF PAYMENT.
   3.  IN  NO EVENT SHALL THE ABATEMENT FOR THE ELIGIBLE PREMISES GRANTED
 PURSUANT TO THIS TITLE EXCEED THE TAX LIABILITY ALLOCABLE TO THE  ELIGI-
 BLE PREMISES.
   4.  NOTWITHSTANDING  THE PROVISIONS OF ANY LEASE FOR OCCUPANCY OF NON-
 ELIGIBLE PREMISES IN AN ELIGIBLE BUILDING OR FOR OCCUPANCY  OF  ELIGIBLE
 PREMISES  FOR WHICH NO CERTIFICATE OF ABATEMENT HAS BEEN ISSUED PURSUANT
 TO THIS TITLE, A LESSEE OF NON-ELIGIBLE PREMISES OR OF ELIGIBLE PREMISES
 FOR WHICH NO CERTIFICATE OF ABATEMENT HAS BEEN ISSUED PURSUANT  TO  THIS
 TITLE  SHALL  NOT  BE  ENTITLED  TO  RECEIVE  DIRECTLY  OR  INDIRECTLY A
 REDUCTION IN EITHER THE REAL PROPERTY TAXES OR ANY RENT (INCLUDING ADDI-
 TIONAL RENT) PAYABLE PURSUANT TO SUCH LEASE WHERE SUCH  REDUCTION  WOULD
 RESULT FROM AN ABATEMENT OF REAL PROPERTY TAXES GRANTED PURSUANT TO THIS
 TITLE.  A  LANDLORD  OF AN ELIGIBLE BUILDING SHALL NOT ALLOCATE, CREDIT,
 ASSIGN OR DISBURSE ANY PORTION OF AN ABATEMENT GRANTED PURSUANT TO  THIS
 TITLE  TO  A LESSEE OF NON-ELIGIBLE PREMISES OR OF ELIGIBLE PREMISES FOR
 WHICH NO CERTIFICATE OF ABATEMENT  HAS  BEEN  ISSUED  PURSUANT  TO  THIS
 TITLE.  A  LANDLORD  SHALL  NOT  BE REQUIRED TO REDUCE THE REAL PROPERTY
 TAXES OR ANY RENT (INCLUDING ADDITIONAL RENT) PAYABLE BY RENEWAL TENANTS
 BY AN AMOUNT THAT EXCEEDS THE  FULL  AMOUNT  OF  THE  ABATEMENT  GRANTED
 PURSUANT  TO  THIS TITLE, BUT A LANDLORD SHALL BE REQUIRED TO REDUCE THE
 REAL PROPERTY TAXES OR ANY RENT (INCLUDING ADDITIONAL RENT)  PAYABLE  BY
 RENEWAL  TENANTS  BY  AN  AMOUNT THAT, IN THE AGGREGATE, EQUALS THE FULL
 AMOUNT OF THE ABATEMENT GRANTED PURSUANT TO THIS TITLE.  SUCH  REDUCTION
 SHALL  BE  ALLOCATED  IN  ACCORDANCE  WITH THE ABATEMENT GRANTED FOR THE
 ELIGIBLE PREMISES OCCUPIED BY EACH SUCH TENANT.
   5. A TENANT WHO OCCUPIES OR USES ELIGIBLE PREMISES FOR WHICH A CERTIF-
 ICATE OF ABATEMENT IS ISSUED PURSUANT TO THIS TITLE SHALL NOT BE  ELIGI-
 BLE  TO  RECEIVE A SECOND CERTIFICATE OF ABATEMENT FOR THE SAME ELIGIBLE
 PREMISES. A TENANT WHO OCCUPIES OR USES ELIGIBLE PREMISES  FOR  WHICH  A
 CERTIFICATE  OF ABATEMENT IS ISSUED PURSUANT TO THIS TITLE AND WHO, UPON
 THE EXPIRATION OF THE LEASE FOR SUCH  ELIGIBLE  PREMISES,  RELOCATES  TO
 OTHERWISE  ELIGIBLE PREMISES, SHALL NOT BE ELIGIBLE TO RECEIVE A CERTIF-
 ICATE OF ABATEMENT FOR SUCH OTHERWISE ELIGIBLE PREMISES, EXCEPT  TO  THE
 EXTENT  THAT  THE  SQUARE  FOOTAGE  OF  SUCH OTHERWISE ELIGIBLE PREMISES
 EXCEEDS THE SQUARE FOOTAGE OF ALL ELIGIBLE PREMISES PREVIOUSLY  OCCUPIED
 OR  USED  BY  SUCH  TENANT  FOR  WHICH SUCH TENANT HELD A CERTIFICATE OF
 ABATEMENT. IF THE SQUARE FOOTAGE OF  SUCH  OTHERWISE  ELIGIBLE  PREMISES
 EXCEEDS  THE  SQUARE  FOOTAGE  OF  ALL SUCH ELIGIBLE PREMISES PREVIOUSLY
 OCCUPIED OR USED BY SUCH TENANT AND IF THERE IS ANY VARIATION IN THE TAX
 LIABILITY PER SQUARE FOOT OF SUCH OTHERWISE ELIGIBLE PREMISES, THEN, FOR
 PURPOSES OF DETERMINING WHICH SQUARE FOOTAGE IN SUCH OTHERWISE  ELIGIBLE
 PREMISES  IS  ENTITLED  TO  AN  ABATEMENT PURSUANT TO THIS TITLE, SQUARE
 FOOTAGE WITH THE GREATEST TAX LIABILITY PER SQUARE FOOT,  IN  AN  AMOUNT
 EQUAL  TO  THE  SQUARE  FOOTAGE OF ALL SUCH ELIGIBLE PREMISES PREVIOUSLY
 OCCUPIED OR USED BY SUCH TENANT, SHALL FIRST BE EXCLUDED.
   § 499-CCCCC. ELIGIBILITY REQUIREMENTS. 1. NO ABATEMENT SHALL BE GRANT-
 ED PURSUANT TO THIS TITLE UNLESS:
   (A) THE LANDLORD ENTERS INTO A TEN YEAR LEASE  FOR  ELIGIBLE  PREMISES
 WITH  A  TENANT  AND (B) SUCH LANDLORD INCLUDES WITHIN SUCH LEASE WITH A

 S. 2298                             5

 TENANT A RENEWAL CLAUSE THAT LIMITS A RENT  INCREASE  TO  NO  MORE  THAN
 THREE PERCENT ANNUALLY.
   2.  NO  ABATEMENT SHALL BE GRANTED PURSUANT TO THIS TITLE IF AN APPLI-
 CANT SHALL FAIL TO MEET ANY OF THE REQUIREMENTS  OF  THIS  TITLE  WITHIN
 SIXTY DAYS OF THE RENT COMMENCEMENT DATE.
   3. FOR PURPOSES OF THIS TITLE, THE EXPIRATION DATE OF A LEASE SHALL BE
 DETERMINED  BY  THE  EXPIRATION  DATE  SET  FORTH IN SUCH LEASE, WITHOUT
 GIVING EFFECT TO ANY RIGHTS OF THE LANDLORD OR THE TENANT  TO  TERMINATE
 SUCH LEASE PRIOR TO THE EXPIRATION DATE SET FORTH THEREIN.
   4.  THE  LEASE  FOR  THE ELIGIBLE PREMISES SHALL CONTAIN THE FOLLOWING
 PROVISIONS:
   (A) A STATEMENT OF THE TENANT'S PERCENTAGE SHARE;
   (B) A STATEMENT CERTIFYING THE PERCENTAGE OF ELIGIBLE  PREMISES  OCCU-
 PIED  OR USED FOR COMMERCIAL ACTIVITIES, AS DEFINED IN SUBDIVISION SEVEN
 OF SECTION FOUR HUNDRED NINETY-NINE-AAAAA OF THIS TITLE; AND
   (C) A STATEMENT INFORMING THE TENANT IN  AT  LEAST  TWELVE-POINT  TYPE
 THAT:
   (1)  AN  APPLICATION  FOR ABATEMENT OF REAL PROPERTY TAXES PURSUANT TO
 THIS TITLE WILL BE MADE FOR THE PREMISES;
   (2) THE RENT, INCLUDING AMOUNTS PAYABLE BY THE TENANT FOR REAL PROPER-
 TY TAXES, WILL ACCURATELY REFLECT ANY ABATEMENT OF REAL  PROPERTY  TAXES
 GRANTED PURSUANT TO THIS TITLE FOR THE PREMISES;
   (3)  A  RENEWAL OF THE LEASE WILL NOT INCREASE RENT BY MORE THAN THREE
 PERCENT ANNUALLY PURSUANT TO THE LEASE AGREEMENT;
   (4) ALL ABATEMENTS GRANTED WITH RESPECT TO A BUILDING PURSUANT TO THIS
 TITLE WILL BE REVOKED IF, DURING THE BENEFIT PERIOD, REAL  ESTATE  TAXES
 OR  WATER OR SEWER CHARGES OR OTHER LIENABLE CHARGES ARE UNPAID FOR MORE
 THAN ONE YEAR, UNLESS SUCH DELINQUENT AMOUNTS ARE PAID  AS  PROVIDED  IN
 SUBDIVISION  FOUR  OF  SECTION  FOUR  HUNDRED  NINETY-NINE-FFFFF OF THIS
 TITLE; AND
   (5) ALL BENEFITS GRANTED WITH RESPECT TO  ELIGIBLE  PREMISES  WILL  BE
 REDUCED  IF, DURING THE BENEFIT PERIOD, THE AGGREGATE FLOOR AREA OF SUCH
 ELIGIBLE PREMISES OCCUPIED OR USED FOR COMMERCIAL ACTIVITIES, AS DEFINED
 IN SUBDIVISION SEVEN OF SECTION FOUR HUNDRED NINETY-NINE-AAAAA  OF  THIS
 TITLE, IS REDUCED.
   5. NO ABATEMENT SHALL BE GRANTED PURSUANT TO THIS TITLE IF:
   (A)  THE  LEASE  FOR  THE  ELIGIBLE  PREMISES PROVIDES THAT DURING THE
 INITIAL LEASE TERM REQUIRED BY SUBDIVISION ONE OF  THIS  SECTION  EITHER
 THE LANDLORD OR THE TENANT MAY TERMINATE SUCH LEASE PRIOR TO THE EXPIRA-
 TION  DATE OF SUCH REQUIRED INITIAL LEASE TERM; PROVIDED THAT SUCH LEASE
 MAY PROVIDE THAT EITHER THE LANDLORD OR THE TENANT  MAY  TERMINATE  SUCH
 LEASE  IF (1) THE OTHER PARTY IS IN DEFAULT OF ANY OF SUCH PARTY'S OBLI-
 GATIONS UNDER THE LEASE,  (2)  THE  ELIGIBLE  PREMISES  ARE  DAMAGED  OR
 DESTROYED  BY  FIRE  OR  OTHER  CASUALTY,  (3) THE ELIGIBLE PREMISES ARE
 RENDERED UNUSABLE FOR ANY REASON NOT ATTRIBUTABLE TO ANY ACT OR  FAILURE
 TO  ACT  OF  EITHER TENANT OR LANDLORD, OR (4) THE ELIGIBLE PREMISES ARE
 ACQUIRED BY EMINENT DOMAIN; AND
   (B) THERE ARE REAL PROPERTY TAXES, WATER OR  SEWER  CHARGES  OR  OTHER
 LIENABLE  CHARGES CURRENTLY DUE AND OWING ON THE ELIGIBLE BUILDING WHICH
 IS THE SUBJECT OF AN APPLICATION FOR ABATEMENT PURSUANT TO  THIS  TITLE,
 UNLESS  SUCH  REAL PROPERTY TAXES OR CHARGES ARE CURRENTLY BEING PAID IN
 TIMELY INSTALLMENTS PURSUANT TO A WRITTEN AGREEMENT WITH THE  DEPARTMENT
 OF FINANCE OR OTHER APPROPRIATE AGENCY.
   6.  NO  ABATEMENT  SHALL  BE GRANTED PURSUANT TO THIS TITLE UNLESS THE
 APPLICANT SHALL  FILE,  TOGETHER  WITH  THE  APPLICATION,  AN  AFFIDAVIT
 SETTING FORTH THE FOLLOWING INFORMATION:

 S. 2298                             6
 
   (A)  A STATEMENT THAT WITHIN THE SEVEN YEARS IMMEDIATELY PRECEDING THE
 DATE OF APPLICATION FOR A CERTIFICATE OF ABATEMENT, NEITHER  THE  APPLI-
 CANT NOR ANY PERSON OWNING A SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILD-
 ING  AS  DEFINED  IN PARAGRAPH (C) OF THIS SUBDIVISION, NOR ANY OFFICER,
 DIRECTOR  OR GENERAL PARTNER OF THE APPLICANT OR SUCH PERSON WAS FINALLY
 ADJUDICATED BY A  COURT  OF  COMPETENT  JURISDICTION  TO  HAVE  VIOLATED
 SECTION  TWO HUNDRED THIRTY-FIVE OF THE REAL PROPERTY LAW OR ANY SECTION
 OF ARTICLE ONE HUNDRED FIFTY OF THE PENAL LAW OR ANY SIMILAR  ARSON  LAW
 OF ANOTHER JURISDICTION WITH RESPECT TO ANY BUILDING, OR WAS AN OFFICER,
 DIRECTOR  OR  GENERAL  PARTNER  OF  A PERSON AT THE TIME SUCH PERSON WAS
 FINALLY ADJUDICATED TO HAVE VIOLATED SUCH LAW; AND
   (B) A STATEMENT SETTING FORTH ANY PENDING CHARGES  ALLEGING  VIOLATION
 OF  SECTION  TWO  HUNDRED  THIRTY-FIVE  OF  THE REAL PROPERTY LAW OR ANY
 SECTION OF ARTICLE ONE HUNDRED FIFTY OF THE PENAL  LAW  OR  ANY  SIMILAR
 ARSON  LAW  OF  ANOTHER JURISDICTION WITH RESPECT TO ANY BUILDING BY THE
 APPLICANT OR ANY PERSON OWNING A SUBSTANTIAL INTEREST  IN  THE  ELIGIBLE
 BUILDING  AS  DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION, OR ANY OFFI-
 CER, DIRECTOR OR GENERAL PARTNER OF THE APPLICANT OR SUCH PERSON, OR ANY
 PERSON FOR WHOM THE APPLICANT OR PERSON OWNING A SUBSTANTIAL INTEREST IN
 THE ELIGIBLE BUILDING IS AN OFFICER, DIRECTOR OR GENERAL PARTNER.
   (C) FOR PURPOSES OF THIS SUBDIVISION AND SUBDIVISION SEVEN OF  SECTION
 FOUR  HUNDRED  NINETY-NINE-FFFFF  OF  THIS TITLE, "SUBSTANTIAL INTEREST"
 SHALL MEAN OWNERSHIP AND CONTROL OF AN INTEREST OF  TEN  PER  CENTUM  OR
 MORE  IN  THE  ELIGIBLE  BUILDING  OR  IN ANY PERSON OWNING THE ELIGIBLE
 BUILDING.
   § 499-DDDDD. APPLICATION FOR CERTIFICATE OF ABATEMENT. 1.  APPLICATION
 FOR A CERTIFICATE OF ABATEMENT MAY BE MADE ON OR AFTER APRIL FIRST,  TWO
 THOUSAND  NINETEEN AND UNTIL SIXTY DAYS AFTER THE END OF THE ELIGIBILITY
 PERIOD. APPLICATIONS SHALL BE FILED WITH THE DEPARTMENT OF  FINANCE.  NO
 APPLICATION  MAY  BE  FILED PRIOR TO THE DATE ON WHICH THE LEASE FOR THE
 ELIGIBLE PREMISES IS EXECUTED BY THE LANDLORD AND TENANT.
   2. NO ABATEMENT PURSUANT TO THIS TITLE SHALL  BE  GRANTED  UNLESS  THE
 APPLICANT  FILES  AN  APPLICATION  FOR A CERTIFICATE OF ABATEMENT WITHIN
 SIXTY DAYS FOLLOWING THE LEASE COMMENCEMENT DATE.
   3. IN ADDITION TO ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT  OF
 FINANCE, THE APPLICATION FOR A CERTIFICATE OF ABATEMENT SHALL INCLUDE AN
 ABSTRACT  OF  THE LEASE FOR THE ELIGIBLE PREMISES FOR WHICH AN ABATEMENT
 IS BEING SOUGHT, WHICH ABSTRACT  IS  SIGNED  BY  THE  LANDLORD  AND  THE
 TENANT.  SUCH  ABSTRACT SHALL INCLUDE THE TENANT'S PERCENTAGE SHARE, THE
 LEASE COMMENCEMENT DATE, THE RENT COMMENCEMENT DATE, THE EXPIRATION DATE
 FOR SUCH LEASE AND A DESCRIPTION OF THE LEASE RENEWAL CLAUSE,  INCLUDING
 THE ANNUAL RENT INCREASE PERCENTAGE. SUCH APPLICATION SHALL ALSO INCLUDE
 (I) A STATEMENT OF THE NUMBER OF PERSONS WHO WILL, ON THE RENT COMMENCE-
 MENT DATE, BE EMPLOYED IN THE ELIGIBLE PREMISES, (II) A STATEMENT OF THE
 LOCATION OF ALL COMMERCIAL SPACE IN THE CITY OF NEW YORK OCCUPIED BY THE
 TENANT  PRIOR  TO  THE EXECUTION OF THE LEASE FOR THE ELIGIBLE PREMISES,
 (III) THE COMMENCEMENT AND EXPIRATION DATES OF ALL LEASES  FOR  ELIGIBLE
 PREMISES,  AND  (IV)  THE AGGREGATE FLOOR AREA OF THE ELIGIBLE BUILDING.
 SUCH APPLICATION SHALL ALSO STATE THAT THE APPLICANT  AGREES  TO  COMPLY
 WITH AND BE SUBJECT TO THE RULES ISSUED FROM TIME TO TIME BY THE DEPART-
 MENT OF FINANCE.
   4.  WITHIN  ONE  HUNDRED  EIGHTY DAYS FOLLOWING THE LEASE COMMENCEMENT
 DATE, THE APPLICANT SHALL PROVIDE, IN ADDITION TO ANY OTHER  INFORMATION
 REQUIRED  BY  THE  DEPARTMENT  OF  FINANCE,  EVIDENCE  ACCEPTABLE TO THE
 DEPARTMENT OF FINANCE OF THE NUMBER OF EMPLOYEES IN THE  ELIGIBLE  PREM-
 ISES.  THE  DEPARTMENT OF FINANCE SHALL ISSUE A CERTIFICATE OF ABATEMENT

 S. 2298                             7
 
 UPON DETERMINING THAT THE APPLICANT HAS SUBMITTED  PROOF  ACCEPTABLE  TO
 THE  DEPARTMENT  OF  FINANCE THAT THE APPLICANT HAS MET THE REQUIREMENTS
 SET FORTH IN THIS TITLE.
   5.  THE BURDEN OF PROOF SHALL BE ON THE APPLICANT TO SHOW BY CLEAR AND
 CONVINCING EVIDENCE THAT THE REQUIREMENTS FOR GRANTING A CERTIFICATE  OF
 ABATEMENT  HAVE BEEN SATISFIED. THE DEPARTMENT OF FINANCE SHALL HAVE THE
 AUTHORITY TO REQUIRE THAT STATEMENTS IN CONNECTION WITH SUCH APPLICATION
 BE MADE UNDER OATH.
   6. THE DEPARTMENT OF FINANCE MAY PROVIDE BY RULE FOR REASONABLE ADMIN-
 ISTRATIVE CHARGES OR FEES NECESSARY TO DEFRAY EXPENSES IN  ADMINISTERING
 THE ABATEMENT PROGRAM PROVIDED BY THIS TITLE.
   § 499-EEEEE. ENFORCEMENT AND ADMINISTRATION. THE DEPARTMENT OF FINANCE
 SHALL  HAVE, IN ADDITION TO ANY OTHER FUNCTIONS, POWERS AND DUTIES WHICH
 HAVE BEEN OR MAY BE CONFERRED ON IT BY  LAW,  THE  FOLLOWING  FUNCTIONS,
 POWERS AND DUTIES:
   1.  TO  RECEIVE  AND REVIEW APPLICATIONS FOR CERTIFICATES OF ABATEMENT
 UNDER THIS TITLE AND ISSUE SUCH CERTIFICATES WHERE  AUTHORIZED  PURSUANT
 TO THIS TITLE.
   2.  TO  RECEIVE ALL CERTIFICATES OF CONTINUING ELIGIBILITY REQUIRED BY
 SECTION FOUR HUNDRED NINETY-NINE-FFFFF OF THIS TITLE.
   3. TO COLLECT ALL REAL PROPERTY TAXES, WITH INTEREST AND PENALTY,  DUE
 AND  OWING  AS  A  RESULT OF REDUCTION, TERMINATION OR REVOCATION OF ANY
 ABATEMENT GRANTED PURSUANT TO THIS TITLE.
   4. TO MAKE AND PROMULGATE RULES TO CARRY  OUT  THE  PURPOSES  OF  THIS
 TITLE.
   § 499-FFFFF. REPORTING REQUIREMENTS; REVOCATION OF ABATEMENTS.  1. FOR
 THE DURATION OF THE APPLICANT'S BENEFIT PERIOD, THE APPLICANT SHALL FILE
 ANNUALLY WITH THE DEPARTMENT OF FINANCE, ON OR BEFORE JULY FIRST OF EACH
 YEAR, A CERTIFICATE OF CONTINUING ELIGIBILITY CONFIRMING THAT THE ELIGI-
 BLE  PREMISES  ARE  OCCUPIED  BY  THE TENANT WHO ORIGINALLY EXECUTED THE
 LEASE AND THAT THE ELIGIBLE PREMISES ARE BEING  USED  FOR  THE  PURPOSES
 DESCRIBED  IN THE APPLICATION.  SUCH CERTIFICATE OF CONTINUING ELIGIBIL-
 ITY SHALL BE ON A FORM PRESCRIBED BY THE DEPARTMENT OF FINANCE AND SHALL
 CONTAIN SUCH ADDITIONAL INFORMATION AS THE DEPARTMENT OF  FINANCE  SHALL
 REQUIRE. THE DEPARTMENT OF FINANCE SHALL HAVE THE AUTHORITY TO TERMINATE
 ABATEMENTS  GRANTED  PURSUANT TO THIS TITLE UPON FAILURE OF AN APPLICANT
 TO FILE SUCH CERTIFICATE BY SUCH JULY FIRST DATE. THE  BURDEN  OF  PROOF
 SHALL  BE ON THE APPLICANT TO ESTABLISH CONTINUING ELIGIBILITY FOR BENE-
 FITS AND THE DEPARTMENT OF FINANCE SHALL HAVE THE AUTHORITY  TO  REQUIRE
 THAT STATEMENTS MADE IN SUCH CERTIFICATE SHALL BE MADE UNDER OATH.
   2. THE DEPARTMENT OF FINANCE SHALL REVOKE ANY ABATEMENT GRANTED PURSU-
 ANT  TO  THIS TITLE WHEN THE TENANT WHO ORIGINALLY EXECUTED THE LEASE IS
 NO LONGER OCCUPYING THE ELIGIBLE PREMISES.   SUCH  REVOCATION  SHALL  BE
 RETROACTIVE  TO  THE DATE THAT SUCH TENANT VACATED THE ELIGIBLE PREMISES
 AND THE DEPARTMENT OF FINANCE SHALL REQUIRE THE LANDLORD  TO  PAY,  WITH
 INTEREST, ANY TAXES WHICH BECOME PAYABLE AS A RESULT OF SUCH REVOCATION.
 THE  LANDLORD  SHALL NOTIFY THE DEPARTMENT OF FINANCE WITHIN THIRTY DAYS
 FOLLOWING THE DATE ON WHICH SUCH TENANT VACATED  THE  ELIGIBLE  PREMISES
 AND,  FOR FAILURE TO COMPLY WITH THIS NOTIFICATION REQUIREMENT, SHALL BE
 LIABLE FOR PENALTY CALCULATED FOR THE SAME PERIOD AS INTEREST IS  CALCU-
 LATED PURSUANT TO THE PRECEDING SENTENCE.
   3.  IF  ANY  PORTION  OF  THE PREMISES FOR WHICH AN ABATEMENT HAS BEEN
 GRANTED PURSUANT TO THIS TITLE CEASES TO BE OCCUPIED OR USED AS ELIGIBLE
 PREMISES OR IS OCCUPIED BY A SUBTENANT, THE DEPARTMENT OF FINANCE  SHALL
 REDUCE  THE  ABATEMENT GRANTED PURSUANT TO THIS TITLE BY AN AMOUNT EQUAL
 TO THE PERCENTAGE OF SUCH ELIGIBLE PREMISES WHICH HAS CEASED TO BE OCCU-

 S. 2298                             8
 
 PIED OR USED AS ELIGIBLE PREMISES OR IS OCCUPIED BY  A  SUBTENANT.  SUCH
 REDUCTION  SHALL BE RETROACTIVE TO THE DATE THAT SUCH PREMISES CEASED TO
 BE OCCUPIED OR USED AS ELIGIBLE PREMISES OR WAS OCCUPIED BY A SUBTENANT,
 AND  THE  DEPARTMENT  OF FINANCE SHALL REQUIRE THE LANDLORD TO PAY, WITH
 INTEREST, ANY TAXES WHICH BECOME PAYABLE AS A RESULT OF SUCH  REDUCTION.
 THE  LANDLORD  SHALL NOTIFY THE DEPARTMENT OF FINANCE WITHIN THIRTY DAYS
 FOLLOWING THE DATE ON WHICH THE PREMISES CEASED TO BE OCCUPIED  OR  USED
 AS  ELIGIBLE PREMISES OR WAS OCCUPIED BY A SUBTENANT AND, FOR FAILURE TO
 COMPLY WITH THIS NOTIFICATION REQUIREMENT, SHALL BE LIABLE  FOR  PENALTY
 CALCULATED FOR THE SAME PERIOD AS INTEREST IS CALCULATED PURSUANT TO THE
 PRECEDING SENTENCE.
   4.  IF,  DURING  THE BENEFIT PERIOD, ANY REAL PROPERTY TAX OR WATER OR
 SEWER CHARGE OR OTHER LIENABLE CHARGE DUE AND PAYABLE WITH RESPECT TO AN
 ELIGIBLE BUILDING SHALL REMAIN UNPAID FOR AT LEAST  ONE  YEAR  FOLLOWING
 THE  DATE  UPON  WHICH  SUCH  TAX  OR CHARGE BECAME DUE AND PAYABLE, ALL
 ABATEMENTS GRANTED PURSUANT TO THIS TITLE WITH RESPECT TO SUCH  BUILDING
 SHALL BE REVOKED, UNLESS WITHIN THIRTY DAYS FROM THE MAILING OF A NOTICE
 OF  REVOCATION  BY  THE  DEPARTMENT  OF  FINANCE  SATISFACTORY  PROOF IS
 PRESENTED TO THE DEPARTMENT OF FINANCE THAT ANY AND ALL DELINQUENT TAXES
 AND CHARGES OWING WITH RESPECT TO SUCH BUILDING AS OF THE DATE  OF  SUCH
 NOTICE  HAVE  BEEN  PAID  IN  FULL OR ARE CURRENTLY BEING PAID IN TIMELY
 INSTALLMENTS PURSUANT TO A WRITTEN  AGREEMENT  WITH  THE  DEPARTMENT  OF
 FINANCE  OR  OTHER  APPROPRIATE  AGENCY. ANY REVOCATION PURSUANT TO THIS
 SUBDIVISION SHALL BE EFFECTIVE WITH RESPECT TO REAL PROPERTY TAXES WHICH
 BECOME DUE AND PAYABLE FOLLOWING THE DATE OF SUCH REVOCATION.
   5. THE DEPARTMENT OF FINANCE MAY DENY, REDUCE, SUSPEND,  TERMINATE  OR
 REVOKE ANY ABATEMENT GRANTED PURSUANT TO THIS TITLE WHENEVER:
   (A)  THE  LANDLORD  OR THE TENANT RECEIVING ABATEMENT PURSUANT TO THIS
 TITLE FAILS TO COMPLY WITH THE REQUIREMENTS OF THIS TITLE OR  THE  RULES
 PROMULGATED HEREUNDER; OR
   (B) AN APPLICATION, CERTIFICATE, REPORT OR OTHER DOCUMENT SUBMITTED BY
 THE  APPLICANT CONTAINS A FALSE OR MISLEADING STATEMENT AS TO A MATERIAL
 FACT OR OMITS TO STATE ANY MATERIAL FACT NECESSARY IN ORDER TO MAKE  THE
 STATEMENT THEREIN NOT FALSE OR MISLEADING, AND MAY DECLARE ANY APPLICANT
 WHO  MAKES SUCH FALSE OR MISLEADING STATEMENT OR OMISSION TO BE INELIGI-
 BLE FOR FUTURE ABATEMENT PURSUANT TO THIS TITLE FOR THE  SAME  OR  OTHER
 PROPERTY.  IN  ADDITION,  THE  DEPARTMENT  OF  FINANCE SHALL REQUIRE THE
 APPLICANT TO PAY, WITH PENALTY  AND  INTEREST,  ANY  ABATEMENT  RECEIVED
 PURSUANT TO THIS TITLE AS A RESULT OF SUCH FALSE OR MISLEADING STATEMENT
 OR OMISSION OF A MATERIAL FACT.
   6.  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS TITLE, THE DEPARTMENT
 OF FINANCE SHALL DENY, TERMINATE OR REVOKE ANY ABATEMENT APPLIED FOR  OR
 GRANTED  PURSUANT  TO  THIS  TITLE  UPON  A DETERMINATION THAT THE LEASE
 BETWEEN THE LANDLORD AND THE TENANT DOES  NOT  CONSTITUTE  A  BONA  FIDE
 ARM'S  LENGTH  LEASE.  IN  MAKING  SUCH DETERMINATION, THE DEPARTMENT OF
 FINANCE MAY CONSIDER, AMONG OTHER FACTORS,  THE  RELATIONSHIP,  IF  ANY,
 BETWEEN  THE  LANDLORD  AND THE TENANT AND WHETHER THE BUSINESS TERMS OF
 SUCH LEASE ARE CONSISTENT WITH THE BUSINESS  TERMS  GENERALLY  FOUND  IN
 LEASES FOR COMPARABLE SPACE.
   7.  (A) IF ANY PERSON DESCRIBED IN THE STATEMENT REQUIRED BY PARAGRAPH
 (B) OF SUBDIVISION SIX OF SECTION FOUR HUNDRED NINETY-NINE-CCCCC OF THIS
 TITLE OR PARAGRAPH (B) OF THIS SUBDIVISION IS FINALLY ADJUDICATED  BY  A
 COURT  OF  COMPETENT  JURISDICTION  TO BE GUILTY OF ANY CHARGE LISTED IN
 SUCH STATEMENT, THE DEPARTMENT OF FINANCE  SHALL  REVOKE  THE  ABATEMENT
 GRANTED  PURSUANT  TO  THIS  TITLE  AND  SHALL REQUIRE THE PAYMENT, WITH
 INTEREST, OF ANY ABATEMENT RECEIVED PURSUANT TO THIS TITLE.

 S. 2298                             9
 
   (B) THE APPLICANT SHALL, ON THE CERTIFICATE OF CONTINUING ELIGIBILITY,
 STATE WHETHER ANY CHARGES ALLEGING VIOLATION BY  THE  APPLICANT  OR  ANY
 PERSON  OWNING  A  SUBSTANTIAL INTEREST IN THE ELIGIBLE BUILDING, OR ANY
 OFFICER, DIRECTOR OR GENERAL PARTNER OF THE APPLICANT OR PERSON OWNING A
 SUBSTANTIAL  INTEREST  IN  THE ELIGIBLE BUILDING, OR ANY PERSON FOR WHOM
 THE APPLICANT OR PERSON OWNING A SUBSTANTIAL INTEREST  IN  THE  ELIGIBLE
 BUILDING  IS  AN  OFFICER,  DIRECTOR  OR GENERAL PARTNER, OF SECTION TWO
 HUNDRED THIRTY-FIVE OF THE REAL PROPERTY LAW OR ANY SECTION  OF  ARTICLE
 ONE  HUNDRED  FIFTY OF THE PENAL LAW OR ANY SIMILAR ARSON LAW OF ANOTHER
 JURISDICTION, ARE PENDING. FOR PURPOSES OF THIS PARAGRAPH,  "SUBSTANTIAL
 INTEREST"  SHALL  HAVE THE SAME MEANING AS SET FORTH IN PARAGRAPH (C) OF
 SUBDIVISION SIX OF SECTION FOUR HUNDRED NINETY-NINE-CCCCC OF THIS TITLE.
   § 499-GGGGG. TAX LIEN; INTEREST AND PENALTY. ALL TAXES, WITH INTEREST,
 REQUIRED TO BE PAID RETROACTIVELY PURSUANT TO THIS TITLE  SHALL  CONSTI-
 TUTE  A TAX LIEN AS OF THE DATE IT IS DETERMINED SUCH TAXES AND INTEREST
 ARE OWED. ALL INTEREST SHALL BE CALCULATED FROM THE DATE THE TAXES WOULD
 HAVE BEEN DUE BUT FOR THE ABATEMENT GRANTED PURSUANT TO  THIS  TITLE  AT
 THE  APPLICABLE RATE OR RATES OF INTEREST IMPOSED BY SUCH CITY GENERALLY
 FOR NON-PAYMENT OF REAL PROPERTY TAX WITH RESPECT TO THE ELIGIBLE BUILD-
 ING FOR THE PERIOD IN QUESTION. WHEN A PROVISION OF THIS TITLE  REQUIRES
 THE  PAYMENT  OF  A  PENALTY IN ADDITION TO INTEREST, THE AMOUNT OF SUCH
 PENALTY SHALL BE EQUAL TO THE AMOUNT OF INTEREST THAT  WOULD  HAVE  BEEN
 PAYABLE  PURSUANT TO SUCH PROVISION HAD SUCH INTEREST BEEN CALCULATED AT
 THE RATE OF THREE PERCENT PER ANNUM.
   § 499-HHHHH. CONFIDENTIALITY. 1. EXCEPT IN ACCORDANCE  WITH  A  PROPER
 JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR
 THE  COMMISSIONER  OF FINANCE, ANY OFFICER OR EMPLOYEE OF THE DEPARTMENT
 OF FINANCE, THE PRESIDENT OR A  COMMISSIONER  OR  EMPLOYEE  OF  THE  TAX
 COMMISSION,  ANY  PERSON  ENGAGED OR RETAINED BY SUCH DEPARTMENT OR SUCH
 COMMISSION ON AN INDEPENDENT CONTRACT BASIS, OR ANY PERSON WHO, PURSUANT
 TO THIS TITLE, IS PERMITTED TO INSPECT ANY INFORMATION SUBMITTED  BY  AN
 APPLICANT TO THE DEPARTMENT OF FINANCE PURSUANT TO THIS TITLE OR TO WHOM
 A  COPY,  AN ABSTRACT OR A PORTION OF ANY SUCH INFORMATION IS FURNISHED,
 TO DIVULGE OR MAKE KNOWN IN ANY  MANNER  ANY  SUCH  INFORMATION  TO  ANY
 PERSON  NOT  AUTHORIZED  PURSUANT TO THIS TITLE TO INSPECT SUCH INFORMA-
 TION. THE OFFICERS CHARGED WITH CUSTODY OF SUCH INFORMATION SHALL NOT BE
 REQUIRED TO PRODUCE ANY OF IT OR EVIDENCE OF ANYTHING CONTAINED IN IT IN
 ANY ACTION OR PROCEEDING IN ANY COURT EXCEPT ON BEHALF  OF  THE  COMMIS-
 SIONER  OF  FINANCE  IN  AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF
 THIS TITLE, OR ON BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING  UNDER
 THE PROVISIONS OF THIS TITLE WHEN SUCH INFORMATION OR FACTS SHOWN THERE-
 BY  ARE  DIRECTLY  INVOLVED  IN  SUCH ACTION OR PROCEEDING, IN EITHER OF
 WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND MAY  ADMIT  IN
 EVIDENCE  SO  MUCH OF SUCH INFORMATION OR OF THE FACTS SHOWN THEREBY, AS
 ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO  MORE.  NOTHING  HEREIN
 SHALL  BE  CONSTRUED  TO  PROHIBIT THE INSPECTION BY THE LEGAL REPRESEN-
 TATIVES OF THE DEPARTMENT OF FINANCE  OR  THE  TAX  COMMISSION  OF  SUCH
 INFORMATION  SUBMITTED  BY  ANY  APPLICANT  WHO SHALL BRING AN ACTION TO
 CORRECT AN ASSESSMENT.  NOTHING HEREIN SHALL BE  CONSTRUED  TO  PROHIBIT
 THE  DELIVERY  TO AN APPLICANT OR THE APPLICANT'S DULY AUTHORIZED REPRE-
 SENTATIVE OF A CERTIFIED COPY OF ANY INFORMATION SUBMITTED BY AN  APPLI-
 CANT  TO  THE  DEPARTMENT  OF  FINANCE PURSUANT TO THIS TITLE; OR TO ANY
 AGENCY OR ANY DEPARTMENT OF ANY CITY HAVING A POPULATION OF ONE  MILLION
 OR  MORE  PROVIDED  THE  SAME IS REQUESTED FOR OFFICIAL BUSINESS; NOR TO
 PROHIBIT THE INSPECTION FOR OFFICIAL BUSINESS OF SUCH INFORMATION BY THE
 CORPORATION COUNSEL OR OTHER LEGAL REPRESENTATIVES OF A  CITY  HAVING  A

 S. 2298                            10
 
 POPULATION  OF  ONE  MILLION  OR MORE OR BY THE DISTRICT ATTORNEY OF ANY
 COUNTY WITHIN SUCH CITY; NOR TO PROHIBIT THE PUBLICATION  OF  STATISTICS
 SO  CLASSIFIED  AS  TO PREVENT THE IDENTIFICATION OF SUCH INFORMATION OR
 PARTICULAR  ITEMS THEREOF.  INFORMATION SUBMITTED BY AN APPLICANT TO THE
 DEPARTMENT OF FINANCE PURSUANT TO THIS TITLE SHALL  NOT  BE  SUBJECT  TO
 DISCLOSURE PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
   2.  ANY VIOLATION OF THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION
 SHALL BE PUNISHABLE BY A FINE NOT EXCEEDING ONE THOUSAND DOLLARS  OR  BY
 IMPRISONMENT  NOT  EXCEEDING ONE YEAR, OR BOTH, AT THE DISCRETION OF THE
 COURT, AND IF THE OFFENDER BE AN OFFICER OR EMPLOYEE OF  THE  DEPARTMENT
 OF  FINANCE  OR  OF  THE TAX COMMISSION, THE OFFENDER SHALL BE DISMISSED
 FROM OFFICE.
   § 3. This act shall take effect immediately.