S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5254
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 18, 2019
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in  relation  to  authorizing
   municipalities  to  restrict the definitions of "commercial purpose or
   use" and "mixed-use property"

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  2  of section 485-a of the real property tax
 law, as amended by chapter 632 of the laws of 2004, is amended  to  read
 as follows:
   2.  Any  municipality  may, by local law, provide for the exemption of
 real property from taxation  as  provided  in  this  section.  Upon  the
 adoption  of  such a local law, the county in which such municipality is
 located may, by local law, and any school district, all or part of which
 is located in such municipality, may, by resolution, exempt such proper-
 ty from its taxation in the same manner and to the same extent  as  such
 municipality has done. FURTHER, SUCH MUNICIPALITY MAY BY LOCAL LAW SPEC-
 IFY  A  MORE  RESTRICTIVE  DEFINITION OF "COMMERCIAL PURPOSE OR USE" AND
 "MIXED-USE PROPERTY" THAN IS DEFINED BY PARAGRAPHS (D) AND (E) OF SUBDI-
 VISION ONE OF THIS SECTION.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06087-01-9



              

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5254--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 18, 2019
                                ___________
 
 Introduced  by Sens. BRESLIN, MAY -- read twice and ordered printed, and
   when printed to be committed to the Committee on Local  Government  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the real property tax law, in relation to  the  residen-
   tial-commercial urban exemption program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 485-a of the real property tax law, as  amended  by
 chapter  632  of  the  laws of 2004, subdivision 5 as further amended by
 subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
 2010, is amended to read as follows:
   §  485-a.  Residential-commercial  urban  exemption  program. 1. Defi-
 nitions.  As used in this section, the following terms  shall  have  the
 following meanings:
   (a)  "Municipality"  means any town, city or village except for a city
 having more than one million inhabitants.
   (b) "Applicant" means any person obligated to pay real property  taxes
 on  the  property  for which an exemption from real property taxes under
 this section is sought.
   (c) "Commercial construction work" means the modernization,  rehabili-
 tation, expansion or other improvement of the portion of mixed-use prop-
 erty to be used for commercial purposes.
   (d) "Commercial purpose or use" means the buying, selling or otherwise
 providing  of  goods or services DIRECTLY TO THE PUBLIC, including hotel
 services, [or other lawful business or commercial  activities  permitted
 in  mixed-use  property] RETAIL STORES, OFFICE SPACE, RESTAURANTS, BARS,
 GYMS, THEATERS, AND CAFES.
   (e) "Mixed-use property" means property on  which  will  exist,  after
 completion of residential construction work or a combination of residen-
 tial  construction  work and commercial construction work, a building or

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06087-02-9

 S. 5254--A                          2
 
 structure used for both residential and commercial purposes   OF  WHICH,
 AT  LEAST FIFTY PERCENT OF THE BUILDING OR STRUCTURE'S SQUARE FOOTAGE IS
 DEVOTED TO RESIDENTIAL PURPOSES OR USE AND AT LEAST FIFTEEN  PERCENT  OF
 THE  BUILDING  OR  STRUCTURE'S  SQUARE  FOOTAGE IS DEVOTED TO COMMERCIAL
 PURPOSES OR USE. ONLY SQUARE FOOTAGE EXISTING IN  A  STORY  ABOVE  GRADE
 SHALL BE USED IN THE DETERMINATION OF THE BUILDING'S PERCENTAGE OF RESI-
 DENTIAL PURPOSES OR USE AND COMMERCIAL PURPOSES OR USE.
   (f)  "Person"  means  an  individual,  corporation,  limited liability
 company, partnership, association, agency,  trust,  estate,  foreign  or
 domestic government or subdivision thereof, or other entity.
   (g) "Residential construction work" means the creation, modernization,
 rehabilitation,  expansion or other improvement of dwelling units, other
 than dwelling units in a hotel, in the portion of mixed-use property  to
 be used for residential purposes.
   (H)  "FLOOR  AREA" MEANS THE HORIZONTAL AREAS OF THE SEVERAL FLOORS OR
 ANY PORTION THEREOF OF A MIXED-USE PROPERTY MEASURED FROM  THE  EXTERIOR
 FACES  OF  EXTERIOR WALLS OR FROM THE CENTER LINE OF PARTY WALLS, EXCLU-
 SIVE OF ANY AREA EXISTING BELOW-GRADE.
   (I) "STORY ABOVE GRADE" MEANS ANY  STORY  HAVING  ITS  FINISHED  FLOOR
 SURFACE ENTIRELY ABOVE GRADE.
   (J)  "GRADE" SHALL MEAN THE FINISHED GROUND LEVEL ADJOINING THE BUILD-
 ING AT ALL EXTERIOR WALLS.
   2. Any municipality may, by local law, provide for  the  exemption  of
 real  property  from  taxation  as  provided  in  this section. Upon the
 adoption of such a local law, the county in which such  municipality  is
 located may, by local law, and any school district, all or part of which
 is located in such municipality, may, by resolution, exempt such proper-
 ty  from  its taxation in the same manner and to the same extent as such
 municipality has done.
   3. Upon the adoption of such a local law, non-residential real proper-
 ty, upon conversion to mixed-use property, shall be exempt from taxation
 and special ad valorem levies as provided for  in  subdivision  four  of
 this  section. LAND WHICH WAS VACANT PRIOR TO THE RESIDENTIAL OR COMMER-
 CIAL CONSTRUCTION WORK FOR WHICH A TAX EXEMPTION IS SOUGHT, SHALL NOT BE
 ELIGIBLE TO RECEIVE BENEFITS PURSUANT TO THIS SECTION.
   4. (a) (i) For a period of twelve years from the approval of an appli-
 cation, the increase in assessed value of such property attributable  to
 such conversion shall be exempt as provided in subparagraph (ii) of this
 paragraph.  Such  exemption  shall  be  computed  with  respect  to  the
 "exemption base". The exemption base shall be determined for  each  year
 in  which  there  is  an increase in assessed value so attributable from
 that of the previous year's assessed value.
   (ii) The following table shall illustrate the computation of  the  tax
 exemption:
 
       Year of exemption                      Percentage of exemption

           1 through 8                        100% of exemption base
           9                                  80% of exemption base
           10                                 60% of exemption base
           11                                 40% of exemption base
           12                                 20% of exemption base
 
   (b) No such exemption shall be granted unless
   (i)  such conversion was commenced subsequent to the date on which the
 municipality's local law took effect; [and]

 S. 5254--A                          3
 
   (ii) the cost of such conversion  exceeds  the  sum  of  ten  thousand
 dollars or such greater amount as may be specified by local law[.];
   (III) AT LEAST SEVENTY-FIVE PERCENT OF THE FLOOR AREA OF THE MIXED-USE
 PROPERTY CONSISTS OF THE PRE-EXISTING BUILDING OR STRUCTURE;
   (IV)  THE  PORTION  OF  THE  BUILDING  USED FOR COMMERCIAL PURPOSES IS
 CURRENTLY, AS DEMONSTRATED BY DOCUMENTATION SUBMITTED BY THE  APPLICANT,
 USED AS SUCH OR IS IN GOOD FAITH CONTEMPLATED.
   (c) For purposes of this section the term conversion shall not include
 ordinary maintenance and repairs.
   (d)  No  such exemption shall be granted concurrent with or subsequent
 to any other real property tax exemption granted to  the  same  improve-
 ments 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 twelve year exemption granted pursuant to this
 section less the number of years the property would have been previously
 exempt from real property taxes.
   5. Such exemption shall be granted only upon application by the  owner
 of  such  real  property  on a form prescribed by the commissioner. Such
 application shall be filed with the  assessor  of  the  municipality  or
 county having the power to assess property for taxation on or before the
 appropriate taxable status date of such municipality or county.
   6.  If  the assessor is satisfied that the applicant is entitled to an
 exemption pursuant to this section, he or she shall approve the applica-
 tion and such real property shall [thereafter] be exempt  from  taxation
 and  special  ad  valorem levies as in this section provided [commencing
 with the assessment roll prepared after the taxable status date referred
 to in subdivision five 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 shown in a separate column.
   7.  (A)  DURING  THE PERIOD OF EXEMPTION PURSUANT TO THIS SECTION, THE
 OWNER SHALL SUBMIT AN ANNUAL CERTIFICATION  TO  THE  ASSESSOR  ATTESTING
 THAT  THE  PROPERTY COMPLIES WITH THE PROVISIONS OR REQUIREMENTS OF THIS
 SECTION AND ANY ADDITIONAL PROVISIONS OR REQUIREMENTS AS MAY BE PROVIDED
 BY LOCAL LAW. FAILURE TO SUBMIT SUCH CERTIFICATION SHALL RESULT IN REVO-
 CATION OF BENEFITS. SUCH CERTIFICATION SHALL INCLUDE AT  A  MINIMUM  THE
 FOLLOWING:
   (I)  THE  TYPES  OF  RESIDENTIAL  USE AND THE TOTAL ABOVE-GRADE SQUARE
 FOOTAGE OF SUCH USE;
   (II) THE TYPES OF COMMERCIAL USE  AND  THE  TOTAL  ABOVE-GRADE  SQUARE
 FOOTAGE OF SUCH USE;
   (III) ATTESTATION THAT THE PORTION OF THE BUILDING USED FOR COMMERCIAL
 PURPOSES IS CURRENTLY, AS DEMONSTRATED BY DOCUMENTATION SUBMITTED BY THE
 APPLICANT, USED AS SUCH OR IS IN GOOD FAITH CONTEMPLATED; AND
   (IV) ALL SUCH OTHER INFORMATION REQUIRED BY THE MUNICIPALITY.
   (B)  IF  THE  ASSESSOR IS SATISFIED THAT THE APPLICANT CONTINUES TO BE
 ENTITLED TO THE EXEMPTION PURSUANT TO THIS SECTION, THE  ASSESSOR  SHALL
 APPROVE THE CERTIFICATION AND THE REAL PROPERTY SHALL REMAIN EXEMPT FROM
 TAXATION  AND  SPECIAL AD VALOREM LEVIES FOR ANOTHER YEAR AS PROVIDED IN
 THIS SECTION.
   8. (A) THE BENEFITS OF THIS SECTION SHALL BE REVOKED UPON A FINDING BY
 THE ASSESSOR THAT:

 S. 5254--A                          4
 
   (I) THE APPLICATION FOR BENEFITS HEREUNDER OR THE ANNUAL CERTIFICATION
 REQUIRED HEREUNDER CONTAINS A FALSE STATEMENT OR FALSE INFORMATION AS TO
 A MATERIAL MATTER OR OMITS A MATERIAL MATTER; OR
   (II)  THE  ELIGIBLE  REAL PROPERTY FAILS TO COMPLY WITH ONE OR MORE OF
 THE PROVISIONS OR REQUIREMENTS OF THIS  SECTION  OR  ANY  PROVISIONS  OR
 REQUIREMENTS PROVIDED BY LOCAL LAW.
   (B) SUCH REVOCATION SHALL REQUIRE THE REPAYMENT OF ANY BENEFITS PREVI-
 OUSLY GRANTED PURSUANT TO THIS SECTION.
   9.  IF  THE ASSESSOR DETERMINES THAT THERE WAS A MATERIAL MISSTATEMENT
 IN AN APPLICATION FILED BY OR ON BEHALF OF THE OWNERS FOR  AN  EXEMPTION
 PURSUANT  TO  THIS SECTION AND THAT SUCH MISSTATEMENT PROVIDED THE BASIS
 FOR THE GRANTING OF SUCH EXEMPTION, THE MUNICIPALITY  SHALL  PROCEED  TO
 IMPOSE A PENALTY ON THE APPLICANT OF ONE THOUSAND DOLLARS IN ADDITION TO
 RECOVERING THE AMOUNT OF ANY PRIOR EXEMPTION GRANTED.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law and shall apply to properties for  which  the  initial
 application for exemption are received on and after such date.