NY State Senate Bill 2019-S8430B

Senate Bill S8430B

2019-2020 Legislative Session

Clarifies the definition of "first building permit" for purposes of filing requirements to qualify for an abatement of tax payments for certain industrial and commercial properties located in the city of New York

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 22, 2020	print number 8430b
Jul 22, 2020	amend and recommit to cities
Jul 21, 2020	print number 8430a
Jul 21, 2020	amend (t) and recommit to cities
May 29, 2020	referred to cities

Bill Amendments

Original

B (Active)

2019-S8430 - Details

See Assembly Version of this Bill:: A10533
Current Committee:: Senate Cities
Law Section:: Real Property Tax Law
Laws Affected:: Amd §489-cccccc, RPT L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4156, A2363
2023-2024: A2257

2019-S8430 - Summary

2019-S8430 - Sponsor Memo

                                
 
BILL NUMBER: S8430

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend chapter 397 of the laws of 2017, amending the real prop-
erty tax law, relating to the impact of late filings of abatement bene-
fits, in relation to the effectiveness thereof

 
PURPOSE:

To clarify that applicants who had already submitted a preliminary
application for the Industrial and Commercial Abatement Program (ICAP)
by the effective date of Chapter 397 of the Laws of 2017 also qualify
for the program.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends section 2 of chapter 397 of the laws of
2017 that amended the real property tax law relating to the impact of
late filings of abatement benefits by removing the provision limiting

the legislation only to projects that file preliminary applications on
or after the effective date of October 23, 2017.

Section two of the bill provides the effective date.

 
JUSTIFICATION:

The Industrial and Commercial Abatement Program (ICAP) is a tax abate-
ment program which incentivizes businesses to expand through
construction projects performed on their property.To be eligible, the
applicant must submit two applications.The first is a preliminary appli-
cation which must be submitted on or before the date the first building
permit for the site is issued or, when no building permit is required,
within thirty calendar days of the commencement of construction. The
second is the final application which must be filed within one year from
the date of the first building permit for construction was issued or
when no building permit is required, within one year from date of
commencement of construction.

The legislation chaptered in 2017 addressed an issue which resulted in
the denial of 85 applicants that had met all the eligibility require-
ments except that their final applications were not submitted within the
hard one-year period which they were unable to comply with due to
circumstances beyond their control, i.e. the City of New York's inabili-
ty to timely grant permits required to proceed with construction and
meet that one year deadline.However, the City of New York has interpret-
ed the legislation's effective date to limit eligibility only to appli-
cants who have submitted a preliminary application on or after October
23, 2017, unintentionally excluding applicants who had already submitted
the preliminary application. This legislation seeks to clarify that
businesses who had submitted a preliminary application prior to October
23, 2017 are also eligible for the program provided they meet the other
requirements.

 
PRIOR LEGISLATIVE HISTORY:

Chapter 297 of the Laws of 2017

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately and be deemed to have been in full force and effect on and
after October 23, 2017.

2019-S8430 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8430
 
                             I N  S E N A T E
 
                               May 29, 2020
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities
 
 AN ACT to amend chapter 397 of the laws of 2017, amending the real prop-
   erty tax law, relating to the impact  of  late  filings  of  abatement
   benefits, in relation to the effectiveness thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 2 of chapter 397 of the laws of 2017, amending  the
 real  property tax law, relating to the impact of late filings of abate-
 ment benefits, is amended to read as follows:
   § 2. This act shall  take  effect  immediately  [and  shall  apply  to
 projects that file preliminary applications on or after such date].
   § 2. This act shall take effect immediately and be deemed to have been
 in full force and effect on and after October 23, 2017.
 
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16529-01-0

2019-S8430A - Details

See Assembly Version of this Bill:: A10533
Current Committee:: Senate Cities
Law Section:: Real Property Tax Law
Laws Affected:: Amd §489-cccccc, RPT L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4156, A2363
2023-2024: A2257

2019-S8430A - Summary

2019-S8430A - Sponsor Memo

                                
 
BILL NUMBER: S8430a

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to clarifying the
definition of "first building permit" for purposes of filing require-
ments to qualify for an abatement of tax payments for certain industrial
and commercial properties located in a city of one million or more
persons

 
PURPOSE:

To clarify that the building permit related to eligibility for the
Industrial and Commercial Abatement Program (ICAP) is one which allows
actual construction work to take place.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends subdivisions 1 and 2 and paragraph (a) of
subdivision 5 of § 489-cccccc of the real property tax law to specify

the first building permit related to filing requirements for the indus-
trial and commercial abatement program means the first building permit
that allows actual construction work, and not merely site preparation,
to commence.

Section two of the bill provides the effective date.

 
JUSTIFICATION:

Industrial and Commercial Abatement Program (ICAP) was enacted in 2008
to provide an abatement of real property taxes for the construction,
alteration, or improvement of certain industrial or commercial proper-
ties in certain areas of New York City. Among the time limit require-
ments of the program when a building permit is mandatory are:

   * Construction work must meet a Minimum Required Expenditure no later
than four years from the date of issuance of the first building permit

   * Construction must be completed within five years from the date of
issuance of the first building permit.

   * The applicant must file a preliminary application on or before the
issuance of the first building permit for the project

   * Applicants must also submit a final application within one year
from the date of issuance of the first building permit

At times, however, these time limits make it impossible for a business
to be eligible to participate in ICAP. Currently the time limit begins
when a building permit is first issued, yet, in some instances a busi-
ness must obtain multiple building permits for a project, most of which
are not building permits which permit construction to begin.  This has
led to a subjective interpretation as to which building permit is the
controlling factor as to when the time limits begin.  This is unfair to
business owners who are looking to participate in ICAP which will allow
them, among other things, to grow their business and leads to more jobs
and an increase economic activity which will only help during this
difficult fiscal environment. This legislation clarifies that the time
limits begin with the issuance of the first building permit that allows
construction to being.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None to the State

 
EFFECTIVE DATE:
Immediately and shall apply to projects for which a decision is under
contested review by the court or by a state or city department of
finance.

2019-S8430A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8430--A
 
                             I N  S E N A T E
 
                               May 29, 2020
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Cities  --  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 clarifying the
   definition  of "first building permit" for purposes of filing require-
   ments to qualify for an abatement of tax payments for  certain  indus-
   trial  and  commercial  properties located in a city of one million or
   more persons
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions 1 and 2 and paragraph (a) of subdivision 5 of
 section 489-cccccc of the real property tax law, as added by chapter 119
 of the laws of 2008, subparagraph (ii) of paragraph (a) of subdivision 5
 as amended by chapter 397 of the laws of 2017, are amended  to  read  as
 follows:
   1.  Time  limit  for  meeting minimum required expenditure. Applicants
 must meet the appropriate minimum required expenditure  as  provided  in
 subdivision  three  of  section  four hundred eighty-nine-bbbbbb of this
 title relating to the abatement for  which  such  project  qualifies  as
 follows:
   (a)  No  later  than four years from the date of issuance of the first
 building permit THAT ALLOWS ACTUAL CONSTRUCTION WORK,  NOT  MERELY  SITE
 PREPARATION, TO COMMENCE, or if no permit was required, the commencement
 of construction.
   (b)  Mixed  use properties. Expenditures for construction work related
 to the common areas and systems of  such  property  shall  be  allocated
 under  rules  promulgated  by  the  department  between the residential,
 nonresidential and retail, if any, portions of the property.
   2. Time limit for completion of construction. Construction  of  build-
 ings  or  structures  for  which  benefits  have  been approved shall be
 completed no later than five years from the  date  of  issuance  of  the
 first  building  permit THAT ALLOWS ACTUAL CONSTRUCTION WORK, NOT MERELY
 SITE PREPARATION, TO  COMMENCE,  or  if  no  permit  was  required,  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16529-03-0

 S. 8430--A                          2
 
 commencement  of  construction.   Failure to meet this requirement shall
 result in termination of any inflation protection provided under  subdi-
 vision  three  of  section four hundred eighty-nine-bbbbbb of this title
 for  any  tax year that begins following the date by which completion of
 construction is required under this paragraph.
   (a) Time to file. (i) Preliminary application.   (A) Building  permit.
 No benefits pursuant to this title shall be granted for any construction
 work unless the applicant filed a preliminary application for such bene-
 fits on or before the date of issuance of the first building permit THAT
 ALLOWS  ACTUAL  CONSTRUCTION  WORK,  NOT  MERELY  SITE  PREPARATION,  TO
 COMMENCE for such work. This requirement  may  be  satisfied  where  the
 applicant's  architect, contractor or other representative authorized to
 file the application for such building permit files with the  department
 on  behalf  of  the  applicant a preliminary application containing such
 information as the department shall prescribe by rule.
   (B) No building permit required.  Where  construction  work  does  not
 require  a building permit, a notarized letter from the project's archi-
 tect or engineer notifying the department of this fact  shall  be  filed
 within  thirty  calendar  days  of the commencement of construction.  In
 such circumstance, such letter shall also satisfy the requirement  of  a
 preliminary  application  if  the letter contains all of the information
 required for a preliminary application under  rules  prescribed  by  the
 department.
   (ii)  Final application. Applicants shall file a final application for
 benefits no later than one year from the date of issuance of  the  first
 building  permit [for construction work] THAT ALLOWS ACTUAL CONSTRUCTION
 WORK, NOT MERELY SITE PREPARATION, TO COMMENCE, or,  where  construction
 work does not require a building permit, no later than one year from the
 date  of  commencement  of construction. Abatement benefits shall not be
 granted until the applicant files the final application.  If  the  final
 application is not filed within such one year period, abatement benefits
 shall not be granted until such application is filed, and the department
 may delay the granting of such benefits, at the department's discretion,
 to investigate the reason for the late filing.
   §  2.  This  act  shall  take  effect  immediately  and shall apply to
 projects for which a decision is under contested review by the court  or
 by a state or city department of finance.

2019-S8430B (ACTIVE) - Details

See Assembly Version of this Bill:: A10533
Current Committee:: Senate Cities
Law Section:: Real Property Tax Law
Laws Affected:: Amd §489-cccccc, RPT L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4156, A2363
2023-2024: A2257

2019-S8430B (ACTIVE) - Summary

2019-S8430B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8430b

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to clarifying the
definition of "first building permit" for purposes of filing require-
ments to qualify for an abatement of tax payments for certain industrial
and commercial properties located in a city of one million or more
persons

 
PURPOSE:

To clarify that the building permit related to eligibility for the
Industrial and Commercial Abatement Program (ICAP) is one which allows
actual construction work to take place.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends subdivisions 1 and 2 and paragraph (a) of
subdivision 5 of § 489-cccccc of the real property tax law to specify

the first building permit related to filing requirements for the indus-
trial and commercial abatement program means the first building permit
that allows actual construction work on the proposed project, and not
merely site preparation, to commence.

Section two of the bill provides the effective date.

 
JUSTIFICATION:

Industrial and Commercial Abatement Program (ICAP) was enacted in 2008
to provide an abatement of real property taxes for the construction,
alteration, or improvement of certain industrial or commercial proper-
ties in certain areas of New York City. Among the time limit require-
ments of the program when a building permit is mandatory are:

   * Construction work must meet a Minimum Required Expenditure no later
than four years from the date of issuance of the first building permit

   * Construction must be completed within five years from the date of
issuance of the first building permit.

   * The applicant must file a preliminary application on or before the
issuance of the first building permit for the project

   * Applicants must also submit a final application within one year
from the date of issuance of the first building permit

At times, however, these time limits make it impossible for a business
to be eligible to participate in ICAP. Currently the time limit begins
when a building permit is first issued, yet, in some instances a busi-
ness must obtain multiple building permits for a project, most of which
are not building permits which permit construction to begin.This has led
to a subjective interpretation as to which building permit is the
controlling factor as to when the time limits begin. This is unfair to
business owners who are looking to participate in ICAP which will allow
them, among other things, to grow their business and leads to more jobs
and an increase economic activity which will only help during this
difficult fiscal environment. This legislation clarifies that the time
limits begin with the issuance of the first building permit that allows
construction to being.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None to the State

 
EFFECTIVE DATE:
Immediately and shall apply to projects that were delayed as a result of
environmental damage due to Hurricane Sandy in the fall of 2012 and for
which a decision is under contested review by the court or by the New
York City Department of Finance.

2019-S8430B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8430--B
 
                             I N  S E N A T E
 
                               May 29, 2020
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Cities  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  --  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 clarifying the
   definition of "first building permit" for purposes of filing  require-
   ments  to  qualify for an abatement of tax payments for certain indus-
   trial and commercial properties located in a city of  one  million  or
   more persons
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1 and 2 and paragraph (a) of subdivision 5  of
 section 489-cccccc of the real property tax law, as added by chapter 119
 of the laws of 2008, subparagraph (ii) of paragraph (a) of subdivision 5
 as  amended  by  chapter 397 of the laws of 2017, are amended to read as
 follows:
   1. Time limit for meeting  minimum  required  expenditure.  Applicants
 must  meet  the  appropriate minimum required expenditure as provided in
 subdivision three of section four  hundred  eighty-nine-bbbbbb  of  this
 title  relating  to  the  abatement  for which such project qualifies as
 follows:
   (a) No later than four years from the date of issuance  of  the  first
 building  permit  THAT  ALLOWS  ACTUAL CONSTRUCTION WORK ON THE PROPOSED
 PROJECT, NOT MERELY SITE PREPARATION, TO COMMENCE, or if no  permit  was
 required, the commencement of construction.
   (b)  Mixed  use properties. Expenditures for construction work related
 to the common areas and systems of  such  property  shall  be  allocated
 under  rules  promulgated  by  the  department  between the residential,
 nonresidential and retail, if any, portions of the property.
   2. Time limit for completion of construction. Construction  of  build-
 ings  or  structures  for  which  benefits  have  been approved shall be
 completed no later than five years from the  date  of  issuance  of  the
 first  building  permit  THAT  ALLOWS  ACTUAL  CONSTRUCTION  WORK ON THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16529-07-0

 S. 8430--B                          2
 
 PROPOSED PROJECT, NOT MERELY SITE PREPARATION, TO  COMMENCE,  or  if  no
 permit  was required, the commencement of construction.  Failure to meet
 this requirement shall result in termination of any inflation protection
 provided  under  subdivision  three of section four hundred eighty-nine-
 bbbbbb of this title for any tax year that begins following the date  by
 which completion of construction is required under this paragraph.
   (a)  Time  to file. (i) Preliminary application.  (A) Building permit.
 No benefits pursuant to this title shall be granted for any construction
 work unless the applicant filed a preliminary application for such bene-
 fits on or before the date of issuance of the first building permit THAT
 ALLOWS ACTUAL CONSTRUCTION WORK ON THE PROPOSED PROJECT, NOT MERELY SITE
 PREPARATION, TO COMMENCE for such work. This requirement may  be  satis-
 fied where the applicant's architect, contractor or other representative
 authorized  to  file the application for such building permit files with
 the department on behalf of  the  applicant  a  preliminary  application
 containing such information as the department shall prescribe by rule.
   (B)  No  building  permit  required.  Where construction work does not
 require a building permit, a notarized letter from the project's  archi-
 tect  or  engineer  notifying the department of this fact shall be filed
 within thirty calendar days of the commencement  of  construction.    In
 such  circumstance,  such letter shall also satisfy the requirement of a
 preliminary application if the letter contains all  of  the  information
 required  for  a  preliminary  application under rules prescribed by the
 department.
   (ii) Final application. Applicants shall file a final application  for
 benefits  no  later than one year from the date of issuance of the first
 building permit [for construction work] THAT ALLOWS ACTUAL  CONSTRUCTION
 WORK  ON THE PROPOSED PROJECT, NOT MERELY SITE PREPARATION, TO COMMENCE,
 or, where construction work does not require a building permit, no later
 than one year from the date of commencement of  construction.  Abatement
 benefits shall not be granted until the applicant files the final appli-
 cation. If the final application is not filed within such one year peri-
 od,  abatement  benefits  shall not be granted until such application is
 filed, and the department may delay the granting of  such  benefits,  at
 the  department's  discretion,  to  investigate  the reason for the late
 filing.
   § 2. This act  shall  take  effect  immediately  and  shall  apply  to
 construction projects that:
   (i)  were delayed as a result of environmental damage due to Hurricane
 Sandy in the fall of 2012; and
   (ii) for which a decision is under contested  review  by  a  court  of
 competent jurisdiction or by the New York City Department of Finance.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.