NY State Senate Bill 2021-S4156

Senate Bill S4156

2021-2022 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 1 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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to cities 1
Feb 02, 2021	referred to cities 1

2021-S4156 (ACTIVE) - Details

See Assembly Version of this Bill:: A2363
Current Committee:: Senate Cities 1
Law Section:: Real Property Tax Law
Laws Affected:: Amd §489-cccccc, RPT L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8430, A10533
2023-2024: A2257

2021-S4156 (ACTIVE) - Summary

2021-S4156 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4156

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-ccoccc 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 business 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 ò 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 fail of 2012 and for
which a decision is under contested review by the court or by the New
York City Department of Finance.

2021-S4156 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4156
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities 1
 
 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.

                                                            LBD06787-01-1

 S. 4156                             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.

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