There is a newer version of the New York Consolidated Laws
2006 New York Code - Real Property Tax Exemption; Deferral Of Tax Payments.
§ 11-257 Real property tax exemption; deferral of tax payments. The
city shall be divided into six classes of areas as provided in this part
and pursuant to designation of areas to be made by the temporary
commercial incentive area boundary commission. Within such areas, the
following benefits shall be available to qualified recipients:
a. (1) A recipient who, following the effective date of a certificate
of eligibility, has performed industrial construction work in any area
of the city shall be eligible for an exemption from real property taxes
as follows: For the first thirteen tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the fourteenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for industrial construction work:
Tax year following effective
date of certificate
of eligibility: Amount of exemption:
1 through 13 ............. Tax on 100% of exemption base
14 ........................ Tax on 90% of exemption base
15 ........................ Tax on 80% of exemption base
16 ........................ Tax on 70% of exemption base
17 ........................ Tax on 60% of exemption base
18 ........................ Tax on 50% of exemption base
19 ........................ Tax on 40% of exemption base
20 ........................ Tax on 30% of exemption base
21 ........................ Tax on 20% of exemption base
22 ........................ Tax on 10% of exemption base
(2) Notwithstanding paragraph (1) of this subdivision, a recipient who
filed an application for a certificate of eligibility for industrial
construction work in any area of such city on or after July 1, 1995, and
who, following the effective date of such certificate of eligibility,
has performed such industrial construction work shall be eligible for an
exemption from real property taxes as follows: for the first sixteen tax
years, the recipient shall be exempt from taxation on one hundred per
centum of the exemption base. For the following nine tax years, the
recipient shall be exempt from taxation on a percentage of the exemption
base beginning at ninety per centum thereof in the seventeenth tax year
and decreasing by ten per centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for industrial construction work pursuant to this paragraph:
Tax year following effective
date of certificate of
eligibility: Amount of exemption:
1 through 16.............. Tax on 100% of exemption base
17 ........................ Tax on 90% of exemption base
18 ........................ Tax on 80% of exemption base
19 ........................ Tax on 70% of exemption base
20 ........................ Tax on 60% of exemption base
21 ........................ Tax on 50% of exemption base
22 ........................ Tax on 40% of exemption base
23 ........................ Tax on 30% of exemption base
24 ........................ Tax on 20% of exemption base
25 ........................ Tax on 10% of exemption base
(3)(a) A recipient who filed an application for a certificate of
eligibility for industrial construction work in any area of such city on
or after July 1, 1995, and who, following the effective date of such
certificate of eligibility, both commenced and completed such work,
shall be eligible for an abatement of real property taxes as follows:
for the first tax year immediately following completion of such work,
and for the second, third and fourth tax years following completion of
such work, the abatement shall equal fifty per centum of the real
property tax that was imposed on the property which is the subject of
the certificate of eligibility for the tax year immediately preceding
the effective date of such certificate of eligibility, provided,
however, that if such property was fully or partially exempt from real
property taxes during such tax year, then the abatement shall equal
fifty per centum of the real property tax that would have been imposed
on such property but for such full or partial exemption. For the fifth
and sixth tax years, the abatement shall equal forty per centum of such
amount; for the seventh and eighth tax years, the abatement shall equal
thirty per centum of such amount; for the ninth and tenth tax years, the
abatement shall equal twenty per centum of such amount; and for the
eleventh and twelfth tax years, the abatement shall equal ten per centum
of such amount. Notwithstanding any inconsistent provision of this
paragraph, a recipient shall not be eligible for an abatement for the
first tax year following completion of such work, unless the recipient
submits proof satisfactory to the department of finance that such work
was completed on or before the taxable status date for such first tax
year no later than thirty days after such taxable status date. Where the
recipient fails to submit such proof in accordance with the foregoing
sentence, a recipient shall not be eligible for an abatement until the
second tax year following completion of such work. In such case, a
recipient shall submit proof satisfactory to the department of finance
that such work was completed on or before the taxable status date for
such first tax year no later than thirty days after the taxable status
date for such second tax year. A recipient whose abatement begins in the
second tax year following completion of such work shall not thereby have
his or her twelve-year benefit period shortened.
The following table shall illustrate the computation of the abatement
for industrial construction work pursuant to this paragraph:
Tax year following completion
of industrial construction
work: Amount of abatement:
1 ...................................................50%
2 ...................................................50%
3 ...................................................50%
4 ...................................................50%
5 ...................................................40%
6 ...................................................40%
7 ...................................................30%
8 ...................................................30%
9 ...................................................20%
10 ..................................................20%
11 ..................................................10%
12 ..................................................10%
(b) If, due to a determination of the department of finance or tax
commission of such city or a court, the real property tax imposed on
such property for the tax year immediately preceding the effective date
of such certificate of eligibility is changed, then any abatement that
was granted in accordance with this paragraph prior to such reduction
shall be recalculated and any abatement to be granted in accordance with
this paragraph shall be based on the real property tax imposed on such
property for the tax year immediately preceding the effective date of
such certificate of eligibility, as changed by such determination. The
amount equal to the difference between the abatement orginally granted
and the abatement as so recalculated shall be deducted from any refund
otherwise payable or remission otherwise due as a result of a change due
to such determination, 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
finance of a notice of the amount payable. Such amount payable shall
constitute a tax lien on such property 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 property shall be
charged and collected on such amount from the date of such notice to the
date of payment.
(c) No property which is the subject of a certificate of eligibility
pursuant to this part shall receive more than one abatement pursuant to
this part and no abatement shall exceed one consecutive twelve-year
period as specified in subparagraph (a) of this paragraph.
(d) In no event shall an abatement granted pursuant to this part
exceed in any tax year the real property taxes imposed on the property
which is the subject of a certificate of eligibility pursuant to this
part.
(e) For the purpose of calculating an abatement of real property taxes
pursuant to this part, where a tax lot contains more than one building
or structure and not all of the buildings or structures comprising such
tax lot are the subject of a certificate of eligibility for industrial
construction work pursuant to this part, the real property taxes imposed
on such tax lot for the year immediately preceding the effective date of
such certificate of eligibility shall be apportioned among the
buildings, structures and land comprising such tax lot and only such
real property taxes as are allocable to the property which is the
subject of the certificate of eligibility pursuant to this part shall be
abated in accordance with this paragraph. Such apportionment shall be in
accordance with rules promulgated by the department of finance.
(f) A recipient who filed an application for a certificate of
eligibility for industrial construction work in the commercial
revitalization area on or after July first, two thousand, and who,
following the effective date of such certificate of eligibility, both
commenced and completed such work, shall be eligible for an abatement of
real property taxes in accordance with subparagraph (a) of this
paragraph, provided, however, that where the total net square footage of
the industrial property used or immediately available and held out for
use for manufacturing activities involving the assembly of goods or the
fabrication or processing of raw materials is less than seventy-five per
centum of the total net square footage of the industrial property, the
abatement of real property taxes shall be determined in accordance with
rules promulgated by the department of finance. Notwithstanding the
foregoing sentence, no such abatement shall be allowed where the total
net square footage of the industrial property used or immediately
available and held out for use for such manufacturing activities after
completion of industrial construction work is less than the total net
square footage used or immediately available and held out for use for
such manufacturing activities before the commencement of such
construction work. For purposes of this subparagraph only, the term
"industrial construction work" shall mean the modernization,
rehabilitation, expansion or improvement of an existing building or
structure for use as industrial property and the term "industrial
property" shall mean nonresidential property on which will exist after
completion of industrial construction work a building or structure
wherein at least twenty-five per centum of the total net square footage
is used or immediately available and held out for use for manufacturing
activities involving the assembly of goods or the fabrication or
processing of raw materials.
b. (1) A recipient who, following the effective date of a certificate
of eligibility, has performed commercial construction work in a special
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first thirteen tax years, the recipient shall
be exempt from taxation on one hundred per centum of the exemption base.
For the following nine tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at ninety per
centum thereof in the fourteenth tax year and decreasing by ten per
centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a special exemption area:
Tax year following effective
date of certificate
of eligibility: Amount of exemption:
1 through 13 ............. Tax on 100% of exemption base
14 ........................ Tax on 90% of exemption base
15 ........................ Tax on 80% of exemption base
16 ........................ Tax on 70% of exemption base
17 ........................ Tax on 60% of exemption base
18 ........................ Tax on 50% of exemption base
19 ........................ Tax on 40% of exemption base
20 ........................ Tax on 30% of exemption base
21 ........................ Tax on 20% of exemption base
22 ........................ Tax on 10% of exemption base
(2) Notwithstanding paragraph (1) of this subdivision, a recipient who
filed an application for a certificate of eligibility for commercial
construction work in a special exemption area on or after July 1, 1995,
and who, following the effective date of such certificate of
eligibility, has performed such commercial construction work shall be
eligible for an exemption from real property taxes as follows: For the
first sixteen tax years, the recipient shall be exempt from taxation on
one hundred per centum of the exemption base. For the following nine tax
years, the recipient shall be exempt from taxation on a percentage of
the exemption base beginning at ninety per centum thereof in the
seventeenth tax year and decreasing by ten per centum of said exemption
base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a special exemption area pursuant to
this paragraph:
Tax year following effective
date of certificate
of eligibility: Amount of exemption:
1 through 16 ............. Tax on 100% of exemption base
17 ........................ Tax on 90% of exemption base
18 ........................ Tax on 80% of exemption base
19 ........................ Tax on 70% of exemption base
20 ........................ Tax on 60% of exemption base
21 ........................ Tax on 50% of exemption base
22 ........................ Tax on 40% of exemption base
23 ........................ Tax on 30% of exemption base
24 ........................ Tax on 20% on exemption base
25 ........................ Tax on 10% of exemption base
c. (1) A recipient who, following the effective date of a certificate
of eligibility, has performed commercial construction work in a regular
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first eight tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following four tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at eighty per
centum thereof in the ninth tax year and decreasing by twenty per centum
of said exemption base each year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a regular exemption area:
Tax year following effective
date of certificate
of eligibility: Amount of exemption:
1 through 8 .............. Tax on 100% of exemption base
9 ......................... Tax on 80% of exemption base
10 ........................ Tax on 60% of exemption base
11 ........................ Tax on 40% of exemption base
12 ........................ Tax on 20% of exemption base
(2) Notwithstanding paragraph (1) of this subdivision, a recipient who
filed an application for a certificate of eligibility for commercial
construction work in a regular exemption area on or after July 1, 1995,
and who, following the effective date of such certificate of
eligibility, has performed such commercial construction work shall be
eligible for an exemption from real property taxes as follows: For the
first eleven tax years, the recipient shall be exempt from taxation on
one hundred per centum of the exemption base. For the following four tax
years, the recipient shall be exempt from taxation on a percentage of
the exemption base beginning at eighty per centum thereof in the twelfth
tax year and decreasing by twenty per centum of said exemption base each
year.
The following table shall illustrate the computation of the exemption
for commercial construction work in a regular exemption area pursuant to
this paragraph:
Tax year following effective
date of certificate
of eligibility: Amount of exemption:
1 through 11 ............. Tax on 100% of exemption base
12 ........................ Tax on 80% of exemption base
13 ........................ Tax on 60% of exemption base
14 ........................ Tax on 40% of exemption base
15 ........................ Tax on 20% of exemption base
d. Except as provided in paragraphs (2) and (3) of subdivision d of
section 11-258 of this part, a recipient who, following the effective
date of a certificate of eligibility, has performed commercial
construction work in a deferral area shall be eligible for a deferral of
tax payments as follows: For the first three tax years following the
effective date of a certificate of eligibility, the tax payment on one
hundred per centum of the exemption base shall be deferred. For the
following four tax years, the tax payment on a percentage of the
exemption base beginning at eighty per centum thereof in the fourth tax
year and decreasing by twenty per centum each year shall be deferred.
The total amount of tax payments deferred pursuant to this part shall be
paid subsequently over the course of ten tax years as follows:
Commencing in the eleventh tax year following the effective date of the
certificate of eligibility, through and including the twentieth tax year
following such effective date, an amount equal to ten per centum of the
total amount of tax payments deferred pursuant to this section shall be
added to the amount of tax otherwise assessed and payable in each such
tax year on the property subject to such deferral.
The following table shall illustrate the computation of deferral and
payment of taxes for commercial construction work in a deferral area:
Tax year following
effective date of
certificate of
eligibility: Amount of tax payments to be deferred or paid:
1 through 3 ......Deferral of tax payment on 100% of the exemption base
4 ................ Deferral of tax payment on 80% of the exemption base
5 ................ Deferral of tax payment on 60% of the exemption base
6 ................ Deferral of tax payment on 40% of the exemption base
7 ................ Deferral of tax payment on 20% of the exemption base
8 through 10 ..... No tax payments are to be deferred and no deferred
tax payments are required to be made
11 through 20 .... Payment each year of 10% of total dollar amount of
tax payments deferred pursuant to this part
e. A recipient who, following the effective date of a certificate of
eligibility, has performed renovation construction work in a renovation
exemption area shall be eligible for an exemption from real property
taxes as follows: For the first eight tax years, the recipient shall be
exempt from taxation on one hundred per centum of the exemption base.
For the following four tax years, the recipient shall be exempt from
taxation on a percentage of the exemption base beginning at eighty per
centum thereof in the ninth tax year and decreasing by twenty per centum
of said exemption base each year.
The following table shall illustrate the computation of the exemption
for renovation construction work in a renovation exemption area:
Tax year following effective
date of certificate
of eligibility: Amount of exemption:
1 through 8 .............. Tax on 100% of exemption base
9 ......................... Tax on 80% of exemption base
10 ........................ Tax on 60% of exemption base
11 ........................ Tax on 40% of exemption base
12 ........................ Tax on 20% of exemption base
e.1. A recipient who, following the effective date of a certificate of
eligibility, constructs a new building or structure that meets the
requirements set forth in subdivision i of section 11-259 of this part
in the new construction exemption area specified in paragraph (1), (2)
or (3) of subdivision e of section 11-258 of this part shall be eligible
for an exemption from real property taxes as follows: for the first four
tax years, the recipient shall be exempt from taxation on one hundred
per centum of the exemption base. For the following four tax years, the
recipient shall be exempt from taxation on a percentage of the exemption
base beginning at eighty per centum thereof in the fifth tax year and
decreasing by twenty per centum of said exemption base each year.
The following table shall illustrate the computation of the exemption
for the construction of a new building or structure that meets the
requirements set forth in subdivision i of section 11-259 of this part
in the new construction exemption area specified in paragraph (1), (2)
or (3) of subdivision e of section 11-258 of this part:
Tax year following effective
date of certificate
of eligibility: Amount of exemption:
1 through 4 .............. Tax on 100% of exemption base
5 ......................... Tax on 80% of exemption base
6 ......................... Tax on 60% of exemption base
7 ......................... Tax on 40% of exemption base
8 ......................... Tax on 20% of exemption base
f. There shall be no exemption from or deferral of payment of real
property taxes available pursuant to this part to any person who
performs commercial or renovation construction work in an excluded area,
except as provided in paragraphs (2) and (3) of subdivision d of section
11-258 of this part.
g. The benefits of this part shall be granted exclusively for
industrial, commercial or renovation construction work described in
approved plans. No benefits shall be granted for residential
construction work. Any parcel which is partly located in an excluded
area shall be deemed to be entirely located in such area.
h. No benefits pursuant to this part shall be granted for work which
is the subject of a certificate of eligibility issued pursuant to part
three of this subchapter.
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