2006 New York Code - Real Property Tax Abatement.

 
    §  499-bb.  Real  property  tax  abatement.  1.  Except as provided in
  subdivisions one-a and one-b of this section, within  a  city  having  a
  population  of  one  million  or  more,  eligible  buildings  containing
  eligible premises shall receive an  abatement  of  real  property  taxes
  during the benefit period as follows:
    (a)  for  each  of  the  first  three years of the benefit period, the
  abatement 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 fourth 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 fifth year of the benefit period, the abatement shall be
  equal to one-third of the abatement in the first  year  of  the  benefit
  period.
    1-a. Except as provided in subdivision one-b of this section, within a
  city  having  a  population  of  one million or more, eligible buildings
  containing eligible premises occupied or used by a tenant pursuant to  a
  lease having a lease commencement date on or after April first, nineteen
  hundred ninety-seven with an initial lease term of less than five years,
  but  not  less  than  three  years,  shall  receive an abatement of real
  property taxes during the benefit period as follows:
    (a) for the first year of the benefit period, the abatement  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 second 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 third year of the benefit period, the abatement  shall  be
  equal  to  one-third  of  the abatement in the first year of the benefit
  period.
    1-b. Within a city  having  a  population  of  one  million  or  more,
  eligible  buildings containing eligible premises as defined in paragraph
  (c) of subdivision ten of section four hundred  ninety-nine-aa  of  this
  title  occupied  or  used by a tenant pursuant to a lease having a lease
  commencement date on or after July first,  two  thousand  five  with  an
  initial  lease  term  of  not  less  than  three years, shall receive an
  abatement of real property taxes for each year  of  the  benefit  period
  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.
    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
  abatement  utilizing  such  reduced  billable assessed value. The amount
  equal to the difference between the abatement originally granted and the
  abatement 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
  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
  eligible 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
  additional  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
  expansion  tenants,  new  tenants  and 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 expansion tenants, new
  tenants and 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
  certificate of abatement is issued pursuant to this title shall  not  be
  eligible  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 certificate 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.