Bill Text: NY A02257 | 2023-2024 | General Assembly | Introduced

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Bill Title: 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 a city of one million or more persons.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to real property taxation [A02257 Detail]

Download: New_York-2023-A02257-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2257

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 25, 2023
                                       ___________

        Introduced  by M. of A. HYNDMAN -- read once and referred to the Commit-
          tee on Real Property Taxation

        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:

     1    Section 1. Subdivisions 1 and 2 and paragraph (a) of subdivision 5  of
     2  section 489-cccccc of the real property tax law, as added by chapter 119
     3  of the laws of 2008, subparagraph (ii) of paragraph (a) of subdivision 5
     4  as  amended  by  chapter  397 of the laws of 2017, subparagraph (iii) of
     5  paragraph (a) of subdivision 5 as added by chapter 361 of  the  laws  of
     6  2021, are amended to read as follows:
     7    1.  Time  limit  for  meeting minimum required expenditure. Applicants
     8  must meet the appropriate minimum required expenditure  as  provided  in
     9  subdivision  three  of  section  four hundred eighty-nine-bbbbbb of this
    10  title relating to the abatement for  which  such  project  qualifies  as
    11  follows:
    12    (a)  No  later  than four years from the date of issuance of the first
    13  building permit that allows actual construction  work  on  the  proposed
    14  project,  not  merely site preparation, to commence, or if no permit was
    15  required, the commencement of construction.
    16    (b) Mixed use properties. Expenditures for construction  work  related
    17  to  the  common  areas  and  systems of such property shall be allocated
    18  under rules promulgated  by  the  department  between  the  residential,
    19  nonresidential and retail, if any, portions of the property.
    20    2.  Time  limit for completion of construction. Construction of build-
    21  ings or structures for  which  benefits  have  been  approved  shall  be
    22  completed  no  later  than  five  years from the date of issuance of the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03678-01-3
        A. 2257                             2

     1  first building permit  that  allows  actual  construction  work  on  the
     2  proposed  project,  not  merely  site preparation, to commence, or if no
     3  permit was required, the commencement of construction.  Failure to  meet
     4  this requirement shall result in termination of any inflation protection
     5  provided  under  subdivision  three of section four hundred eighty-nine-
     6  bbbbbb of this title for any tax year that begins following the date  by
     7  which completion of construction is required under this paragraph.
     8    (a)  Time  to file. (i) Preliminary application.  (A) Building permit.
     9  No benefits pursuant to this title shall be granted for any construction
    10  work unless the applicant filed a preliminary application for such bene-
    11  fits on or before the date of issuance of the first building permit that
    12  allows actual construction work on the proposed project, not merely site
    13  preparation, to commence for such work. This requirement may  be  satis-
    14  fied where the applicant's architect, contractor or other representative
    15  authorized  to  file the application for such building permit files with
    16  the department on behalf of  the  applicant  a  preliminary  application
    17  containing such information as the department shall prescribe by rule.
    18    (B)  No  building  permit  required.  Where construction work does not
    19  require a building permit, a notarized letter from the project's  archi-
    20  tect  or  engineer  notifying the department of this fact shall be filed
    21  within thirty calendar days of the commencement  of  construction.    In
    22  such  circumstance,  such letter shall also satisfy the requirement of a
    23  preliminary application if the letter contains all  of  the  information
    24  required  for  a  preliminary  application under rules prescribed by the
    25  department.
    26    (ii) Final application. Applicants shall file a final application  for
    27  benefits  no  later than one year from the date of issuance of the first
    28  building permit [for construction work] that allows actual  construction
    29  work  on the proposed project, not merely site preparation, to commence,
    30  or, where construction work does not require a building permit, no later
    31  than one year from the date of commencement of  construction.  Abatement
    32  benefits shall not be granted until the applicant files the final appli-
    33  cation. If the final application is not filed within such one year peri-
    34  od,  abatement  benefits  shall not be granted until such application is
    35  filed, and the department may delay the granting of  such  benefits,  at
    36  the  department's  discretion,  to  investigate  the reason for the late
    37  filing.
    38    (iii) Time limit; final application. Notwithstanding any provision  of
    39  law  to  the  contrary,  the  time limit to file a final application for
    40  benefits as specified in subparagraph (ii) of this paragraph  shall  not
    41  apply  to  brand-new construction from the ground up located on property
    42  purchased from the city of New York where such  property  which  is  the
    43  site of the new construction was purchased from the city of New York for
    44  the  purposes  of  an  eligible development pursuant to this article and
    45  where the sales agreement with the city of New York  for  such  property
    46  includes  a restriction preventing the sale or transfer of such property
    47  for a period of five years or more and where  the  first  valuation  and
    48  assessment for the purposes of property taxes occurred within that peri-
    49  od  of  restriction  from  sale,  provided  the  project meets the other
    50  requirements of this title.
    51    § 2. This act  shall  take  effect  immediately  and  shall  apply  to
    52  construction projects that:
    53    (i)  were delayed as a result of environmental damage due to Hurricane
    54  Sandy in the fall of 2012; and
    55    (ii) for which a decision is under contested  review  by  a  court  of
    56  competent jurisdiction or by the New York City Department of Finance.