Bill Text: NY A04082 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to creating a vacant redevelopment commercial property exemption.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2020-07-16 - held for consideration in real property taxation [A04082 Detail]
Download: New_York-2019-A04082-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4082 2019-2020 Regular Sessions IN ASSEMBLY February 1, 2019 ___________ Introduced by M. of A. RA, RAIA, CROUCH, McDONOUGH, GIGLIO, FRIEND -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law and the tax law, in relation to vacant redeveloped commercial property exemptions The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property tax law is amended by adding a new 2 section 421-p to read as follows: 3 § 421-p. Vacant redeveloped commercial property exemptions. 1. Real 4 property that is constructed, altered, or improved upon vacant land 5 subsequent to the first day of January, two thousand twenty for the 6 purpose of commercial, business or industrial activity shall be exempt 7 from taxation and special ad valorem levies, to the extent hereinafter 8 provided. For the purposes of these exemptions, the following terms 9 shall have the following meanings: (a) "vacant land" means land, includ- 10 ing land under water, which contains no enclosed, permanent improvement 11 that has been neglected or abandoned for a period of eighteen months or 12 more; and (b) "predominantly vacant land" means land, including land 13 under water, that has been neglected or abandoned for a period of eigh- 14 teen months or more on which not more than fifteen percent of the lot 15 area contains enclosed, permanent improvements; in addition, such land 16 may include existing foundations. 17 2. (a) (i) For real property that is newly constructed, improved and 18 on vacant land and the value of the construction exceeds two million 19 dollars, such real property shall be exempt for a period of five years 20 to the extent of fifty per centum of the increase in assessed value 21 thereof attributable to such construction and for an additional period 22 of five years provided, however, that the extent of such exemption shall 23 be decreased by twenty-five per centum. Such exemption shall be 24 computed with respect to the "exemption base." The exemption base shall EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02322-01-9A. 4082 2 1 be the increase in assessed value as determined in the initial year of 2 such ten year period following the filing of an original application. 3 The following table shall illustrate the computation of the tax 4 exemption: 5 Year of exemption Percentage of exemption 6 1 50 7 2 50 8 3 50 9 4 50 10 5 50 11 6 25 12 7 25 13 8 25 14 9 25 15 10 25 16 (ii) For real property that is newly constructed, improved and on 17 vacant land and the value of the construction does not exceed two 18 million dollars, such real property shall be exempt for a period of 19 three years to the extent of fifty per centum of the increase in 20 assessed value thereof attributable to such construction and for an 21 additional period of two years provided, however, that the extent of 22 such exemption shall be decreased by twenty-five per centum and such 23 exemption shall be computed with respect to the "exemption base." The 24 exemption base shall be the increase in assessed value as determined in 25 the initial year of such five year period following the filing of an 26 original application. 27 The following table shall illustrate the computation of the tax 28 exemption: 29 Year of exemption Percentage of exemption 30 1 50 31 2 50 32 3 50 33 4 25 34 5 25 35 (b) No such exemption shall be granted unless: 36 (1) such construction, alteration or improvement was commenced subse- 37 quent to the first day of January, two thousand twenty or such later 38 date as may be specified by local law or resolution; 39 (2) the cost of such construction, alteration, or improvement exceeds 40 the sum of ten thousand dollars or such greater amount as may be speci- 41 fied by local law or resolution; and 42 (3) such construction, alteration, or improvement is completed as may 43 be evidenced by a certificate of occupancy or other appropriate documen- 44 tation as provided by the owner. 45 (c) For purposes of this section the terms construction, alteration, 46 and improvement shall not include ordinary maintenance and repairs. 47 (d) No such exemption shall be granted concurrent with or subsequent 48 to any other real property tax exemption granted to the same improve- 49 ments to real property, except, where during the period of such previous 50 exemption, payments in lieu of taxes or other payments were made to the 51 local government in an amount that would have been equal to or greater 52 than the amount of real property taxes that would have been paid on such 53 improvements had such property been granted an exemption pursuant to 54 this section. In such case, an exemption shall be granted for a number 55 of years equal to the exemption granted pursuant to this section lessA. 4082 3 1 the number of years the property would have been previously exempt from 2 real property taxes. 3 3. Such exemption shall be granted only upon application by the owner 4 of such real property on a form prescribed by the commissioner. Such 5 application shall be filed with the assessor of the city, town, village, 6 school district, or county having the power to assess property for taxa- 7 tion on or before the appropriate taxable status date of such city, 8 town, village, school district or county and within one year from the 9 date of completion of such construction, alteration, or improvement. 10 4. If the assessor is satisfied that the applicant is entitled to an 11 exemption pursuant to this section, he or she shall approve the applica- 12 tion and such real property shall thereafter be exempt from taxation and 13 special ad valorem levies as herein provided commencing with the assess- 14 ment roll prepared after the taxable status date referred to in subdivi- 15 sion three of this section. The assessed value of any exemption granted 16 pursuant to this section shall be entered by the assessor on the assess- 17 ment roll with the taxable property, with the amount of the exemption 18 shown in a separate column. 19 5. The provisions of this section shall apply to real property used 20 primarily for the buying, selling, storing or developing goods or 21 services, the manufacture or assembly of goods or the processing of raw 22 materials for businesses with between one and one hundred employees with 23 a taxable income of no more than three hundred ninety thousand dollars. 24 This section shall not apply to property used primarily for the furnish- 25 ing of dwelling space or accommodations to either residents or tran- 26 sients other than hotels or motels. 27 6. In the event that real property granted an exemption pursuant to 28 this section ceases to be used primarily for eligible purposes, the 29 exemption granted pursuant to this section shall cease. 30 7. A county, city, town or village may, by local law, and a school 31 district, except a city school district to which article fifty-two of 32 the education law applies, may, by resolution, reduce the per centum of 33 exemption otherwise allowed pursuant to this section; provided, however, 34 that a project in course of construction and exemptions existing prior 35 in time to passage of any such local law or resolution shall not be 36 subject to any such reduction so effected. Any county, city, town, 37 village or school district that has reduced the per centum of exemption 38 pursuant to this subdivision may thereafter, by local law or resolution 39 as the case may be, increase the per centum of exemption up to any per 40 centum not exceeding the maximum allowed by subdivision two of this 41 section, provided, however, that any such local law or resolution shall 42 apply only to construction, alterations, or improvements commenced 43 subsequent to the effective date of such local law or resolution. A copy 44 of all such local laws or resolutions shall be filed with the commis- 45 sioner and the assessor of each assessing unit which comprises the coun- 46 ty, city, town or school district or, in the case of a village, the 47 village assessor, or the applicable town or county assessor of a village 48 which has adopted a local law provided in subdivision three of section 49 fourteen hundred two of this chapter. 50 8. A county, city, town or village may, by local law, and a school 51 district, except a city school district to which article fifty-two of 52 the education law applies may, by resolution, establish a date for the 53 commencement of effectiveness of exemptions offered pursuant to this 54 section. 55 § 2. Subsection (d) of section 615 of the tax law is amended by adding 56 a new paragraph 6 to read as follows:A. 4082 4 1 (6) small business relocating to vacant or predominantly vacant rede- 2 veloped commercial property. A twenty percent deduction is allowed for 3 small businesses with between one and one hundred employees and a taxa- 4 ble income of no more than three hundred ninety thousand dollars. The 5 small business is eligible for the deduction if it has relocated to a 6 vacant land or predominantly vacant land, as defined in subdivision one 7 of section four hundred twenty-one-p of the real property tax law, with- 8 in the previous taxable year. However, the small business may only 9 receive the deduction upon the approval of the real property taxation 10 exemption described in subdivision four of section four hundred twenty- 11 one-p of the real property tax law. The deduction may be allowed for the 12 same duration of time as the real property tax exemption provided. 13 § 3. Section 209 of the tax law is amended by adding a new subdivision 14 13 to read as follows: 15 13. For any taxable year beginning after two thousand nineteen, an 16 eligible business with between one and one hundred employees and a taxa- 17 ble income of no more than three hundred ninety thousand dollars may be 18 allowed to deduct twenty percent of its taxable income. A business is 19 eligible if it has relocated on vacant land or predominantly vacant 20 land, as defined in subdivision one of section four hundred twenty-one-p 21 of the real property tax law, within the last year, and has received 22 approval for the real property taxation exemption described in subdivi- 23 sion four of section four hundred twenty-one-p of the real property tax 24 law. The deduction may be allowed for the same duration of time as the 25 real property tax exemption provided. 26 § 4. This act shall take effect immediately.
