Bill Text: NY A08091 | 2019-2020 | General Assembly | Introduced

Bill Title: Relates to the residential-commercial urban exemption program; requires the owner to submit an annual certification to the assessor attesting that the property complies with the requirements of this section.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2019-06-20 - RECOMMITTED TO RULES [A08091 Detail]

Download: New_York-2019-A08091-Introduced.html

                STATE OF NEW YORK


                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      May 31, 2019

        Introduced by M. of A. MAGNARELLI, RYAN -- read once and referred to the
          Committee on Real Property Taxation

        AN  ACT  to amend the real property tax law, in relation to the residen-
          tial-commercial urban exemption program

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section 485-a of the real property tax law, as amended by
     2  chapter 632 of the laws of 2004, subdivision 5  as  further  amended  by
     3  subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
     4  2010, is amended to read as follows:
     5    § 485-a. Residential-commercial  urban  exemption  program.  1.  Defi-
     6  nitions.    As  used in this section, the following terms shall have the
     7  following meanings:
     8    (a) "Municipality" means any town, city or village except for  a  city
     9  having more than one million inhabitants.
    10    (b)  "Applicant" means any person obligated to pay real property taxes
    11  on the property for which an exemption from real  property  taxes  under
    12  this section is sought.
    13    (c)  "Commercial construction work" means the modernization, rehabili-
    14  tation, expansion or other improvement of the portion of mixed-use prop-
    15  erty to be used for commercial purposes.
    16    (d) "Commercial purpose or use" means the buying, selling or otherwise
    17  providing of goods or services directly to the public,  including  hotel
    18  services,  [or  other lawful business or commercial activities permitted
    19  in mixed-use property] retail stores, office space,  restaurants,  bars,
    20  gyms, theaters, and cafes.
    21    (e)  "Mixed-use  property"  means  property on which will exist, after
    22  completion of residential construction work or a combination of residen-
    23  tial construction work and commercial construction work, a  building  or
    24  structure  used  for both residential and commercial purposes  of which,
    25  at least fifty percent of the building or structure's square footage  is

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 8091                             2

     1  devoted  to  residential purposes or use and at least fifteen percent of
     2  the building or structure's square  footage  is  devoted  to  commercial
     3  purposes  or  use.  Only  square footage existing in a story above grade
     4  shall be used in the determination of the building's percentage of resi-
     5  dential purposes or use and commercial purposes or use.
     6    (f)  "Person"  means  an  individual,  corporation,  limited liability
     7  company, partnership, association, agency,  trust,  estate,  foreign  or
     8  domestic government or subdivision thereof, or other entity.
     9    (g) "Residential construction work" means the creation, modernization,
    10  rehabilitation,  expansion or other improvement of dwelling units, other
    11  than dwelling units in a hotel, in the portion of mixed-use property  to
    12  be used for residential purposes.
    13    (h)  "Floor  area" means the horizontal areas of the several floors or
    14  any portion thereof of a mixed-use property measured from  the  exterior
    15  faces  of  exterior walls or from the center line of party walls, exclu-
    16  sive of any area existing below-grade.
    17    (i) "Story above grade" means any  story  having  its  finished  floor
    18  surface entirely above grade.
    19    (j)  "Grade" shall mean the finished ground level adjoining the build-
    20  ing at all exterior walls.
    21    2. Any municipality may, by local law, provide for  the  exemption  of
    22  real  property  from  taxation  as  provided  in  this section. Upon the
    23  adoption of such a local law, the county in which such  municipality  is
    24  located may, by local law, and any school district, all or part of which
    25  is located in such municipality, may, by resolution, exempt such proper-
    26  ty  from  its taxation in the same manner and to the same extent as such
    27  municipality has done.
    28    3. Upon the adoption of such a local law, non-residential real proper-
    29  ty, upon conversion to mixed-use property, shall be exempt from taxation
    30  and special ad valorem levies as provided for  in  subdivision  four  of
    31  this  section. Land which was vacant prior to the residential or commer-
    32  cial construction work for which a tax exemption is sought, shall not be
    33  eligible to receive benefits pursuant to this section.
    34    4. (a) (i) For a period of twelve years from the approval of an appli-
    35  cation, the increase in assessed value of such property attributable  to
    36  such conversion shall be exempt as provided in subparagraph (ii) of this
    37  paragraph.  Such  exemption  shall  be  computed  with  respect  to  the
    38  "exemption base". The exemption base shall be determined for  each  year
    39  in  which  there  is  an increase in assessed value so attributable from
    40  that of the previous year's assessed value.
    41    (ii) The following table shall illustrate the computation of  the  tax
    42  exemption:

    43        Year of exemption                      Percentage of exemption

    44            1 through 8                        100% of exemption base
    45            9                                  80% of exemption base
    46            10                                 60% of exemption base
    47            11                                 40% of exemption base
    48            12                                 20% of exemption base

    49    (b) No such exemption shall be granted unless
    50    (i)  such conversion was commenced subsequent to the date on which the
    51  municipality's local law took effect; [and]
    52    (ii) the cost of such conversion  exceeds  the  sum  of  ten  thousand
    53  dollars or such greater amount as may be specified by local law[.];

        A. 8091                             3

     1    (iii) at least seventy-five percent of the floor area of the mixed-use
     2  property consists of the pre-existing building or structure;
     3    (iv)  the  portion  of  the  building  used for commercial purposes is
     4  currently, as demonstrated by documentation submitted by the  applicant,
     5  used as such or is in good faith contemplated.
     6    (c) For purposes of this section the term conversion shall not include
     7  ordinary maintenance and repairs.
     8    (d)  No  such exemption shall be granted concurrent with or subsequent
     9  to any other real property tax exemption granted to  the  same  improve-
    10  ments to real property, except, where during the period of such previous
    11  exemption,  payments in lieu of taxes or other payments were made to the
    12  local government in an amount that would have been equal to  or  greater
    13  than the amount of real property taxes that would have been paid on such
    14  improvements  had  such  property  been granted an exemption pursuant to
    15  this section. In such case, an exemption shall be granted for  a  number
    16  of  years  equal  to  the twelve year exemption granted pursuant to this
    17  section less the number of years the property would have been previously
    18  exempt from real property taxes.
    19    5. Such exemption shall be granted only upon application by the  owner
    20  of  such  real  property  on a form prescribed by the commissioner. Such
    21  application shall be filed with the  assessor  of  the  municipality  or
    22  county having the power to assess property for taxation on or before the
    23  appropriate taxable status date of such municipality or county.
    24    6.  If  the assessor is satisfied that the applicant is entitled to an
    25  exemption pursuant to this section, he or she shall approve the applica-
    26  tion and such real property shall [thereafter] be exempt  from  taxation
    27  and  special  ad  valorem levies as in this section provided [commencing
    28  with the assessment roll prepared after the taxable status date referred
    29  to in subdivision five of this  section].  The  assessed  value  of  any
    30  exemption  granted  pursuant  to  this  section  shall be entered by the
    31  assessor on the assessment roll with  the  taxable  property,  with  the
    32  amount of the exemption shown in a separate column.
    33    7.  (a)  During  the period of exemption pursuant to this section, the
    34  owner shall submit an annual certification  to  the  assessor  attesting
    35  that  the  property complies with the provisions or requirements of this
    36  section and any additional provisions or requirements as may be provided
    37  by local law. Failure to submit such certification shall result in revo-
    38  cation of benefits. Such certification shall include at  a  minimum  the
    39  following:
    40    (i)  the  types  of  residential  use and the total above-grade square
    41  footage of such use;
    42    (ii) the types of commercial use  and  the  total  above-grade  square
    43  footage of such use;
    44    (iii) attestation that the portion of the building used for commercial
    45  purposes is currently, as demonstrated by documentation submitted by the
    46  applicant, used as such or is in good faith contemplated; and
    47    (iv) all such other information required by the municipality.
    48    (b)  If  the  assessor is satisfied that the applicant continues to be
    49  entitled to the exemption pursuant to this section, the  assessor  shall
    50  approve the certification and the real property shall remain exempt from
    51  taxation  and  special ad valorem levies for another year as provided in
    52  this section.
    53    8. (a) The benefits of this section shall be revoked upon a finding by
    54  the assessor that:

        A. 8091                             4

     1    (i) the application for benefits hereunder or the annual certification
     2  required hereunder contains a false statement or false information as to
     3  a material matter or omits a material matter; or
     4    (ii)  the  eligible  real property fails to comply with one or more of
     5  the provisions or requirements of this  section  or  any  provisions  or
     6  requirements provided by local law.
     7    (b) Such revocation shall require the repayment of any benefits previ-
     8  ously granted pursuant to this section.
     9    9.  If  the assessor determines that there was a material misstatement
    10  in an application filed by or on behalf of the owners for  an  exemption
    11  pursuant  to  this section and that such misstatement provided the basis
    12  for the granting of such exemption, the municipality  shall  proceed  to
    13  impose a penalty on the applicant of one thousand dollars in addition to
    14  recovering the amount of any prior exemption granted.
    15    §  2.  This  act shall take effect on the thirtieth day after it shall
    16  have become a law and shall apply to properties for  which  the  initial
    17  application for exemption are received on and after such date.