Bill Text: NY S02298 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to creating the Mom and Pop Rent Increase Exemption; provides a tax abatement for limiting rent increases on small businesses in a city of one million or more persons.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CITIES [S02298 Detail]
Download: New_York-2019-S02298-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2298 2019-2020 Regular Sessions IN SENATE January 23, 2019 ___________ Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Cities AN ACT to amend the real property tax law, in relation to creating the Mom and Pop Rent Increase Exemption The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "Mom and 2 Pop Rent Increase Exemption". 3 § 2. Article 4 of the real property tax law is amended by adding a new 4 title 6 to read as follows: 5 TITLE 6 6 TAX ABATEMENT FOR LIMITING RENT INCREASES ON SMALL BUSINESSES 7 IN A CITY OF ONE MILLION OR MORE PERSONS 8 Section 499-aaaaa. Definitions. 9 499-bbbbb. Real property tax abatement. 10 499-ccccc. Eligibility requirements. 11 499-ddddd. Application for certificate of abatement. 12 499-eeeee. Enforcement and administration. 13 499-fffff. Reporting requirements; revocation of abatements. 14 499-ggggg. Tax lien; interest and penalty. 15 499-hhhhh. Confidentiality. 16 § 499-aaaaa. Definitions. When used in this title, the following terms 17 shall mean or include: 18 1. "Abatement base." The lesser of (i) two dollars and fifty cents of 19 the tax liability per square foot or (ii) fifty per centum of the tax 20 liability per square foot. 21 2. "Abatement zone." Any area of a city having a population of one 22 million or more. Any tax lot that is partly located inside an abatement 23 zone shall be deemed to be entirely located inside such zone. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02379-01-9S. 2298 2 1 3. "Aggregate floor area." The sum of the gross areas of the several 2 floors of a building, measured from the exterior faces of exterior walls 3 or from the center lines of walls separating two buildings. 4 4. "Applicant." The landlord and the tenant. 5 5. "Benefit period." The period commencing with the first day of the 6 month immediately following the rent commencement date and terminating 7 no later than one hundred twenty months thereafter. 8 6. "Billable assessed value." The lesser of the taxable transitional 9 or the taxable actual assessed value of the eligible building and the 10 land on which the eligible building is located for the fiscal year in 11 which the benefit period commences. 12 7. "Commercial activities." The buying, selling or otherwise providing 13 of goods or services by a small business. 14 8. "Department of finance." The department of finance of any city 15 having a population of one million or more. 16 9. "Eligible building." With respect to the abatement zone defined in 17 subdivision two of this section, a non-residential or mixed-use building 18 which shall not include any building owned by a governmental agency. 19 Each condominium unit in a building that meets the requirements of this 20 subdivision shall be considered a separate eligible building. 21 10. "Eligibility period." The period commencing April first, two thou- 22 sand nineteen and terminating March thirty-first, two thousand twenty- 23 nine. 24 11. "Eligible premises." With respect to the abatement zone defined in 25 subdivision two of this section, premises located in an eligible build- 26 ing that (a) are occupied or used for commercial activities and (b) are 27 occupied or used by a tenant under a lease that meets the eligibility 28 requirements of section four hundred ninety-nine-ccccc of this title. 29 12. "Fiscal year." The fiscal year of any city having a population of 30 one million or more. 31 13. "Governmental agency." The United States of America or any agency 32 or instrumentality thereof, the state of New York, the city of New York, 33 any public corporation (including a body corporate and politic created 34 pursuant to agreement or compact between the state of New York and any 35 other state), public benefit corporation, public authority or other 36 political subdivision of the state. 37 14. "Landlord." Any person who (a) controls all non-residential 38 portions of an eligible building, including, without limitation, the 39 record owner, the lessee under a ground lease, any mortgagee in 40 possession or any receiver, and (b) who grants the right to use or occu- 41 py eligible premises to any tenant, provided that landlord shall not 42 include any lessee who at any time during the lease term occupied or 43 used or occupies or uses any part of the non-residential portions of 44 such eligible building, other than premises occupied or used by such 45 lessee to provide rental or management services to such building. 46 15. "Lease commencement date." The date set forth in the lease on 47 which the term of the lease commences. 48 16. "Mixed-use building." A building used for both residential and 49 commercial activities, provided that more than twenty-five per centum of 50 the aggregate floor area of such building is used or held out for use as 51 commercial, community facility or accessory use space. 52 17. "Person." An individual, corporation, limited liability company, 53 partnership, association, agency, trust, estate, foreign or domestic 54 government or subdivision thereof, or other entity. 55 18. "Renewal tenant." A person who (a) occupies premises in an eligi- 56 ble building under a lease which expires during the eligibility periodS. 2298 3 1 and (b) executes a lease for the continued occupancy of all or part of 2 such premises or all or part of such premises and additional premises in 3 such eligible building, provided such premises are eligible premises and 4 such lease meets the eligibility requirements of section four hundred 5 ninety-nine-ccccc of this title. 6 19. "Rent commencement date." The date set forth in the lease on which 7 the obligation to pay basic fixed rent shall commence. 8 20. "Small business." A business engaged in commercial activities that 9 employs fifty or fewer persons. 10 21. "Subtenant." A person whose right to occupy and use the eligible 11 premises is not derived from a lease with the landlord. 12 22. "Tax commission." The tax commission in any city having a popu- 13 lation of one million or more. 14 23. "Tax liability." The product obtained by multiplying the billable 15 assessed value for the fiscal year in which the benefit period commences 16 by the tax rate applicable to the eligible building for such fiscal year 17 as set by the local legislative body of any city having a population of 18 one million or more. 19 24. "Tax liability per square foot." The tax liability divided by the 20 total number of square feet in the eligible building, as listed on the 21 records of the department of finance. 22 25. "Tenant." A person, including any successors in interest, who 23 executes a lease with the landlord for the right to occupy or use the 24 eligible premises and who occupies or uses the eligible premises pursu- 25 ant to such lease. Tenant shall not include any subtenant. When used in 26 this title, "tenant" includes "renewal tenant." 27 26. "Tenant's percentage share." The percentage of the eligible 28 building's aggregate floor area allocated to the eligible premises, 29 which shall be presumed to be such percentage as set forth in the lease 30 for the eligible premises. 31 § 499-bbbbb. Real property tax abatement. 1. Within a city having a 32 population of one million or more, eligible buildings containing eligi- 33 ble premises shall receive an abatement of real property taxes during 34 the benefit period as follows: 35 (a) for each of the first five years of the benefit period, the abate- 36 ment shall be equal to the product obtained by (i) multiplying the 37 tenant's percentage share by the number of square feet in the eligible 38 building, as listed on the records of the department of finance and (ii) 39 multiplying the product obtained in subparagraph (i) of this paragraph 40 by the abatement base; 41 (b) for the sixth, seventh, and eighth year of the benefit period, the 42 abatement shall be equal to two-thirds of the abatement in the first 43 year of the benefit period; and 44 (c) for the ninth and tenth year of the benefit period, the abatement 45 shall be equal to one-third of the abatement in the first year of the 46 benefit period. 47 2. If, as a result of application to the tax commission or a court 48 order or action by the department of finance, the billable assessed 49 value is reduced, the department of finance shall recalculate the abate- 50 ment utilizing such reduced billable assessed value. The amount equal to 51 the difference between the abatement originally granted and the abate- 52 ment as so recalculated shall be deducted from any refund otherwise 53 payable or remission otherwise due as a result of such reduction in 54 billable assessed value, and any balance of such amount remaining unpaid 55 after making any such deduction shall be paid to the department of 56 finance within thirty days from the date of mailing by the department ofS. 2298 4 1 finance of a notice of the amount payable. Such amount payable shall 2 constitute a tax lien on the eligible building as of the date of such 3 notice and, if not paid within such thirty-day period, penalty and 4 interest at the rate applicable to delinquent taxes on such eligible 5 building shall be charged and collected on such amount from the date of 6 such notice to the date of payment. 7 3. In no event shall the abatement for the eligible premises granted 8 pursuant to this title exceed the tax liability allocable to the eligi- 9 ble premises. 10 4. Notwithstanding the provisions of any lease for occupancy of non- 11 eligible premises in an eligible building or for occupancy of eligible 12 premises for which no certificate of abatement has been issued pursuant 13 to this title, a lessee of non-eligible premises or of eligible premises 14 for which no certificate of abatement has been issued pursuant to this 15 title shall not be entitled to receive directly or indirectly a 16 reduction in either the real property taxes or any rent (including addi- 17 tional rent) payable pursuant to such lease where such reduction would 18 result from an abatement of real property taxes granted pursuant to this 19 title. A landlord of an eligible building shall not allocate, credit, 20 assign or disburse any portion of an abatement granted pursuant to this 21 title to a lessee of non-eligible premises or of eligible premises for 22 which no certificate of abatement has been issued pursuant to this 23 title. A landlord shall not be required to reduce the real property 24 taxes or any rent (including additional rent) payable by renewal tenants 25 by an amount that exceeds the full amount of the abatement granted 26 pursuant to this title, but a landlord shall be required to reduce the 27 real property taxes or any rent (including additional rent) payable by 28 renewal tenants by an amount that, in the aggregate, equals the full 29 amount of the abatement granted pursuant to this title. Such reduction 30 shall be allocated in accordance with the abatement granted for the 31 eligible premises occupied by each such tenant. 32 5. A tenant who occupies or uses eligible premises for which a certif- 33 icate of abatement is issued pursuant to this title shall not be eligi- 34 ble to receive a second certificate of abatement for the same eligible 35 premises. A tenant who occupies or uses eligible premises for which a 36 certificate of abatement is issued pursuant to this title and who, upon 37 the expiration of the lease for such eligible premises, relocates to 38 otherwise eligible premises, shall not be eligible to receive a certif- 39 icate of abatement for such otherwise eligible premises, except to the 40 extent that the square footage of such otherwise eligible premises 41 exceeds the square footage of all eligible premises previously occupied 42 or used by such tenant for which such tenant held a certificate of 43 abatement. If the square footage of such otherwise eligible premises 44 exceeds the square footage of all such eligible premises previously 45 occupied or used by such tenant and if there is any variation in the tax 46 liability per square foot of such otherwise eligible premises, then, for 47 purposes of determining which square footage in such otherwise eligible 48 premises is entitled to an abatement pursuant to this title, square 49 footage with the greatest tax liability per square foot, in an amount 50 equal to the square footage of all such eligible premises previously 51 occupied or used by such tenant, shall first be excluded. 52 § 499-ccccc. Eligibility requirements. 1. No abatement shall be grant- 53 ed pursuant to this title unless: 54 (a) the landlord enters into a ten year lease for eligible premises 55 with a tenant and (b) such landlord includes within such lease with aS. 2298 5 1 tenant a renewal clause that limits a rent increase to no more than 2 three percent annually. 3 2. No abatement shall be granted pursuant to this title if an appli- 4 cant shall fail to meet any of the requirements of this title within 5 sixty days of the rent commencement date. 6 3. For purposes of this title, the expiration date of a lease shall be 7 determined by the expiration date set forth in such lease, without 8 giving effect to any rights of the landlord or the tenant to terminate 9 such lease prior to the expiration date set forth therein. 10 4. The lease for the eligible premises shall contain the following 11 provisions: 12 (a) a statement of the tenant's percentage share; 13 (b) a statement certifying the percentage of eligible premises occu- 14 pied or used for commercial activities, as defined in subdivision seven 15 of section four hundred ninety-nine-aaaaa of this title; and 16 (c) a statement informing the tenant in at least twelve-point type 17 that: 18 (1) an application for abatement of real property taxes pursuant to 19 this title will be made for the premises; 20 (2) the rent, including amounts payable by the tenant for real proper- 21 ty taxes, will accurately reflect any abatement of real property taxes 22 granted pursuant to this title for the premises; 23 (3) a renewal of the lease will not increase rent by more than three 24 percent annually pursuant to the lease agreement; 25 (4) all abatements granted with respect to a building pursuant to this 26 title will be revoked if, during the benefit period, real estate taxes 27 or water or sewer charges or other lienable charges are unpaid for more 28 than one year, unless such delinquent amounts are paid as provided in 29 subdivision four of section four hundred ninety-nine-fffff of this 30 title; and 31 (5) all benefits granted with respect to eligible premises will be 32 reduced if, during the benefit period, the aggregate floor area of such 33 eligible premises occupied or used for commercial activities, as defined 34 in subdivision seven of section four hundred ninety-nine-aaaaa of this 35 title, is reduced. 36 5. No abatement shall be granted pursuant to this title if: 37 (a) the lease for the eligible premises provides that during the 38 initial lease term required by subdivision one of this section either 39 the landlord or the tenant may terminate such lease prior to the expira- 40 tion date of such required initial lease term; provided that such lease 41 may provide that either the landlord or the tenant may terminate such 42 lease if (1) the other party is in default of any of such party's obli- 43 gations under the lease, (2) the eligible premises are damaged or 44 destroyed by fire or other casualty, (3) the eligible premises are 45 rendered unusable for any reason not attributable to any act or failure 46 to act of either tenant or landlord, or (4) the eligible premises are 47 acquired by eminent domain; and 48 (b) there are real property taxes, water or sewer charges or other 49 lienable charges currently due and owing on the eligible building which 50 is the subject of an application for abatement pursuant to this title, 51 unless such real property taxes or charges are currently being paid in 52 timely installments pursuant to a written agreement with the department 53 of finance or other appropriate agency. 54 6. No abatement shall be granted pursuant to this title unless the 55 applicant shall file, together with the application, an affidavit 56 setting forth the following information:S. 2298 6 1 (a) a statement that within the seven years immediately preceding the 2 date of application for a certificate of abatement, neither the appli- 3 cant nor any person owning a substantial interest in the eligible build- 4 ing as defined in paragraph (c) of this subdivision, nor any officer, 5 director or general partner of the applicant or such person was finally 6 adjudicated by a court of competent jurisdiction to have violated 7 section two hundred thirty-five of the real property law or any section 8 of article one hundred fifty of the penal law or any similar arson law 9 of another jurisdiction with respect to any building, or was an officer, 10 director or general partner of a person at the time such person was 11 finally adjudicated to have violated such law; and 12 (b) a statement setting forth any pending charges alleging violation 13 of section two hundred thirty-five of the real property law or any 14 section of article one hundred fifty of the penal law or any similar 15 arson law of another jurisdiction with respect to any building by the 16 applicant or any person owning a substantial interest in the eligible 17 building as defined in paragraph (c) of this subdivision, or any offi- 18 cer, director or general partner of the applicant or such person, or any 19 person for whom the applicant or person owning a substantial interest in 20 the eligible building is an officer, director or general partner. 21 (c) for purposes of this subdivision and subdivision seven of section 22 four hundred ninety-nine-fffff of this title, "substantial interest" 23 shall mean ownership and control of an interest of ten per centum or 24 more in the eligible building or in any person owning the eligible 25 building. 26 § 499-ddddd. Application for certificate of abatement. 1. Application 27 for a certificate of abatement may be made on or after April first, two 28 thousand nineteen and until sixty days after the end of the eligibility 29 period. Applications shall be filed with the department of finance. No 30 application may be filed prior to the date on which the lease for the 31 eligible premises is executed by the landlord and tenant. 32 2. No abatement pursuant to this title shall be granted unless the 33 applicant files an application for a certificate of abatement within 34 sixty days following the lease commencement date. 35 3. In addition to any other information required by the department of 36 finance, the application for a certificate of abatement shall include an 37 abstract of the lease for the eligible premises for which an abatement 38 is being sought, which abstract is signed by the landlord and the 39 tenant. Such abstract shall include the tenant's percentage share, the 40 lease commencement date, the rent commencement date, the expiration date 41 for such lease and a description of the lease renewal clause, including 42 the annual rent increase percentage. Such application shall also include 43 (i) a statement of the number of persons who will, on the rent commence- 44 ment date, be employed in the eligible premises, (ii) a statement of the 45 location of all commercial space in the city of New York occupied by the 46 tenant prior to the execution of the lease for the eligible premises, 47 (iii) the commencement and expiration dates of all leases for eligible 48 premises, and (iv) the aggregate floor area of the eligible building. 49 Such application shall also state that the applicant agrees to comply 50 with and be subject to the rules issued from time to time by the depart- 51 ment of finance. 52 4. Within one hundred eighty days following the lease commencement 53 date, the applicant shall provide, in addition to any other information 54 required by the department of finance, evidence acceptable to the 55 department of finance of the number of employees in the eligible prem- 56 ises. The department of finance shall issue a certificate of abatementS. 2298 7 1 upon determining that the applicant has submitted proof acceptable to 2 the department of finance that the applicant has met the requirements 3 set forth in this title. 4 5. The burden of proof shall be on the applicant to show by clear and 5 convincing evidence that the requirements for granting a certificate of 6 abatement have been satisfied. The department of finance shall have the 7 authority to require that statements in connection with such application 8 be made under oath. 9 6. The department of finance may provide by rule for reasonable admin- 10 istrative charges or fees necessary to defray expenses in administering 11 the abatement program provided by this title. 12 § 499-eeeee. Enforcement and administration. The department of finance 13 shall have, in addition to any other functions, powers and duties which 14 have been or may be conferred on it by law, the following functions, 15 powers and duties: 16 1. To receive and review applications for certificates of abatement 17 under this title and issue such certificates where authorized pursuant 18 to this title. 19 2. To receive all certificates of continuing eligibility required by 20 section four hundred ninety-nine-fffff of this title. 21 3. To collect all real property taxes, with interest and penalty, due 22 and owing as a result of reduction, termination or revocation of any 23 abatement granted pursuant to this title. 24 4. To make and promulgate rules to carry out the purposes of this 25 title. 26 § 499-fffff. Reporting requirements; revocation of abatements. 1. For 27 the duration of the applicant's benefit period, the applicant shall file 28 annually with the department of finance, on or before July first of each 29 year, a certificate of continuing eligibility confirming that the eligi- 30 ble premises are occupied by the tenant who originally executed the 31 lease and that the eligible premises are being used for the purposes 32 described in the application. Such certificate of continuing eligibil- 33 ity shall be on a form prescribed by the department of finance and shall 34 contain such additional information as the department of finance shall 35 require. The department of finance shall have the authority to terminate 36 abatements granted pursuant to this title upon failure of an applicant 37 to file such certificate by such July first date. The burden of proof 38 shall be on the applicant to establish continuing eligibility for bene- 39 fits and the department of finance shall have the authority to require 40 that statements made in such certificate shall be made under oath. 41 2. The department of finance shall revoke any abatement granted pursu- 42 ant to this title when the tenant who originally executed the lease is 43 no longer occupying the eligible premises. Such revocation shall be 44 retroactive to the date that such tenant vacated the eligible premises 45 and the department of finance shall require the landlord to pay, with 46 interest, any taxes which become payable as a result of such revocation. 47 The landlord shall notify the department of finance within thirty days 48 following the date on which such tenant vacated the eligible premises 49 and, for failure to comply with this notification requirement, shall be 50 liable for penalty calculated for the same period as interest is calcu- 51 lated pursuant to the preceding sentence. 52 3. If any portion of the premises for which an abatement has been 53 granted pursuant to this title ceases to be occupied or used as eligible 54 premises or is occupied by a subtenant, the department of finance shall 55 reduce the abatement granted pursuant to this title by an amount equal 56 to the percentage of such eligible premises which has ceased to be occu-S. 2298 8 1 pied or used as eligible premises or is occupied by a subtenant. Such 2 reduction shall be retroactive to the date that such premises ceased to 3 be occupied or used as eligible premises or was occupied by a subtenant, 4 and the department of finance shall require the landlord to pay, with 5 interest, any taxes which become payable as a result of such reduction. 6 The landlord shall notify the department of finance within thirty days 7 following the date on which the premises ceased to be occupied or used 8 as eligible premises or was occupied by a subtenant and, for failure to 9 comply with this notification requirement, shall be liable for penalty 10 calculated for the same period as interest is calculated pursuant to the 11 preceding sentence. 12 4. If, during the benefit period, any real property tax or water or 13 sewer charge or other lienable charge due and payable with respect to an 14 eligible building shall remain unpaid for at least one year following 15 the date upon which such tax or charge became due and payable, all 16 abatements granted pursuant to this title with respect to such building 17 shall be revoked, unless within thirty days from the mailing of a notice 18 of revocation by the department of finance satisfactory proof is 19 presented to the department of finance that any and all delinquent taxes 20 and charges owing with respect to such building as of the date of such 21 notice have been paid in full or are currently being paid in timely 22 installments pursuant to a written agreement with the department of 23 finance or other appropriate agency. Any revocation pursuant to this 24 subdivision shall be effective with respect to real property taxes which 25 become due and payable following the date of such revocation. 26 5. The department of finance may deny, reduce, suspend, terminate or 27 revoke any abatement granted pursuant to this title whenever: 28 (a) the landlord or the tenant receiving abatement pursuant to this 29 title fails to comply with the requirements of this title or the rules 30 promulgated hereunder; or 31 (b) an application, certificate, report or other document submitted by 32 the applicant contains a false or misleading statement as to a material 33 fact or omits to state any material fact necessary in order to make the 34 statement therein not false or misleading, and may declare any applicant 35 who makes such false or misleading statement or omission to be ineligi- 36 ble for future abatement pursuant to this title for the same or other 37 property. In addition, the department of finance shall require the 38 applicant to pay, with penalty and interest, any abatement received 39 pursuant to this title as a result of such false or misleading statement 40 or omission of a material fact. 41 6. Notwithstanding any other provision of this title, the department 42 of finance shall deny, terminate or revoke any abatement applied for or 43 granted pursuant to this title upon a determination that the lease 44 between the landlord and the tenant does not constitute a bona fide 45 arm's length lease. In making such determination, the department of 46 finance may consider, among other factors, the relationship, if any, 47 between the landlord and the tenant and whether the business terms of 48 such lease are consistent with the business terms generally found in 49 leases for comparable space. 50 7. (a) If any person described in the statement required by paragraph 51 (b) of subdivision six of section four hundred ninety-nine-ccccc of this 52 title or paragraph (b) of this subdivision is finally adjudicated by a 53 court of competent jurisdiction to be guilty of any charge listed in 54 such statement, the department of finance shall revoke the abatement 55 granted pursuant to this title and shall require the payment, with 56 interest, of any abatement received pursuant to this title.S. 2298 9 1 (b) The applicant shall, on the certificate of continuing eligibility, 2 state whether any charges alleging violation by the applicant or any 3 person owning a substantial interest in the eligible building, or any 4 officer, director or general partner of the applicant or person owning a 5 substantial interest in the eligible building, or any person for whom 6 the applicant or person owning a substantial interest in the eligible 7 building is an officer, director or general partner, of section two 8 hundred thirty-five of the real property law or any section of article 9 one hundred fifty of the penal law or any similar arson law of another 10 jurisdiction, are pending. For purposes of this paragraph, "substantial 11 interest" shall have the same meaning as set forth in paragraph (c) of 12 subdivision six of section four hundred ninety-nine-ccccc of this title. 13 § 499-ggggg. Tax lien; interest and penalty. All taxes, with interest, 14 required to be paid retroactively pursuant to this title shall consti- 15 tute a tax lien as of the date it is determined such taxes and interest 16 are owed. All interest shall be calculated from the date the taxes would 17 have been due but for the abatement granted pursuant to this title at 18 the applicable rate or rates of interest imposed by such city generally 19 for non-payment of real property tax with respect to the eligible build- 20 ing for the period in question. When a provision of this title requires 21 the payment of a penalty in addition to interest, the amount of such 22 penalty shall be equal to the amount of interest that would have been 23 payable pursuant to such provision had such interest been calculated at 24 the rate of three percent per annum. 25 § 499-hhhhh. Confidentiality. 1. Except in accordance with a proper 26 judicial order or as otherwise provided by law, it shall be unlawful for 27 the commissioner of finance, any officer or employee of the department 28 of finance, the president or a commissioner or employee of the tax 29 commission, any person engaged or retained by such department or such 30 commission on an independent contract basis, or any person who, pursuant 31 to this title, is permitted to inspect any information submitted by an 32 applicant to the department of finance pursuant to this title or to whom 33 a copy, an abstract or a portion of any such information is furnished, 34 to divulge or make known in any manner any such information to any 35 person not authorized pursuant to this title to inspect such informa- 36 tion. The officers charged with custody of such information shall not be 37 required to produce any of it or evidence of anything contained in it in 38 any action or proceeding in any court except on behalf of the commis- 39 sioner of finance in an action or proceeding under the provisions of 40 this title, or on behalf of any party to any action or proceeding under 41 the provisions of this title when such information or facts shown there- 42 by are directly involved in such action or proceeding, in either of 43 which events the court may require the production of, and may admit in 44 evidence so much of such information or of the facts shown thereby, as 45 are pertinent to the action or proceeding and no more. Nothing herein 46 shall be construed to prohibit the inspection by the legal represen- 47 tatives of the department of finance or the tax commission of such 48 information submitted by any applicant who shall bring an action to 49 correct an assessment. Nothing herein shall be construed to prohibit 50 the delivery to an applicant or the applicant's duly authorized repre- 51 sentative of a certified copy of any information submitted by an appli- 52 cant to the department of finance pursuant to this title; or to any 53 agency or any department of any city having a population of one million 54 or more provided the same is requested for official business; nor to 55 prohibit the inspection for official business of such information by the 56 corporation counsel or other legal representatives of a city having aS. 2298 10 1 population of one million or more or by the district attorney of any 2 county within such city; nor to prohibit the publication of statistics 3 so classified as to prevent the identification of such information or 4 particular items thereof. Information submitted by an applicant to the 5 department of finance pursuant to this title shall not be subject to 6 disclosure pursuant to article six of the public officers law. 7 2. Any violation of the provisions of subdivision one of this section 8 shall be punishable by a fine not exceeding one thousand dollars or by 9 imprisonment not exceeding one year, or both, at the discretion of the 10 court, and if the offender be an officer or employee of the department 11 of finance or of the tax commission, the offender shall be dismissed 12 from office. 13 § 3. This act shall take effect immediately.
