Bill Text: NY S08904 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes the COVID-19 small business recovery lease act of 2020; authorizes real property tax abatements for certain properties entering into COVID-19 recovery leases in a city having a population of one million or more.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2020-08-12 - REFERRED TO RULES [S08904 Detail]

Download: New_York-2019-S08904-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8904

                    IN SENATE

                                     August 12, 2020
                                       ___________

        Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the real property tax law, in relation  to  establishing
          the COVID-19 small business recovery lease act of 2020

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

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "COVID-19 small business recovery lease act of 2020".
     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          AUTHORIZATION OF REAL PROPERTY TAX ABATEMENT FOR CERTAIN
     7              PROPERTIES ENTERING INTO COVID-19 RECOVERY LEASES
     8  Section 499-aaaaa. Definitions.
     9          499-bbbbb. Real property tax abatement.
    10    § 499-aaaaa. Definitions. For the purpose of this title:
    11    1.  "Eligible  commercial  tenant"  shall  mean  a  small business, as
    12  defined by section one hundred thirty-one of  the  economic  development
    13  law,  that  enters into or seeks to enter into a COVID-19 recovery lease
    14  for property such tenant currently occupies, or  for  property  that  is
    15  vacant for reasons other than eviction.
    16    2.  "COVID-19  recovery lease" shall mean a commercial lease agreement
    17  that: (a) is entered into within two years of the effective date of this
    18  title between an eligible commercial tenant and a property owner,  where
    19  either the eligible commercial tenant or the property owner has suffered
    20  a  financial  hardship  during the COVID-19 covered period, or both have
    21  suffered such a hardship; (b) has a term of not less than ten years; (c)
    22  provides for annual rent increases during a term of  not  less  than  at
    23  least  ten  years that do not exceed the amounts permitted pursuant to a
    24  local law enacted for the purpose of setting such maximum increases; (d)
    25  settles any arrears owed by the tenant pursuant to  any  previous  lease
    26  agreement  for  the  leased  property;  and  (e) includes any additional
    27  provisions that may be required pursuant to local law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD17094-02-0

        S. 8904                             2

     1    3. "Benefit period" shall mean the amount of time established by local
     2  law during which an eligible property shall receive an abatement of real
     3  property taxes pursuant to section  four  hundred  ninety-nine-bbbbb  of
     4  this title, provided that in no event shall the benefit period be longer
     5  than ten years.
     6    4.  "COVID-19  covered  period"  shall mean the period beginning March
     7  seventh, two thousand twenty, until the end of the COVID-19 state disas-
     8  ter emergency declared by executive order number two hundred two and any
     9  further amendments or modifications  thereto,  and  as  may  be  further
    10  extended  pursuant  to section twenty-eight of the executive law, issued
    11  in response to the COVID-19 pandemic,  continues  to  apply  in  a  city
    12  having a population of one million or more.
    13    § 499-bbbbb. Real property tax abatement. 1. Notwithstanding any other
    14  provision  of  law  to  the  contrary, a city having a population of one
    15  million or more may, by adopting or amending a local law,  offer  abate-
    16  ments of real property taxes during a prescribed benefit period to prop-
    17  erties  in which the property owner enters into a recovery lease with an
    18  eligible commercial tenant. Such local law shall provide  for:  (a)  the
    19  manner  in  which  it shall be determined whether an eligible commercial
    20  tenant or a property owner has suffered a financial hardship during  the
    21  COVID-19 covered period; (b) the maximum annual rent increases permitted
    22  during  the  term  of  a recovery lease; (c) the duration of the benefit
    23  period; (d) the manner in which the amount of  the  abatement  shall  be
    24  calculated; and (e) any other terms and conditions the city deems neces-
    25  sary  to  effectuate the purposes of this title. Such local law may also
    26  provide for a maximum aggregate value of all tax abatements that may  be
    27  granted under this title.
    28    2.  In  no  event  shall  an  abatement granted pursuant to this title
    29  exceed the tax liability of the property  for  which  the  abatement  is
    30  granted.
    31    §  3.  This  act shall take effect immediately and shall expire and be
    32  deemed repealed 12 years after it shall have become a law.
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