Bill Text: NY S00943 | 2023-2024 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to establishing an abatement and exemption from real property taxes for capital improvements to reduce carbon emissions; establishes an energy efficiency improvement board to approve the abatements and exemptions.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Introduced) 2024-01-08 - REPORTED AND COMMITTED TO FINANCE [S00943 Detail]

Download: New_York-2023-S00943-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           943

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 9, 2023
                                       ___________

        Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government

        AN ACT to amend the real property tax law, in relation  to  establishing
          an  abatement  and  exemption  from  real  property  taxes for capital
          improvements to reduce carbon emissions; and to repeal such provisions
          upon the expiration thereof

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

     1    Section  1. Legislative intent. New York's nation leading climate law,
     2  the climate leadership and community protection  act  of  2019  (CLCPA),
     3  requires  the state to reduce its greenhouse gas emissions to 40 percent
     4  below 1990 levels by 2030, and 85 percent below  1990  levels  by  2050,
     5  among other goals. At the same time, New York city's local law number 97
     6  for  the  year 2019 requires buildings over 25,000 square feet to reduce
     7  their carbon emissions to comply with increasingly  stringent  emissions
     8  limits.  While  New  York's  building  stock  accounts  for more than 25
     9  percent of statewide greenhouse gas emissions and  transportation  is  a
    10  top  emitter,  in  New  York city that ratio is reversed, with buildings
    11  accounting for approximately 70 percent of greenhouse gas emissions.  As
    12  such,  reaching  the state and city's climate goals will require signif-
    13  icant investment to decarbonize buildings including through electrifica-
    14  tion, energy efficiency, and the use  of  new  technologies  and  energy
    15  sources. The use of this targeted abatement, which would be available to
    16  support  all  property  owners that are meaningfully engaged in reducing
    17  carbon emissions will ensure the success of the CLCPA and local law  97.
    18  This  legislation  will  benefit  all  New  Yorkers by ensuring that our
    19  buildings can play a vital role in decarbonization.
    20    § 2. The real property tax law is amended  by  adding  a  new  section
    21  488-b to read as follows:
    22    §  488-b. Abatement and exemption from real property taxes for capital
    23  improvements to reduce carbon emissions. 1. For  the  purposes  of  this

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01352-02-3
        S. 943                              2

     1  section,  the  following terms shall have the meanings specified in this
     2  subdivision:
     3    a.  "Eligible  real  property"  shall mean a property located within a
     4  city of one million or more that is:
     5    (i) any class B multiple dwelling as defined in the multiple  dwelling
     6  law;
     7    (ii) any class A multiple dwelling as defined in the multiple dwelling
     8  law;
     9    Notwithstanding  the  foregoing,  eligible  real  property  shall  not
    10  include college and school dormitories, club houses, or residences whose
    11  occupancy is restricted to an institutional use such as housing intended
    12  for use primarily or exclusively by the employees of a single company or
    13  institution. A building is an eligible real property only if  it  quali-
    14  fies as such after completion of the eligible improvements, but need not
    15  have been an eligible real property prior to the eligible improvements;
    16    (iii)  any non-residential, commercial property used primarily for the
    17  buying, selling or otherwise providing of goods or services inclusive of
    18  manufacturing and office space;
    19    (iv) any single family private dwelling; or
    20    (v) any two-family private dwelling.
    21    b. "Eligible improvements" shall be limited to categories of work that
    22  result in a reduction of greenhouse  gas  emissions  for  the  building,
    23  provided further that such work shall be in conformity with all applica-
    24  ble  laws.  Eligible  improvements shall include, but not be limited to,
    25  any of the following types of improvements:
    26    (i) design, permitting, and technical analysis work required to  iden-
    27  tify,  measure,  and complete eligible work including the development of
    28  carbon emissions reduction strategies and plans;
    29    (ii) cleaning, resurfacing or repair of adjacent  surfaces,  inclusive
    30  of  the replacement or installation of windows, walls, ceilings, floors,
    31  doors or trim where necessary;
    32    (iii) pointing, waterproofing and repair of building envelope, includ-
    33  ing cleaning of entire building exterior surface  to  prepare  for  such
    34  work,  in  the  course  of the replacement, installation or upgrading of
    35  eligible systems or equipment;
    36    (iv) replacement, repair or installation of new systems for heating or
    37  cooling, including domestic hot water;
    38    (v) installation of solar, green roofs or other mechanisms  to  offset
    39  use of energy from the electricity grid;
    40    (vi)  replacement,  or  installation  of  insulation  in walls, roofs,
    41  flooring, eaves, and around pipes;
    42    (vii) replacement or installation of thermostats  to  control  temper-
    43  ature and building management systems;
    44    (viii)  installation  of  energy  efficient  appliances,  fixtures, or
    45  lighting;
    46    (ix) repair,  replacement  and  modification  of  electrical  systems,
    47  and/or wiring associated therewith;
    48    (x) appurtenant labor, equipment and supplies; and
    49    (xi)  any  other  categories of work established by the board in regu-
    50  lations that results in a net reduction in greenhouse gas emissions  for
    51  the building.
    52    c.  "Board"  shall mean the energy efficiency improvement board estab-
    53  lished by this section.
    54    d. "Department of buildings" shall mean the department of buildings in
    55  the city of New York.
        S. 943                              3

     1    2. Eligible property reconstructed, altered or improved subsequent  to
     2  the  effective  date  of  this section shall be exempt from taxation and
     3  special ad valorem levies to the extent provided in  this  section.  Any
     4  exemption  or  abatement  permitted  pursuant to this section shall take
     5  effect  no  sooner than July first next succeeding the effective date of
     6  this section.
     7    3. There is hereby established an energy efficiency improvement  board
     8  within the office of real property services, which shall consist of four
     9  members appointed by the governor, one of whom shall be the commissioner
    10  of  taxation and finance, ex-officio, one of whom shall be the president
    11  of the New York state energy research and development authority,  ex-of-
    12  ficio,  one  of  whom  shall  be the commissioner of homes and community
    13  renewal, ex-officio, and a fourth member who shall  have  experience  in
    14  the  construction  of  multiple  dwellings. The board shall additionally
    15  have two, non-voting members appointed by the mayor of the city  of  New
    16  York.    The  board  shall be responsible for administering the benefits
    17  conferred by this section. The board shall appoint staff, within amounts
    18  appropriated therefor, to assist it in the execution of its duties.  The
    19  board  members  shall  be  entitled to reimbursement of their actual and
    20  necessary expenses in the discharge  of  their  duties,  but  shall  not
    21  otherwise  be  entitled to any compensation for their service. The board
    22  shall promulgate a regulation to establish a  methodology  to  determine
    23  the  greenhouse gas emissions of a building, and by regulation establish
    24  a formula that applicants can utilize  to  determine  the  reduction  in
    25  emissions  created  by  any  improvements permitted by this section. The
    26  improvements described in subparagraphs (i), (ii) and (x) of paragraph b
    27  of subdivision one of this section which do not inherently reduce  emis-
    28  sions,  may  only  be  approved if they are part of an application which
    29  includes other projects which have the net effect of  reducing  the  net
    30  greenhouse  gas  emissions of the building if the building is character-
    31  ized as an eligible real property pursuant to subparagraph (i), (ii)  or
    32  (iii) of paragraph a of subdivision one of this section. For an eligible
    33  real  property  defined  in  subparagraph  (iv) or (v) of paragraph a of
    34  subdivision one of this section, the benefits  of  subparagraph  (i)  of
    35  paragraph  b of subdivision one of this section may be claimed independ-
    36  ently at a reduced benefit of fifty percent of actual costs as  provided
    37  further  in  this section. The board shall promulgate an application for
    38  benefits afforded to owners under this section, and  shall  establish  a
    39  process  to review applications for the benefits under this section. The
    40  board may promulgate regulations to  allow  for  additional  classes  or
    41  categories of work that should entitle an individual to an exemption and
    42  abatement  under this section, upon a finding that such work has a bene-
    43  ficial impact on greenhouse  gas  emissions.  The  board  shall  approve
    44  reasonable  costs  associated  with  the  work proposed and may use as a
    45  guide the typical costs of such improvements, and update  such  informa-
    46  tion  annually. Any application for benefits shall be approved or denied
    47  within one year of submission, or if an affirmative approval  or  denial
    48  has  not been given, then such application shall be deemed approved. The
    49  board shall establish a process to communicate with  the  department  of
    50  finance in the city of New York as to their determinations, such that it
    51  may promptly update the tax rolls.
    52    4.  Any  increase  in  assessed  valuation  of  eligible real property
    53  resulting from eligible improvements shall be exempt from  taxation  for
    54  local purposes for a period of twenty years, provided that:
        S. 943                              4

     1    a.  the  eligible  improvements  are  commenced after December thirty-
     2  first, two thousand twenty-one, and are completed within sixty months of
     3  the issuance of a permit by the department of buildings;
     4    b. the eligible improvements are approved by the board with respect to
     5  their costs and their qualifications for the benefits of this section;
     6    c.  the exemption may commence no sooner than the July first following
     7  the filing with the local  agency  responsible  for  real  property  tax
     8  assessment  an  application  for  such  assessment, provided that if the
     9  board has not established the amount of such assessment  prior  to  such
    10  filing,  that  no  such  increase in assessment shall be permitted until
    11  such time as the board determines that the cost or work is otherwise not
    12  qualified for such exemption; provided, however, that  no  abatement  of
    13  existing  taxes  shall be permitted until such time as an application is
    14  approved, or deemed approved as applicable.  If  the  rehabilitation  is
    15  carried  out with substantial government assistance as part of a program
    16  for affordable housing, the exemption may commence no  sooner  than  the
    17  July  first  following  the  commencement  of  construction  of eligible
    18  improvements;
    19    d. there shall be no outstanding real estate taxes,  water  and  sewer
    20  charges,  payments  in  lieu of taxes or other municipal charges due and
    21  owing as of the tax quarter prior to commencement of  tax  exemption  to
    22  this section;
    23    e. no person who lives in the eligible real property shall be required
    24  by  the  owner to permanently vacate the eligible real property in order
    25  to perform the eligible improvements or any related work;
    26    f. notwithstanding the provisions of any state or local law,  rule  or
    27  regulation  to  the  contrary, the exemption shall be available notwith-
    28  standing the receipt of any other benefit under state, local or  federal
    29  law.
    30    5.  Eligible real property which qualifies for exemption from taxation
    31  for local purposes for eligible improvements shall also be eligible  for
    32  ten  year  abatement  of  real  property taxes not to exceed the cost of
    33  eligible improvements  certified  by  the  board,  which  abatement  may
    34  commence  on the first day of the first tax quarter following the filing
    35  with the local agency responsible for real property tax assessment of  a
    36  certification  of  eligibility  issued  by the board for such abatement;
    37  provided, however  that  if  the  rehabilitation  is  carried  out  with
    38  substantial  government  assistance  as part of a program for affordable
    39  housing the abatement may commence no sooner than the first day  of  the
    40  first tax quarter following the commencement of construction of eligible
    41  improvements, provided that:
    42    a. the annual abatement shall not exceed the amount of taxes otherwise
    43  payable in the corresponding tax year;
    44    b.  the  amount  of  such  abatement  shall  not  exceed the following
    45  amounts, which shall be determined  by  regulations  which  establish  a
    46  methodology  to  determine such amounts, a base year for calculating the
    47  percentage on the building's  prior  calendar  year  building  emissions
    48  report  as  required by article three hundred twenty of chapter three of
    49  title twenty-eight of the administrative code of the city of  New  York,
    50  or  if  not  required to file a building emissions report, then a bench-
    51  marking report required by article three hundred nine of  chapter  three
    52  of  title  twenty-eight  of  the  administrative code of the city of New
    53  York:
    54    (i) five percent of the reasonable costs of such improvement  annually
    55  for a greenhouse gas emission reduction of between two to five percent;
        S. 943                              5

     1    (ii) six and one-half percent of the reasonable costs of such improve-
     2  ment annually for a greenhouse gas emission reduction of between five to
     3  ten percent;
     4    (iii)  seven percent of the reasonable costs of such improvement annu-
     5  ally for a greenhouse gas emission reduction of between  ten  to  twelve
     6  percent;
     7    (iv)  seven  and  one-half  percent  of  the  reasonable costs of such
     8  improvement annually for a greenhouse gas emission reduction of  between
     9  twelve to fifteen percent;
    10    (v) eight percent of the reasonable costs of such improvement annually
    11  for  a greenhouse gas emission reduction of between fifteen to seventeen
    12  percent;
    13    (vi) eight and one-half  percent  of  the  reasonable  costs  of  such
    14  improvement  annually for a greenhouse gas emission reduction of between
    15  seventeen to twenty percent;
    16    (vii) nine percent of the reasonable costs of such improvement annual-
    17  ly for a greenhouse gas emission reduction of between twenty to  twenty-
    18  five percent;
    19    (viii)  nine  and  one-half  percent  of  the reasonable costs of such
    20  improvement annually for a greenhouse gas emission reduction of  between
    21  twenty-five to thirty percent; and
    22    (ix)  ten percent of the reasonable costs of such improvement annually
    23  for a greenhouse gas emission reduction of in excess of thirty percent;
    24    c. the abatement shall be available for  consecutive  years  from  the
    25  date such abatement first becomes effective;
    26    d.  the  total abatement shall be the lesser of two hundred percent of
    27  the certified reasonable costs of eligible improvements  or  the  actual
    28  costs  as determined by the board pursuant to its rules and regulations;
    29  and
    30    e. notwithstanding the provisions of any state or local law,  rule  or
    31  regulation  to  the  contrary, the abatement shall be available notwith-
    32  standing the receipt of any other benefit under state, local or  federal
    33  law.
    34    6.  During  the  period of tax exemption or abatement pursuant to this
    35  section, the owner shall submit an annual certification  to  the  board.
    36  Failure  to  submit such certification may result in revocation of bene-
    37  fits. Such certification shall include the following:
    38    a. the annual greenhouse gas emissions and usage  of  energy  for  the
    39  building;
    40    b.  a statement that the property currently complies with all building
    41  and housing codes and that no tax required to be paid is in arrears; and
    42    c. all such other information required by the board.
    43    7. During the period of tax exemption or abatement  pursuant  to  this
    44  section,  the exemption and abatement may be revoked upon a violation of
    45  applicable oversight laws, where an agency with jurisdiction to  enforce
    46  such  laws  has  requested  a suspension of abatement or exemption based
    47  upon violations of the multiple dwelling law, the  local  building  code
    48  and the local housing maintenance code, or other applicable law or regu-
    49  lation.
    50    8. The benefits of this section may be revoked or reduced upon a find-
    51  ing by the board that:
    52    a.  the application for benefits hereunder or the annual certification
    53  required hereunder contains a false statement or false information as to
    54  a material matter or omits a material matter;
        S. 943                              6

     1    b. real estate taxes, water and sewer charges,  payments  in  lieu  of
     2  taxes  or  other  municipal  charges are due and owing for more than one
     3  year; or
     4    c.  the  eligible  real  property  fails to provide the annual certif-
     5  ication required by this section; and
     6    d. after receiving notice of such  a  failure,  that  such  owner  has
     7  failed to cure the deficiency within ninety days.
     8    9. The local agencies of government charged with the administration of
     9  this  section  may  promulgate  rules  and  regulations to carry out the
    10  provisions of this section.
    11    § 3. This act shall take effect immediately and shall  expire  and  be
    12  deemed repealed December 31, 2030.