S T A T E O F N E W Y O R K
________________________________________________________________________
7737
I N S E N A T E
June 15, 2012
___________
Introduced by Sen. YOUNG -- 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 restoration of
tax exemption benefits to high density zoning districts, tax exemption
benefits for new multiple dwellings and an exemption for certain
multiple dwellings
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 2 of section 421-a of the real property tax
2 law is amended by adding a new paragraph (j) to read as follows:
3 (J) THE PROVISIONS OF SUBDIVISION (C) OF SECTION 11-245 OF THE ADMIN-
4 ISTRATIVE CODE OF THE CITY OF NEW YORK SHALL NOT BE APPLICABLE TO ANY
5 MULTIPLE DWELLING WHICH CONSTRUCTION COMMENCED ON OR AFTER DECEMBER
6 THIRTY-FIRST, TWO THOUSAND SEVEN PROVIDED THAT SUCH MULTIPLE DWELLING
7 (I) IS LOCATED ON A TAX LOT EXISTING OR CREATED IN THE BOROUGH OF
8 MANHATTAN NORTH OF A LINE DESCRIBED AS FOLLOWS: BEGINNING AT THE INTER-
9 SECTION OF VESEY STREET AND NORTH END AVENUE, THENCE EASTERLY ALONG
10 VESEY STREET TO BROADWAY, THENCE SOUTHERLY ALONG BROADWAY TO FULTON
11 STREET, THENCE EASTERLY ALONG FULTON STREET TO THE INTERSECTION WITH
12 WATER STREET, THENCE EASTERLY ALONG FORMER FULTON STREET TO THE EAST
13 RIVER PIERHEAD LINE; OR (II) LOCATED ON A TAX LOT EXISTING OR CREATED
14 THAT IS LOCATED ENTIRELY WITHIN THE GEOGRAPHIC AREA IN THE BOROUGH OF
15 MANHATTAN DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF WEST
16 STREET AND ALBANY STREET, THENCE EASTERLY ALONG ALBANY STREET TO GREEN-
17 WICH STREET, THENCE NORTHERLY ON GREENWICH STREET TO CEDAR STREET,
18 THENCE EASTERLY ON CEDAR STREET TO BROADWAY, THENCE SOUTHERLY ALONG
19 BROADWAY TO BATTERY PLACE, THENCE WESTERLY ALONG BATTERY PLACE TO WEST
20 STREET, THENCE NORTHERLY ALONG WEST STREET TO THE POINT OF BEGINNING.
21 S 2. Subparagraph (i) of paragraph (a) of subdivision 2 of section
22 421-a of the real property tax law, as amended by section 38 of part B
23 of chapter 97 of the laws of 2011, is amended to read as follows:
24 (i) Within a city having a population of one million or more, new
25 multiple dwellings, except hotels, shall be exempt from taxation for
26 local purposes, other than assessments for local improvements, for the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13380-06-2
S. 7737 2
1 tax year or years immediately following taxable status dates occurring
2 subsequent to the commencement and prior to the completion of
3 construction, but not to exceed three such tax years, [except for new
4 multiple dwellings the construction of which commenced between January
5 first, two thousand seven, and June thirtieth, two thousand nine, shall
6 have an additional thirty-six months to complete construction and shall
7 be eligible for full exemption from taxation for the first three years
8 of the period of construction; any eligible project that seeks to
9 utilize the six-year period of construction authorized by this section
10 must apply for a preliminary certificate of eligibility within one year
11 of the effective date of the rent act of 2011, provided, however that
12 such multiple dwellings shall be eligible for a maximum of three years
13 of benefits during the construction period,] and shall continue to be
14 exempt from such taxation in tax years immediately following the taxable
15 status date first occurring after the expiration of the exemption herein
16 conferred during construction so long as used at the completion of
17 construction for dwelling purposes for a period not to exceed ten years
18 in the aggregate after the taxable status date immediately following the
19 completion thereof, as follows:
20 (A) except as otherwise provided herein there shall be full exemption
21 from taxation during the period of construction or the period of three
22 years immediately following commencement of construction, whichever
23 expires sooner, [except for new multiple dwellings the construction of
24 which commenced between January first, two thousand seven, and June
25 thirtieth, two thousand nine, shall have an additional thirty-six months
26 to complete construction and shall be eligible for full exemption from
27 taxation for the first three years of the period of construction; any
28 eligible project that seeks to utilize the six-year period of
29 construction authorized by this section must apply for a preliminary
30 certificate of eligibility within one year of the effective date of the
31 rent act of 2011, provided, however that such multiple dwellings shall
32 be eligible for a maximum of three years of benefits during the
33 construction period,] and for two years following such period;
34 (B) followed by two years of exemption from eighty per cent of such
35 taxation;
36 (C) followed by two years of exemption from sixty per cent of such
37 taxation;
38 (D) followed by two years of exemption from forty per cent of such
39 taxation;
40 (E) followed by two years of exemption from twenty per cent of such
41 taxation;
42 The following table shall illustrate the computation of the tax
43 exemption:
44 CONSTRUCTION OF CERTAIN MULTIPLE DWELLINGS
45 Exemption
46 During Construction (maximum three years)[;] 100%
47 [except construction commenced between January
48 first, two thousand seven and June
49 thirtieth, two thousand nine (maximum
50 three years)]
51 Following completion of work
52 Year:
53 1 100%
S. 7737 3
1 2 100
2 3 80
3 4 80
4 5 60
5 6 60
6 7 40
7 8 40
8 9 20
9 10 20
10 S 3. Clause (A) of subparagraph (ii) of paragraph (a) of subdivision 2
11 of section 421-a of the real property tax law, as amended by section 39
12 of part B of chapter 97 of the laws of 2011, is amended to read as
13 follows:
14 (A) Within a city having a population of one million or more the local
15 housing agency may adopt rules and regulations providing that except in
16 areas excluded by local law new multiple dwellings, except hotels, shall
17 be exempt from taxation for local purposes, other than assessments for
18 local improvements, for the tax year or years immediately following
19 taxable status dates occurring subsequent to the commencement and prior
20 to the completion of construction, but not to exceed three such tax
21 years, [except for new multiple dwellings the construction of which
22 commenced between January first, two thousand seven, and June thirtieth,
23 two thousand nine, shall have an additional thirty-six months to
24 complete construction and shall be eligible for full exemption from
25 taxation for the first three years of the period of construction; any
26 eligible project that seeks to utilize the six-year period of
27 construction authorized by this section must apply for a preliminary
28 certificate of eligibility within one year of the effective date of the
29 rent act of 2011, provided, however that such multiple dwellings shall
30 be eligible for a maximum of three years of benefits during the
31 construction period,] and shall continue to be exempt from such taxation
32 in tax years immediately following the taxable status date first occur-
33 ring after the expiration of the exemption herein conferred during such
34 construction so long as used at the completion of construction for
35 dwelling purposes for a period not to exceed fifteen years in the aggre-
36 gate, as follows:
37 a. except as otherwise provided herein there shall be full exemption
38 from taxation during the period of construction or the period of three
39 years immediately following commencement of construction, whichever
40 expires sooner, [except for new multiple dwellings the construction of
41 which commenced between January first, two thousand seven, and June
42 thirtieth, two thousand nine, shall have an additional thirty-six months
43 to complete construction and shall be eligible for full exemption from
44 taxation for the first three years of the period of construction; any
45 eligible project that seeks to utilize the six-year period of
46 construction authorized by this section must apply for a preliminary
47 certificate of eligibility within one year of the effective date of the
48 rent act of 2011, provided, however that such multiple dwellings shall
49 be eligible for a maximum of three years of benefits during the
50 construction period,] and for eleven years following such period;
51 b. followed by one year of exemption from eighty percent of such taxa-
52 tion;
53 c. followed by one year of exemption from sixty percent of such taxa-
54 tion;
S. 7737 4
1 d. followed by one year of exemption from forty percent of such taxa-
2 tion;
3 e. followed by one year of exemption from twenty percent of such taxa-
4 tion.
5 S 4. Clause (A) of subparagraph (iii) of paragraph (a) of subdivision
6 2 of section 421-a of the real property tax law, as amended by section
7 40 of part B of chapter 97 of the laws of 2011, is amended to read as
8 follows:
9 (A) Within a city having a population of one million or more the local
10 housing agency may adopt rules and regulations providing that new multi-
11 ple dwellings, except hotels, shall be exempt from taxation for local
12 purposes, other than assessments for local improvements, for the tax
13 year or years immediately following taxable status dates occurring
14 subsequent to the commencement and prior to the completion of
15 construction, but not to exceed three such tax years, [except for new
16 multiple dwellings the construction of which commenced between January
17 first, two thousand seven, and June thirtieth, two thousand nine, shall
18 have an additional thirty-six months to complete construction and shall
19 be eligible for full exemption from taxation for the first three years
20 of the period of construction; any eligible project that seeks to
21 utilize the six-year period of construction authorized by this section
22 must apply for a preliminary certificate of eligibility within one year
23 of the effective date of the rent act of 2011, provided, however that
24 such multiple dwellings shall be eligible for a maximum of three years
25 of benefits during the construction period,] and shall continue to be
26 exempt from such taxation in tax years immediately following the taxable
27 status date first occurring after the expiration of the exemption herein
28 conferred during such construction so long as used at the completion of
29 construction for dwelling purposes for a period not to exceed twenty-
30 five years in the aggregate, provided that the area in which the project
31 is situated is a neighborhood preservation program area as determined by
32 the local housing agency as of June first, nineteen hundred eighty-five,
33 or is a neighborhood preservation area as determined by the New York
34 city planning commission as of June first, nineteen hundred eighty-five,
35 or is an area that was eligible for mortgage insurance provided by the
36 rehabilitation mortgage insurance corporation as of May first, nineteen
37 hundred ninety-two or is an area receiving funding for a neighborhood
38 preservation project pursuant to the neighborhood reinvestment corpo-
39 ration act (42 U.S.C. SS180 et seq.) as of June first, nineteen hundred
40 eighty-five, as follows:
41 a. except as otherwise provided herein there shall be full exemption
42 from taxation during the period of construction or the period of three
43 years immediately following commencement of construction, whichever
44 expires sooner, [except for new multiple dwellings the construction of
45 which commenced between January first, two thousand seven, and June
46 thirtieth, two thousand nine, shall have an additional thirty-six months
47 to complete construction and shall be eligible for full exemption from
48 taxation for the first three years of the period of construction; any
49 eligible project that seeks to utilize the six-year period of
50 construction authorized by this section must apply for a preliminary
51 certificate of eligibility within one year of the effective date of the
52 rent act of 2011, provided, however that such multiple dwellings shall
53 be eligible for a maximum of three years of benefits during the
54 construction period,] and for twenty-one years following such period;
55 b. followed by one year of exemption from eighty percent of such taxa-
56 tion;
S. 7737 5
1 c. followed by one year of exemption from sixty percent of such taxa-
2 tion;
3 d. followed by one year of exemption from forty percent of such taxa-
4 tion;
5 e. followed by one year of exemption from twenty percent of such taxa-
6 tion.
7 S 5. This act shall take effect immediately; except that section one
8 of this act shall be deemed to have been in full force and effect on and
9 after December 31, 2007; and provided that with respect to any applica-
10 tion for a preliminary certificate of eligibility that is filed no later
11 than June 24, 2012, or that is filed for a project that was the subject
12 of mortgage foreclosure proceedings or other lien enforcement litigation
13 by a lender on or before June 24, 2012, such project shall be subject to
14 that portion of the definition of "commence" contained in item (1) of
15 clause (iv) of subparagraph (2) of paragraph (b) of subdivision (a) of
16 section 6-09 of title twenty-eight of the rules of the city of New York.