[Adopted 4-23-2019 by L.L. No. 2-2019]
A.
By Real Property Tax Law § 485-a, the New York State Legislature
authorized towns, cities and villages to provide an exemption from
certain taxes for developers and building owners to convert office
space and properties, formerly housing warehouse, manufacturing and
retail activities, to residential housing units and commercial mixed
uses.
B.
Real Property Tax Law § 485-a further allows a county in
which such towns, cities and villages are located to, by local law,
exempt such properties from its taxation in the same manner and to
the same extent as such towns, cities and villages have done.
C.
The City of Albany adopted such an exemption by local law in 2003
and has requested that the same be provided to the County portion
of the property taxes for qualifying properties within the City of
Albany.
D.
The purpose of this article is to exempt eligible properties within
the City of Albany from County property taxation applied to conversions
of nonresidential real property to mixed-use property in accordance
with Real Property Tax Law § 485-a.
As used in this article, the following terms shall have the
meanings indicated:
Any person obligated to pay real property taxes on the property
for which an exemption from real property taxes under this article
is sought.
The modernization, rehabilitation, expansion or other improvement
of the portion of mixed-use property to be used for commercial purposes.
The buying, selling or otherwise providing of goods or services,
including hotel services, or other lawful business or commercial activities
permitted in mixed-use property.
Property on which will exist, after completion of residential
construction work or a combination of residential construction work
and commercial construction work, a building or structure used for
both residential and commercial purposes.
Any town, city or village.
An individual, corporation, limited-liability company, partnership,
association, agency, trust, estate, foreign or domestic government
or subdivision thereof, or other entity.
The creation, modernization, rehabilitation, expansion or
other improvement of dwelling units, other than dwelling units in
a hotel, in the portion of mixed-use property to be used for residential
purposes.
The taxable assessed value of property within a municipality
as defined by the Real Property Tax Law of New York State.
A.
Nonresidential real property within the City of Albany, upon conversion
to mixed-use property, shall be exempt from taxation and special ad
valorem levies pursuant to New York Real Property Tax Law § 485-a.
B.
For a period of 12 years from the approval of an application with
the Assessor of the City of Albany, the increase in assessed value
of such property attributable to such conversion shall be exempt as
provided below. Such exemption shall be computed with respect to the
"exemption base." The exemption base shall be determined for each
year in which there is an increase in assessed value so attributable
from that of the previous year's assessed value. Such exemption shall
be computed in accordance with the following:
|
Year of Exemption
|
Percentage of Exemption
|
|---|---|
|
1 through 8
|
100% of exemption base
|
|
9
|
80% of exemption base
|
|
10
|
60% of exemption base
|
|
11
|
40% of exemption base
|
|
12
|
20% of exemption base
|
B.
For the purposes of this section, the term "conversion" shall not
include ordinary maintenance and repairs.
C.
No such exemption shall be granted concurrent with or subsequent
to any other real property tax exemption granted to the same improvements
to real property, except where, during the period of such previous
exemption, payments in lieu of taxes or other payments were made to
the local government in an amount that would have been equal to or
greater than the amount of real property taxes that would have been
paid on such improvements had such property been granted an exemption
pursuant to this article. In such case, an exemption shall be granted
for a number of years equal to the twelve-year exemption granted pursuant
to this article less the number of years the property would have been
previously exempt from real property taxes.
A.
Such exemption shall be granted only upon application by the owner
of such real property on a form prescribed by the Commissioner of
the New York State Department of Taxation and Finance. Such application
shall be filed with the Assessor of the City of Albany on or before
the appropriate taxable status date.
B.
The twelve-year period of exemption shall be calculated from the
date the application was approved by the Assessor of the City of Albany.
However, in no event may such approval be construed to allow for retroactive
application of this exemption.
To ensure that the exemption granted by this article is implemented
without reducing County tax collections and to ensure that County
property taxpayers in municipalities not requesting the exemption
do not have to pay a higher share of County property taxes as a result
of the exemption, the County hereby enacts an "add back" provision
pursuant to Real Property Tax Law § 844(1)(b)(ii), specifying
that "taxable assessed value" for purposes of apportionment of County
taxes will include the amount of assessed value partially exempt from
County taxation under Real Property Tax Law § 485-a, which
shall ensure that the City of Albany will not pay less County property
taxes in the aggregate than it would had the real property tax exemption
for nonresidential real property converted to mixed-use property not
been applied to properties within the City of Albany.
This article shall take effect immediately upon filing in the
Office of the Secretary of State and shall apply to assessment rolls
for which an application has been filed with the Assessor prior to
the taxable status date of such municipality.
