Real property constructed, altered, installed
or improved subsequent to the first day of July 1976, for the purpose
of commercial, business or industrial activity shall be exempt from
taxation and special ad valorem levies to the extent hereinafter provided.
A.
Such real property shall be exempt for a period of
one year to the extent of 50% of the increase in assessed value thereof
attributable to such construction, alteration, installation or improvement
and for an additional period of nine years; provided, however, that
the extent of such exemption shall be decreased by 5% each year during
such additional period of nine years and such exemption shall be computed
with respect to the increase in assessed value as determined in the
initial year of such ten-year period following the filing of an original
application; provided, however, that in any year in which a change
in level of assessment of 15% or more is certified for an assessment
roll pursuant to the rules of the State Board, the exemption shall
be recomputed to take into account the increase in assessed value
due to the change in level of assessment, notwithstanding the fact
that the Assessor receives the certification after the completion,
verification and filing of the final assessment roll. In the event
that the Assessor does not have custody of the roll when such certification
is received, the Assessor shall certify the recomputed exemption to
the local officers having custody and control of the roll, and such
local officers are hereby directed and authorized to enter the recomputed
exemption certified by the Assessor on the roll.
B.
The following table shall illustrate the computation
of the tax exemption:
|
Year of Exemption
|
Percentage of Exemption
|
|---|---|
|
1
|
50
|
|
2
|
45
|
|
3
|
40
|
|
4
|
35
|
|
5
|
30
|
|
6
|
25
|
|
7
|
20
|
|
8
|
15
|
|
9
|
10
|
|
10
|
5
|
No such exemption shall be granted unless:
A.
Such construction, alteration, installation or improvement
was commenced subsequent to the first day of January 1976.
B.
The cost of such construction, alteration, installation
or improvement exceeds the sum of $10,000.
C.
Such construction, alteration, installation or improvement
is completed as may be evidenced by a certificate of occupancy or
other appropriate documentation as provided by the owner.
For purposes of this Article, the terms "construction,"
"alteration," "installation" and "improvement" shall not include ordinary
maintenance and repairs.
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 ten-year exemption
granted pursuant to this Article less the number of years the property
would have been previously exempt from real property taxes.
Such exemption shall be granted only upon application
by the owner of such real property on a form prescribed by the State
Board. The original of such application shall be filed with the Assessor
of the city, town, village or county having the power to assess property
for taxation. Such original application shall be filed on or before
the appropriate taxable status date of such city, town, village or
county and within one year from the date of completion of such construction,
alteration, installation or improvement. A copy thereof shall be filed
with the State Board.
If the Assessor is satisfied that the applicant is entitled to an exemption pursuant to this Article, he/she shall approve the application, and such real property shall thereafter be exempt from taxation and special ad valorem levies as herein provided commencing with the assessment roll prepared after the taxable status date referred to in § 127-10 of this Article. The assessed value of any exemption granted pursuant to this Article shall be entered by the Assessor on the assessment roll with the taxable property, with the amount of the exemption shown in a separate column.
The provisions of this Article shall apply to
real property used primarily for the buying, selling, storing or developing
of goods or services, the manufacture or assembly of goods or the
processing of raw materials. This Article shall not apply to property
used primarily for the furnishing of dwelling space or accommodations
to either residents or transients other than hotels or motels.
In the event that real property granted an exemption
pursuant to this Article ceases to be used primarily for eligible
purposes, the exemption granted pursuant to this Article shall cease.
A county, city, town or village may, by local law, and a school district, except a city school district to which Article 52 of the Education Law applies, may, by resolution, reduce the per centum of exemption otherwise allowed pursuant to this Article; provided, however, that a project in course of construction and exemptions existing prior in time to passage of any such local law or resolution shall not be subject to any such reduction so effected. Any county, city, town, village or school district that has reduced the per centum of exemption pursuant to this Article may thereafter, by local law or resolution as the case may be, increase the per centum of exemption up to any per centum not exceeding the maximum allowed by § 127-6 of this Article; provided, however, that any such local law or resolution shall apply only to construction, alterations, installations or improvements commenced subsequent to the effective date of such local law or resolution. A copy of all such local laws or resolutions shall be filed with the State Board and the Assessor of each assessing unit which comprises the county, city, town or school district or, in the case of a village, the Village Assessor, or the applicable Town or County Assessor of a village which has adopted a local law as provided in Subdivision 3 of § 1402 of the Real Property Tax Law.
A county, city outside the city of New York, town or village may, by local law, and a school district which levies school taxes may, by resolution, establish a Board to be known as the "Industrial and Commercial Incentive Board" for the purpose of advising the governing board thereof of the exercise of its options available pursuant to § 127-14 of this Article. Such Board may also review the economic conditions of the county, city, town, village or school district, as the case may be, and make recommendations on the basis of such review to the appropriate governing board with respect to actions it deems desirable to improve the economic climate therein. The membership and composition of such Board shall be set forth in the local law or resolution. The powers and duties of an Industrial and Commercial Incentive Board may be assigned by the governing board to any other appropriate officer, board, body or commission of the county, city, town, village or school district, as the case may be.
The provisions of this Article shall not apply
in a city of 1,000,000 or more persons.
