Town of Tonawanda, NY
Erie County
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Table of Contents
Table of Contents
[Adopted 4-24-2017 by L.L. No. 3-2017]
This article is authorized pursuant to Real Property Tax Law § 485-a.
The Town Board hereby enacts this article to encourage businesses to improve existing properties within the business districts. This article will allow eligible businesses to receive tax incentives, amortized over a twelve-year period for new buildings and improvements, as set forth in Real Property Tax Law §485-a. All terms and definitions of such §458-a shall be equally applicable in this article.
Any individual, corporation, limited liability company, partnership, association, agency, trust, estate, foreign or domestic government or subdivision thereof, or other entity 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 on 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.
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.
Pursuant to Real Property Tax Law § 485-a, nonresidential real property, upon conversion to mixed-use property, shall be exempt from taxation and special ad valorem levies for a period of 12 years from the approval of an application for such exemption. 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.
The following table shall illustrate the computation of the tax exemption:
Year of Exemption
Percentage of Exemption
1 through 8
100% of exemption of base
80% of exemption of base
60% of exemption of base
40% of exemption of base
20% of exemption of base
No such exemption shall be granted unless:
Such conversion was commenced subsequent to the date on which this local law took effect; and
The cost of such conversion exceeds the sum of $150,000.
For purposes of this section, the term "conversion" 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 for 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 section. In such case, an exemption shall be granted for a number of years equal to the twelve-year exemption granted pursuant to this section 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 of Real Property Services. Such application shall be filed with the Assessor on or before March 1.
If the Assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the application and such real property shall thereafter be exempt from taxation and special ad valorem levies as provided in this section commencing with the assessment roll prepared after the taxable status date referred to in Subsection E of this section. The assessed value of any exemption granted pursuant to this section 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.