New York Laws
Article 5 - Redevelopment Companies
125 - Tax Exemptions.

(a-1) Where the redevelopment contract between a mutual redevelopment
company and the local legislative body under which the initial tax
exemption was granted contains provisions different from those in
subdivisions two, three, four and five of section thirty-one of this
chapter, then a contract to extend the tax exemption for an additional
period under paragraph (a) of this subdivision may provide that those
provisions of the redevelopment contract shall continue to apply (with
such modifications as the supervising agency of such mutual
redevelopment company shall approve) during the additional period as if
such additional period were the initial period of tax exemption for such
mutual redevelopment company, notwithstanding the provisions of
paragraph (a) of this subdivision to the contrary.
(a-2) Any inconsistent provision of law notwithstanding, in a city
having a population of one million or more, where a local legislative
body has acted to extend the tax exemption of a mutual redevelopment
company for an additional twenty-five years after the initial tax
exemption period has expired, the local legislative body may authorize
tax exemption during the final eleven years of such additional
twenty-five year exemption period under this subdivision, provided that
the amount of taxes to be paid by the mutual redevelopment company
during the final eleven years of such additional twenty-five year
exemption period shall not be less than an amount equal to the greater
of (i) ten per centum of the annual rent or carrying charges of the
project minus utilities for the residential portion of the project, or
(ii) the taxes payable by such company for the residential portion of
the project in the fourteenth year of such additional twenty-five year
exemption period, and may further extend the period of such additional
twenty-five year exemption for up to a total period of thirty-five years
from the date of expiration of the initial tax exemption, provided that
the amount of taxes to be paid by the mutual redevelopment company
during any such extension beyond such additional twenty-five year
exemption period shall not be less than an amount equal to the greater
of (i) ten per centum of the annual rent or carrying charges of the
project minus utilities for the residential portion of the project, or
(ii) the taxes payable by such company for the residential portion of
the project in the fourteenth year of such additional twenty-five year
exemption period.
(a-3) Any inconsistent provision of law notwithstanding, the local
legislative body of any municipality may grant an additional tax
exemption period for any project, other than a project by a mutual
redevelopment company, that received a tax exemption under paragraph (a)
of this subdivision, upon the expiration of the tax exemption period.
The additional tax exemption period may be for a term of forty years, or
until such time as the project is no longer operated under the
restrictions and for the purposes set forth in this article, whichever
is sooner. Unless otherwise approved by the local legislative body, the
amount of taxes paid by the redevelopment company during such additional
tax exemption period shall not be less than (i) the taxes payable by
such company in accordance with the resolution for such redevelopment

company that was approved by the local legislative body and that was in
effect immediately prior to the expiration of the initial tax exemption
period, or (ii) if there is no such resolution, the taxes payable by
such company in accordance with the exemption authorized pursuant to
this article immediately prior to the expiration of the initial tax
exemption period.
(a-4) Any inconsistent provision of law notwithstanding, in a city
having a population of one million or more, where a local legislative
body has acted to extend the tax exemption of a mutual redevelopment
company for the maximum period provided for in paragraph (a-2) of this
subdivision, the local legislative body may grant an additional tax
exemption for a period of up to fifty years, provided that the amount of
taxes to be paid during any such period of tax exemption shall be not
less than an amount equal to the greater of (i) ten per centum of the
annual rent or carrying charges of the project minus utilities for the
residential portion of the project, or (ii) the taxes payable by such
company for the residential portion of the project during the tax year
commencing July first, two thousand and ending on June thirtieth, two
thousand one. Such grant of an additional tax exemption period shall
take effect upon the expiration of the maximum period provided for in
paragraph (a-2) of this subdivision.
(b) A redevelopment company which has been granted and has received
tax exemption pursuant to this section may at any time elect to pay to
the municipality or other appropriate taxing jurisdiction the total of
all accrued taxes for which exemption was granted and received, together
with interest at the rate of five per centum per annum. Upon such
payment the tax exemption of the project shall thereupon cease and
terminate.
(c) Where a municipality acts on behalf of another taxing jurisdiction
in assessing real property for the purpose of taxation, or in levying
taxes therefor, the said agreement by the local legislative body of such
municipality shall have the effect of exempting the real property in a
project from local and municipal taxes, other than assessments for local
improvements, levied by or in behalf of both such taxing jurisdictions.
(d) As used in this subdivision the term "taxing jurisdiction" means
any municipal corporation or district corporation, including any school
district or any special district, having the power to levy or collect
taxes and benefit assessments upon real property, or in whose behalf
such taxes or benefit assessments may be levied or collected.
2. Any inconsistent provision of law notwithstanding, mortgages of any
such company issued to the federal government or any instrumentality
thereof, or to any municipal housing authority or other public housing
agency or instrumentality thereof whose obligations are determined to be
exempt from federal taxation by the federal government, or issued to a
financial institution and insured or guaranteed by the federal housing
administrator or any other instrumentality of the federal government
shall be exempt from the mortgage recording taxes imposed by article
eleven of the tax law.