New York Laws
Title 2 - Private Property
485-B - Business Investment Exemption.

(ii) In any year in which a change in level of assessment of fifteen
percent or more is certified for a final assessment roll pursuant to the
rules of the commissioner, the exemption base shall be multiplied by a
fraction, the numerator of which shall be the total assessed value of
the parcel on such final assessment roll (after accounting for any
physical or quantity changes to the parcel since the immediately
preceding assessment roll), and the denominator of which shall be the
total assessed value of the parcel on the immediately preceding final
assessment roll. The result shall be the new exemption base. The
exemption shall thereupon be recomputed to take into account the new
exemption base, notwithstanding the fact that the assessor receives the
certification of the change in level of assessment after the completion,
verification and filing of the final assessment roll. In the event 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. The assessor shall give
written notice of such recomputed exemption to the property owner, who
may, if he or she believes that the exemption was recomputed
incorrectly, apply for a correction in the manner provided by title
three of article five of this chapter for the correction of clerical
errors.
(iii) 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
(b) No such exemption shall be granted unless
(1) such construction, alteration, installation or improvement was
commenced subsequent to the first day of January, nineteen hundred
seventy-six or such later date as may be specified by local law or
resolution;
(2) the cost of such construction, alteration, installation or
improvement exceeds the sum of ten thousand dollars or such greater
amount as may be specified by local law or resolution; and
(3) 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.
(c) For purposes of this section the terms construction, alteration,
installation and improvement shall not include ordinary maintenance and
repairs.
(d) 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 section. In such case, an exemption shall be granted
for a number of years equal to the ten year exemption granted pursuant
to this section less the number of years the property would have been
previously exempt from real property taxes.
3. Such exemption shall be granted only upon application by the owner
of such real property on a form prescribed by the commissioner. Such
application shall be filed with the assessor of the city, town, village,
or county having the power to assess property for taxation 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.
4. 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, except for special ad valorem
levies for fire district, fire protection district and fire alarm
district purposes, as herein provided commencing with the assessment
roll prepared after the taxable status date referred to in subdivision
three 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.
5. The provisions of this section shall apply to real property used
primarily for the buying, selling, storing or developing goods or
services, the manufacture or assembly of goods or the processing of raw
materials. This section 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.
6. In the event that real property granted an exemption pursuant to
this section ceases to be used primarily for eligible purposes, the
exemption granted pursuant to this section shall cease.
7. A county, city, town or village may, by local law, and a school
district, except a city school district to which article fifty-two of
the education law applies, may, by resolution, reduce the per centum of
exemption otherwise allowed pursuant to this section; 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 subdivision 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 subdivision two or twelve of
this section, whichever is applicable, 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 commissioner 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 provided in subdivision three of section fourteen hundred two
of this chapter.
8. A county, city, town or village may, by local law, and a school
district, except a city school district to which article fifty-two of
the education law applies may, by resolution, establish a date for the
commencement of effectiveness of exemptions offered pursuant to this
section and may provide that the provisions of this section shall apply
only to construction, alteration, installation or improvements having a
greater value than that specified by subdivision two of this section,
provided, however, that such amount shall not exceed fifty thousand
dollars.
9. (a) 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. The membership and composition of such board
shall be set forth in the local law or resolution.
(b) The industrial and commercial incentive board shall present a plan
to the appointing local legislative body concerning the various types of
business real property which should be granted eligibility for an
exemption pursuant to subdivision one of this section. Such plan shall
make recommendations concerning the applicability of the exemption to
specific sectors and subsectors, as defined in the North American
Industry Classification System published by the United States
Government. Such plan shall also make a recommendation as to whether the
exemption be computed as provided in subdivision two or twelve of this
section. In addition, such plan shall identify specific geographic areas
within which such exemptions should be offered. In developing the plan
required by this paragraph, the board shall consider the planning
objectives of each municipality within which such exemptions may be
offered, the necessity of the exemption to the attraction or retention
of such business and the economic benefit to the area of providing
exemptions to various types of businesses.
(c) In addition, the board may make recommendations to the appointing
local legislative body with respect to actions it deems desirable to
improve the economic climate therein.
(d) Notwithstanding the provisions of paragraph (a) of this
subdivision, where a county establishes an industrial and commercial
incentive board, the members of such board shall be appointed as
follows: three representatives of the county: the appointment of one
shall be reserved to the county executive of the county who shall serve
as chair, and one each for the majority and the minority parties of the
county legislative body; one representative for each city located within
the county upon the recommendation of the mayor; one representative for
each of the towns located within the county upon the recommendation of
the supervisor; one representative to collectively represent all of the
villages located within the county upon the recommendation of the mayors

of the villages in the county; and one representative to collectively
represent all of the school districts located within the county upon
recommendation of the county school boards association. The members of
such board shall serve at the pleasure of the governing body which they
represent. The members shall serve without salary, but the county
legislative body may entitle each such member to reimbursement for his
or her actual and necessary expenses incurred in the performance of his
or her duties.
10. Where a county, city, town, village or school district has
established an industrial and commercial incentive board, pursuant to
subdivision nine of this section, such county, city, town or village
may, by local law, and a school district, except a city school district
to which article fifty-two of the education law applies, may, by
resolution, restrict real property eligible to receive the exemption to
real property constructed, altered, installed or improved for those
purposes identified in the plan presented by the board. Such law or
resolution shall identify the specific sectors and subsectors, as
defined in the North American Industry Classification System published
by the United States Government to which the exemption shall be
applicable. Such law or resolution shall also restrict the availability
of such exemption to the specific geographic areas identified in the
plan presented by the board.
11. Where a county, by law, restricts exemptions pursuant to the
recommendations of an industrial and commercial incentive board,
established pursuant to subdivision nine of this section, such
restricted exemptions shall be applicable to taxes and special ad
valorem levies of each city, town, village and school district located
within the area within which the restricted exemptions are offered by
the county, unless such city, town or village shall, by law, or such
school district, shall, by resolution, determine that such restricted
exemptions shall not be applicable to its tax and ad valorem levies.
Upon adoption of such law, the county shall notify each affected city,
town, village and school district of its actions and inform them of
their options regarding such restricted exemptions.
12. Notwithstanding subdivision two of this section, where a county,
city, town, village or school district adopts restricted exemptions
pursuant to subdivision ten of this section, the law or resolution may
provide that such exemptions shall be computed pursuant to the following
accelerated strategic exemption schedule:

Year of exemption Percentage of exemption
1 50
2 50
3 50
4 40
5 30
6 20
7 10
8 10
9 10
10 5

Provided however, that such law or resolution shall:
(i) contain findings that the adoption of this accelerated strategic
exemption schedule is necessary to encourage targeted economic
development, create or retain permanent private sector jobs, and that
the value of the exemptions to be provided is justified by the need to
provide employment opportunities and broaden the tax base; and
(ii) limit the applicability of such schedule to projects where the
cost of such construction, alteration, installation or improvement
exceeds the sum of fifty thousand dollars; and
(iii) provide that such exemptions are restricted by geographic areas
and/or groups and major divisions as is provided by subdivision ten of
this section.
13. The provisions of this section shall not apply in a city of one
million or more persons.

Structure New York Laws