New York Laws
Title 2-D - Tax Exemption and Deferral of Tax Payments for Certain Industrial and Commercial Properties in a City of One Million or More Persons
489-AAAA - Definitions.

(b) For purposes of computing the exemption pursuant to subdivision
three, four or five of section four hundred eighty-nine-bbbb of this
title, "exemption base" shall mean, with respect to property that is the
subject of a certificate of eligibility with an effective date of July
first, nineteen hundred ninety-two or after: (i) for the first through
fifth taxable years following the effective date of a certificate of
eligibility, the assessed value of improvements made since the effective
date of such certificate which are attributable exclusively to
commercial or renovation construction work described in approved plans;
and (ii) for all other years, the assessed value of such improvements
which have been made before the sixth taxable status date following the
effective date of such certificate.
(c) For purposes of computing the exemption pursuant to subdivision
one or two of section four hundred eighty-nine-bbbb of this title,
"exemption base" shall mean, with respect to property that is the
subject of a certificate of eligibility with an effective date of July
first, nineteen hundred ninety-two or after: (i) for the first through
fifth taxable years following the effective date of a certificate of
eligibility, the assessed value of improvements made since the effective
date of such certificate which are attributable exclusively to
commercial or industrial construction work described in approved plans
plus any equalization increases or minus any equalization decreases in
the assessed value of the property so improved (excluding the land)
occurring subsequent to the effective date of such certificate; and (ii)
for all other years, the assessed value of such improvements made before
the sixth taxable status date following the effective date of such
certificate plus any equalization increases or minus any equalization
decreases in the assessed value of the property so improved (excluding
the land) occurring subsequent to the effective date of such certificate
but before the fourteenth taxable status date following the effective
date of such certificate. For purposes of the preceding sentence: no
adjustment shall be made to the assessed value of the improvements
referred to in subparagraphs (i) and (ii) of this paragraph for any
portion of an equalization increase or decrease which is being phased in
pursuant to section eighteen hundred five of this chapter subsequent to
the effective date of the certificate of eligibility if such increase or
decrease occurred prior to such effective date; with respect to any
taxable year, an adjustment for an equalization increase or decrease
shall reflect only the portion of such increase or decrease which is
being phased in during such taxable year or which was phased in during a
prior taxable year; no adjustment for an equalization decrease shall
reduce the exemption base to an amount less than the assessed value of
the improvements referred to in subparagraphs (i) and (ii) of this

paragraph, and, to the extent that any such decrease would reduce the
exemption base below such amount, such decrease shall reduce the taxable
portion of the assessed value; and no adjustment shall be made for an
equalization increase or decrease if the improvements referred to in
subparagraphs (i) and (ii) of this paragraph do not result in a physical
increase in the assessed value of the property.
(d) Notwithstanding paragraph (a) of this subdivision, for purposes of
computing the exemption pursuant to subdivision one of section four
hundred eighty-nine-bbbb of this title, "exemption base" shall mean,
with respect to industrial property that is located in the area in the
borough of Manhattan lying north of the center line of 96th Street, or
that is located in the Bronx, Brooklyn, Queens or Staten Island; and
that is the subject of a certificate of eligibility with an effective
date after December thirty-first, nineteen hundred eighty-nine and
before July first, nineteen hundred ninety-two: (i) for the first,
second and third taxable years following the effective date of a
certificate of eligibility, the assessed value of improvements made
since the effective date of such certificate which are attributable
exclusively to industrial construction work described in approved plans;
and (ii) for all other years, the assessed value of such improvements
made before the fourth taxable status date following the effective date
of such certificate plus any equalization increases or minus any
equalization decreases in the assessed value of the property so improved
(excluding the land) occurring subsequent to the fourth taxable status
date following the effective date of such certificate but before the
fourteenth taxable status date following the effective date of such
certificate. For purposes of the preceding sentence: no adjustment shall
be made to the assessed value of the improvements referred to in
subparagraphs (i) and (ii) of this paragraph for any portion of an
equalization increase or decrease which is being phased in pursuant to
section eighteen hundred five of this chapter subsequent to the
effective date of the certificate of eligibility if such increase or
decrease occurred prior to such effective date; with respect to any
taxable year, an adjustment for an equalization increase or decrease
shall reflect only the portion of such increase or decrease which is
being phased in during such taxable year or which was phased in during a
prior taxable year; no adjustment for an equalization decrease shall
reduce the exemption base to an amount less than the assessed value of
the improvements referred to in subparagraphs (i) and (ii) of this
paragraph, and, to the extent that any such decrease would reduce the
exemption base below such amount, such decrease shall reduce the taxable
portion of the assessed value; and no adjustment shall be made for an
equalization increase or decrease if the improvements referred to in
subparagraphs (i) and (ii) of this paragraph do not result in a physical
increase in the assessed value of the property.
(e) For purposes of computing the exemption: (i) pursuant to
subdivision five-a of section four hundred eighty-nine-bbbb of this
title, "exemption base" shall mean, with respect to property that is the
subject of a certificate of eligibility with an effective date of July
first, nineteen hundred ninety-five or after and that is located in the
new construction exemption area specified in paragraph (a) of
subdivision six of section four hundred eighty-nine-cccc of this title:
for any taxable year following the effective date of a certificate of
eligibility, the assessed value of improvements made since the effective
date of such certificate which are attributable exclusively to the
construction of a new building or structure that meets the requirements
set forth in subdivision nine of section four hundred eighty-nine-dddd
of this title as described in approved plans, provided such improvements

are made within thirty-six months of the effective date of such
certificate or by December thirty-first, nineteen hundred ninety-nine,
whichever is earlier; and (ii) pursuant to subdivision five-a of section
four hundred eighty-nine-bbbb of this title, "exemption base" shall
mean, with respect to property that is the subject of a certificate of
eligibility with an effective date of July first, nineteen hundred
ninety-five or after and that is located in the new construction
exemption area specified in paragraph (b) of subdivision six of section
four hundred eighty-nine-cccc of this title: for any taxable year
following the effective date of a certificate of eligibility, the
assessed value of improvements made since the effective date of such
certificate which are attributable exclusively to the construction of a
new building or structure that meets the requirements set forth in
subdivision nine of section four hundred eighty-nine-dddd of this title
as described in approved plans, provided such improvements are made
within forty-two months of the effective date of such certificate.
(f) For purposes of this subdivision "equalization increase or
decrease" means an increase or decrease in the assessed value of
property which is not attributable to construction work, fire,
demolition, destruction or other change in the physical characteristics
of the property (excluding gradual physical deterioration or
obsolescence), or to a change in the description or boundaries of the
property.
10. "Industrial construction work" means the construction of a new
building or structure or the modernization, rehabilitation, expansion or
improvement of an existing building or structure for use as industrial
property.
11. "Industrial property" means nonresidential property on which will
exist after completion of industrial construction work a building or
structure wherein at least seventy-five per centum of the total net
square footage is used or immediately available and held out for use for
manufacturing activities involving the assembly of goods or the
fabrication or processing of raw materials.
12. "Initial assessed value" means the lesser of (a) the taxable
assessed value of real property appearing on the books of the annual
record of the assessed valuation of real property on the effective date
of a recipient's certificate of eligibility or (b) the assessed value to
which such assessment is thereafter reduced pursuant to application to
the tax commission or court order. Where the real property is used for
both residential and nonresidential purposes on the effective date of
such certificate of eligibility, the initial assessed value of such real
property, determined as provided in the preceding sentence, shall be
apportioned between the residential and nonresidential portions thereof
in such manner as shall properly reflect the initial assessed value of
each such portion. Such apportionment shall be in accordance with rules
promulgated by the department of finance.
13. "Manufacturing activity" means an activity involving the assembly
of goods or the fabrication or processing of raw materials.
14. "Minimum required expenditure" means expenditure for commercial,
renovation or industrial construction work in an amount equal to twenty
per centum of the initial assessed value; provided, however, that with
respect to a recipient who filed an application on or after July first,
nineteen hundred ninety-five for a certificate of eligibility for
industrial construction work or for commercial construction work in a
special exemption area or a regular exemption area, minimum required
expenditure means expenditure for such work in an amount equal to ten
per centum of the initial assessed value; provided, however, that with
respect to a recipient who filed an application on or after July first,

nineteen hundred ninety-five for a certificate of eligibility for
industrial construction work and for the purpose of receiving an
abatement of real property taxes in accordance with paragraph (c) of
subdivision one of section four hundred eighty-nine-bbbb of this title,
minimum required expenditure means expenditure for such work in an
amount equal to twenty-five per centum of the initial assessed value;
and provided further that if the department of finance, after
consultation with the deputy mayor for finance and economic development,
determines that a greater expenditure is required to encourage
significant industrial and commercial development it may establish by
rule a higher percentage of initial assessed value, not to exceed fifty
per centum thereof, as the minimum required expenditure. Expenditure for
residential construction work shall not be included in the minimum
required expenditure; provided, however, that for mixed-use property,
expenditures for construction work related to the common areas and
systems of such property shall be allocated, in accordance with rules
promulgated by the department of finance, between the residential and
nonresidential portions of the property. If real property was used for
both residential and nonresidential purposes on the effective date of
the certificate of eligibility, the initial assessed value of such real
property, for purposes of this subdivision, shall be the initial
assessed value apportioned to the nonresidential portions thereof.
15. "Person" means an individual, corporation, partnership,
association, agency, trust, estate, foreign or domestic government or
subdivision thereof, or other entity.
16. "Recipient" means an applicant to whom a certificate of
eligibility has been issued pursuant to this title, or the successor in
interest of such applicant, provided that where a person who has entered
into a lease or purchase agreement with the owner or lessee of exempt
property has been a co-applicant, such person or the successor in
interest of such person shall be the recipient.
17. "Regular exemption area" means an area in which a regular
exemption from taxes in accordance with subdivision three of section
four hundred eighty-nine-bbbb of this title shall be available to a
recipient who performs commercial construction work.
18. "Residential construction work" means any construction,
modernization, rehabilitation, expansion or improvement of dwelling
units other than dwelling units in a hotel.
19. "Residential property" means property, other than property used
for hotel purposes, on which exists or will exist, upon completion of
construction work, a building or structure used for residential
purposes.
20. "Restricted activity" means any entertainment activity which the
department of finance has identified in regulations promulgated pursuant
to a local law enacted pursuant to this title as an activity which, in
the public interest, should not be encouraged through the benefits of
this title.
21. "Special exemption area" means an area in which the commission has
determined that a special exemption from real property taxes in
accordance with subdivision two of section four hundred eighty-nine-bbbb
of this title shall be available to a recipient who performs commercial
construction work and, in addition, means the area specified in
paragraph (d) of subdivision four of section four hundred
eighty-nine-cccc of this title.
22. "Mixed-use property" means property on which exists, or will exist
upon completion of construction work, a building or structure used for
both residential and nonresidential purposes.

23. "Renovation construction work" means the modernization,
rehabilitation, expansion or improvement of an existing building or
structure, or portion thereof, for use as commercial property in a
renovation exemption area where such modernization, rehabilitation,
expansion or improvement is physically and functionally integrated with
the existing building or structure, or portion thereof, does not
increase the bulk of the existing building or structure by more than
thirty per centum and does not increase the height of the existing
building or structure by more than thirty per centum.
24. "Renovation exemption area" means the area specified in paragraph
(d) of subdivision five of section four hundred eighty-nine-cccc of this
title in which a renovation exemption from taxes in accordance with
subdivision five of section four hundred eighty-nine-bbbb of this title
shall be available to a recipient who performs renovation construction
work.
25. "New construction exemption areas" means the areas specified in
subdivision six of section four hundred eighty-nine-cccc of this title
in which an exemption from real property taxes in accordance with
subdivision five-a of section four hundred eighty-nine-bbbb of this
title shall be available to a recipient who constructs a new building or
structure that meets the requirements set forth in subdivision nine of
section four hundred eighty-nine-dddd of this title.