New York Laws
Title 4-A - Tax Abatement for Certain Commercial Properties in a City of One Million or More Persons
499-AA - Definitions.

(b) In addition to the abatement zone set forth in paragraph (a) of
this subdivision, in the city of New York the abatement zone shall be
any district that is zoned C4, C5, C6, M1, M2 or M3 in accordance with
the zoning resolution of such city in any area of such city except the
area lying south of the center line of 96th Street in the borough of
Manhattan.
(c) Notwithstanding the provisions of paragraph (b) of this
subdivision, the abatement zone shall also include the special garment
center district as defined by chapter 1 of article XII of the zoning
resolution of the city of New York.
(d) Any tax lot that is partly located inside an abatement zone shall
be deemed to be entirely located inside such zone.
3. "Aggregate floor area." The sum of the gross areas of the several
floors of a building, measured from the exterior faces of exterior walls
or from the center lines of walls separating two buildings.
4. "Applicant." The landlord and the tenant.
5. "Benefit period." The period commencing with the first day of the
month immediately following the rent commencement date and terminating
no later than sixty months thereafter, provided, however, that with
respect to a lease commencing on or after April first, nineteen hundred
ninety-seven with an initial lease term of less than five years, but not
less than three years, the period commencing with the first day of the
month immediately following the rent commencement date and terminating
no later than thirty-six months thereafter, and provided, further,
however, that with respect to a lease commencing on or after July first,
two thousand five for eligible premises defined in subparagraph (ii) of
paragraph (b) or paragraph (c) of subdivision ten of this section with
an initial lease term of not less than three years, the period
commencing with the first day of the month immediately following the
rent commencement date and terminating no later than one hundred twenty
months thereafter. Notwithstanding the foregoing sentence, a benefit
period shall expire no later than March thirty-first, two thousand
seven, provided, however, that with respect to a lease commencing on or
after July first, two thousand for eligible premises defined in
subparagraph (i) of paragraph (b) of subdivision ten of this section, a
benefit period shall expire no later than June thirtieth, two thousand
sixteen, provided, further, however that with respect to a lease
commencing on or after July first, two thousand five for eligible
premises defined in subparagraph (ii) of paragraph (b) or paragraph (c)
of subdivision ten of this section, a benefit period shall expire no
later than June thirtieth, two thousand twenty.
6. "Billable assessed value." The lesser of the taxable transitional
or the taxable actual assessed value of the eligible building and the
land on which the eligible building is located for the fiscal year in

which the benefit period commences, as computed pursuant to subdivision
three of section one thousand eight hundred five of this chapter.
7. "Department of finance." The department of finance of any city
having a population of one million or more.
8. "Eligible building." (a) With respect to the abatement zone defined
in paragraph (a) of subdivision two of this section, a non-residential
or mixed-use building that has an aggregate floor area of twenty-five
thousand square feet or more and that received its initial certificate
of occupancy or initial temporary certificate of occupancy prior to
January first, nineteen hundred seventy-five; provided that if no
certificate of occupancy was required at the time the building was
constructed, other proof acceptable to the department of finance is
submitted that demonstrates that the building was constructed prior to
January first, nineteen hundred seventy-five; and provided further that
eligible building shall not include any building owned by a governmental
agency. Each condominium unit in a building that meets the requirements
of this subdivision shall be considered a separate eligible building.
(b) With respect to the abatement zone defined in paragraph (b) of
subdivision two of this section for eligible premises defined in
subparagraph (i) of paragraph (b) of subdivision ten of this section, a
non-residential or mixed-use building that has an aggregate floor area
of twenty-five thousand square feet or more and that received its
initial certificate of occupancy or initial temporary certificate of
occupancy prior to January first, nineteen hundred ninety-nine; provided
that if no certificate of occupancy was required at the time the
building was constructed, other proof acceptable to the department of
finance is submitted that demonstrates that the building was constructed
prior to January first, nineteen hundred ninety-nine; and provided
further that eligible building shall not include any building owned by a
governmental agency. Each condominium unit in a building that meets the
requirements of this subdivision shall be considered a separate eligible
building.
(c) With respect to the abatement zone defined in paragraph (b) of
subdivision two of this section for eligible premises defined in
subparagraph (ii) of paragraph (b) of subdivision ten of this section
and the abatement zone defined in paragraph (c) of subdivision two of
this section, a non-residential building; provided that eligible
building shall not include any building owned by a governmental agency.
Each condominium unit in a building that meets the requirements of this
subdivision shall be considered a separate eligible building.
9. "Eligibility period." The period commencing April first, nineteen
hundred ninety-five and terminating March thirty-first, two thousand
one, provided, however, that with respect to eligible premises defined
in subparagraph (i) of paragraph (b) of subdivision ten of this section,
the period commencing July first, two thousand and terminating June
thirtieth, two thousand twenty-eight, and provided, further, however,
that with respect to eligible premises defined in subparagraph (ii) of
paragraph (b) or paragraph (c) of subdivision ten of this section, the
period commencing July first, two thousand five and terminating June
thirtieth, two thousand twenty-eight.
10. "Eligible premises." (a) With respect to the abatement zone
defined in paragraph (a) of subdivision two of this section, premises
located in an eligible building that (a) are occupied or used as offices
(including ancillary uses) or are occupied or used as retail space and
(b) are occupied or used by a tenant under a lease that meets the
eligibility requirements of section four hundred ninety-nine-cc of this
title, provided, however, that premises occupied or used as retail space
shall not be eligible premises unless located in an eligible building

the premises of which are occupied or used primarily as offices
(including ancillary uses);
(b) With respect to the abatement zone defined in paragraph (b) of
subdivision two of this section, premises located in an eligible
building that are (i) occupied or used as offices (including ancillary
uses) or are occupied or used for other lawful commercial business
activities, but not premises occupied or used as retail space or for
hotel or residential purposes; or (ii) occupied or used for industrial
and manufacturing activities (including ancillary uses), but not
premises occupied or used for hotel or residential purposes; and
(c) With respect to the abatement zone defined in paragraph (c) of
subdivision two of this section, premises located in an eligible
building that are occupied or used for industrial and manufacturing
activities (including ancillary uses), but not premises occupied or used
for hotel or residential purposes.
(d) Notwithstanding the provisions of subparagraph (ii) of paragraph
(b) or paragraph (c) of this subdivision, premises located in an
eligible building shall not be eligible for the tax abatement granted
pursuant to subdivision one-b of section four hundred ninety-nine-bb of
this title unless at least fifty percent of the aggregate floor area of
such premises is occupied or used for industrial and manufacturing
activities (exclusive of ancillary uses) as defined in subdivision
fourteen-a of this section.
(e) For eligible premises defined in subparagraph (ii) of paragraph
(b) or paragraph (c) of this subdivision, retail space shall be (i)
occupied solely by the tenant of such eligible premises who has applied
for and receives a tax abatement pursuant to this title and (ii) used
for the purpose of selling or servicing the products of such tenant.
Such retail space shall not be deemed to be occupied or used for
industrial and manufacturing activities for purposes of paragraph (d) of
this subdivision.
11. "Expansion premises." Eligible premises leased by an expansion
tenant to accommodate additional employees.
12. "Expansion tenant." A person who (a) occupies premises in an
eligible building under a lease which does not expire during the
eligibility period and (b) executes a lease for expansion premises in
such eligible building or in another eligible building which lease meets
the eligibility requirements of section four hundred ninety-nine-cc of
this title. For purposes of determining whether expansion premises are
located in the same or in another eligible building, the last sentence
of subdivision eight of this section shall not be applicable.
13. "Fiscal year." The fiscal year of any city having a population of
one million or more.
14. "Governmental agency." The United States of America or any agency
or instrumentality thereof, the state of New York, the city of New York,
any public corporation (including a body corporate and politic created
pursuant to agreement or compact between the state of New York and any
other state), public benefit corporation, public authority or other
political subdivision of the state.
14-a. "Industrial and manufacturing activities." Activities involving
the assembly of goods to create a different article, or the processing,
fabrication, or packaging of goods. Industrial and manufacturing
activities shall not include waste management or utility services.
15. "Landlord." Any person who (a) controls all non-residential
portions of an eligible building, including, without limitation, the
record owner, the lessee under a ground lease, any mortgagee in
possession or any receiver, and (b) who grants the right to use or
occupy eligible premises to any tenant, provided that landlord shall not

include any lessee who at any time during the lease term occupied or
used or occupies or uses any part of the non-residential portions of
such eligible building, other than premises occupied or used by such
lessee to provide rental or management services to such building.
16. "Lease commencement date." The date set forth in the lease on
which the term of the lease commences.
17. "Mixed-use building." A building used for both residential and
commercial purposes, provided that more than twenty-five per centum of
the aggregate floor area of such building is used or held out for use as
commercial, community facility or accessory use space.
18. "New tenant." A person who (a) (i) is relocating or expanding from
premises in a relocation area to eligible premises, or (ii) occupies
premises in an eligible building under a lease which expires during the
eligibility period and is relocating or expanding to eligible premises,
or (iii) occupies premises in the abatement zone in a building which is
not an eligible building and is relocating or expanding to eligible
premises, or (iv) does not occupy any premises immediately prior to
executing a lease for eligible premises, or (v) is an owner of a
building in the abatement zone who is relocating or expanding to
eligible premises, and (b) executes a lease which meets the eligibility
requirements of section four hundred ninety-nine-cc of this title.
19. "Person." An individual, corporation, limited liability company,
partnership, association, agency, trust, estate, foreign or domestic
government or subdivision thereof, or other entity.
20. "Relocation area." Any area except the abatement zone as defined
in subdivision two of this section.
21. "Renewal tenant." A person who (a) occupies premises in an
eligible building under a lease which expires during the eligibility
period and (b) executes a lease for the continued occupancy of all or
part of such premises or all or part of such premises and additional
premises in such eligible building, provided such premises are eligible
premises and such lease meets the eligibility requirements of section
four hundred ninety-nine-cc of this title.
22. "Rent commencement date." The date set forth in the lease on which
the obligation to pay basic fixed rent shall commence.
23. "Subtenant." A person whose right to occupy and use the eligible
premises is not derived from a lease with the landlord.
24. "Tax commission." The tax commission in any city having a
population of one million or more.
25. "Tax liability." The product obtained by multiplying the billable
assessed value for the fiscal year in which the benefit period commences
by the tax rate applicable to the eligible building for such fiscal year
as set by the local legislative body of any city having a population of
one million or more.
26. "Tax liability per square foot." The tax liability divided by the
total number of square feet in the eligible building, as listed on the
records of the department of finance.
27. "Tenant." A person (including any successors in interest) who
executes a lease with the landlord for the right to occupy or use the
eligible premises and who occupies or uses the eligible premises
pursuant to such lease. Tenant shall not include any subtenant. When
used in this title, "tenant" includes "expansion tenant", "new tenant"
and "renewal tenant."
28. "Tenant's percentage share." (a) For eligible premises defined in
paragraph (a) or subparagraph (i) of paragraph (b) of subdivision ten of
this section, the percentage of the eligible building's aggregate floor
area allocated to the eligible premises, which shall be presumed to be
such percentage as set forth in the lease for the eligible premises;

provided that where the eligible premises includes expansion premises,
the "tenant's percentage share" shall be calculated on the basis of the
percentage of the eligible building's aggregate floor area allocated
solely to the expansion premises.
(b) For eligible premises defined in subparagraph (ii) of paragraph
(b) or paragraph (c) of subdivision ten of this section, the percentage
of the eligible building's aggregate floor area allocated to the
eligible premises to be occupied or used for industrial and
manufacturing activities, as defined in subdivision fourteen-a of this
section; provided that where the eligible premises includes expansion
premises, the "tenant's percentage share" shall be calculated on the
basis of the eligible building's aggregate floor area allocated solely
to expansion premises to be occupied or used for industrial and
manufacturing activities.

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