New York Laws
Title 4 - Tax Abatement for Certain Commercial Properties in a City of One Million or More Persons
499-B - Real Property Tax Abatement.

(a) for each of the first three years of the benefit period, the
abatement shall be equal to the product obtained by (i) multiplying the
tenant's percentage share by the number of square feet in the eligible
building, as listed on the records of the department of finance and (ii)
multiplying the product obtained in subparagraph (i) of this paragraph
by the abatement base;
(b) for the fourth year of the benefit period, the abatement shall be
equal to two-thirds of the abatement in the first year of the benefit
period; and
(c) for the fifth year of the benefit period, the abatement shall be
equal to one-third of the abatement in the first year of the benefit
period.
1-a. Within a city having a population of one million or more,
eligible buildings containing eligible premises occupied or used by a
tenant pursuant to a lease having a lease commencement date 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, shall receive an
abatement of real property taxes during the benefit period as follows:
(a) for the first year of the benefit period, the abatement shall be
equal to the product obtained by (i) multiplying the tenant's percentage
share by the number of square feet in the eligible building, as listed
on the records of the department of finance and (ii) multiplying the
product obtained in subparagraph (i) of this paragraph by the abatement
base;
(b) for the second year of the benefit period, the abatement shall be
equal to two-thirds of the abatement in the first year of the benefit
period; and
(c) for the third year of the benefit period, the abatement shall be
equal to one-third of the abatement in the first year of the benefit
period.
2. If, as a result of application to the tax commission or a court
order or action by the department of finance, the billable assessed
value is reduced, the department of finance shall recalculate the
abatement utilizing such reduced billable assessed value. The amount
equal to the difference between the abatement originally granted and the
abatement as so recalculated shall be deducted from any refund otherwise
payable or remission otherwise due as a result of such reduction in
billable assessed value, and any balance of such amount remaining unpaid
after making any such deduction shall be paid to the department of
finance within thirty days from the date of mailing by the department of
finance of a notice of the amount payable. Such amount payable shall
constitute a tax lien on the eligible building as of the date of such
notice and, if not paid within such thirty-day period, penalty and
interest at the rate applicable to delinquent taxes on such eligible
building shall be charged and collected on such amount from the date of
such notice to the date of payment.
3. In no event shall the abatement for the eligible premises granted
pursuant to this title exceed the tax liability allocable to the
eligible premises.
4. Notwithstanding the provisions of any lease for occupancy of
non-eligible premises in an eligible building or for occupancy of
eligible premises for which no certificate of abatement has been issued
pursuant to this title, a lessee of non-eligible premises or of eligible

premises for which no certificate of abatement has been issued pursuant
to this title shall not be entitled to receive directly or indirectly a
reduction in either the real property taxes or any rent (including
additional rent) payable pursuant to such lease where such reduction
would result from an abatement of real property taxes granted pursuant
to this title. A landlord of an eligible building shall not allocate,
credit, assign or disburse any portion of an abatement granted pursuant
to this title to a lessee of non-eligible premises or of eligible
premises for which no certificate of abatement has been issued pursuant
to this title. A landlord shall not be required to reduce the real
property taxes or any rent (including additional rent) payable by
expansion tenants, new tenants and renewal tenants by an amount that
exceeds the full amount of the abatement granted pursuant to this title,
but a landlord shall be required to reduce the real property taxes or
any rent (including additional rent) payable by expansion tenants, new
tenants and renewal tenants by an amount that, in the aggregate, equals
the full amount of the abatement granted pursuant to this title. Such
reduction shall be allocated in accordance with the abatement granted
for the eligible premises occupied by each such tenant.
5. (a) A tenant who occupies or uses eligible premises for which a
certificate of abatement is issued pursuant to this title shall not be
eligible to receive a second certificate of abatement for the same
eligible premises. A tenant who occupies or uses eligible premises for
which a certificate of abatement is issued pursuant to this title and
who, upon the expiration of the lease for such eligible premises,
relocates to otherwise eligible premises, shall not be eligible to
receive a certificate of abatement for such otherwise eligible premises,
except to the extent that the square footage of such otherwise eligible
premises exceeds the square footage of all eligible premises previously
occupied or used by such tenant for which such tenant held a certificate
of abatement. If the square footage of such otherwise eligible premises
exceeds the square footage of all such eligible premises previously
occupied or used by such tenant and if there is any variation in the tax
liability per square foot of such otherwise eligible premises, then, for
purposes of determining which square footage in such otherwise eligible
premises is entitled to an abatement pursuant to this title, square
footage with the greatest tax liability per square foot, in an amount
equal to the square footage of all such eligible premises previously
occupied or used by such tenant, shall first be excluded.
(b) Notwithstanding the provisions of paragraph (a) of this
subdivision, a tenant who is eligible in accordance with the provisions
of this title, who occupies or uses eligible premises for which a
certificate of abatement is issued pursuant to this title and who, upon
the termination of the lease for such premises as a result of a taking
by eminent domain, relocates to otherwise eligible premises, shall be
eligible to receive a second certificate of abatement for such eligible
premises; provided, however, that such tenant shall have eighteen months
from the date that the lease has terminated, as a result of the taking
by eminent domain, or eighteen months from the effective date of this
paragraph, whichever is later, to relocate to such eligible premises.