Extends, from March 1, 2011 to March 1, 2015, the deadline for applications for tax abatements for industrial and commercial construction work in cities having a population of 1 million or more; provides that no such abatement shall be granted unless a building permit is granted or construction commences on or before April 1, 2015.
Ayes (52): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Kennedy, Klein, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Nozzolio, O'Mara, Oppenheimer, Peralta, Ranzenhofer, Ritchie, Robach, Saland, Sampson, Savino, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Nays (8): Hassell-Thomps, Huntley, Krueger, Montgomery, Parker, Perkins, Rivera, Serrano
Excused (2): Duane, Johnson
TITLE OF BILL: An act to amend the real property tax law, in relation to applications for tax abatements for industrial and commercial construction work on properties in a city of one million or more persons
SUMMARY OF PROVISIONS: Bill section one amends paragraph (a) of subdivision 1 of section 489-dddddd of the Real Property Tax Law to extend the sunset date of the Industrial and Commercial Abatement Program ("ICAP") from March 1, 2011 to March 1, 2015.
Section 2 of this bill adds a new subdivision 3 to section 489-dddddd to provide that no benefits will be granted for construction work unless the first building permit was issued on or before April 1, 2015, or, if no permit was required, unless construction commences on or before April 1, 2015.
REASONS FOR SUPPORT: ICAP was enacted by Chapter 119 of the Laws of 2008 to replace the Industrial and Commercial Incentive Program ("ICIP") to create significant new economic activity at the lowest possible cost. This bill will extend ICAP for an additional four years. The bill also closes a loophole in the law that appeared to allow for indefinite eligibility once an application was filed and approved, in that the law did not include a deadline for obtaining a first building permit. As the law presently reads, if a preliminary application for benefits was timely filed, an applicant would be able to delay construction indefinitely. This bill will add a provision to require timely commencement of the project.
Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 3090 2011-2012 Regular Sessions IN SENATE February 8, 2011 ___________Introduced by Sens. LANZA, GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Cities AN ACT to amend the real property tax law, in relation to applications for tax abatements for industrial and commercial construction work on properties in a city of one million or more persons THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (a) of subdivision 1 of section 489-dddddd of the real property tax law, as amended by chapter 138 of the laws of 2008, is amended to read as follows: (a) Application for benefits pursuant to this title may be made imme- diately following the effective date of a local law enacted pursuant to this title and continuing until March first, two thousand
[eleven]FIFTEEN. S 2. Section 489-dddddd of the real property tax law is amended by adding a new subdivision 3 to read as follows: 3. COMMENCEMENT OF WORK. (A) NO BENEFITS PURSUANT TO THIS TITLE SHALL BE GRANTED FOR CONSTRUCTION WORK PERFORMED PURSUANT TO A BUILDING PERMIT ISSUED AFTER APRIL FIRST, TWO THOUSAND FIFTEEN. (B) IF NO BUILDING PERMIT WAS REQUIRED, THEN NO BENEFITS PURSUANT TO THIS TITLE SHALL BE GRANTED FOR CONSTRUCTION WORK THAT IS NOT COMMENCED ON OR BEFORE APRIL FIRST, TWO THOUSAND FIFTEEN. S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09275-01-1