BILL NUMBER:  S6751

 TITLE OF BILL :  An act to amend the real property tax law, in
relation to the impact of late filings on abatement benefits

 PURPOSE :

To provide the Department of Finance the authority to accept late
final applications for the Industrial and Commercial Abatement Program
(ICAP).

 SUMMARY OF PROVISIONS :

Section i amends subdivision (ii) of subparagraph (a) of paragraph (5)
of section 489- ccccccc of the real property tax law to provide an
updated procedure for the Department of Finance to accept final
applications; Section 2 sets forth the effective date.

 JUSTIFICATION :

Industrial and Commercial Abatement Program (ICAP) is a tax abatement
in a city with more than one million persons. New York City has used
this enabling statute to adopt a local law and has a successful ICAP
abatement program. A complex formula credits businesses property tax
bills during the years construction is done to improve their property.
The purpose of this tax abatement was to incentivize businesses to
              

expand. The program has been very popular and the program has met with
success. However, a small correction will increase the number of
businesses helped.

Under current law, an applicant must file two applications to be
eligible for ICAP: 1) a preliminary application on or before the date
of the department of buildings issues the first permit for the site
and 2) a final application. The final application must be filed with
DOF "no later than one year from the date of the issuance of the first
building permit for construction" or when no building permit is
required no later than one year from date of commencement of
construction. The Department of Finance has no ability under current
law to grant an abatement if an applicant files the final application
after one year if something holds up the construction process.

Unfortunately, 85 businesses have been denied the abatement because
they were unable to complete construction within one year because a
city agency held up the construction, whether it be because they
issued a stop work order or work stopped while waiting for inspectors
to come to the property or for some other reason based upon a city
agency's action or inaction and beyond the applicant's control. This
legislation provides an updated final application procedure granting
discretion to the Department of Finance to accept applications after
the one year period-and, conclusively, to ensure that the abatement
program operates as intended.

 LEGISLATIVE HISTORY :

2017: Identical to Assembly Bill 3766-B
Manifestly similar to Senate Bill 3868-A / Passed Senate 63-O on
6.13.2017
2015-16: S.5923 Passed Senate Unanimously / A.8354 Referred to Real
Property Taxation.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect immediately and apply to projects filing
after enactment.