Provides for tax exemption incentives for property owners in cities of 50,000 to one million for construction work to convert commercial property to mixed-use; allows for decreasing exemptions over a twelve year period.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8823B
SPONSOR: Rules (Higgins) TITLE OF BILL: An act to amend the real property tax law, in relation
to creating the residential-commercial urban exemption program
PURPOSE OR GENERAL IDEA OF BILL: Bill amends the real property tax
law to allow municipalities to offer property tax exemptions to develop-
ers and building owners to convert office space and properties formerly
housing warehouse, manufacturing and retail activities, to residential
housing units and commercial mixed uses in downtown areas of Buffalo,
Niagara Falls, Rochester, Syracuse and other municipalities with a popu-
lation of 50,000 or more.
SUMMARY OF SPECIFIC PROVISIONS: This bill would provide property tax
exemptions for the first eight tax years equal to 100% of the value
added to the portion of a building that is attributable exclusively to
residential construction of a combination of residential and commercial
mixed uses. Moreover, this bill would provide for a property tax
exemption of 80% in the ninth year, a 60% exemption in the tenth year, a
40% exemption in the eleventh year and a 20% exemption in the twelfth
year.
Furthermore, buildings designated as a landmark as set forth in local
law would receive a property tax exemption for residential and commer-
cial reconstruction work. This bill would include a 100% property tax
exemption for the first nine years, an 80% exemption in year ten, a 60%
exemption in year eleven, a 40% exemption in year twelve, and a 20%
exemption in year thirteen.
JUSTIFICATION: Urban centers of New York can be revitalized with the
creative reuse of office, warehouse, manufacturing, and retail buildings
for residential and commercial mixed uses. Property tax exemptions have
proven to provide a strong incentive to stimulate capital investment and
encourage developers to undertake the reconstruction of office space and
properties formerly housing warehouse, manufacturing and retail activ-
ities into residential units and commercial mixed uses. In fact, this
program was offered in the early 1990s when the stock market crash
resulted in a glut of vacant office space in the Wall Street area. Prop-
erty tax exemptions were used to encourage developers to reconstruct
office space into residential and commercial mixed uses. This program is
widely cited as the primary influence for the revitalization that has
occurred and continues in the lower Manhattan area of New York City.
PRIOR LEGISLATIVE HISTORY:
A8823 - 2001
S5540 - 2001
FISCAL IMPLICATIONS: To be determined
EFFECTIVE DATE: This act shall take effect on the one hundred eight-
ieth day after it shall become law.
