•  Summary 
  •  Actions 
  •  Floor Votes 
  •  Memo 
  •  Text 

A08823 Summary:

SPONSORRules (Higgins)
COSPNSRHoyt, Tokasz, DelMonte, Robach, Magnarelli, Ortiz, Tocci, Weisenberg
Add S485-a, RPT L
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.
Go to top

A08823 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
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.
Go to top