S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         5880

                              2009-2010 Regular Sessions

                                   I N  S E N A T E

                                     June 15, 2009
                                      ___________

       Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
         printed to be committed to the Committee on Rules

       AN ACT to amend the administrative code of the city of New York and  the
         tax  law,  in relation to the temporary exemption from commercial rent
         or occupancy tax for premises used for retail sales in lower Manhattan
         and the World Trade Center area; and to amend part C of chapter  2  of
         the  laws  of  2005  amending  the tax law relating to exemptions from
         sales and use taxes, in relation to the  effectiveness  of  provisions
         thereof

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Subparagraph (b-2) of  paragraph  2  of  subdivision  i  of
    2  section  11-704  of  the administrative code of the city of New York, as
    3  added by section 8 of part A of chapter  2  of  the  laws  of  2005,  is
    4  amended to read as follows:
    5    (b-2)  The amount of the special reduction allowed by this subdivision
    6  with respect to a lease other than a sublease  commencing  between  July
    7  first,  two  thousand five and June thirtieth, two thousand [nine] THIR-
    8  TEEN with an initial or renewal lease term of at least five years  shall
    9  be determined as follows:
   10    (i)  For  the  base year the amount of such special reduction shall be
   11  equal to the base rent for the base year.
   12    (ii) For the first, second,  third  and  fourth  twelve-month  periods
   13  following  the  base  year the amount of such special reduction shall be
   14  equal to the lesser of (A) the base  rent  for  each  such  twelve-month
   15  period or (B) the base rent for the base year.
   16    S  2.  Subparagraph  (A) of paragraph 7 of subdivision (ee) of section
   17  1115 of the tax law, as added by section 1 of part C of chapter 2 of the
   18  laws of 2005, is amended to read as follows:
   19    (A) "Tenant" means a person who, as lessee, enters into a space  lease
   20  with  a  landlord for a term of ten years or more commencing on or after

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14335-02-9
       S. 5880                             2

    1  September first, two thousand five, but not later than, in the case of a
    2  space lease with respect to leased premises located in eligible areas as
    3  defined in clause (i) of subparagraph (D) of this  paragraph,  September
    4  first,  two  thousand  [nine] THIRTEEN and, in the case of a space lease
    5  with respect to leased premises located in eligible areas as defined  in
    6  clause (ii) of subparagraph (D) of this paragraph not later than Septem-
    7  ber first, two thousand [eleven] FIFTEEN, of premises for use as commer-
    8  cial  office space in buildings located or to be located in the eligible
    9  areas. A person who currently occupies premises for  use  as  commercial
   10  office space under an existing lease in a building in the eligible areas
   11  shall  not  be eligible for exemption under this subdivision unless such
   12  existing lease, in the case of a space  lease  with  respect  to  leased
   13  premises  located in eligible areas as defined in clause (i) of subpara-
   14  graph (D) of this  paragraph  expires  according  to  its  terms  before
   15  September first, two thousand [nine] THIRTEEN or such existing lease, in
   16  the  case  of  a  space lease with respect to leased premises located in
   17  eligible areas as defined in clause (ii) of  subparagraph  (D)  of  this
   18  paragraph  and  such person enters into a space lease, for a term of ten
   19  years or more commencing on or after September first, two thousand five,
   20  of premises for use as commercial office space in a building located  or
   21  to be located in the eligible areas, provided that such space lease with
   22  respect  to  leased  premises  located  in  eligible areas as defined in
   23  clause (i) of subparagraph (D) of this paragraph commences no later than
   24  September first, two thousand [nine] THIRTEEN, and  provided  that  such
   25  space lease with respect to leased premises located in eligible areas as
   26  defined  in  clause (ii) of subparagraph (D) of this paragraph commences
   27  no later  than  September  first,  two  thousand  [eleven]  FIFTEEN  and
   28  provided,  further,  that  such space lease shall expire no earlier than
   29  ten years after the expiration of the original lease.
   30    S 3. Section 2 of part C of chapter 2 of the laws of 2005 amending the
   31  tax law relating to exemptions from sales and use taxes  is  amended  to
   32  read as follows:
   33    S 2. This act shall take effect September 1, 2005 and shall expire and
   34  be  deemed repealed on December 1, [2012] 2016, and shall apply to sales
   35  made, uses occurring and services rendered on or  after  such  effective
   36  date,  in  accordance  with  the  applicable  transitional provisions of
   37  sections 1106 and 1217 of the tax law; except that clause (i) of subpar-
   38  agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the
   39  tax law, as added by section one of this act, shall expire and be deemed
   40  repealed December 1, [2010] 2014.
   41    S 4. This act shall take effect immediately; provided that if this act
   42  shall take effect after June 30, 2009, it shall be deemed to  have  been
   43  in full force and effect on and after June 30, 2009.