A00964 Summary:

BILL NOA00964
 
SAME ASNo same as
 
SPONSORKellner
 
COSPNSR
 
MLTSPNSR
 
Add Art 4 Title 3-A SS497 - 497-g, RPT L
 
Creates real property tax abatement for certain commercial properties located within the Second Avenue Subway project.
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A00964 Actions:

BILL NOA00964
 
01/09/2013referred to real property taxation
06/04/2013held for consideration in real property taxation
01/08/2014referred to real property taxation
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A00964 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A964
 
SPONSOR: Kellner
  TITLE OF BILL: An act to amend the real property tax law, in relation to creating tax abatements for certain commercial properties located within the Second Avenue subway project   PURPOSE OR GENERAL IDEA OF BILL: Offers a property tax abatement to eligible property owners impacted by the MTA Second Avenue Subway project if they are able to sign or re-negotiate a reduced lease to current or prospective small business commercial tenants.   SUMMARY OF SPECIFIC PROVISIONS: The real property law is amended to add a new title 3AB. § 496 - Defines "abatement base," "abatement zone," aggregate floor area," "applicant," benefit period," "billable assessed value," "depart- ment of finance," "eligible building," "eligibility period," eligible premises," fiscal year," "governmental agency," "landlord," lease commencement date," mixed-use building," "person," "rent commencement date," "tax liability," "tax liability per square foot," "tenant," "tenant's percentage share," and "renewal tenant" for the purposes of this title. § 496-a - Describes the procedures for calculation of the tax abatement. § 496-b - Outlines the eligibility requirements to qualify for the tax abatement. § 496-c - Procedure for filing an application for the tax abatement. § 496-d - Allows the local department of finance to administer the tax abatement and enforce the provisions of this title. § 496-e - Establishes reporting requirements for the applicant during the benefit period and details conditions dictating the revocation of the benefit. § 496-f - Describes the calculation of tax liens, interest, and penal- ties pursuant to this title. § 496-g - Establishes the rights of the applicant with respect to confi- dentiality in regards to information submitted.   JUSTIFICATION: The long awaited Second Avenue Subway will bring great benefits to the East Side of Manhattan as well as the entire Metropol- itan area in the long run, both in terms of local and regional economic stimulus and in easing mass transportation crowding. But during the extended construction, which will last well over two and a half decades, residents, businesses, and property owners within the affected area will suffer. These New Yorkers are making a sacrifice for the betterment of the rest of the East Side and the entire region, and it is important that New York State extend a helping hand. Due to the increased costs of the project, the MTA recently announced that the first stage of the Second Avenue Subway - from 96th Street to 63rd Street - will not be completed until 2018. This extended timeline makes the hardships of these business owners even more pronounced. Construction projects of a similar magni- tude have left a wake of devastation which the East Side of Manhattan cannot afford.   PRIOR LEGISLATIVE HISTORY: A.6102 of 2011-12; A.3949 of 2009-10.   FISCAL IMPLICATIONS: Unknown.   EFFECTIVE DATE: This act shall take effect immediately.
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A00964 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           964
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced  by M. of A. KELLNER -- read once and referred to the Commit-
          tee on Real Property Taxation
 
        AN ACT to amend the real property tax law, in relation to  creating  tax
          abatements for certain commercial properties located within the Second
          Avenue subway project
 

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Article 4 of the real property tax law is amended by adding
     2  a new title 3-A to read as follows:
     3                                   TITLE 3-A
     4                    TAX ABATEMENT FOR CERTAIN COMMERCIAL
     5         PROPERTIES LOCATED WITHIN THE SECOND AVENUE SUBWAY PROJECT
     6  Section 497. Definitions.
     7          497-a. Real property tax abatement.
     8          497-b. Eligibility requirements.
     9          497-c. Application for certificate of abatement.
    10          497-d. Enforcement and administration.
    11          497-e. Reporting requirements; revocation of abatements.
    12          497-f. Tax lien; interest and penalty.

    13          497-g. Confidentiality.
 
    14    § 497. Definitions. When used in this title, the following terms shall
    15  mean or include:
    16    1. "Abatement base." The lesser of:  (a) two dollars and  fifty  cents
    17  or (b) fifty per centum of the tax liability per square foot.
    18    2.  "Abatement zone." Any area located within the construction area of
    19  the Second Avenue subway project as defined by the commissioner  of  the
    20  metropolitan  transportation  authority,  which has been located in such
    21  area and continually been doing business in such area  during  the  year
    22  two thousand eight and during the current taxable year.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets

                              [ ] is old law to be omitted.
                                                                   LBD00466-01-3

        A. 964                              2
 
     1    3.  "Aggregate  floor area." The sum of the gross areas of the several
     2  floors of a building, measured from the exterior faces of exterior walls
     3  or from the center lines of walls separating two buildings.
     4    4. "Applicant." The landlord and the tenant.
     5    5.  "Benefit  period." The period commencing with the first day of the
     6  month immediately following the rent commencement date  and  terminating
     7  no later than sixty months thereafter.
     8    6.  "Billable  assessed value." The lesser of the taxable transitional

     9  or the taxable actual assessed value of the eligible  building  and  the
    10  land  on  which  the eligible building is located for the fiscal year in
    11  which the benefit period commences, as computed pursuant to  subdivision
    12  three of section eighteen hundred five of this chapter.
    13    7.  "Department  of finance." The department of finance of the city of
    14  New York.
    15    8.  "Eligible  building."  A  non-residential  or  mixed-use  building
    16  located  in the abatement zone. Such eligible building shall not include
    17  any building owned by a governmental agency.
    18    9. "Eligibility period." The  period  commencing  January  first,  two
    19  thousand thirteen and terminating June first, two thousand twenty-one.

    20    10.  "Eligible  premises."  Premises  located  in an eligible building
    21  which are occupied or used as offices (including ancillary uses) or  are
    22  occupied or used as retail space.
    23    11.  "Fiscal year." The fiscal year of any city having a population of
    24  one million or more.
    25    12. "Governmental agency." The United States of America or any  agency
    26  or instrumentality thereof, the state of New York, the city of New York,
    27  any  public  corporation (including a body corporate and politic created
    28  pursuant to agreement or compact between the state of New York  and  any
    29  other  state),  public  benefit  corporation,  public authority or other
    30  political subdivision of the state.

    31    13. "Landlord." Any person who:    (a)  controls  all  non-residential
    32  portions  of  an  eligible  building, including, without limitation, the
    33  record owner,  the  lessee  under  a  ground  lease,  any  mortgagee  in
    34  possession or any receiver, and
    35    (b)  who  grants  the  right to use or occupy eligible premises to any
    36  tenant, provided that landlord shall not include any lessee who  at  any
    37  time during the lease term occupied or used or occupies or uses any part
    38  of  the  non-residential  portions of such eligible building, other than
    39  premises occupied or used by such lessee to provide rental or management
    40  services to such building.
    41    14. "Lease commencement date." The date set  forth  in  the  lease  on

    42  which the term of the lease commences.
    43    15.  "Mixed-use  building."  A  building used for both residential and
    44  commercial purposes, provided that more than twenty-five per  centum  of
    45  the aggregate floor area of such building is used or held out for use as
    46  commercial, community facility or accessory use space.
    47    16.  "Person."  An individual, corporation, limited liability company,
    48  partnership, association, agency, trust,  estate,  foreign  or  domestic
    49  government or subdivision thereof, or other entity.
    50    17. "Rent commencement date." The date set forth in the lease on which
    51  the obligation to pay basic fixed rent shall commence.
    52    18.  "Tax liability." The product obtained by multiplying the billable

    53  assessed value for the fiscal year in which the benefit period commences
    54  by the tax rate applicable to the eligible building for such fiscal year
    55  as set by the local legislative body of any city having a population  of
    56  one million or more.

        A. 964                              3
 
     1    19.  "Tax liability per square foot." The tax liability divided by the
     2  total number of square feet in the eligible building, as listed  on  the
     3  records of the department of finance.
     4    20.  "Tenant."  A  person  (including  any successors in interest) who
     5  executes a lease with the landlord for the right to occupy  or  use  the
     6  eligible  premises and who occupies or uses the eligible premises pursu-

     7  ant to such lease. Tenant shall not include any subtenant.
     8    21. "Tenant's  percentage  share."  The  percentage  of  the  eligible
     9  building's  aggregate  floor  area  allocated  to the eligible premises,
    10  which shall be presumed to be such percentage as set forth in the  lease
    11  for  the  eligible  premises;  provided that where the eligible premises
    12  includes expansion premises, the "tenant's percentage  share"  shall  be
    13  calculated  on  the  basis  of the percentage of the eligible building's
    14  aggregate floor area allocated solely to the expansion premises.
    15    22. "Renewal tenant." A person who has  an  existing  lease  with  the
    16  landlord and renegotiates or renews such lease with the landlord for the
    17  right to occupy or use the eligible premises.

    18    §  497-a. Real property tax abatement. 1. Within a city having a popu-
    19  lation of one million or more, eligible  buildings  containing  eligible
    20  premises  shall  receive  an abatement of real property taxes during the
    21  benefit period as follows:
    22    (a) for each of the first three  years  of  the  benefit  period,  the
    23  abatement shall be equal to the product obtained by:
    24    (1)  multiplying the tenant's percentage share by the number of square
    25  feet in the eligible building, as listed on the records of  the  depart-
    26  ment of finance and
    27    (2) multiplying the product obtained in subparagraph one of this para-
    28  graph by the abatement base;
    29    (b)  for the fourth year of the benefit period, the abatement shall be

    30  equal to two-thirds of the abatement in the first year  of  the  benefit
    31  period; and
    32    (c)  for  the fifth year of the benefit period, the abatement shall be
    33  equal to one-third of the abatement in the first  year  of  the  benefit
    34  period.
    35    2.  If,  as  a  result of application to the tax commission or a court
    36  order or action by the department  of  finance,  the  billable  assessed
    37  value is reduced, the department of finance shall recalculate the abate-
    38  ment utilizing such reduced billable assessed value. The amount equal to
    39  the  difference  between the abatement originally granted and the abate-
    40  ment as so recalculated shall be  deducted  from  any  refund  otherwise

    41  payable  or  remission  otherwise  due  as a result of such reduction in
    42  billable assessed value, and any balance of such amount remaining unpaid
    43  after making any such deduction shall  be  paid  to  the  department  of
    44  finance within thirty days from the date of mailing by the department of
    45  finance  of  a  notice  of the amount payable. Such amount payable shall
    46  constitute a tax lien on the eligible building as of the  date  of  such
    47  notice  and,  if  not  paid  within  such thirty-day period, penalty and
    48  interest at the rate applicable to delinquent  taxes  on  such  eligible
    49  building  shall be charged and collected on such amount from the date of
    50  such notice to the date of payment.

    51    3. In no event shall the abatement for the eligible  premises  granted
    52  pursuant  to this title exceed the tax liability allocable to the eligi-
    53  ble premises.
    54    4. Notwithstanding the provisions of any lease for occupancy  of  non-
    55  eligible  premises  in an eligible building or for occupancy of eligible
    56  premises for which no certificate of abatement has been issued  pursuant

        A. 964                              4
 
     1  to this title, a lessee of non-eligible premises or of eligible premises
     2  for  which  no certificate of abatement has been issued pursuant to this
     3  title shall  not  be  entitled  to  receive  directly  or  indirectly  a
     4  reduction in either the real property taxes or any rent (including addi-

     5  tional  rent)  payable pursuant to such lease where such reduction would
     6  result from an abatement of real property taxes granted pursuant to this
     7  title. A landlord of an eligible building shall  not  allocate,  credit,
     8  assign  or disburse any portion of an abatement granted pursuant to this
     9  title to a lessee of non-eligible premises or of eligible  premises  for
    10  which  no  certificate  of  abatement  has  been issued pursuant to this
    11  title. A landlord shall not be required  to  reduce  the  real  property
    12  taxes  or  any  rent  (including  additional  rent) payable by expansion
    13  tenants, new tenants and renewal tenants by an amount that  exceeds  the
    14  full amount of the abatement granted pursuant to this title, but a land-

    15  lord  shall  be  required  to reduce the real property taxes or any rent
    16  (including additional rent) payable by expansion  tenants,  new  tenants
    17  and renewal tenants by an amount that, in the aggregate, equals the full
    18  amount  of  the abatement granted pursuant to this title. Such reduction
    19  shall be allocated in accordance with  the  abatement  granted  for  the
    20  eligible premises occupied by each such tenant.
    21    §  497-b.  Eligibility  requirements. 1. No abatement shall be granted
    22  pursuant to this title unless the  landlord  enters  into  a  lease  for
    23  eligible premises with a tenant or renewal tenant and:
    24    (a) the lease commencement date is within the eligibility period;

    25    (b)  (1) if, by the sixtieth day following the rent commencement date,
    26  such tenant or renewal tenant employs one hundred twenty-five  or  fewer
    27  employees  in  the  eligible  premises,  the initial lease term is for a
    28  period of at least five years or
    29    (2) if, by the sixtieth day following the rent commencement date, such
    30  tenant or renewal tenant  employs  more  than  one  hundred  twenty-five
    31  employees  in  the  eligible  premises,  the initial lease term is for a
    32  period of at least ten years.
    33    2. No abatement shall be granted pursuant to this title if  an  appli-
    34  cant  shall  fail  to  meet any of the requirements of this title within
    35  sixty days of the rent commencement date.

    36    3. For purposes of this title, the expiration date of a lease shall be
    37  determined by the expiration date  set  forth  in  such  lease,  without
    38  giving  effect  to any rights of the landlord or the tenant to terminate
    39  such lease prior to the expiration date set forth in such lease.
    40    4. The lease for the eligible premises  shall  contain  the  following
    41  provisions:
    42    (a) a statement of the tenant's percentage share;
    43    (b)  a  statement  informing  the tenant in at least twelve-point type
    44  that:
    45    (1) an application for abatement of real property  taxes  pursuant  to
    46  this title will be made for the premises;
    47    (2)  the  rent,  including  amounts  payable  by the tenant or renewal

    48  tenant for real property taxes, will accurately reflect any abatement of
    49  real property taxes granted pursuant to this title for the premises; and
    50    (3) all abatements granted with respect to a building pursuant to this
    51  title will be revoked if, during the benefit period, real  estate  taxes
    52  or  water or sewer charges or other lienable charges are unpaid for more
    53  than one year, unless such delinquent amounts are paid  as  provided  in
    54  subdivision four of section four hundred ninety-seven-e of this title.
    55    5. No abatement shall be granted pursuant to this title if:

        A. 964                              5
 
     1    (a)  the  lease  for  the  eligible  premises provides that during the

     2  initial lease term required by subdivision one of  this  section  either
     3  the  landlord  or  the tenant or renewal tenant may terminate such lease
     4  prior to the expiration  date  of  such  required  initial  lease  term;
     5  provided  that  such  lease  may provide that either the landlord or the
     6  tenant may terminate such lease if:
     7    (1) the other party is in default of any of such  party's  obligations
     8  under the lease,
     9    (2)  the  eligible  premises are damaged or destroyed by fire or other
    10  casualty,
    11    (3) the eligible premises are rendered unusable  for  any  reason  not
    12  attributable  to any act or failure to act of either tenant or landlord,
    13  or
    14    (4) the eligible premises are acquired by eminent domain; and

    15    (b) there are real property taxes, water or  sewer  charges  or  other
    16  lienable  charges currently due and owing on the eligible building which
    17  is the subject of an application for abatement pursuant to  this  title,
    18  unless  such  real property taxes or charges are currently being paid in
    19  timely installments pursuant to a written agreement with the  department
    20  of finance or other appropriate agency.
    21    6.  No  abatement  shall  be granted pursuant to this title unless the
    22  applicant shall  file,  together  with  the  application,  an  affidavit
    23  setting forth the following information:
    24    (a)  a statement that within the seven years immediately preceding the
    25  date of application for a certificate of abatement, neither  the  appli-

    26  cant nor any person owning a substantial interest in the eligible build-
    27  ing  as  defined  in paragraph (c) of this subdivision, nor any officer,
    28  director or general partner of the applicant or such person was  finally
    29  adjudicated  by  a  court  of  competent  jurisdiction  to have violated
    30  section two hundred thirty-five of the real property law or any  section
    31  of  article  one hundred fifty of the penal law or any similar arson law
    32  of another jurisdiction with respect to any building, or was an officer,
    33  director or general partner of a person at  the  time  such  person  was
    34  finally adjudicated to have violated any such law; and
    35    (b)  a  statement setting forth any pending charges alleging violation

    36  of section two hundred thirty-five of  the  real  property  law  or  any
    37  section  of  article  one  hundred fifty of the penal law or any similar
    38  arson law of another jurisdiction with respect to any  building  by  the
    39  applicant  or  any  person owning a substantial interest in the eligible
    40  building as defined in paragraph (c) of this subdivision, or  any  offi-
    41  cer, director or general partner of the applicant or such person, or any
    42  person for whom the applicant or person owning a substantial interest in
    43  the eligible building is an officer, director or general partner.
    44    (c)  for purposes of this subdivision and subdivision seven of section
    45  four hundred ninety-seven-e of this title, "substantial interest"  shall

    46  mean  ownership  and control of an interest of ten per centum or more in
    47  the eligible building or in any person owning the eligible building.
    48    § 497-c. Application for certificate of abatement. 1. Application  for
    49  a  certificate  of  abatement may be made on or after January first, two
    50  thousand thirteen and until sixty days after the end of the  eligibility
    51  period,  and  shall be filed with the department of finance. No applica-
    52  tion may be filed prior to the date on which the lease for the  eligible
    53  premises is executed by the landlord and tenant.
    54    2.  No  abatement  pursuant  to this title shall be granted unless the
    55  applicant files an application for a  certificate  of  abatement  within


        A. 964                              6
 
     1  sixty  days  following  the lease commencement date or within sixty days
     2  following the effective date of this title, whichever is later.
     3    3.  In addition to any other information required by the department of
     4  finance, the application for a certificate of abatement shall include an
     5  abstract of the lease for the eligible premises for which  an  abatement
     6  is being sought which abstract is signed by the landlord and the tenant.
     7  Such  abstract  shall  include  the tenant's percentage share, the lease
     8  commencement date, the rent commencement date, the expiration  date  for
     9  such  lease  and  a  description  of  the improvements to be made to the
    10  eligible premises and the common areas of the eligible building, includ-

    11  ing the estimated value of such  improvements.  Such  application  shall
    12  also include:
    13    (a)  a  statement  of  the  number  of  persons  who will, on the rent
    14  commencement date, be employed in the eligible premises,
    15    (b) a statement of the location of all office or retail space  in  the
    16  city  of  New  York occupied by the tenant prior to the execution of the
    17  lease for the eligible premises,
    18    (c) the commencement and expiration dates of all leases  for  premises
    19  in the abatement zone used or occupied as office or retail space, and
    20    (d)  the  aggregate floor area of the eligible building. Such applica-
    21  tion shall also state that the applicant agrees to comply  with  and  be

    22  subject  to  the  rules  issued  from  time to time by the department of
    23  finance.
    24    4. Within sixty days following the rent commencement date, the  appli-
    25  cant shall provide, in addition to any other information required by the
    26  department  of finance, evidence acceptable to the department of finance
    27  regarding the number of employees in the eligible premises. The  depart-
    28  ment  of finance shall issue a certificate of abatement upon determining
    29  that the applicant has submitted proof acceptable to the  department  of
    30  finance  that  the  applicant has met the requirements set forth in this
    31  title.
    32    5. The burden of proof shall be on the applicant to show by clear  and

    33  convincing  evidence that the requirements for granting a certificate of
    34  abatement have been satisfied. The department of finance shall have  the
    35  authority to require that statements in connection with such application
    36  be made under oath.
    37    6. The department of finance may provide by rule for reasonable admin-
    38  istrative  charges or fees necessary to defray expenses in administering
    39  the abatement program provided by this title.
    40    § 497-d. Enforcement and administration.  The  department  of  finance
    41  shall  have, in addition to any other functions, powers and duties which
    42  have been or may be conferred on it by  law,  the  following  functions,
    43  powers and duties:

    44    1.  To  receive  and review applications for certificates of abatement
    45  under this title and issue such certificates where  authorized  pursuant
    46  to this title.
    47    2. To receive evidence of premises and building eligibility.
    48    3.  To  receive all certificates of continuing eligibility required by
    49  section four hundred ninety-seven-e of this title.
    50    4. To collect all real property taxes, with interest and penalty,  due
    51  and  owing  as  a  result of reduction, termination or revocation of any
    52  abatement granted pursuant to this title.
    53    5. To make and promulgate rules to carry  out  the  purposes  of  this
    54  title.
    55    §  497-e. Reporting requirements; revocation of abatements. 1. For the

    56  duration of the applicant's benefit period,  the  applicant  shall  file

        A. 964                              7
 
     1  annually with the department of finance, on or before July first of each
     2  year, a certificate of continuing eligibility confirming that the eligi-
     3  ble  premises  are  occupied  by  the tenant who originally executed the
     4  lease  and  that  the  eligible premises are being used for the purposes
     5  described in the application. Such certificate of continuing eligibility
     6  shall be on a form prescribed by the department  of  finance  and  shall
     7  contain  such  additional information as the department of finance shall
     8  require. The department of finance shall have the authority to determine

     9  the abatements granted pursuant to this title upon failure of an  appli-
    10  cant to file such certificate by such date. The burden of proof shall be
    11  on  the  applicant  to establish continuing eligibility for benefits and
    12  the department of finance shall  have  the  authority  to  require  that
    13  statements made in such certificate shall be made under oath.
    14    2. The department of finance shall revoke any abatement granted pursu-
    15  ant  to  this title when the tenant who originally executed the lease is
    16  no longer occupying the eligible  premises.  Such  revocation  shall  be
    17  retroactive  to  the date that such tenant vacated the eligible premises
    18  and the department of finance shall require the landlord  to  pay,  with

    19  interest, any taxes which become payable as a result of such revocation.
    20  The  landlord  shall notify the department of finance within thirty days
    21  following the date on which such tenant vacated  the  eligible  premises
    22  and,  for failure to comply with this notification requirement, shall be
    23  liable for penalty calculated for the same period as interest is  calcu-
    24  lated pursuant to the preceding sentence.
    25    3.  If  any  portion  of  the premises for which an abatement has been
    26  granted pursuant to this title ceases to be occupied or used as eligible
    27  premises or is occupied by a subtenant, the department of finance  shall
    28  reduce  the  abatement granted pursuant to this title by an amount equal

    29  to the percentage of such eligible premises which has ceased to be occu-
    30  pied or used as eligible premises or is occupied by a subtenant.    Such
    31  reduction  shall be retroactive to the date that such premises ceased to
    32  be occupied or used as eligible premises or was occupied by a subtenant,
    33  and the department of finance shall require the landlord  to  pay,  with
    34  interest,  any taxes which become payable as a result of such reduction.
    35  The landlord shall notify the department of finance within  thirty  days
    36  following  the  date on which the premises ceased to be occupied or used
    37  as eligible premises or was occupied by a subtenant and, for failure  to
    38  comply  with  this notification requirement, shall be liable for penalty

    39  calculated for the same period as interest  is  calculated  pursuant  to
    40  this subdivision.
    41    4.  If,  during  the benefit period, any real property tax or water or
    42  sewer charge or other lienable charge due and payable with respect to an
    43  eligible building shall remain unpaid for at least  one  year  following
    44  the  date  upon  which  such  tax  or charge became due and payable, all
    45  abatements granted pursuant to this title with respect to such  building
    46  shall be revoked, unless within thirty days from the mailing of a notice
    47  of  revocation  by  the  department  of  finance  satisfactory  proof is
    48  presented to the department of finance that any and all delinquent taxes
    49  and charges owing with respect to such building as of the date  of  such

    50  notice  have  been  paid  in  full or are currently being paid in timely
    51  installments pursuant to a written  agreement  with  the  department  of
    52  finance  or  other appropriate agency.   Any revocation pursuant to this
    53  subdivision shall be effective with respect to real property taxes which
    54  become due and payable following the date of such revocation.
    55    5. The department of finance may deny, reduce, suspend,  terminate  or
    56  revoke any abatement granted pursuant to this title whenever:

        A. 964                              8
 
     1    (a)  the  landlord  or the tenant receiving abatement pursuant to this
     2  title fails to comply with the requirements of this title or  the  rules
     3  promulgated hereunder; or

     4    (b) an application, certificate, report or other document submitted by
     5  the  applicant contains a false or misleading statement as to a material
     6  fact or omits to state any material fact necessary in order to make  the
     7  statement therein not false or misleading, and may declare any applicant
     8  who  makes such false or misleading statement or omission to be ineligi-
     9  ble for future abatement pursuant to this title for the  same  or  other
    10  property.  In  addition,  the  department  of  finance shall require the
    11  applicant to pay, with penalty  and  interest,  any  abatement  received
    12  pursuant to this title as a result of such false or misleading statement
    13  or omission of a material fact.

    14    6.  Notwithstanding  any other provision of this title, the department
    15  of finance shall deny, terminate or revoke any abatement applied for  or
    16  granted  pursuant  to  this  title  upon  a determination that the lease
    17  between the landlord and the tenant was entered into primarily  for  the
    18  purpose  of  receiving  an  abatement  under  this title. In making such
    19  determination, the department  of  finance  may  consider,  among  other
    20  factors,  the  relationship, if any, between the landlord and the tenant
    21  and whether the business terms of such lease  are  consistent  with  the
    22  business terms generally found in leases for comparable space.
    23    7.  (a) If any person described in the statement required by paragraph

    24  (b) of subdivision six of section four hundred  ninety-seven-b  of  this
    25  title  is finally adjudicated by a court of competent jurisdiction to be
    26  guilty of any charge listed in such statement, the department of finance
    27  shall revoke the abatement granted pursuant  to  this  title  and  shall
    28  require  the  payment, with interest, of any abatement received pursuant
    29  to this title.
    30    (b) The applicant shall, on the certificate of continuing eligibility,
    31  state whether any charges alleging violation by  the  applicant  or  any
    32  person  owning  a  substantial interest in the eligible building, or any
    33  officer, director or general partner of the applicant or person owning a
    34  substantial interest in the eligible building, or any  person  for  whom

    35  the  applicant  or  person owning a substantial interest in the eligible
    36  building is an officer, director or  general  partner,  of  section  two
    37  hundred  thirty-five  of the real property law or any section of article
    38  one hundred fifty of the penal law or any similar arson law  of  another
    39  jurisdiction,  are pending. For purposes of this paragraph, "substantial
    40  interest" shall have the same meaning as set forth in paragraph  (c)  of
    41  subdivision six of section four hundred ninety-seven-b of this title.
    42    §  497-f.  Tax  lien;  interest and penalty. All taxes, with interest,
    43  required to be paid retroactively pursuant to this title  shall  consti-
    44  tute  a tax lien as of the date it is determined such taxes and interest

    45  are owed. All interest shall be calculated from the date the taxes would
    46  have been due but for the abatement granted pursuant to  this  title  at
    47  the  applicable rate or rates of interest imposed by such city generally
    48  for non-payment of real property tax with respect to the eligible build-
    49  ing for the period in question. When a provision of this title  requires
    50  the  payment  of  a  penalty in addition to interest, the amount of such
    51  penalty shall be equal to the amount of interest that  would  have  been
    52  payable  pursuant to such provision had such interest been calculated at
    53  the rate of three percent per annum.
    54    § 497-g. Confidentiality. 1. Except in accordance with a proper  judi-

    55  cial order or as otherwise provided by law, it shall be unlawful for the
    56  commissioner  of  finance,  any officer or employee of the department of

        A. 964                              9
 
     1  finance, the president or a commissioner or employee of the tax  commis-
     2  sion,  any person engaged or retained by such department or such commis-
     3  sion on an independent contract basis, or any person  who,  pursuant  to
     4  this  title,  is  permitted  to  inspect any information submitted by an
     5  applicant to the department of finance pursuant to this title or to whom
     6  a copy, an abstract or a portion of any such information  is  furnished,
     7  to  divulge  or  make  known  in  any manner any such information to any

     8  person not authorized pursuant to this title to  inspect  such  informa-
     9  tion. The officers charged with custody of such information shall not be
    10  required to produce any of it or evidence of anything contained in it in
    11  any  action  or  proceeding in any court except on behalf of the commis-
    12  sioner of finance in an action or proceeding  under  the  provisions  of
    13  this  title, or on behalf of any party to any action or proceeding under
    14  the provisions of this title when such information or facts shown there-
    15  by  are directly involved in such action or  proceeding,  in  either  of
    16  which  events  the court may require the production of, and may admit in
    17  evidence so much of such information or of the facts shown  thereby,  as

    18  are  pertinent  to  the action or proceeding and no more. Nothing herein
    19  shall be construed to prohibit the inspection  by  the  legal  represen-
    20  tatives  of  the  department  of  finance  or the tax commission of such
    21  information submitted by any applicant who  shall  bring  an  action  to
    22  correct  an  assessment.   Nothing herein shall be construed to prohibit
    23  the delivery to an applicant or the applicant's duly  authorized  repre-
    24  sentative  of a certified copy of any information submitted by an appli-
    25  cant to the department of finance pursuant to  this  title;  or  to  any
    26  agency  or any department of any city having a population of one million
    27  or more provided the same is requested for  official  business;  nor  to

    28  prohibit the inspection for official business of such information by the
    29  corporation  counsel  or  other legal representatives of a city having a
    30  population  of one million or more or by the district  attorney  of  any
    31  county  within  such city; nor to prohibit the publication of statistics
    32  so classified as to prevent the identification of  such  information  or
    33  particular  items  thereof. Information submitted by an applicant to the
    34  department of finance pursuant to this title shall  not  be  subject  to
    35  disclosure pursuant to article six of the public officers law.
    36    2.  Any violation of the provisions of subdivision one of this section
    37  shall be punished by a fine not exceeding one  thousand  dollars  or  by

    38  imprisonment  not  exceeding one year, or both, at the discretion of the
    39  court, and if the offender be an officer or employee of  the  department
    40  of  finance  or  of  the tax commission, the offender shall be dismissed
    41  from office.
    42    § 2. This act shall take effect immediately, provided  that  this  act
    43  shall be deemed to have been in full force and effect on and after Janu-
    44  ary 1, 2013. Any actions, including the promulgation of rules, necessary
    45  to  carry out the purposes of this act may be taken before the date this
    46  act shall have become a law, provided that such  rules  shall  not  take
    47  effect  before the effective date of this act, and provided further that
    48  such rules, if necessary to carry out the purposes of this act,  may  be
    49  made  retroactive to and deemed to have been in full force and effect on

    50  and after January 1, 2013.
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