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A05920 Summary:

BILL NOA05920
 
SAME ASSAME AS S01743
 
SPONSORHyndman
 
COSPNSRWilliams, Walker, Cook
 
MLTSPNSR
 
Add Art 4 Title 7 §§499-aaaaaa - 499-hhhhhh, RPT L
 
Establishes a rent increase exemption for certain nonprofit organizations; provides a tax abatement for limiting rent increases on nonprofit organizations in a city of one million or more persons.
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A05920 Actions:

BILL NOA05920
 
03/24/2023referred to real property taxation
01/03/2024referred to real property taxation
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A05920 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5920
 
SPONSOR: Hyndman
  TITLE OF BILL: An act to amend the real property tax law, in relation to establishing a nonprofit organization rent increase exemption   SUMMARY OF PROVISIONS: Section 1. Section 1. Article 4 of the real property tax law is amended by adding a new title. 6 to read as follows: Tax Abatement for Limiting Rent Increases on Non-Profit Organizations in a City of One Million or More Persons Section 499-aaaaa. Definitions. 499-bbbbb. Real property tax abatement. 499-ccocc. Eligibility requirements. 499-ddddd. Application for certificate of abatement. 499-eeeee. Enforcement and administration. 499-ME Reporting requirements; revocation of abatements. 499-ggggg. Tax lien; interest and penalty. 499-hhhhh. Confidentiality. Section 2. This act shall take effect immediately.   JUSTIFICATION: In New York City, nonprofits employ approximately 500,000 workers, or 15 percent of the total workforce. Nonprofits throughout the state and City are entitled to a property tax exemption if they own their property. The tax exemption helps organizations that serve the public good survive and thrive. Unfortunately, nonprofits that do not own their property, who are often smaller, do not benefit from this tax exemption. This law provides landlords of nonprofits a tax abatement of 52.50 per square foot or 50% of the tax liability per square foot, depending on which is less. In exchange, landlords must provide nonprofits with a ten year lease that limits rent increases to no more than three percent annually.   FISCAL IMPACT: TBD   EFFECTIVE DATE: This act shall take effect immediately.
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A05920 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5920
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 24, 2023
                                       ___________
 
        Introduced  by M. of A. HYNDMAN -- read once and referred to the Commit-
          tee on Real Property Taxation
 
        AN ACT to amend the real property tax law, in relation to establishing a
          nonprofit organization rent increase exemption
 
          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 7 to read as follows:
     3                                   TITLE 7
     4                TAX ABATEMENT FOR LIMITING RENT INCREASES ON
     5      NONPROFIT ORGANIZATIONS IN A CITY OF ONE MILLION OR MORE PERSONS
     6  Section 499-aaaaaa. Definitions.
     7          499-bbbbbb. Real property tax abatement.
     8          499-cccccc. Eligibility requirements.
     9          499-dddddd. Application for certificate of abatement.
    10          499-eeeeee. Enforcement and administration.
    11          499-ffffff. Reporting requirements; revocation of abatements.
    12          499-gggggg. Tax lien; interest and penalty.
    13          499-hhhhhh. Confidentiality.
    14    §  499-aaaaaa.  Definitions.  When  used  in this title, the following
    15  terms shall mean or include:
    16    1. "Abatement base". The lesser of (a) two dollars and fifty cents  of
    17  the  tax  liability  per  square foot or (b) fifty per centum of the tax
    18  liability per square foot.
    19    2. "Abatement zone". Any area of a city having  a  population  of  one
    20  million  or more. Any tax lot that is partly located inside an abatement
    21  zone shall be deemed to be entirely located inside such zone.
    22    3. "Aggregate floor area". The sum of the gross areas of  the  several
    23  floors of a building, measured from the exterior faces of exterior walls
    24  or from the center lines of walls separating two buildings.
    25    4. "Applicant". The landlord and the tenant.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04648-01-3

        A. 5920                             2
 
     1    5.  "Benefit  period". The period commencing with the first day of the
     2  month immediately following the rent commencement date  and  terminating
     3  no later than one hundred twenty months thereafter.
     4    6.  "Billable  assessed value". The lesser of the taxable transitional
     5  or the taxable actual assessed value of the eligible  building  and  the
     6  land  on  which  the eligible building is located for the fiscal year in
     7  which the benefit period commences.
     8    7. "Commercial activities". The buying, selling or otherwise providing
     9  of goods or services by a nonprofit organization.
    10    8. "Department of finance". The department  of  finance  of  any  city
    11  having a population of one million or more.
    12    9.  "Eligible building". With respect to the abatement zone defined in
    13  subdivision two of this section, a non-residential or mixed-use building
    14  which shall not include any building owned  by  a  governmental  agency.
    15  Each  condominium unit in a building that meets the requirements of this
    16  subdivision shall be considered a separate eligible building.
    17    10. "Eligibility period". The period commencing April first, two thou-
    18  sand twenty-five and terminating March thirty-first, two thousand  thir-
    19  ty-five.
    20    11. "Eligible premises". With respect to the abatement zone defined in
    21  subdivision  two of this section, premises located in an eligible build-
    22  ing that (a) are occupied or used by a nonprofit  organization  and  (b)
    23  are  occupied or used by a tenant under a lease that meets the eligibil-
    24  ity requirements of section  four  hundred  ninety-nine-cccccc  of  this
    25  title.
    26    12.  "Fiscal year". The fiscal year of any city having a population of
    27  one million or more.
    28    13. "Governmental agency". The United States of America or any  agency
    29  or instrumentality thereof, the state of New York, the city of New York,
    30  any  public  corporation (including a body corporate and politic created
    31  pursuant to agreement or compact between the state of New York  and  any
    32  other  state),  public  benefit  corporation,  public authority or other
    33  political subdivision of the state.
    34    14. "Landlord".  Any  person  who  (a)  controls  all  non-residential
    35  portions  of  an  eligible  building, including, without limitation, the
    36  record owner,  the  lessee  under  a  ground  lease,  any  mortgagee  in
    37  possession or any receiver, and (b) who grants the right to use or occu-
    38  py  eligible  premises  to  any tenant, provided that landlord shall not
    39  include any lessee who at any time during the  lease  term  occupied  or
    40  used  or  occupies  or  uses any part of the non-residential portions of
    41  such eligible building, other than premises occupied  or  used  by  such
    42  lessee to provide rental or management services to such building.
    43    15.  "Lease  commencement  date".  The  date set forth in the lease on
    44  which the term of the lease commences.
    45    16. "Mixed-use building". A building used  for  both  residential  and
    46  commercial activities or by a nonprofit organization, provided that more
    47  than twenty-five per centum of the aggregate floor area of such building
    48  is  used or held out for use as commercial, community facility or acces-
    49  sory use space.
    50    17. "Person". An individual, corporation, limited  liability  company,
    51  partnership,  association,  agency,  trust,  estate, foreign or domestic
    52  government or subdivision  thereof,  nonprofit  organization,  or  other
    53  entity.
    54    18.  "Renewal tenant". A person who (a) occupies premises in an eligi-
    55  ble building under a lease which expires during the  eligibility  period
    56  and  (b)  executes a lease for the continued occupancy of all or part of

        A. 5920                             3
 
     1  such premises or all or part of such premises and additional premises in
     2  such eligible building, provided such premises are eligible premises and
     3  such lease meets the eligibility requirements of  section  four  hundred
     4  ninety-nine-cccccc of this title.
     5    19. "Rent commencement date". The date set forth in the lease on which
     6  the obligation to pay basic fixed rent shall commence.
     7    20.   "Subtenant". A person whose right to occupy and use the eligible
     8  premises is not derived from a lease with the landlord.
     9    21. "Tax commission". The tax commission in any city  having  a  popu-
    10  lation of one million or more.
    11    22.  "Tax liability". The product obtained by multiplying the billable
    12  assessed value for the fiscal year in which the benefit period commences
    13  by the tax rate applicable to the eligible building for such fiscal year
    14  as set by the local legislative body of any city having a population  of
    15  one million or more.
    16    23.  "Tax liability per square foot". The tax liability divided by the
    17  total number of square feet in the eligible building, as listed  on  the
    18  records of the department of finance.
    19    24.  "Tenant".  A  person,  including  any successors in interest, who
    20  executes a lease with the landlord for the right to occupy  or  use  the
    21  eligible  premises and who occupies or uses the eligible premises pursu-
    22  ant to such lease. Tenant shall not include any subtenant. When used  in
    23  this title, "tenant" includes "renewal tenant".
    24    25.  "Tenant's  percentage  share".  The  percentage  of  the eligible
    25  building's aggregate floor area  allocated  to  the  eligible  premises,
    26  which  shall be presumed to be such percentage as set forth in the lease
    27  for the eligible premises.
    28    § 499-bbbbbb. Real property tax abatement. 1. Within a city  having  a
    29  population  of one million or more, eligible buildings containing eligi-
    30  ble premises shall receive an abatement of real  property  taxes  during
    31  the benefit period as follows:
    32    (a) for each of the first five years of the benefit period, the abate-
    33  ment  shall  be  equal  to  the  product obtained by (i) multiplying the
    34  tenant's percentage share by the number of square feet in  the  eligible
    35  building, as listed on the records of the department of finance and (ii)
    36  multiplying  the  product obtained in subparagraph (i) of this paragraph
    37  by the abatement base;
    38    (b) for the sixth, seventh, and eighth year of the benefit period, the
    39  abatement shall be equal to two-thirds of the  abatement  in  the  first
    40  year of the benefit period; and
    41    (c)  for the ninth and tenth year of the benefit period, the abatement
    42  shall be equal to one-third of the abatement in the first  year  of  the
    43  benefit period.
    44    2.  If,  as  a  result of application to the tax commission or a court
    45  order or action by the department  of  finance,  the  billable  assessed
    46  value is reduced, the department of finance shall recalculate the abate-
    47  ment utilizing such reduced billable assessed value. The amount equal to
    48  the  difference  between the abatement originally granted and the abate-
    49  ment as so recalculated shall be  deducted  from  any  refund  otherwise
    50  payable  or  remission  otherwise  due  as a result of such reduction in
    51  billable assessed value, and any balance of such amount remaining unpaid
    52  after making any such deduction shall  be  paid  to  the  department  of
    53  finance within thirty days from the date of mailing by the department of
    54  finance  of  a  notice  of the amount payable. Such amount payable shall
    55  constitute a tax lien on the eligible building as of the  date  of  such
    56  notice  and,  if  not  paid  within  such thirty-day period, penalty and

        A. 5920                             4
 
     1  interest at the rate applicable to delinquent  taxes  on  such  eligible
     2  building  shall be charged and collected on such amount from the date of
     3  such notice to the date of payment.
     4    3.  In  no event shall the abatement for the eligible premises granted
     5  pursuant to this title exceed the tax liability allocable to the  eligi-
     6  ble premises.
     7    4.  Notwithstanding  the provisions of any lease for occupancy of non-
     8  eligible premises in an eligible building or for occupancy  of  eligible
     9  premises  for which no certificate of abatement has been issued pursuant
    10  to this title, a lessee of non-eligible premises or of eligible premises
    11  for which no certificate of abatement has been issued pursuant  to  this
    12  title  shall  not  be  entitled  to  receive  directly  or  indirectly a
    13  reduction in either the real property taxes or any rent (including addi-
    14  tional rent) payable pursuant to such lease where such  reduction  would
    15  result from an abatement of real property taxes granted pursuant to this
    16  title.  A  landlord  of an eligible building shall not allocate, credit,
    17  assign or disburse any portion of an abatement granted pursuant to  this
    18  title  to  a lessee of non-eligible premises or of eligible premises for
    19  which no certificate of abatement  has  been  issued  pursuant  to  this
    20  title.  A  landlord  shall  not  be required to reduce the real property
    21  taxes or any rent (including additional rent) payable by renewal tenants
    22  by an amount that exceeds the  full  amount  of  the  abatement  granted
    23  pursuant  to  this title, but a landlord shall be required to reduce the
    24  real property taxes or any rent (including additional rent)  payable  by
    25  renewal  tenants  by  an  amount that, in the aggregate, equals the full
    26  amount of the abatement granted pursuant to this title.  Such  reduction
    27  shall  be  allocated  in  accordance  with the abatement granted for the
    28  eligible premises occupied by each such tenant.
    29    5. A tenant who occupies or uses eligible premises for which a certif-
    30  icate of abatement is issued pursuant to this title shall not be  eligi-
    31  ble  to  receive a second certificate of abatement for the same eligible
    32  premises. A tenant who occupies or uses eligible premises  for  which  a
    33  certificate  of abatement is issued pursuant to this title and who, upon
    34  the expiration of the lease for such  eligible  premises,  relocates  to
    35  otherwise  eligible premises, shall not be eligible to receive a certif-
    36  icate of abatement for such otherwise eligible premises, except  to  the
    37  extent  that  the  square  footage  of  such otherwise eligible premises
    38  exceeds the square footage of all eligible premises previously  occupied
    39  or  used  by  such  tenant  for  which such tenant held a certificate of
    40  abatement. If the square footage of  such  otherwise  eligible  premises
    41  exceeds  the  square  footage  of  all such eligible premises previously
    42  occupied or used by such tenant and if there is any variation in the tax
    43  liability per square foot of such otherwise eligible premises, then, for
    44  purposes of determining which square footage in such otherwise  eligible
    45  premises  is  entitled  to  an  abatement pursuant to this title, square
    46  footage with the greatest tax liability per square foot,  in  an  amount
    47  equal  to  the  square  footage of all such eligible premises previously
    48  occupied or used by such tenant, shall first be excluded.
    49    § 499-cccccc. Eligibility  requirements.  1.  No  abatement  shall  be
    50  granted pursuant to this title unless:
    51    (a)  the  landlord  enters into a ten year lease for eligible premises
    52  with a tenant; and
    53    (b) such landlord includes within such lease with a tenant  a  renewal
    54  clause that limits a rent increase to no more than three percent annual-
    55  ly.

        A. 5920                             5
 
     1    2.  No  abatement shall be granted pursuant to this title if an appli-
     2  cant shall fail to meet any of the requirements  of  this  title  within
     3  sixty days of the rent commencement date.
     4    3. For purposes of this title, the expiration date of a lease shall be
     5  determined  by  the  expiration  date  set  forth in such lease, without
     6  giving effect to any rights of the landlord or the tenant  to  terminate
     7  such lease prior to the expiration date set forth therein.
     8    4.  The  lease  for  the eligible premises shall contain the following
     9  provisions:
    10    (a) a statement of the tenant's percentage share;
    11    (b) a statement certifying the percentage of eligible  premises  occu-
    12  pied or used by a nonprofit organization; and
    13    (c)  a  statement  informing  the tenant in at least twelve-point type
    14  that:
    15    (1) an application for abatement of real property  taxes  pursuant  to
    16  this title will be made for the premises;
    17    (2) the rent, including amounts payable by the tenant for real proper-
    18  ty  taxes,  will accurately reflect any abatement of real property taxes
    19  granted pursuant to this title for the premises;
    20    (3) a renewal of the lease will not increase rent by more  than  three
    21  percent annually pursuant to the lease agreement;
    22    (4) all abatements granted with respect to a building pursuant to this
    23  title  will  be revoked if, during the benefit period, real estate taxes
    24  or water or sewer charges or other lienable charges are unpaid for  more
    25  than  one  year,  unless such delinquent amounts are paid as provided in
    26  subdivision four of section  four  hundred  ninety-nine-ffffff  of  this
    27  title; and
    28    (5)  all  benefits  granted  with respect to eligible premises will be
    29  reduced if, during the benefit period, the aggregate floor area of  such
    30  eligible  premises  occupied  or  used  by  a  nonprofit organization is
    31  reduced.
    32    5. No abatement shall be granted pursuant to this title if:
    33    (a) the lease for the  eligible  premises  provides  that  during  the
    34  initial  lease  term  required by subdivision one of this section either
    35  the landlord or the tenant may terminate such lease prior to the expira-
    36  tion date of such required initial lease term; provided that such  lease
    37  may  provide  that  either the landlord or the tenant may terminate such
    38  lease if (1) the other party is in default of any of such party's  obli-
    39  gations  under  the  lease,  (2)  the  eligible  premises are damaged or
    40  destroyed by fire or other  casualty,  (3)  the  eligible  premises  are
    41  rendered  unusable for any reason not attributable to any act or failure
    42  to act of either tenant or landlord, or (4) the  eligible  premises  are
    43  acquired by eminent domain; and
    44    (b)  there  are  real  property taxes, water or sewer charges or other
    45  lienable charges currently due and owing on the eligible building  which
    46  is  the  subject of an application for abatement pursuant to this title,
    47  unless such real property taxes or charges are currently being  paid  in
    48  timely  installments pursuant to a written agreement with the department
    49  of finance or other appropriate agency.
    50    6. No abatement shall be granted pursuant to  this  title  unless  the
    51  applicant  shall  file,  together  with  the  application,  an affidavit
    52  setting forth the following information:
    53    (a) a statement that within the seven years immediately preceding  the
    54  date  of  application for a certificate of abatement, neither the appli-
    55  cant nor any person owning a substantial interest in the eligible build-
    56  ing as defined in paragraph (c) of this subdivision,  nor  any  officer,

        A. 5920                             6
 
     1  director  or general partner of the applicant or such person was finally
     2  adjudicated by a  court  of  competent  jurisdiction  to  have  violated
     3  section  two hundred thirty-five of the real property law or any section
     4  of  article  one hundred fifty of the penal law or any similar arson law
     5  of another jurisdiction with respect to any building, or was an officer,
     6  director or general partner of a person at  the  time  such  person  was
     7  finally adjudicated to have violated such law; and
     8    (b)  a  statement setting forth any pending charges alleging violation
     9  of section two hundred thirty-five of  the  real  property  law  or  any
    10  section  of  article  one  hundred fifty of the penal law or any similar
    11  arson law of another jurisdiction with respect to any  building  by  the
    12  applicant  or  any  person owning a substantial interest in the eligible
    13  building as defined in paragraph (c) of this subdivision, or  any  offi-
    14  cer, director or general partner of the applicant or such person, or any
    15  person for whom the applicant or person owning a substantial interest in
    16  the eligible building is an officer, director or general partner.
    17    (c)  For purposes of this subdivision and subdivision seven of section
    18  four hundred ninety-nine-ffffff of this  title,  "substantial  interest"
    19  shall  mean  ownership  and  control of an interest of ten per centum or
    20  more in the eligible building or  in  any  person  owning  the  eligible
    21  building.
    22    §  499-dddddd.  Application for certificate of abatement. 1.  Applica-
    23  tion for a certificate of abatement may be made on or after April first,
    24  two thousand twenty-six and until sixty days after the end of the eligi-
    25  bility period. Applications  shall  be  filed  with  the  department  of
    26  finance.  No  application  may  be  filed prior to the date on which the
    27  lease for the eligible premises is executed by the landlord and tenant.
    28    2. No abatement pursuant to this title shall  be  granted  unless  the
    29  applicant  files  an  application  for a certificate of abatement within
    30  sixty days following the lease commencement date.
    31    3. In addition to any other information required by the department  of
    32  finance, the application for a certificate of abatement shall include an
    33  abstract  of  the lease for the eligible premises for which an abatement
    34  is being sought, which abstract  is  signed  by  the  landlord  and  the
    35  tenant.  Such  abstract shall include the tenant's percentage share, the
    36  lease commencement date, the rent commencement date, the expiration date
    37  for such lease and a description of the lease renewal clause,  including
    38  the annual rent increase percentage. Such application shall also include
    39  (a) a statement of the number of persons who will, on the rent commence-
    40  ment  date, be employed in the eligible premises, (b) a statement of the
    41  location of all commercial space in the city of New York occupied by the
    42  tenant prior to the execution of the lease for  the  eligible  premises,
    43  (c)  the  commencement  and  expiration dates of all leases for eligible
    44  premises, and (d) the aggregate floor area  of  the  eligible  building.
    45  Such  application  shall  also state that the applicant agrees to comply
    46  with and be subject to the rules issued from time to time by the depart-
    47  ment of finance.
    48    4. Within one hundred eighty days  following  the  lease  commencement
    49  date,  the applicant shall provide, in addition to any other information
    50  required by the  department  of  finance,  evidence  acceptable  to  the
    51  department  of  finance of the number of employees in the eligible prem-
    52  ises. The department of finance shall issue a certificate  of  abatement
    53  upon  determining  that  the applicant has submitted proof acceptable to
    54  the department of finance that the applicant has  met  the  requirements
    55  set forth in this title.

        A. 5920                             7
 
     1    5.  The burden of proof shall be on the applicant to show by clear and
     2  convincing evidence that the requirements for granting a certificate  of
     3  abatement  have been satisfied. The department of finance shall have the
     4  authority to require that statements in connection with such application
     5  be made under oath.
     6    6. The department of finance may provide by rule for reasonable admin-
     7  istrative  charges or fees necessary to defray expenses in administering
     8  the abatement program provided by this title.
     9    §  499-eeeeee.  Enforcement  and  administration.  The  department  of
    10  finance  shall  have,  in  addition  to  any other functions, powers and
    11  duties which have been or may be conferred on it by law,  the  following
    12  functions, powers and duties:
    13    1.  To  receive  and review applications for certificates of abatement
    14  under this title and issue such certificates where  authorized  pursuant
    15  to this title.
    16    2.  To  receive all certificates of continuing eligibility required by
    17  section four hundred ninety-nine-ffffff of this title.
    18    3. To collect all real property taxes, with interest and penalty,  due
    19  and  owing  as  a  result of reduction, termination or revocation of any
    20  abatement granted pursuant to this title.
    21    4. To make and promulgate rules to carry  out  the  purposes  of  this
    22  title.
    23    §  499-ffffff.  Reporting  requirements; revocation of abatements.  1.
    24  For the duration of the applicant's benefit period, the applicant  shall
    25  file annually with the department of finance, on or before July first of
    26  each  year,  a certificate of continuing eligibility confirming that the
    27  eligible premises are occupied by the tenant who originally executed the
    28  lease and that the eligible premises are being  used  for  the  purposes
    29  described  in the application.  Such certificate of continuing eligibil-
    30  ity shall be on a form prescribed by the department of finance and shall
    31  contain such additional information as the department of  finance  shall
    32  require. The department of finance shall have the authority to terminate
    33  abatements  granted  pursuant to this title upon failure of an applicant
    34  to file such certificate by such July first date. The  burden  of  proof
    35  shall  be on the applicant to establish continuing eligibility for bene-
    36  fits and the department of finance shall have the authority  to  require
    37  that statements made in such certificate shall be made under oath.
    38    2. The department of finance shall revoke any abatement granted pursu-
    39  ant  to  this title when the tenant who originally executed the lease is
    40  no longer occupying the eligible premises.   Such  revocation  shall  be
    41  retroactive  to  the date that such tenant vacated the eligible premises
    42  and the department of finance shall require the landlord  to  pay,  with
    43  interest, any taxes which become payable as a result of such revocation.
    44  The  landlord  shall notify the department of finance within thirty days
    45  following the date on which such tenant vacated  the  eligible  premises
    46  and,  for failure to comply with this notification requirement, shall be
    47  liable for penalty calculated for the same period as interest is  calcu-
    48  lated pursuant to the preceding sentence.
    49    3.  If  any  portion  of  the premises for which an abatement has been
    50  granted pursuant to this title ceases to be occupied or used as eligible
    51  premises or is occupied by a subtenant, the department of finance  shall
    52  reduce  the  abatement granted pursuant to this title by an amount equal
    53  to the percentage of such eligible premises which has ceased to be occu-
    54  pied or used as eligible premises or is occupied by  a  subtenant.  Such
    55  reduction  shall be retroactive to the date that such premises ceased to
    56  be occupied or used as eligible premises or was occupied by a subtenant,

        A. 5920                             8
 
     1  and the department of finance shall require the landlord  to  pay,  with
     2  interest,  any taxes which become payable as a result of such reduction.
     3  The landlord shall notify the department of finance within  thirty  days
     4  following  the  date on which the premises ceased to be occupied or used
     5  as eligible premises or was occupied by a subtenant and, for failure  to
     6  comply  with  this notification requirement, shall be liable for penalty
     7  calculated for the same period as interest is calculated pursuant to the
     8  preceding sentence.
     9    4. If, during the benefit period, any real property tax  or  water  or
    10  sewer charge or other lienable charge due and payable with respect to an
    11  eligible  building  shall  remain unpaid for at least one year following
    12  the date upon which such tax or  charge  became  due  and  payable,  all
    13  abatements  granted pursuant to this title with respect to such building
    14  shall be revoked, unless within thirty days from the mailing of a notice
    15  of revocation  by  the  department  of  finance  satisfactory  proof  is
    16  presented to the department of finance that any and all delinquent taxes
    17  and  charges  owing with respect to such building as of the date of such
    18  notice have been paid in full or are  currently  being  paid  in  timely
    19  installments  pursuant  to  a  written  agreement with the department of
    20  finance or other appropriate agency. Any  revocation  pursuant  to  this
    21  subdivision shall be effective with respect to real property taxes which
    22  become due and payable following the date of such revocation.
    23    5.  The  department of finance may deny, reduce, suspend, terminate or
    24  revoke any abatement granted pursuant to this title whenever:
    25    (a) the landlord or the tenant receiving abatement  pursuant  to  this
    26  title  fails  to comply with the requirements of this title or the rules
    27  promulgated hereunder; or
    28    (b) an application, certificate, report or other document submitted by
    29  the applicant contains a false or misleading statement as to a  material
    30  fact  or omits to state any material fact necessary in order to make the
    31  statement therein not false or misleading, and may declare any applicant
    32  who makes such false or misleading statement or omission to be  ineligi-
    33  ble  for  future  abatement pursuant to this title for the same or other
    34  property. In addition, the  department  of  finance  shall  require  the
    35  applicant  to  pay,  with  penalty  and interest, any abatement received
    36  pursuant to this title as a result of such false or misleading statement
    37  or omission of a material fact.
    38    6. Notwithstanding any other provision of this title,  the  department
    39  of  finance shall deny, terminate or revoke any abatement applied for or
    40  granted pursuant to this title  upon  a  determination  that  the  lease
    41  between  the  landlord  and  the  tenant does not constitute a bona fide
    42  arm's length lease. In making  such  determination,  the  department  of
    43  finance  may  consider,  among  other factors, the relationship, if any,
    44  between the landlord and the tenant and whether the  business  terms  of
    45  such  lease  are  consistent  with the business terms generally found in
    46  leases for comparable space.
    47    7. (a) If any person described in the statement required by  paragraph
    48  (b)  of  subdivision  six  of section four hundred ninety-nine-cccccc of
    49  this title or paragraph (b) of this subdivision is  finally  adjudicated
    50  by  a  court of competent jurisdiction to be guilty of any charge listed
    51  in such statement, the department of finance shall revoke the  abatement
    52  granted  pursuant  to  this  title  and  shall require the payment, with
    53  interest, of any abatement received pursuant to this title.
    54    (b) The applicant shall, on the certificate of continuing eligibility,
    55  state whether any charges alleging violation by  the  applicant  or  any
    56  person  owning  a  substantial interest in the eligible building, or any

        A. 5920                             9
 
     1  officer, director or general partner of the applicant or person owning a
     2  substantial interest in the eligible building, or any  person  for  whom
     3  the  applicant  or  person owning a substantial interest in the eligible
     4  building  is  an  officer,  director  or general partner, of section two
     5  hundred thirty-five of the real property law or any section  of  article
     6  one  hundred  fifty of the penal law or any similar arson law of another
     7  jurisdiction, are pending. For purposes of this paragraph,  "substantial
     8  interest"  shall  have the same meaning as set forth in paragraph (c) of
     9  subdivision six of  section  four  hundred  ninety-nine-cccccc  of  this
    10  title.
    11    §  499-gggggg.  Tax lien; interest and penalty. All taxes, with inter-
    12  est, required to be paid retroactively  pursuant  to  this  title  shall
    13  constitute  a  tax  lien  as of the date it is determined such taxes and
    14  interest are owed. All interest shall be calculated from  the  date  the
    15  taxes would have been due but for the abatement granted pursuant to this
    16  title  at  the applicable rate or rates of interest imposed by such city
    17  generally for non-payment of real  property  tax  with  respect  to  the
    18  eligible  building  for the period in question. When a provision of this
    19  title requires the payment of a penalty in  addition  to  interest,  the
    20  amount  of  such  penalty  shall be equal to the amount of interest that
    21  would have been payable pursuant to such  provision  had  such  interest
    22  been calculated at the rate of three percent per annum.
    23    §  499-hhhhhh.  Confidentiality. 1. Except in accordance with a proper
    24  judicial order or as otherwise provided by law, it shall be unlawful for
    25  the commissioner of finance, any officer or employee of  the  department
    26  of  finance,  the  president  or  a  commissioner or employee of the tax
    27  commission, any person engaged or retained by such  department  or  such
    28  commission on an independent contract basis, or any person who, pursuant
    29  to  this  title, is permitted to inspect any information submitted by an
    30  applicant to the department of finance pursuant to this title or to whom
    31  a copy, an abstract or a portion of any such information  is  furnished,
    32  to  divulge  or  make  known  in  any manner any such information to any
    33  person not authorized pursuant to this title to  inspect  such  informa-
    34  tion. The officers charged with custody of such information shall not be
    35  required to produce any of it or evidence of anything contained in it in
    36  any  action  or  proceeding in any court except on behalf of the commis-
    37  sioner of finance in an action or proceeding  under  the  provisions  of
    38  this  title, or on behalf of any party to any action or proceeding under
    39  the provisions of this title when such information or facts shown there-
    40  by are directly involved in such action  or  proceeding,  in  either  of
    41  which  events  the court may require the production of, and may admit in
    42  evidence so much of such information or of the facts shown  thereby,  as
    43  are  pertinent  to  the action or proceeding and no more. Nothing herein
    44  shall be construed to prohibit the inspection  by  the  legal  represen-
    45  tatives  of  the  department  of  finance  or the tax commission of such
    46  information submitted by any applicant who  shall  bring  an  action  to
    47  correct  an  assessment.   Nothing herein shall be construed to prohibit
    48  the delivery to an applicant or the applicant's duly  authorized  repre-
    49  sentative  of a certified copy of any information submitted by an appli-
    50  cant to the department of finance pursuant to  this  title;  or  to  any
    51  agency  or any department of any city having a population of one million
    52  or more provided the same is requested for  official  business;  nor  to
    53  prohibit the inspection for official business of such information by the
    54  corporation  counsel  or  other legal representatives of a city having a
    55  population of one million or more or by the  district  attorney  of  any
    56  county  within  such city; nor to prohibit the publication of statistics

        A. 5920                            10
 
     1  so classified as to prevent the identification of  such  information  or
     2  particular  items thereof.  Information submitted by an applicant to the
     3  department of finance pursuant to this title shall  not  be  subject  to
     4  disclosure pursuant to article six of the public officers law.
     5    2.  Any violation of the provisions of subdivision one of this section
     6  shall be punishable by a fine not exceeding one thousand dollars  or  by
     7  imprisonment  not  exceeding one year, or both, at the discretion of the
     8  court, and if the offender be an officer or employee of  the  department
     9  of  finance  or  of  the tax commission, the offender shall be dismissed
    10  from office.
    11    § 2. This act shall take effect immediately.
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