§ 14-11 Tax Abatement for Industrial Construction.
RCNY § 14-11
(a)Eligible applications. A real property tax abatement is available for qualifying industrial construction where the application has an effective date on or after July 1, 1995.
(b)Amount of the abatement. For industrial construction work in any area of the City with an effective date on or after July 1, 1995, where after the effective date of the certificate of eligibility, the work was both commenced and completed, the property is eligible for an abatement of real property taxes. The abatement is a percentage of the real property tax that was imposed on the property in the tax year immediately preceding the tax year in which the effective date of the certificate of eligibility occurs, or, if the property was fully or partially exempt from real property taxes, the tax that would have been imposed but for the exemption (the abatement base). In each of the first four years, the abatement equals 50% of the abatement base; for years 5 and 6, 40%; for years 7 and 8, 30%; for years 9 and 10, 20%; and for years 11 and 12, 10%.
(c)Proof to be submitted. Generally, the twelve (12) year abatement benefit period does not commence until after the applicant has submitted proof of completion of industrial construction.
(1)No abatement benefit will be available for the first tax year after construction is completed unless satisfactory proof of completion on or before the taxable status date (January 5th), is submitted no later than 30 days following the taxable status date (February 4th). If satisfactory material is submitted, the abatement period will commence on July 1st.
(2)If proof of completion of industrial construction is not submitted as provided in this subdivision, no abatement will be available until the second tax year after completion of the work. In this case, the twelve (12) year abatement period will begin July 1st in the second tax year following completion of the work if satisfactory proof is submitted to the Department by February 4th for the tax year. This will be the Applicant's final opportunity to qualify for a full twelve (12) year abatement.
(3)If the Applicant fails to submit satisfactory proof of completion by the deadlines, the twelve (12) year abatement period will commence on July 1 although no abatement benefits will be granted. The twelve (12) year period will continue in operation for the next eleven years without regard to the actual submission of proof of completion. Example: Applicant completed industrial construction work on January 4, 2005. If the Applicant submitted satisfactory proof of completion by February 4, 2005, the abatement period would have commenced July 1, 2005. But Applicant failed to file timely and, therefore, must submit proof of completion by February 4, 2006, his last opportunity to file for a full 12-year abatement period to commence July 1, 2006. Whether or not the proof is submitted by February 4, 2006, the abatement period will begin July 1, 2006. Absent the timely filing of satisfactory proof of completion, however, no abatement benefit will be credited for the fiscal year commencing July 1, 2006. Assuming Applicant files satisfactory proof of completion on or before February 4, 2007, the abatement benefit will be credited July 1, 2007, the second year of the Applicant's abatement period. Applicant will receive a tax abatement for a total of 11 years.
(d)Date of completion of construction. Construction is completed on the date either: (1) a temporary certificate of occupancy and 90 percent of the final actual cost of eligible construction is made or (2) a permanent certificate of occupancy is received for the completed project.
(e)Multiple Buildings on a Single Tax Lot. To calculate the abatement where a lot contains more than one building or structure (but not all buildings and structures are the subject of a certificate of eligibility for industrial construction work) the property taxes imposed on the tax lot for the year immediately preceding the effective date of the certificate of eligibility will be apportioned among the buildings and structures as provided in 19 RCNY § 14-09. Only the taxes attributable to the property that is the subject of this certificate of eligibility will be abated.
