Section 489-AAAA. Definitions

When used in this title: 1. "Applicant" means
  any  person  obligated  to  pay  real property taxes on the property for
  which an exemption from or abatement or deferral of  real  property  tax
  payments  is sought, or in the case of exempt property, the record owner
  or lessee thereof.
    2. "Approved plans" means plans  submitted  to  and  approved  by  the
  department  of  buildings  in  connection  with the applicant's building
  permit,  including  any  amendments  to  such  plans  approved  by  such
  department before final inspection of the work for which such permit was
  issued.
    3.  "Benefit  period"  means  the  period  of time when a recipient is
  eligible to receive benefits pursuant to this title,  including  in  the
  case  of  a  recipient  of  a  certificate of eligibility for commercial
  construction work in a deferral area, the period of  time  tax  payments
  are  to  be  deferred, the interim period when no tax payments are to be
  deferred and no deferred tax payments are required to be made,  and  the
  period of time when the deferred tax payments are to be made.
    4. "Commission" means the temporary commercial incentive area boundary
  commission.
    5.  "Commercial  construction  work"  means  the construction of a new
  building  or  structure,  or  portion  thereof,  or  the  modernization,
  rehabilitation,  expansion, or other improvement of an existing building
  or structure, or portion thereof, for use as commercial property.
    6. "Commercial property" means nonresidential property  (a)  on  which
  will  exist after completion of commercial construction work, a building
  or structure used for the buying,  selling  or  otherwise  providing  of
  goods  or  services  including  hotel  services,  or  for  other  lawful
  business, commercial or manufacturing activities;  and  (b)  (i)  where,
  except  as provided in subparagraph (ii) of this paragraph and paragraph
  (c) of this subdivision, not more than fifteen per centum of  the  total
  net  square  footage  of  any building or structure on such property was
  used for manufacturing activities at any one or more  times  during  the
  twenty-four  months  immediately preceding the date of application for a
  certificate of eligibility or (ii)  where  not  more  than  fifteen  per
  centum  of  the total net square footage of any building or structure on
  such property was used for manufacturing activities at any one  or  more
  times  during  the  sixty  months  immediately  preceding  the  date  of
  application for  a  certificate  of  eligibility  if  such  property  is
  located,  in  whole  or in part, in the area in the borough of Manhattan
  lying south of the center line of 96th Street; and (c) in the commercial
  revitalization  area,  and  with  respect  to  an  application   for   a
  certificate  of  eligibility filed on or after July first, two thousand,
  "commercial property" means nonresidential property on which will  exist
  after   completion  of  commercial  construction  work,  a  building  or
  structure used for the buying, selling or otherwise providing  of  goods
  or  services  including  hotel  services,  or for other lawful business,
  commercial or manufacturing activities.
    6-a. "Commercial revitalization area" means any area of a city  having
  a  population  of  one million or more, provided that in the city of New
  York a commercial revitalization area shall mean any  district  that  is
  zoned C4, C5, C6, M1, M2, or M3 in accordance with the zoning resolution
  of such city in any area of such city except the area lying south of the
  center line of 96th Street in the borough of Manhattan.
    7.  "Deferral area" means an area in which deferral of payment of real
  property taxes in accordance  with  subdivision  four  of  section  four
  hundred eighty-nine-bbbb of this title shall be available to a recipient
  who has performed commercial construction work.

    8.  "Excluded  area"  means each area specified in paragraphs (a), (b)
  and (c) of subdivision five of section four hundred eighty-nine-cccc  of
  this title.
    9.  "Exemption  base."  (a)  For  purposes  of computing the exemption
  pursuant to subdivision one, two, three or four of section four  hundred
  eighty-nine-bbbb  of  this  title,  "exemption  base"  shall  mean, with
  respect to property that is the subject of a certificate of  eligibility
  with an effective date of June thirtieth, nineteen hundred ninety-two or
  before:  (i) for the first, second and third taxable years following the
  effective date of a certificate of eligibility, the  assessed  value  of
  improvements made since the effective date of such certificate which are
  attributable  exclusively  to commercial or industrial construction work
  described in approved plans; and (ii) for all other years, the  assessed
  value  of  such  improvements  which  have  been  made before the fourth
  taxable status date following the effective date of such certificate.
    (b) For purposes of computing the exemption  pursuant  to  subdivision
  three,  four  or  five  of section four hundred eighty-nine-bbbb of this
  title, "exemption base" shall mean, with respect to property that is the
  subject of a certificate of eligibility with an effective date  of  July
  first,  nineteen  hundred ninety-two or after: (i) for the first through
  fifth taxable years following the effective date  of  a  certificate  of
  eligibility, the assessed value of improvements made since the effective
  date   of   such  certificate  which  are  attributable  exclusively  to
  commercial or renovation construction work described in approved  plans;
  and  (ii)  for  all other years, the assessed value of such improvements
  which have been made before the sixth taxable status date following  the
  effective date of such certificate.
    (c)  For  purposes  of computing the exemption pursuant to subdivision
  one or two of section  four  hundred  eighty-nine-bbbb  of  this  title,
  "exemption  base"  shall  mean,  with  respect  to  property that is the
  subject of a certificate of eligibility with an effective date  of  July
  first,  nineteen  hundred ninety-two or after: (i) for the first through
  fifth taxable years following the effective date  of  a  certificate  of
  eligibility, the assessed value of improvements made since the effective
  date   of   such  certificate  which  are  attributable  exclusively  to
  commercial or industrial construction work described in  approved  plans
  plus  any  equalization increases or minus any equalization decreases in
  the assessed value of the property  so  improved  (excluding  the  land)
  occurring subsequent to the effective date of such certificate; and (ii)
  for all other years, the assessed value of such improvements made before
  the  sixth  taxable  status  date  following  the effective date of such
  certificate plus any equalization increases or  minus  any  equalization
  decreases  in  the assessed value of the property so improved (excluding
  the land) occurring subsequent to the effective date of such certificate
  but before the fourteenth taxable status date  following  the  effective
  date  of  such  certificate.  For purposes of the preceding sentence: no
  adjustment shall be made to  the  assessed  value  of  the  improvements
  referred  to  in  subparagraphs  (i)  and (ii) of this paragraph for any
  portion of an equalization increase or decrease which is being phased in
  pursuant to section eighteen hundred five of this chapter subsequent  to
  the effective date of the certificate of eligibility if such increase or
  decrease  occurred  prior  to  such  effective date; with respect to any
  taxable year, an adjustment for an  equalization  increase  or  decrease
  shall  reflect  only  the  portion of such increase or decrease which is
  being phased in during such taxable year or which was phased in during a
  prior taxable year; no adjustment for  an  equalization  decrease  shall
  reduce  the  exemption base to an amount less than the assessed value of
  the improvements referred to in  subparagraphs  (i)  and  (ii)  of  this

  paragraph,  and,  to  the extent that any such decrease would reduce the
  exemption base below such amount, such decrease shall reduce the taxable
  portion of the assessed value; and no adjustment shall be  made  for  an
  equalization  increase  or  decrease  if the improvements referred to in
  subparagraphs (i) and (ii) of this paragraph do not result in a physical
  increase in the assessed value of the property.
    (d) Notwithstanding paragraph (a) of this subdivision, for purposes of
  computing the exemption pursuant to  subdivision  one  of  section  four
  hundred  eighty-nine-bbbb  of  this  title, "exemption base" shall mean,
  with respect to industrial property that is located in the area  in  the
  borough  of  Manhattan lying north of the center line of 96th Street, or
  that is located in the Bronx, Brooklyn, Queens  or  Staten  Island;  and
  that  is  the  subject of a certificate of eligibility with an effective
  date after  December  thirty-first,  nineteen  hundred  eighty-nine  and
  before  July  first,  nineteen  hundred  ninety-two:  (i) for the first,
  second and third  taxable  years  following  the  effective  date  of  a
  certificate  of  eligibility,  the  assessed  value of improvements made
  since the effective date of  such  certificate  which  are  attributable
  exclusively to industrial construction work described in approved plans;
  and  (ii)  for  all other years, the assessed value of such improvements
  made before the fourth taxable status date following the effective  date
  of  such  certificate  plus  any  equalization  increases  or  minus any
  equalization decreases in the assessed value of the property so improved
  (excluding the land) occurring subsequent to the fourth  taxable  status
  date  following  the  effective  date of such certificate but before the
  fourteenth taxable status date following  the  effective  date  of  such
  certificate. For purposes of the preceding sentence: no adjustment shall
  be  made  to  the  assessed  value  of  the  improvements referred to in
  subparagraphs (i) and (ii) of this  paragraph  for  any  portion  of  an
  equalization  increase  or decrease which is being phased in pursuant to
  section  eighteen  hundred  five  of  this  chapter  subsequent  to  the
  effective  date  of  the  certificate of eligibility if such increase or
  decrease occurred prior to such effective  date;  with  respect  to  any
  taxable  year,  an  adjustment  for an equalization increase or decrease
  shall reflect only the portion of such increase  or  decrease  which  is
  being phased in during such taxable year or which was phased in during a
  prior  taxable  year;  no  adjustment for an equalization decrease shall
  reduce the exemption base to an amount less than the assessed  value  of
  the  improvements  referred  to  in  subparagraphs  (i) and (ii) of this
  paragraph, and, to the extent that any such decrease  would  reduce  the
  exemption base below such amount, such decrease shall reduce the taxable
  portion  of  the  assessed value; and no adjustment shall be made for an
  equalization increase or decrease if the  improvements  referred  to  in
  subparagraphs (i) and (ii) of this paragraph do not result in a physical
  increase in the assessed value of the property.
    (e)   For  purposes  of  computing  the  exemption:  (i)  pursuant  to
  subdivision five-a of section  four  hundred  eighty-nine-bbbb  of  this
  title, "exemption base" shall mean, with respect to property that is the
  subject  of  a certificate of eligibility with an effective date of July
  first, nineteen hundred ninety-five or after and that is located in  the
  new   construction   exemption   area  specified  in  paragraph  (a)  of
  subdivision six of section four hundred eighty-nine-cccc of this  title:
  for  any  taxable  year following the effective date of a certificate of
  eligibility, the assessed value of improvements made since the effective
  date of such certificate  which  are  attributable  exclusively  to  the
  construction  of a new building or structure that meets the requirements
  set forth in subdivision nine of section four  hundred  eighty-nine-dddd
  of this title as described in approved plans, provided such improvements

  are  made  within  thirty-six  months  of  the  effective  date  of such
  certificate or by December thirty-first, nineteen  hundred  ninety-nine,
  whichever is earlier; and (ii) pursuant to subdivision five-a of section
  four  hundred  eighty-nine-bbbb  of  this  title, "exemption base" shall
  mean, with respect to property that is the subject of a  certificate  of
  eligibility  with  an  effective  date  of  July first, nineteen hundred
  ninety-five or after  and  that  is  located  in  the  new  construction
  exemption  area specified in paragraph (b) of subdivision six of section
  four hundred eighty-nine-cccc  of  this  title:  for  any  taxable  year
  following  the  effective  date  of  a  certificate  of eligibility, the
  assessed value of improvements made since the  effective  date  of  such
  certificate  which are attributable exclusively to the construction of a
  new building or structure that  meets  the  requirements  set  forth  in
  subdivision  nine of section four hundred eighty-nine-dddd of this title
  as described in approved plans,  provided  such  improvements  are  made
  within forty-two months of the effective date of such certificate.
    (f)  For  purposes  of  this  subdivision  "equalization  increase  or
  decrease" means an  increase  or  decrease  in  the  assessed  value  of
  property   which   is  not  attributable  to  construction  work,  fire,
  demolition, destruction or other change in the physical  characteristics
  of   the   property   (excluding   gradual   physical  deterioration  or
  obsolescence), or to a change in the description or  boundaries  of  the
  property.
    10.  "Industrial  construction  work"  means the construction of a new
  building or structure or the modernization, rehabilitation, expansion or
  improvement of an existing building or structure for use  as  industrial
  property.
    11.  "Industrial property" means nonresidential property on which will
  exist after completion of industrial construction  work  a  building  or
  structure  wherein  at  least  seventy-five  per centum of the total net
  square footage is used or immediately available and held out for use for
  manufacturing  activities  involving  the  assembly  of  goods  or   the
  fabrication or processing of raw materials.
    12.  "Initial  assessed  value"  means  the  lesser of (a) the taxable
  assessed value of real property appearing on the  books  of  the  annual
  record  of the assessed valuation of real property on the effective date
  of a recipient's certificate of eligibility or (b) the assessed value to
  which such assessment is thereafter reduced pursuant to  application  to
  the  tax  commission or court order. Where the real property is used for
  both residential and nonresidential purposes on the  effective  date  of
  such certificate of eligibility, the initial assessed value of such real
  property,  determined  as  provided  in the preceding sentence, shall be
  apportioned between the residential and nonresidential portions  thereof
  in  such  manner as shall properly reflect the initial assessed value of
  each such portion. Such apportionment shall be in accordance with  rules
  promulgated by the department of finance.
    13.  "Manufacturing activity" means an activity involving the assembly
  of goods or the fabrication or processing of raw materials.
    14. "Minimum required expenditure" means expenditure  for  commercial,
  renovation  or industrial construction work in an amount equal to twenty
  per centum of the initial assessed value; provided, however,  that  with
  respect  to a recipient who filed an application on or after July first,
  nineteen hundred  ninety-five  for  a  certificate  of  eligibility  for
  industrial  construction  work  or for commercial construction work in a
  special exemption area or a regular  exemption  area,  minimum  required
  expenditure  means  expenditure  for such work in an amount equal to ten
  per centum of the initial assessed value; provided, however,  that  with
  respect  to a recipient who filed an application on or after July first,

  nineteen hundred  ninety-five  for  a  certificate  of  eligibility  for
  industrial  construction  work  and  for  the  purpose  of  receiving an
  abatement of real property taxes in accordance  with  paragraph  (c)  of
  subdivision  one of section four hundred eighty-nine-bbbb of this title,
  minimum required expenditure means  expenditure  for  such  work  in  an
  amount  equal  to  twenty-five per centum of the initial assessed value;
  and  provided  further  that  if  the  department  of   finance,   after
  consultation with the deputy mayor for finance and economic development,
  determines   that   a  greater  expenditure  is  required  to  encourage
  significant industrial and commercial development it  may  establish  by
  rule  a higher percentage of initial assessed value, not to exceed fifty
  per centum thereof, as the minimum required expenditure. Expenditure for
  residential construction work shall  not  be  included  in  the  minimum
  required  expenditure;  provided,  however, that for mixed-use property,
  expenditures for construction work  related  to  the  common  areas  and
  systems  of  such  property shall be allocated, in accordance with rules
  promulgated by the department of finance, between  the  residential  and
  nonresidential  portions  of the property. If real property was used for
  both residential and nonresidential purposes on the  effective  date  of
  the  certificate of eligibility, the initial assessed value of such real
  property, for  purposes  of  this  subdivision,  shall  be  the  initial
  assessed value apportioned to the nonresidential portions thereof.
    15.   "Person"   means   an   individual,   corporation,  partnership,
  association, agency, trust, estate, foreign or  domestic  government  or
  subdivision thereof, or other entity.
    16.   "Recipient"   means  an  applicant  to  whom  a  certificate  of
  eligibility has been issued pursuant to this title, or the successor  in
  interest of such applicant, provided that where a person who has entered
  into  a  lease  or purchase agreement with the owner or lessee of exempt
  property has been a  co-applicant,  such  person  or  the  successor  in
  interest of such person shall be the recipient.
    17.  "Regular  exemption  area"  means  an  area  in  which  a regular
  exemption from taxes in accordance with  subdivision  three  of  section
  four  hundred  eighty-nine-bbbb  of  this  title shall be available to a
  recipient who performs commercial construction work.
    18.  "Residential   construction   work"   means   any   construction,
  modernization,  rehabilitation,  expansion  or  improvement  of dwelling
  units other than dwelling units in a hotel.
    19. "Residential property" means property, other  than  property  used
  for  hotel  purposes,  on which exists or will exist, upon completion of
  construction  work,  a  building  or  structure  used  for   residential
  purposes.
    20.  "Restricted  activity" means any entertainment activity which the
  department of finance has identified in regulations promulgated pursuant
  to a local law enacted pursuant to this title as an activity  which,  in
  the  public  interest,  should not be encouraged through the benefits of
  this title.
    21. "Special exemption area" means an area in which the commission has
  determined  that  a  special  exemption  from  real  property  taxes  in
  accordance with subdivision two of section four hundred eighty-nine-bbbb
  of  this title shall be available to a recipient who performs commercial
  construction  work  and,  in  addition,  means  the  area  specified  in
  paragraph   (d)   of   subdivision   four   of   section   four  hundred
  eighty-nine-cccc of this title.
    22. "Mixed-use property" means property on which exists, or will exist
  upon completion of construction work, a building or structure  used  for
  both residential and nonresidential purposes.

    23.   "Renovation   construction   work"   means   the  modernization,
  rehabilitation, expansion or improvement  of  an  existing  building  or
  structure,  or  portion  thereof,  for  use  as commercial property in a
  renovation exemption  area  where  such  modernization,  rehabilitation,
  expansion  or improvement is physically and functionally integrated with
  the existing  building  or  structure,  or  portion  thereof,  does  not
  increase  the  bulk  of  the existing building or structure by more than
  thirty per centum and does not  increase  the  height  of  the  existing
  building or structure by more than thirty per centum.
    24.  "Renovation exemption area" means the area specified in paragraph
  (d) of subdivision five of section four hundred eighty-nine-cccc of this
  title in which a renovation exemption  from  taxes  in  accordance  with
  subdivision  five of section four hundred eighty-nine-bbbb of this title
  shall be available to a recipient who performs  renovation  construction
  work.
    25.  "New  construction  exemption areas" means the areas specified in
  subdivision six of section four hundred eighty-nine-cccc of  this  title
  in  which  an  exemption  from  real  property  taxes in accordance with
  subdivision five-a of section  four  hundred  eighty-nine-bbbb  of  this
  title shall be available to a recipient who constructs a new building or
  structure  that  meets the requirements set forth in subdivision nine of
  section four hundred eighty-nine-dddd of this title.