Section 485-B. Business investment exemption

1. Real property constructed,
  altered, installed or improved subsequent to  the  first  day  of  July,
  nineteen  hundred seventy-six for the purpose of commercial, business or
  industrial activity shall be exempt from taxation and special ad valorem
  levies, except for special ad valorem levies  for  fire  district,  fire
  protection  district  and  fire  alarm  district purposes, to the extent
  hereinafter provided.
    2. (a) (i) Such real property shall be exempt for a period of one year
  to the extent of fifty per centum of  the  increase  in  assessed  value
  thereof  attributable  to such construction, alteration, installation or
  improvement and  for  an  additional  period  of  nine  years  provided,
  however,  that  the  extent of such exemption shall be decreased by five
  per centum each year during such additional period  of  nine  years  and
  such  exemption  shall be computed with respect to the "exemption base."
  The exemption base shall be the increase in assessed value as determined
  in the initial year of such ten year period following the filing  of  an
  original  application,  except  as provided in subparagraph (ii) of this
  paragraph.
    (ii) In any year in which a change in level of assessment  of  fifteen
  percent or more is certified for a final assessment roll pursuant to the
  rules  of  the  state board, the exemption base shall be multiplied by a
  fraction, the numerator of which shall be the total  assessed  value  of
  the  parcel  on  such  final  assessment  roll (after accounting for any
  physical or  quantity  changes  to  the  parcel  since  the  immediately
  preceding  assessment  roll),  and the denominator of which shall be the
  total assessed value of the parcel on the  immediately  preceding  final
  assessment  roll.  The  result  shall  be  the  new  exemption base. The
  exemption shall thereupon be recomputed to take  into  account  the  new
  exemption  base, notwithstanding the fact that the assessor receives the
  certification of the change in level of assessment after the completion,
  verification and filing of the final assessment roll. In the  event  the
  assessor  does  not  have custody of the roll when such certification is
  received, the assessor shall certify the  recomputed  exemption  to  the
  local  officers  having  custody and control of the roll, and such local
  officers are hereby directed and  authorized  to  enter  the  recomputed
  exemption certified by the assessor on the roll. The assessor shall give
  written  notice  of such recomputed exemption to the property owner, who
  may,  if  he  or  she  believes  that  the  exemption   was   recomputed
  incorrectly,  apply  for  a  correction  in the manner provided by title
  three of article five of this chapter for  the  correction  of  clerical
  errors.
    (iii)  The following table shall illustrate the computation of the tax
  exemption:
 
        Year of exemption                      Percentage of exemption
                 1                                       50
                 2                                       45
                 3                                       40
                 4                                       35
                 5                                       30
                 6                                       25
                 7                                       20
                 8                                       15
                 9                                       10
                10                                        5
 
    (b) No such exemption shall be granted unless

    (1) such construction, alteration,  installation  or  improvement  was
  commenced  subsequent  to  the  first  day  of January, nineteen hundred
  seventy-six or such later date as may  be  specified  by  local  law  or
  resolution;
    (2)  the  cost  of  such  construction,  alteration,  installation  or
  improvement exceeds the sum of ten  thousand  dollars  or  such  greater
  amount as may be specified by local law or resolution; and
    (3)  such  construction,  alteration,  installation  or improvement is
  completed as may be evidenced by a certificate  of  occupancy  or  other
  appropriate documentation as provided by the owner.
    (c)  For  purposes of this section the terms construction, alteration,
  installation and improvement shall not include ordinary maintenance  and
  repairs.
    (d)  No  such exemption shall be granted concurrent with or subsequent
  to  any  other  real  property  tax  exemption  granted  to   the   same
  improvements  to  real property, except, where during the period of such
  previous exemption, payments in lieu of taxes  or  other  payments  were
  made  to the local government in an amount that would have been equal to
  or greater than the amount of real property taxes that would  have  been
  paid  on  such  improvements had such property been granted an exemption
  pursuant to this section. In such case, an exemption  shall  be  granted
  for  a  number of years equal to the ten year exemption granted pursuant
  to this section less the number of years the property  would  have  been
  previously exempt from real property taxes.
    3.  Such exemption shall be granted only upon application by the owner
  of such real property on a form prescribed  by  the  state  board.  Such
  application shall be filed with the assessor of the city, town, village,
  or  county having the power to assess property for taxation on or before
  the appropriate taxable status date  of  such  city,  town,  village  or
  county  and  within  one  year  from  the  date  of  completion  of such
  construction, alteration, installation or improvement.
    4. If the assessor is satisfied that the applicant is entitled  to  an
  exemption  pursuant  to  this  section,  he  or  she  shall  approve the
  application and such real  property  shall  thereafter  be  exempt  from
  taxation  and  special  ad valorem levies, except for special ad valorem
  levies for fire  district,  fire  protection  district  and  fire  alarm
  district  purposes,  as  herein  provided commencing with the assessment
  roll prepared after the taxable status date referred to  in  subdivision
  three  of  this  section.  The  assessed  value of any exemption granted
  pursuant to this section  shall  be  entered  by  the  assessor  on  the
  assessment  roll  with  the  taxable  property,  with  the amount of the
  exemption shown in a separate column.
    5. The provisions of this section shall apply to  real  property  used
  primarily  for  the  buying,  selling,  storing  or  developing goods or
  services, the manufacture or assembly of goods or the processing of  raw
  materials.  This  section shall not apply to property used primarily for
  the furnishing of dwelling space or accommodations to  either  residents
  or transients other than hotels or motels.
    6.  In  the  event that real property granted an exemption pursuant to
  this section ceases to be used  primarily  for  eligible  purposes,  the
  exemption granted pursuant to this section shall cease.
    7.  A  county,  city,  town or village may, by local law, and a school
  district, except a city school district to which  article  fifty-two  of
  the  education law applies, may, by resolution, reduce the per centum of
  exemption otherwise allowed pursuant to this section; provided, however,
  that a project in course of construction and exemptions  existing  prior
  in  time  to  passage  of  any such local law or resolution shall not be
  subject to any such reduction  so  effected.  Any  county,  city,  town,

  village  or school district that has reduced the per centum of exemption
  pursuant to this subdivision may thereafter, by local law or  resolution
  as  the  case may be, increase the per centum of exemption up to any per
  centum not exceeding the maximum allowed by subdivision two or twelve of
  this  section, whichever is applicable, provided, however, that any such
  local law or resolution shall apply only to  construction,  alterations,
  installations,  or  improvements  commenced  subsequent to the effective
  date of such local law or resolution. A copy of all such local  laws  or
  resolutions shall be filed with the state board and the assessor of each
  assessing unit which comprises the county, city, town or school district
  or,  in  the  case of a village, the village assessor, or the applicable
  town or county assessor of a village  which  has  adopted  a  local  law
  provided  in  subdivision  three of section fourteen hundred two of this
  chapter.
    8. A county, city, town or village may, by local  law,  and  a  school
  district,  except  a  city school district to which article fifty-two of
  the education law applies may, by resolution, establish a date  for  the
  commencement  of  effectiveness  of  exemptions offered pursuant to this
  section and may provide that the provisions of this section shall  apply
  only  to construction, alteration, installation or improvements having a
  greater value than that specified by subdivision two  of  this  section,
  provided,  however,  that  such  amount  shall not exceed fifty thousand
  dollars.
    9. (a) A county, city, outside the city of New York, town  or  village
  may,  by local law, and a school district which levies school taxes may,
  by resolution, establish a board to  be  known  as  the  industrial  and
  commercial incentive board. The membership and composition of such board
  shall be set forth in the local law or resolution.
    (b) The industrial and commercial incentive board shall present a plan
  to the appointing local legislative body concerning the various types of
  business  real  property  which  should  be  granted  eligibility for an
  exemption pursuant to subdivision one of this section. Such  plan  shall
  make  recommendations  concerning  the applicability of the exemption to
  specific sectors and  subsectors,  as  defined  in  the  North  American
  Industry   Classification   System   published   by  the  United  States
  Government. Such plan shall also make a recommendation as to whether the
  exemption be computed as provided in subdivision two or twelve  of  this
  section. In addition, such plan shall identify specific geographic areas
  within  which  such exemptions should be offered. In developing the plan
  required by this  paragraph,  the  board  shall  consider  the  planning
  objectives  of  each  municipality  within  which such exemptions may be
  offered, the necessity of the exemption to the attraction  or  retention
  of  such  business  and  the  economic  benefit to the area of providing
  exemptions to various types of businesses.
    (c) In addition, the board may make recommendations to the  appointing
  local  legislative  body  with  respect to actions it deems desirable to
  improve the economic climate therein.
    (d)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this
  subdivision,  where  a  county  establishes an industrial and commercial
  incentive board, the  members  of  such  board  shall  be  appointed  as
  follows:  three  representatives  of  the county: the appointment of one
  shall be reserved to the county executive of the county who shall  serve
  as  chair, and one each for the majority and the minority parties of the
  county legislative body; one representative for each city located within
  the county upon the recommendation of the mayor; one representative  for
  each  of  the towns located within the county upon the recommendation of
  the supervisor; one representative to collectively represent all of  the
  villages located within the county upon the recommendation of the mayors

  of  the  villages  in the county; and one representative to collectively
  represent all of the school districts located  within  the  county  upon
  recommendation  of  the county school boards association. The members of
  such  board shall serve at the pleasure of the governing body which they
  represent. The members  shall  serve  without  salary,  but  the  county
  legislative  body  may entitle each such member to reimbursement for his
  or her actual and necessary expenses incurred in the performance of  his
  or her duties.
    10.  Where  a  county,  city,  town,  village  or  school district has
  established an industrial and commercial incentive  board,  pursuant  to
  subdivision  nine  of  this  section, such county, city, town or village
  may, by local law, and a school district, except a city school  district
  to  which  article  fifty-two  of  the  education  law  applies, may, by
  resolution, restrict real property eligible to receive the exemption  to
  real  property  constructed,  altered,  installed  or improved for those
  purposes identified in the plan presented by  the  board.  Such  law  or
  resolution  shall  identify  the  specific  sectors  and  subsectors, as
  defined in the North American Industry Classification  System  published
  by  the  United  States  Government  to  which  the  exemption  shall be
  applicable. Such law or resolution shall also restrict the  availability
  of  such  exemption  to  the specific geographic areas identified in the
  plan presented by the board.
    11. Where a county, by  law,  restricts  exemptions  pursuant  to  the
  recommendations   of  an  industrial  and  commercial  incentive  board,
  established  pursuant  to  subdivision  nine  of  this   section,   such
  restricted  exemptions  shall  be  applicable  to  taxes  and special ad
  valorem levies of each city, town, village and school  district  located
  within  the  area  within which the restricted exemptions are offered by
  the county, unless such city, town or village shall,  by  law,  or  such
  school  district,  shall,  by resolution, determine that such restricted
  exemptions shall not be applicable to its tax  and  ad  valorem  levies.
  Upon  adoption  of such law, the county shall notify each affected city,
  town, village and school district of its  actions  and  inform  them  of
  their options regarding such restricted exemptions.
    12.  Notwithstanding  subdivision two of this section, where a county,
  city, town, village or  school  district  adopts  restricted  exemptions
  pursuant  to  subdivision ten of this section, the law or resolution may
  provide that such exemptions shall be computed pursuant to the following
  accelerated strategic exemption schedule:
 
        Year of exemption                      Percentage of exemption
                 1                                       50
                 2                                       50
                 3                                       50
                 4                                       40
                 5                                       30
                 6                                       20
                 7                                       10
                 8                                       10
                 9                                       10
                10                                        5
 
    Provided however, that such law or resolution shall:
    (i) contain findings that the adoption of this  accelerated  strategic
  exemption   schedule   is   necessary  to  encourage  targeted  economic
  development, create or retain permanent private sector  jobs,  and  that
  the  value  of the exemptions to be provided is justified by the need to
  provide employment opportunities and broaden the tax base; and

    (ii) limit the applicability of such schedule to  projects  where  the
  cost  of  such  construction,  alteration,  installation  or improvement
  exceeds the sum of fifty thousand dollars; and
    (iii)  provide that such exemptions are restricted by geographic areas
  and/or groups and major divisions as is provided by subdivision  ten  of
  this section.
    13.  The  provisions  of this section shall not apply in a city of one
  million or more persons.