Bill Text: NY S02140 | 2021-2022 | General Assembly | Introduced

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Bill Title: Establishes the COVID-19 small business recovery lease act of 2021; authorizes real property tax abatements for certain properties entering into COVID-19 recovery leases in a city having a population of one million or more.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO JUDICIARY [S02140 Detail]

Download: New_York-2021-S02140-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2140

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 20, 2021
                                       ___________

        Introduced  by Sens. KAVANAGH, BIAGGI, GOUNARDES, HOYLMAN, KRUEGER, MAY,
          MYRIE, RIVERA, SEPULVEDA -- read twice and ordered printed,  and  when
          printed to be committed to the Committee on Judiciary

        AN  ACT  to amend the real property tax law, in relation to establishing
          the COVID-19 small business recovery lease act of 2021; and  providing
          for the repeal of such provisions upon expiration thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "COVID-19 small business recovery lease act of 2021".
     3    § 2. Article 4 of the real property tax law is amended by adding a new
     4  title 6 to read as follows:
     5                                   TITLE 6
     6          AUTHORIZATION OF REAL PROPERTY TAX ABATEMENT FOR CERTAIN
     7              PROPERTIES ENTERING INTO COVID-19 RECOVERY LEASES
     8  Section 499-aaaaa. Definitions.
     9          499-bbbbb. Real property tax abatement.
    10    § 499-aaaaa. Definitions. For the purpose of this title:
    11    1.  "Eligible  commercial  tenant"  shall  mean  a  small business, as
    12  defined by section one hundred thirty-one of  the  economic  development
    13  law,  that  enters into or seeks to enter into a COVID-19 recovery lease
    14  for property such tenant currently occupies, or  for  property  that  is
    15  vacant for reasons other than eviction.
    16    2.  "COVID-19  recovery lease" shall mean a commercial lease agreement
    17  that: (a) is entered into within two years of the effective date of this
    18  title between an eligible commercial tenant and a property owner,  where
    19  either the eligible commercial tenant or the property owner has suffered
    20  a  financial  hardship  during the COVID-19 covered period, or both have
    21  suffered such a hardship; (b) has a term of not less than ten years; (c)
    22  provides for annual rent increases during a term of  not  less  than  at
    23  least  ten  years that do not exceed the amounts permitted pursuant to a

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04955-01-1
        S. 2140                             2

     1  local law enacted for the purpose of setting such maximum increases; (d)
     2  settles any arrears owed by the tenant pursuant to  any  previous  lease
     3  agreement  for  the  leased  property;  and  (e) includes any additional
     4  provisions that may be required pursuant to local law.
     5    3. "Benefit period" shall mean the amount of time established by local
     6  law during which an eligible property shall receive an abatement of real
     7  property  taxes  pursuant  to  section four hundred ninety-nine-bbbbb of
     8  this title, provided that in no event shall the benefit period be longer
     9  than ten years.
    10    4. "COVID-19 covered period" shall mean  the  period  beginning  March
    11  seventh, two thousand twenty, until the end of the COVID-19 state disas-
    12  ter emergency declared by executive order number two hundred two and any
    13  further  amendments  or  modifications  thereto,  and  as may be further
    14  extended pursuant to section twenty-eight of the executive  law,  issued
    15  in  response  to  the  COVID-19  pandemic,  continues to apply in a city
    16  having a population of one million or more.
    17    § 499-bbbbb. Real property tax abatement. 1. Notwithstanding any other
    18  provision of law to the contrary, a city  having  a  population  of  one
    19  million  or  more may, by adopting or amending a local law, offer abate-
    20  ments of real property taxes during a prescribed benefit period to prop-
    21  erties in which the property owner enters into a recovery lease with  an
    22  eligible  commercial  tenant.  Such local law shall provide for: (a) the
    23  manner in which it shall be determined whether  an  eligible  commercial
    24  tenant  or a property owner has suffered a financial hardship during the
    25  COVID-19 covered period; (b) the maximum annual rent increases permitted
    26  during the term of a recovery lease; (c) the  duration  of  the  benefit
    27  period;  (d)  the  manner  in which the amount of the abatement shall be
    28  calculated; and (e) any other terms and conditions the city deems neces-
    29  sary to effectuate the purposes of this title. Such local law  may  also
    30  provide  for a maximum aggregate value of all tax abatements that may be
    31  granted under this title.
    32    2. In no event shall an  abatement  granted  pursuant  to  this  title
    33  exceed  the  tax  liability  of  the property for which the abatement is
    34  granted.
    35    § 3. This act shall take effect immediately and shall  expire  and  be
    36  deemed repealed 12 years after it shall have become a law.