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A05308 Summary:

BILL NOA05308
 
SAME ASSAME AS S05549
 
SPONSORLasher
 
COSPNSRCarroll R
 
MLTSPNSR
 
Add §498, RPT L
 
Relates to prohibiting exemptions for owners of vacant or unoccupied storefront properties.
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A05308 Actions:

BILL NOA05308
 
02/13/2025referred to real property taxation
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A05308 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5308
 
SPONSOR: Lasher
  TITLE OF BILL: An act to amend the real property tax law, in relation to prohibiting exemptions for owners of vacant or unoccupied storefront properties   PURPOSE OR GENERAL IDEA OF BILL: This bill would incentivize owners of commercial storefronts to enter into leases with prospective tenants instead of keeping storefronts vacant for years while holding out for better deals.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the real property tax law by adding a new section 498, which prohibits exemptions for owners of vacant or unoccupied storefront properties if such property has been vacant or unoccupied for at least two years. Section 2 establishes the effective date.   JUSTIFICATION: The proliferation and persistence of vacant storefronts is a significant problem in many neighborhoods throughout the five boroughs. Long-term storefront vacancies deaden streetscapes, making communities less vibrant and giving rise to quality-of-life and public safety challenges. One reason that storefronts remain vacant for long periods is that owners seek long-term leases at high asking rents, even if either or both of the desired duration or amount is more than the market can bear. An owner may determine that the rental income lost by keeping a property vacant for some period will be less than the cost, over many years, of a reduction in the rent. The goal of this bill is to change these economics for owners by increasing the cost of keeping commercial properties vacant for many years, through the prohibition of property tax exemptions for such prop- erties. Faced with the loss of valuable tax exemptions, owners may be more willing to enter into leases with prospective tenants, even if the terms are at a discount. By filling vacant storefronts, we can revital- ize commercial thoroughfares, improve quality-of-life, and boost small business activity.   PRIOR LEGISLATIVE HISTORY: A.10132 (2017-18): Referred to real property taxation. A.4963 (2019-20): Referred to real property taxation. A.4412 (2021-22): Referred to real property taxation. A.1685 (2023-24): Referred to real property taxation.   FISCAL IMPLICATIONS: Net savings, as fewer property tax exemptions will be granted.   EFFECTIVE DATE: This act shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.
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A05308 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5308
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 13, 2025
                                       ___________
 
        Introduced by M. of A. LASHER -- read once and referred to the Committee
          on Real Property Taxation
 
        AN  ACT  to  amend the real property tax law, in relation to prohibiting
          exemptions for owners of vacant or unoccupied storefront properties
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  real  property  tax  law  is amended by adding a new
     2  section 498 to read as follows:
     3    § 498. Prohibition on eligibility of exemptions for owners  of  vacant
     4  or  unoccupied  storefront  properties.  1.  Notwithstanding  any  other
     5  provision of law, any owner of a commercial  storefront  property  shall
     6  not  be eligible for an exemption under this chapter on such property if
     7  the property has been vacant or unoccupied for at least two years.
     8    2. For purposes of this section:
     9    (a) "commercial storefront property" shall  mean  any  non-residential
    10  property that may be used primarily for the buying, selling or otherwise
    11  providing  of goods or services, which is located on the ground floor or
    12  street level of a commercial building;
    13    (b) "vacant" shall mean minimal or no inanimate objects on such  prop-
    14  erty; and
    15    (c) "unoccupied" shall mean a lack of habitual presence of individuals
    16  primarily  engaged  in  buying,  selling or otherwise providing goods or
    17  services.
    18    § 2. This act shall take effect immediately and shall apply to assess-
    19  ment rolls prepared on the basis of taxable status dates occurring on or
    20  after such date.
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08493-01-5
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