City. "City" shall mean the City of New York.
Commercial motor vehicle. A "commercial motor vehicle" is:
(1) Any truck, tractor, trailer or semi-trailer, and any other motor vehicle constructed or specially equipped for the transportation of goods, wares and merchandise which is commonly known as an auto truck or light delivery car;
(2) Any traction engine, road roller, tractor crane, truck crane, power shovel, road building machine, snow plow, road sweeper, sand spreader, well driller, or well servicing rig; and
(3) Any earth-moving equipment as defined in the Vehicle and Traffic Law; provided that such motor vehicles are used principally in the city or used principally in connection with a business carried on within the city. Although trailers and semi-trailers are defined as commercial motor vehicles under the law, they are only considered in computing the tax due on tractors, as more specifically set forth in 19 RCNY § 6-02. There is no separate or additional tax on trailers or semi-trailers as such.
Commissioner of Finance. The "Commissioner of Finance" is the Commissioner of Finance of the City.
Maximum gross weight. "Maximum gross weight" is the weight of the motor vehicle plus the weight of the maximum load to be carried, if any, by such vehicle.
Motor vehicle. A "motor vehicle" is any vehicle operated upon a public highway or public street propelled by any power other than muscular power.
Motor vehicle for transportation of passengers. A "motor vehicle for transportation of passengers" is:
(1) Any motor vehicle licensed as a taxicab or as a coach, or any motor vehicle, not so licensed, which carries passengers for compensation, including limousine service, whether the compensation paid by or on behalf of the passenger is based on mileage, trip, time consumed or any other basis; and
(2) Any omnibus, except one operated pursuant to a franchise when, under such franchise or under a contract (relating to transportation to or from airports in the city) with the Port of New York Authority, the holder of the franchise pays to the city or to the Port of New York Authority a percentage of its gross earnings or gross receipts or one used exclusively in interstate commerce; provided such motor vehicles are used regularly, even though not principally, in the city. The law excludes from the definition of a motor vehicle for transportation of passengers any motor vehicle used principally for the transportation of children to and from schools. It also excludes any motor vehicle used principally for the transportation of children to and from day camps operated by the non-profit organizations described in 19 RCNY § 6-03 or used exclusively for transportation of persons in connection with funerals. However, motor vehicles which are normally used for the transportation of persons in connection with funerals but which are also used for the transportation of persons for other purposes, are subject to the tax.
Omnibus. An "omnibus" is any motor vehicle for transportation of passengers for hire having a seating capacity of more than seven persons.
Owner. An "owner" is any person owning a commercial motor vehicle or a motor vehicle for the transportation of passengers and shall include a purchaser under a reserve title contract, conditional sales agreement or vendor's lien agreement. In addition, an owner shall be deemed to include any lessee, licensee or bailee having the exclusive use of a commercial motor vehicle or a vehicle for the transportation of passengers, under a lease or otherwise, for a period of thirty days or more, except where the lessor, licensor or bailor has filed a return as provided by the law as owner thereof and paid the tax. In the case of a commercial motor vehicle or vehicle for the transportation of passengers under the exclusive use of a lessee, licensee or bailee for a period of less than thirty days, the tax is payable by the owner of the vehicle and not the lessee, licensee or bailee.
Person. "Person" shall mean an individual, partnership, corporation, joint stock company, society, association, receiver, lessee, trustee, estate, referee, assignee, or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals.
Registered owner. The "registered owner" is the person who registers a motor vehicle as owner thereof pursuant to the registration requirements of the Vehicle and Traffic Law of the State of New York.
Registration fee. The "registration fee" is the full annual fee or charge prescribed in the Vehicle and Traffic Law of the State of New York for the registration of a motor vehicle.
Tax year. The "tax year" begins June first of any calendar year and extends through May thirty-first of the following calendar year.
Use. "Use" is any use of a motor vehicle upon the public highways or streets of the city.
a. "Applicant" means a person or entity who has applied or applies for benefits under this chapter who is obligated to pay real property tax on the property, either because of ownership or a contract, unless the property is exempt from real property taxation and the record owner or lessee of such property has entered into an agreement to sell or lease such property to another person or entity, in which case both parties to the agreement shall be considered co-applicants and must submit an application jointly.
b. "Commercial activities" means activities that include the following, unless such activities are described as retail purposes in Subdivision y of this section:
(1) Buying, selling, leasing or otherwise providing goods or services.
(2) Operating a transient hotel, except that:
(i) a structure or part of any hotel owned or leased by a not-for-profit corporation to provide governmentally funded emergency housing is not considered a hotel for purposes of the ICAP; and
(ii) a condominium hotel unit or timeshare hotel unit is part of a transient hotel where the property as a whole is operated as a transient hotel. An individual condominium or timeshare unit located in a transient hotel building may qualify for abatement benefits under this chapter if the unit is:
(A) made available to the general public at large for a minimum of 183 days during the calendar year on terms and dates which are consistent with standards in the hotel industry; and
(B) not occupied for more than 183 days in any calendar year by
(I) the owner or any relative of the owner; or
(II) any employee of the owner, or any employee of any corporation, partnership, limited liability corporation or other entity owner or controlled by such owner.
(3) Operating a theater or other entertainment business.
(4) Manufacturing conducted in a building or individual condominium unit where less than 75 percent of the floor area upon completion of construction is used for manufacturing.
(5) Providing information or services to businesses or investors on a nonprofit, limited profit, or cooperative basis, including operating a stock or commodity exchange, insurance rating bureau, testing service, clearinghouse, wire service, buying service, or private label company or the like.
(6) Providing computer software development and services, including:
(i) internet and web related activities;
(ii) computer graphics and designs; or
(iii) desk-top publishing.
(7) Operating any other lawful businesses, including governmental or not-for-profit activities.
(8) Operating repair of equipment and service businesses such as heating, ventilation and air conditioning ("HVAC"), plumbing and refrigeration.
(9) Operating nursing homes or adult care facilities.
c. "Commercial 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 commercial property.
d. "Commercial property" means non-residential property on which will exist after completion of commercial construction work a building or structure, or portion thereof, used for the buying, selling or otherwise providing of goods or services, including hotel services, or for other lawful business commercial or manufacturing activities, with at least 50 percent of the total net square footage of the property used or immediately available and held out for commercial or manufacturing activity; provided that property or portions of property dedicated to use as utility property shall not be considered commercial property for purposes of this chapter.
e. "Commissioner" means the commissioner of finance of the city of New York.
f. "Completion of construction," or "completion" means:
(1) when relating to the construction of a new building or structure, the earlier of the date on which:
(i) the department of buildings issues a final certificate of occupancy; or
(ii) an architect or engineer certifies to the department of finance that construction is complete.
(2) when relating to modernization, rehabilitation, expansion or improvement of an existing building or structure work, the earlier of the date on which an architect or engineer certifies to the department of finance that construction is complete.
Construction of buildings or structures for which benefits have been approved must be completed no later than five years after the date the first building permit is issued, or if no permit was required, after the completion of construction. Failure to complete construction within such time period will result in the loss of the inflation protection benefits described in 19 RCNY § 36-10(l).
g. "Department" means the department of finance of the City of New York.
h. "Division" means the division of labor services contract compliance unit within the New York City department of small business services, or such successor division.
i. "ICAP" means the Industrial and Commercial Abatement Program.
j. "ICIP" means the Industrial and Commercial Incentive Program.
k. "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.
l. "Industrial property" means nonresidential property on which will exist after completion of industrial construction work a building or structure, or portion thereof, with at least 75 percent of the total net square footage of the property used or immediately available and held out for manufacturing activity; however, property or portions of property dedicated to use as utility property will not be considered industrial property, except for peaking units, which will be considered to be industrial property and not utility property.
m. "Initial tax rate" means, for the purposes of the ICAP, the final tax rate on the assessment roll with a taxable status date immediately before the first building permit is issued. If no building permit was required, the initial tax and initial tax rate shall be determined based on the assessment roll with the taxable status date immediately before the start of construction.
n. "Manufacturing activity" means an activity involving the assembly of goods or the fabrication or processing of raw materials, but will not include: (i) such activity when conducted for the purpose of retail sale on the premises; (ii) utility services, except that peaking units are considered manufacturing activity; or (iii) any activity that meets the definition of "retail purposes."
(1) Areas used for manufacturing activities. Areas of a building used for manufacturing activities include, but are not limited to:
(a) space used to house or repair equipment used for assembly, fabrication or processing work;
(b) space used to store raw materials, semi-finished or finished goods for short periods before or after assembly, fabrication or processing in normal quantities for the manufacturing activity involved;
(c) space used to ship or receive such raw materials or goods;
(d) space used to store normal quantities of supplies and spare parts for use in the manufacturing activity;
(e) testing and research laboratories operated in connection with manufacturing activities;
(f) cafeterias, locker rooms and other facilities for the workers engaged in manufacturing activities;
(g) office space, not in excess of 10 percent of the total floor area, used directly in the administration of the manufacturing activity; and
(h) other space used for activities necessarily done at the same site as the manufacturing activity and integrally related to such activity.
(2) Workers engaged in manufacturing activities. Workers engaged in manufacturing activities are workers performing assembly, fabrication or processing or related immediate supervision, equipment repair or maintenance, goods handling, testing or research.
(3) Specific uses. Manufacturing activities include, but are not limited to:
(a) printing, but not including publishing or the service of taking retail orders for material to be printed; printing is characterized by the production of multiple copies of identical, or nearly identical, written material or designs on paper or other tangible material;
(b) reproduction or processing of photographic film, audio or video media, or magnetic or other data storage media, but not including creation of the original image, sound or data;
(c) scientific or technical testing or research to develop or improve products of other manufacturing activities;
(d) shipbuilding or repair;
(e) rebuilding or repairing stationary machinery or equipment used in other manufacturing activities;
(f) rebuilding other machinery or equipment;
(g) processing or packaging of food products for wholesale distribution;
(h) packaging of dry goods for a manufacturer or wholesaler, but not including packaging done at an establishment used for retailing, wholesaling or warehousing activities;
(i) pattern-making and cutting cloth for garments, sewing and finishing garments, including custom made garments, except activities done in a retail establishment; and
(j) building theatrical scenery, other than activities done in a theater or on the set of a film or television studio.
(4) Non-manufacturing uses.
(a) Uses which are not permitted in a manufacturing district, as defined by the Zoning Resolution, are not manufacturing activities, including:.
(i) construction, repair, operation or maintenance of real property, including activities performed in a building contractor's shop, or the preassembly of structural elements or service equipment for installation in a building;
(ii) generation, collection, storage, transmission distribution or sale of gas, electricity, steam, water, refrigeration, cable television, telephone, telegraph or other one-way or two-way communication service, delivered through mains, pipes, cables, lines or wires;
(iii) collection, removal, carting, processing or disposal of sewerage, drainage, wastes, garbage or trash;
(iv) broadcasting, transmission or reception of television, radio or other electromagnetic signals;
(v) transportation of passengers or goods;
(vi) operation of a public or private warehouse;
(vii) operation of a showroom;
(viii) operation of a workshop, studio, sound stage, set or other place for creation of original works of art, films or recordings; or
(ix) buying, selling, leasing or providing goods or services.
(b) [Reserved.]
(c) The following activities, except as specifically provided in paragraphs (2) and (3) of this subdivision, are not manufacturing activities:
(i) general management;
(ii) storage, shipping or receiving of materials and finished goods;
(iii) maintenance, repair or construction of real property;
(iv) professional, clerical or information processing activities;
(v) buying, selling, leasing or providing goods or services;
(vi) activity conducted for the purpose of retail sale on the premises; or
(vii) utility services.
o. "Minimum required expenditure" means the amount that an applicant must expend on construction work for a project in order to qualify for benefits under this chapter. The minimum required expenditure must be met no later than four years from the date after the first building permit is issued, or if no permit was required, from the start of construction.
p. "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.
q. "M/WBE" means a Minority-Owned or Women-Owned business enterprise certified in accordance with Section 1304 of the Charter.
r. "Peaking Unit" means a generating unit that: (i) is determined by the New York independent system operator or a Federal or New York State energy regulatory commission to constitute a peaking unit as set forth in Section 5.14.1.2 of the New York independent system operator's market administration and control area services tariff, as such term existed as of April 1, 2011; or (ii) has an annual average operation, during the calendar year preceding the taxable status date, of less than 18 hours following each start of the unit; provided that, for purposes of calculating the annual average, operations during any period covered by any major emergency declaration issued by the New York independent system operator, northeast power coordinating council, or other similar entity, shall be excluded.
(1) A "peaking unit" will include all real property used in connection with the generation of electricity and any facilities used to interconnect the peaking unit with the electrical transmission or distribution system, but will not include any facilities that are part of the electric transmission or distribution system; it may be comprised of a single turbine and generator or multiple turbines and generators located at the same site.
(2) Notwithstanding any provision of this title to the contrary, a peaking unit will be considered industrial property. Peaking units will not be considered utility property.
(3) The abatement benefit schedule for peaking units is set forth in 19 RCNY § 36-12(c).
s. "Project" means the work described in the preliminary application as amended by the final application.
t. "Property" means, except where otherwise provided, a separately assessed parcel of real property, or a group of condominium units in a single building that are the subjects of a single application for ICAP benefits. When a parcel of real property includes more than one building, "property" means an individual building on such parcel and an allocable portion of the land.
u. "Renovation construction work" means the modernization, rehabilitation, expansion or improvement of an existing building or structure 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 30 percent, and does not increase the height of the existing building or structure by more than 30 percent. The 30 percent limitation will apply to each building individually which has a separate certificate of occupancy.
v. "Residential construction work" means any construction, modernization, rehabilitation, expansion or improvement of dwelling units other than dwelling units in a hotel.
w. "Residential property" means property primarily used for dwelling purposes except for dwelling units in a hotel.
x. "Restricted activity" means any commercial use of property that is unlawful or a public nuisance as defined in § 7-703 of the Administrative Code.
y. "Retail purposes" means any activity that consists predominately of (i) the final sale of tangible personal property or services by a vendor as defined in Section 1101 of the Tax Law, (ii) the sale of services that generally involve the physical, mental, or spiritual care of individuals or the physical care of the personal property of individuals, including medical offices, (iii) retail banking services, or (iv) the final sale of food or beverage by a vendor as defined in Section 1101 of the Tax Law, including the assembly, processing or packaging of goods, provided that sales of such tangible personal property or services are predominantly to purchasers who personally visit the facilities at which such sales are made or such property or services are provided. "Retail purposes" does not include hotels used to provide lodging and support services for transient guests, except that restaurants, bars and gift shops associated with such hotels are considered "retail purposes."
z. "Square footage" means the following in the following contexts:
(1) "Net square footage" means square footage within a room or area of a building, measured by the inside wall-to-wall dimensions.
(2) "Gross square footage" means the total amount of square footage in a building. It includes below grade space, elevator shafts, vertical penetrations, equipment areas, ductwork shafts, and stairwells, as well as the usable square footage occupied by or available to tenants.
(3) "Rentable square footage" means the net square footage of the building plus a pro-rata share of building common areas.
aa. "Temporary commercial incentive area boundary commission" means the commission described in § 11-274 of the Administrative Code.
bb. "Utility property" means property and equipment as described in Paragraphs (c), (d), (e), (f), and (i) of Subdivision 12 of Section 102 of the Real Property Tax Law that is used in the ordinary course of business by its owner or any other entity, or property as described in Paragraphs (a) and (b) of such Subdivision 12 that is owned by any entity that uses, in the ordinary course of business, property and equipment as described in Paragraphs (c), (d), (e) and (f) and (i) of such Subdivision 12 without regard to the classification of such property and equipment for real property tax purposes pursuant to Section 1802 of such Law, except that any such property and equipment used solely to serve the building to which they are attached will not be deemed to be utility property.
(Added City Record 2/10/2017, eff. 3/12/2017)
The tax does not apply to motor vehicles owned and operated, or leased for their exclusive use by:
(a) The State of New York, or any public corporation (including a corporation created pursuant to agreement or compact with another state or the Dominion of Canada), improvement district or other political subdivision of the state;
(b) The United States of America;
(c) The United Nations or other world-wide international organizations of which the United States of America is a member;
(d) Any corporation, or association, or trust, or community chest, fund or foundation, organized and operated exclusively for religious, charitable or educational purposes, or for the prevention of cruelty to children or animals, and no part of the net earnings of which inures to the benefit of any private shareholder or individual and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation; provided, however, that nothing in this subdivision shall include an organization operated for the primary purpose of carrying on a trade or business for profit, whether or not all of its profits are payable to one or more organizations described in this subdivision;
(e) Any foreign nation or representative of a foreign nation with respect to motor vehicles for which they need not pay a registration fee under the provisions of the Vehicle and Traffic Law;
(f) Dealers in new and used motor vehicles where the use of the motor vehicle is confined solely to demonstrations to prospective customers or to delivery by or to the dealer and the vehicle bears dealer's license plates. Where a lease of a motor vehicle for the exclusive use by any of the exempt persons described in this section, commences after June 1st or terminates prior to May 31st of any tax year, the owner thereof, who is otherwise subject to the tax, shall be liable for the tax with respect to such motor vehicle for the period during which such motor vehicle is not leased for the exclusive use by exempt persons. The date of first use during a tax year of the motor vehicle by such owner shall determine the amount of tax due with respect to such vehicle. In no event, however, is an exempt person subject to the tax, and in no event shall one owner be liable for payment of more than one tax with respect to any one motor vehicle during any one tax year. Persons claiming exemption from the tax under the provisions of this section shall make an application to the Commissioner of Finance for an exemption from the tax. Such application must be made in the form of an affidavit setting forth
(1) the character of the organization,
(2) the purposes for which it was organized,
(3) its actual activities,
(4) the sources of its income from the disposition of such income,
(5) whether or not any of its income is credited to surplus or may enure to the benefit of any private shareholder or individual,
(6) generally all facts relating to its operations which may affect its right to exemption.
Such affidavit must be supplemented by a copy of its certificate of incorporation or corporate charter, if a corporation; or a copy of its constitution or articles of association and by-laws, if an incorporated association. In addition, there should be submitted a current financial statement for a recent period of at least one year, in such form as to indicate its assets and liabilities, and its receipts and disbursements, as well as a photostatic copy of the letter, if any, from the Treasury Department of the United States granting the applicant exemption from the Federal Income Tax under § 501(c)(3) of the United States Internal Revenue Code. The Commissioner of Finance may require such further information as he deems appropriate. However, persons to whom the Commissioner of Finance has issued a certificate of exemption under either the New York City Sales Tax Law or the Tax On Occupancy of Hotel Rooms Law need not apply for exemption under this law, but may furnish such certificate of exemption or a photostatic copy thereof as evidence of exemption under the provisions of this law.
For the purpose of the proper administration of the law and to prevent evasion of the tax, the law presumes that all commercial motor vehicles used in the city are used principally in the city or used principally in connection with a business carried on within the city and are subject to the tax until the contrary is established; and the law presumes that all motor vehicles used for the transportation of passengers in the city are used regularly, even though not principally in the city and are subject to the tax until the contrary is established. The burden of proving that a motor vehicle is not taxable under the law shall be on the owner of the motor vehicle.
Every owner of a commercial motor vehicle shall keep records of the acquisition and use in the City of each such commercial motor vehicle showing the date of acquisition, the number of miles traveled in the City, and the number of miles traveled by such article outside the City, the weight of the vehicle and the weight of the vehicle plus the weight of the maximum load to be carried, together with the full annual fee or charge paid under the Vehicle and Traffic Law of the State of New York for the registration of the vehicle. Every owner of a motor vehicle for transportation of passengers shall keep records of each such vehicle showing the date of acquisition and use in the City and the basis for the compensation charged to passengers for transporting such passengers. Where the owner operates the vehicle pursuant to a franchise under which he pays to the City a percentage of its gross earnings or gross receipts, or operates the vehicle for the transportation of children to and from schools or day camps, or operates the vehicle exclusively for the transportation of persons in connection with funerals, he shall maintain sufficient records to establish these facts. The foregoing records shall be open for inspection and examination at any time upon demand by the Commissioner of Finance or his duly authorized agent or employee and must be preserved for a period of three years, except that the Commissioner of Finance may consent to their destruction within that period or may require that they be kept longer.
In accordance with the powers granted to him by the law, the Commissioner of Finance has determined that the certificates of registration described in § 11-806(a) of the Administrative Code of the City of New York need not be filed. Further, in accordance with the powers granted to him by the law, the Commissioner of Finance has determined that information registration certificates described in § 11-806(b) of the Administrative Code of the City of New York need not be filed.
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