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(a) A building or part of a building is used for manufacturing where it is used primarily for manufacturing activities. A manufacturing activity involves the assembly of goods or the fabrication or processing of raw materials.
(b) Activities that are not manufacturing, generally.
(1) General management;
(2) Storage, shipping or receiving of materials and finished goods;
(3) Maintenance, repair or construction of real property;
(4) Professional, clerical or information processing activities; and
(5) Buying, selling, leasing or providing goods or services.
(a) Commercial activities include:
(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 for the purpose of providing governmentally funded emergency housing is not considered a hotel for purposes of the ICIP; and
(ii) a condominium or timeshare is a transient hotel building for the purposes of the ICIP only where the building, if viewed as a whole and as if it were under single ownership, would qualify as a transient hotel building under the Zoning Resolution. An individual condominium or timeshare unit located in a transient hotel building may qualify for exemption to the extent that the unit is
(A) made available to the general public at large for a minimum of 187 days during the calendar year on terms and dates which are consistent with standards in the hotel industry; and
(B) the unit is not occupied for more than 179 days in any calendar year by:
(I) the owner or any relative of the owner; or
(II) any employee of the owner, or employee of any corporation, partnership, limited liability corporation or other entity owned or controlled by the unit 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) Computer software development and services, including:
(i) internet and web related activities;
(ii) computer graphics and designs; and
(iii) desk-top publishing.
(7) Other lawful businesses, including governmental or not-for-profit activities.
(8) Repair of equipment and service businesses such as HVAC, plumbing and refrigeration.
(a) In the event that the value of a multi-use property must be apportioned to determine the value attributable to a particular use for any purpose under these rules, including, but not limited to, determining the minimum required expenditure, the assessed value will be apportioned using the same method used by the Department to value property for tax and assessment.
(b) Methods that may be considered.
(1) the land area of each portion;
(2) the market value of the buildings situated on each portion;
(3) the location of each portion on the lot;
(4) the topography of the lot;
(5) zoning and other land use restrictions applicable to the lot or portion thereof;
(6) analyses of income factors relating to each portion;
(7) analyses of cost factors; and
(8) other relevant factors.
(a) What may be included. Expenditures may include those made for
(1) construction contracts;
(2) materials, labor, equipment rental, insurance, permit fees and other direct expenses of construction;
(3) installation of partitions and other tenant work by or for the first tenant or occupant of new or substantially renovated space;
(4) architectural, engineering, construction management, legal, accounting and other professional services rendered in connection with the construction work to the extent that the total fees do not exceed ten (10) percent of the expenses incurred for direct construction costs;
(5) site preparation, such as the erection of fences, barricades, scaffolding, temporary walkways, removal of debris or any similar work allocable to the project; and
(6) fees for connection to existing sewer, water or utility lines.
(b) What may not be included:
(1) the costs of selecting or acquiring the site;
(2) the costs of determining the feasibility of the project;
(3) the costs of moving or installing machinery or equipment, except the cost of installing equipment that is real property and installed as part of the project;
(4) charges to any reserve, contingency or sinking fund;
(5) the costs of earthwork or demolition except as provided in 19 RCNY § 14-05(e);
(6) the costs or payments for the extension of streets, sewers, water lines or other public utilities to a site not provided with these services; or
(7) the costs or payments associated with vacating the site and/or existing buildings such as terminating existing leases or tenancies.
(a) Eligible applications. A real property tax abatement is available for qualifying industrial construction where the application has an effective date on or after July 1, 1995.
(b) Amount of the abatement. For industrial construction work in any area of the City with an effective date on or after July 1, 1995, where after the effective date of the certificate of eligibility, the work was both commenced and completed, the property is eligible for an abatement of real property taxes. The abatement is a percentage of the real property tax that was imposed on the property in the tax year immediately preceding the tax year in which the effective date of the certificate of eligibility occurs, or, if the property was fully or partially exempt from real property taxes, the tax that would have been imposed but for the exemption (the abatement base). In each of the first four years, the abatement equals 50% of the abatement base; for years 5 and 6, 40%; for years 7 and 8, 30%; for years 9 and 10, 20%; and for years 11 and 12, 10%.
(c) Proof to be submitted. Generally, the twelve (12) year abatement benefit period does not commence until after the applicant has submitted proof of completion of industrial construction.
(1) No abatement benefit will be available for the first tax year after construction is completed unless satisfactory proof of completion on or before the taxable status date (January 5th), is submitted no later than 30 days following the taxable status date (February 4th). If satisfactory material is submitted, the abatement period will commence on July 1st.
(2) If proof of completion of industrial construction is not submitted as provided in this subdivision, no abatement will be available until the second tax year after completion of the work. In this case, the twelve (12) year abatement period will begin July 1st in the second tax year following completion of the work if satisfactory proof is submitted to the Department by February 4th for the tax year. This will be the Applicant's final opportunity to qualify for a full twelve (12) year abatement.
(3) If the Applicant fails to submit satisfactory proof of completion by the deadlines, the twelve (12) year abatement period will commence on July 1 although no abatement benefits will be granted. The twelve (12) year period will continue in operation for the next eleven years without regard to the actual submission of proof of completion. Example: Applicant completed industrial construction work on January 4, 2005. If the Applicant submitted satisfactory proof of completion by February 4, 2005, the abatement period would have commenced July 1, 2005. But Applicant failed to file timely and, therefore, must submit proof of completion by February 4, 2006, his last opportunity to file for a full 12-year abatement period to commence July 1, 2006. Whether or not the proof is submitted by February 4, 2006, the abatement period will begin July 1, 2006. Absent the timely filing of satisfactory proof of completion, however, no abatement benefit will be credited for the fiscal year commencing July 1, 2006. Assuming Applicant files satisfactory proof of completion on or before February 4, 2007, the abatement benefit will be credited July 1, 2007, the second year of the Applicant's abatement period. Applicant will receive a tax abatement for a total of 11 years.
(d) Date of completion of construction. Construction is completed on the date either:
(1) a temporary certificate of occupancy and 90 percent of the final actual cost of eligible construction is made or
(2) a permanent certificate of occupancy is received for the completed project.
(e) Multiple Buildings on a Single Tax Lot. To calculate the abatement where a lot contains more than one building or structure (but not all buildings and structures are the subject of a certificate of eligibility for industrial construction work) the property taxes imposed on the tax lot for the year immediately preceding the effective date of the certificate of eligibility will be apportioned among the buildings and structures as provided in 19 RCNY § 14-09. Only the taxes attributable to the property that is the subject of this certificate of eligibility will be abated.
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