N.Y. Real Property Tax Law Section 485-A
Residential-commercial urban exemption program

1.

Definitions. As used in this section, the following terms shall have the following meanings:

(a)

“Municipality” means any town, city or village except for a city having more than one million inhabitants.

(b)

“Applicant” means any person obligated to pay real property taxes on the property for which an exemption from real property taxes under this section is sought.

(c)

“Commercial construction work” means the modernization, rehabilitation, expansion or other improvement of the portion of mixed-use property to be used for commercial purposes.

(d)

“Commercial purpose or use” means (i) the buying, selling or otherwise providing of goods or services directly to the public; or

(ii)

a non-residential lawful use including, but not limited to, an office, hotel, retail store, brewery, distillery, restaurant, cafe, bar or tavern, gymnasium, theater, or entertainment venue which employs or is anticipated to employ a minimum of five employees primarily at the mixed-use property for which an exemption under this section is sought.

(e)

“Mixed-use property” means property on which will exist, after completion of residential construction work or a combination of residential construction work and commercial construction work, a building or structure used for both residential and commercial purposes of which, at least forty percent of the building or structure’s square footage is devoted to residential purposes or use and at least fifteen percent of the building or structure’s square footage is devoted to commercial purposes or use.

(f)

“Person” means an individual, corporation, limited liability company, partnership, association, agency, trust, estate, foreign or domestic government or subdivision thereof, or other entity.

(g)

“Residential construction work” means the creation, modernization, rehabilitation, expansion or other improvement of dwelling units, other than dwelling units in a hotel, in the portion of mixed-use property to be used for residential purposes.

(h)

“Story above grade” means any story having its finished floor surface entirely above grade.

(i)

“Grade” shall mean the finished ground level adjoining the building at all exterior walls.

2.

Any municipality may, by local law, provide for the exemption of real property from taxation as provided in this section. Upon the adoption of such a local law, the county in which such municipality is located may, by local law, and any school district, all or part of which is located in such municipality, may, by resolution, exempt such property from its taxation in the same manner and to the same extent as such municipality has done.

3.

Upon the adoption of such a local law, non-residential real property, upon conversion to mixed-use property, shall be exempt from taxation and special ad valorem levies as provided for in subdivision four of this section.

4.

(a) (i) For a period of twelve years from the approval of an application, the increase in assessed value of such property attributable to such conversion shall be exempt as provided in subparagraph (ii) of this paragraph. Such exemption shall be computed with respect to the “exemption base”. The exemption base shall be determined for each year in which there is an increase in assessed value so attributable from that of the previous year’s assessed value.

(ii)

The following table shall illustrate the computation of the tax exemption: Year of exemption Percentage of exemption 1 through 8 100% of exemption base 9 80% of exemption base 10 60% of exemption base 11 40% of exemption base 12 20% of exemption base (b) No such exemption shall be granted unless:

(i)

such conversion was commenced subsequent to the date on which the municipality’s local law took effect; and

(ii)

the cost of such conversion exceeds the sum of ten thousand dollars or such greater amount as may be specified by local law.

(c)

For purposes of this section the term conversion 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 twelve year exemption granted pursuant to this section less the number of years the property would have been previously exempt from real property taxes.

5.

Such exemption shall be granted only upon application by the owner of such real property on a form prescribed by the commissioner. Such application shall be filed with the assessor of the municipality or county having the power to assess property for taxation on or before the appropriate taxable status date of such municipality or county.

6.

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 be exempt from taxation and special ad valorem levies as in this section provided. 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.

7.

(a) During the period of exemption pursuant to this section, the owner shall submit an annual certification to the assessor attesting that the property complies with the provisions or requirements of this section and any additional provisions or requirements as may be provided by local law. Failure to submit such certification shall result in revocation of benefits. Such certification shall include at a minimum the following:

(i)

the types of residential use and the total above-grade square footage and below-grade square footage of such use;

(ii)

the types of commercial use and the total above-grade square footage and below-grade square footage of such use;

(iii)

attestation that the portion of the building used for commercial purposes is currently, as demonstrated by documentation submitted by the applicant, used as such or is in good faith contemplated to be used as such;

(iv)

the specific address of the entrance through which the public enters the portion of the building used for commercial purposes;

(v)

if the portion of the building intended to be used for commercial purposes is not currently in active use for such purposes and open to the public, the reasons why it is not currently being used for commercial purposes and open to the public; and

(vi)

all such other information required by the municipality.

(b)

If the assessor is satisfied that the applicant continues to be entitled to the exemption pursuant to this section, the assessor shall approve the certification and the real property shall remain exempt from taxation and special ad valorem levies for another year as provided in this section.

8.

(a) The benefits of this section shall be revoked upon a finding by the assessor that:

(i)

the application for benefits hereunder or the annual certification required hereunder contains a false statement or false information as to a material matter or omits a material matter;

(ii)

the eligible real property fails to comply with one or more of the provisions or requirements of this section or any provisions or requirements provided by local law; or

(iii)

the portion of the property devoted to commercial purposes has not been in active use for commercial purposes and open to the public for three consecutive years.

(b)

Such revocation shall require the repayment of any benefits previously granted pursuant to this section for any year during which the property was non-compliant or the application or annual certification contained a false statement or false information as to a material matter or omitted a material matter.

(c)

No benefits may be revoked unless the applicant has been given thirty days’ notice of such revocation and has been given reasonable notice to cure any failure to comply with the provisions of requirements of this section.

9.

If the assessor determines that there was a material misstatement in an application filed by or on behalf of the owners for an exemption pursuant to this section and that such misstatement provided the basis for the granting of such exemption, the municipality shall proceed to impose a penalty on the applicant of one thousand dollars in addition to recovering the amount of any prior exemption granted.

Source: Section 485-A — Residential-commercial urban exemption program, https://www.­nysenate.­gov/legislation/laws/RPT/485-A (updated Jun. 18, 2021; accessed Oct. 26, 2024).

420‑A
Nonprofit organizations 420‑B
Nonprofit organizations 420‑C
Exemption from local real property taxation of certain low income housing accommodations in a city having a population of one million or ... 421‑A
Affordable New York Housing Program 421‑B
Exemption of certain private dwellings, multiple dwellings and improvements from local taxation 421‑C
Exemption of certain new multiple dwellings from local taxation 421‑D
Exemption of multiple dwellings financed by the New York state housing finance agency from local taxation 421‑E
Exemption of cooperative, condominium, homesteading and rental projects from local taxation 421‑F
Exemption of capital improvements to residential buildings and certain new construction 421‑FF
Exemption of capital improvements to residential buildings in cities with a population between twenty-seven thousand five hundred and twe... 421‑G
Exemption from local taxation of certain multiple dwellings 421‑H
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑H*2
Exemption of capital improvements to residential buildings 421‑I
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑I*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑J
Exemption of capital investment in multiple dwelling buildings within certain cities 421‑J*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑K
Exemption of certain multiple dwellings 421‑L
Exemption of capital improvements to residential buildings in certain towns 421‑M
Exemption of certain new or substantially rehabilitated multiple dwellings from local taxation 421‑N
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑O
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑O*2
Exemption of capital improvements to multiple dwelling buildings within certain cities 421‑P
Exemption of newly-constructed or converted rental multiple dwellings 421‑P*2
Exemption of capital improvements to residential new construction involving the creation of accessory dwelling units 422
Not-for-profit housing companies 423
Phase out of exemption for redevelopment company projects upon the cessation of the tax exemption granted pursuant to contract 424
Institute of arts and sciences 425
School tax relief (STAR) exemption 425‑A
Abatement of county taxes in special assessing units 426
Opera houses 427
Performing arts buildings 428
Fraternal organizations 429
Real property used for professional major league sports 430
Interdenominational centers 432
Theatrical corporations created by act of congress 434
Academies of music 436
Officers of religious denominations 438
Trustees of a hospital, playground and library 440
Infant homes 442
Soldiers monument corporations 444
Historical societies 444‑A
Historic property 446
Cemeteries 450
Agricultural societies 452
Veterans organizations 454
Indians 455
Exemption option 456
Municipal railroads 457
Exemption for first-time homebuyers of newly constructed homes 458
Veterans 458‑A
Veterans 458‑B
Exemption for Cold War veterans 458‑C
Improvements to property of severely injured members of the armed forces of the United States 459
Persons who are physically disabled 459‑A
Improvements to property made pursuant to the Americans with Disabilities Act of 1990 459‑B
Physically disabled crime victims 459‑C
Persons with disabilities and limited incomes 460
Clergy 462
Religious corporations 464
Incorporated associations of volunteer firefighters 466
Volunteer firefighters and fire companies in villages 466‑A
Volunteer firefighters and volunteer ambulance workers 466‑A*2
Volunteer firefighters and volunteer ambulance workers 466‑B
Volunteer firefighters and volunteer ambulance workers 466‑C
Volunteer firefighters and volunteer ambulance workers 466‑C*2
Volunteer firefighters and volunteer ambulance workers 466‑C*3
Volunteer firefighters and volunteer ambulance workers 466‑C*4
Volunteer firefighters and volunteer ambulance workers 466‑C*5
Volunteer firefighters and volunteer ambulance workers 466‑C*6
Volunteer firefighters and volunteer ambulance workers 466‑C*7
Volunteer firefighters and volunteer ambulance workers 466‑D
Volunteer firefighters and volunteer ambulance workers 466‑D*2
Volunteer firefighters and volunteer ambulance workers 466‑D*3
Volunteer firefighters and volunteer ambulance workers 466‑D*4
Volunteer firefighters and volunteer ambulance workers 466‑E
Volunteer firefighters and volunteer ambulance workers 466‑E*2
Volunteer firefighters and volunteer ambulance workers 466‑E*3
Volunteer firefighters and volunteer ambulance workers 466‑E*4
Volunteer firefighters and volunteer ambulance workers 466‑F
Volunteer firefighters and volunteer ambulance workers 466‑F*2
Volunteer firefighters and volunteer ambulance workers 466‑F*3
Volunteer firefighters and volunteer ambulance workers 466‑F*4
Volunteer firefighters and volunteer ambulance workers 466‑F*5
Un-remarried spouses of volunteer firefighters or volunteer ambulance workers killed in the line of duty 466‑G
Volunteer firefighters and volunteer ambulance workers 466‑G*2
Volunteer firefighters and volunteer ambulance workers 466‑H
Volunteer firefighters and volunteer ambulance workers 466‑H*2
Un-remarried spouses of deceased volunteer firefighters or volunteer ambulance workers 466‑I
Volunteer firefighters and volunteer ambulance workers 466‑J
Volunteer firefighters and volunteer ambulance workers 466‑K
Volunteer firefighters and volunteer ambulance workers 466‑L
Extension of benefits 467
Persons sixty-five years of age or over 467‑A
Partial tax abatement for residential real property held in the cooperative or condominium form of ownership in a city having a populatio... 467‑B
Tax abatement for rent-controlled and rent regulated property occupied by senior citizens or persons with disabilities 467‑C
Exemption for property owned by certain housing companies or sublessees of the battery park city authority and occupied by senior citizen... 467‑D
Assessment exemption for certain living quarters constructed to be occupied by a senior citizen or disabled individual 467‑E
Rebate for owners or tenant-stockholders of one, two or three family residences or residential property held in the condominium or cooper... 467‑F
Protective and safety devices tax abatement 467‑G
Rebate for owners of certain real property seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth of Octob... 467‑H
Partial abatement for certain rebuilt real property seriously damaged by the severe storm that occurred on the twenty-ninth and thirtieth... 467‑I
Real property tax abatement 467‑J
Exemption for certain residential properties located in certain counties 467‑K
Senior citizen longtime resident exemption 467‑K*2
Exemption for certain residential property required to participate in the federal flood insurance program 467‑L
Rebate for owners of certain real property in the city of New York 467‑M
Exemption from local real property taxation of certain multiple dwellings in a city having a population of one million or more 468
Fire patrol and salvage corps 469
Assessment exemption for living quarters for parent or grandparent 470
Exemption for improvements to real property meeting certification standards for green buildings 472
Pharmaceutical societies 474
Dental societies 476‑A
Railroad passenger stations 477
Tax exemption for industrial waste treatment facilities 477‑A
Tax exemption for air pollution control facilities 478
Tax exemption for off-street parking facilities providing underground shelters 479
Fallout shelter facilities 480
Forest and reforested lands 480‑A
Taxation of forest land 481
Taxation of land used for agricultural production 482
Quarantined lands 483
Exemption from taxation of structures and buildings essential to the operation of agricultural and horticultural lands 483‑A
Farm silos, farm feed grain storage bins, commodity sheds, bulk milk tanks and coolers, and manure storage and handling facilities 483‑B
Historic barns 483‑C
Temporary greenhouses 483‑D
Farm or food processing labor camps or commissaries 483‑E
Anaerobic digestion facilities 484
Urban redevelopment corporations and companies 485
Nuclear powered electric generating facilities 485‑A
Residential-commercial urban exemption program 485‑B
Business investment exemption 485‑C
Exemption from taxation of real property used in manufacture of steel in cities of fifty thousand or more persons 485‑D
Water-works corporations 485‑E
Empire zone exemption 485‑F
Banking development districts 485‑G
Infrastructure exemption 485‑H
Residential investment exemption 485‑I
Residential investment exemption 485‑I*2
Residential investment exemption 485‑J
Residential property improvement exemption 485‑J*2
Residential investment exemption 485‑J*3
Residential investment exemption 485‑J*4
Residential investment exemption 485‑J*5
Residential investment exemption 485‑K
Residential investment exemption 485‑L
Residential property improvement 485‑L*2
Residential investment exemption 485‑M
Residential investment exemption 485‑N
Residential-commercial exemption program 485‑O
New residential property exemption 485‑P
Economic transformation area exemption 485‑Q
Residential investment exemption 485‑R
Residential redevelopment inhibited property exemption 485‑S
Residential reassessment exemption 485‑S*2
Residential reassessment exemption 485‑S*3
Mixed use exemption program for villages 485‑T
Owner occupied residential property exemption program 485‑U
Class one reassessment exemption 485‑V
Residential revaluation exemption 485‑V*2
Residential and mixed-use investment exemption 485‑W
Newly constructed single-family and multi-family residential exemption 485‑X
Affordable neighborhoods for New Yorkers tax incentive 486
Non-profit medical and dental indemnity, or hospital service corporations 486‑A
Non-profit corporations operating as health maintenance organizations 487
Exemption from taxation for certain energy systems 487‑A
Exemption from taxation of conservation improvements to certain residential premises 488
Retirement systems 488‑A
Rehabilitation of certain class B multiple dwellings and class A multiple dwellings used for single room occupancy 489
Exemption from taxation of alterations and improvements to multiple dwellings to eliminate fire and health hazards
Green check means up to date. Up to date

Accessed:
Oct. 26, 2024

Last modified:
Jun. 18, 2021

§ 485-A’s source at nysenate​.gov

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