STATE OF NEW YORK ________________________________________________________________________ 2962--A 2023-2024 Regular Sessions IN SENATE January 26, 2023 ___________ Introduced by Sens. KAVANAGH, GOUNARDES, JACKSON -- read twice and ordered printed, and when printed to be committed to the Committee on Cities 1 -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law, in relation to creating the Neighborhood Small Business Rent Increase Exemption 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 "Neighborhood Small Business Rent Increase Exemption". 3 § 2. Article 4 of the real property tax law is amended by adding a new 4 title 7 to read as follows: 5 TITLE 7 6 TAX ABATEMENT FOR LIMITING RENT INCREASES ON NEIGHBORHOOD 7 SMALL BUSINESSES 8 IN A CITY OF ONE MILLION OR MORE PERSONS 9 Section 499-aaaaaa. Definitions. 10 499-bbbbbb. Authority to enact local law; real property tax 11 abatement. 12 499-cccccc. Eligibility requirements. 13 499-dddddd. Application for certificate of abatement. 14 499-eeeeee. Enforcement and administration. 15 499-ffffff. Reporting requirements; revocation of abatements. 16 499-gggggg. Tax lien; interest and penalty. 17 499-hhhhhh. Confidentiality. 18 § 499-aaaaaa. Definitions. When used in this title, the following 19 terms shall mean or include: 20 1. "Abatement base." The lesser of (i) two dollars and fifty cents of 21 the tax liability per square foot or (ii) fifty per centum of the tax 22 liability per square foot. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07229-02-3
S. 2962--A 2 1 2. "Abatement zone." Any area of a city having a population of one 2 million or more designated by local law pursuant to this title as an 3 abatement zone. Any tax lot that is partly located inside an abatement 4 zone shall be deemed to be entirely located inside such zone. 5 3. "Aggregate floor area." The sum of the gross areas of the several 6 floors of a building, measured from the exterior faces of exterior walls 7 or from the center lines of walls separating two buildings. 8 4. "Applicant." The landlord and the tenant. 9 5. "Benefit period." The period commencing with the first day of the 10 month immediately following the rent commencement date and terminating 11 no later than one hundred twenty months thereafter. 12 6. "Billable assessed value." The lesser of the taxable transitional 13 or the taxable actual assessed value of the eligible building and the 14 land on which the eligible building is located for the fiscal year in 15 which the benefit period commences. 16 7. "Commercial activities." The buying, selling or otherwise providing 17 of goods or services by a small business. 18 8. "Department of finance." The department of finance of any city 19 having a population of one million or more. 20 9. "Eligible building." With respect to the abatement zone defined in 21 subdivision two of this section, a non-residential or mixed-use building 22 which shall not include any building owned by a governmental agency. 23 Each condominium unit in a building that meets the requirements of this 24 subdivision shall be considered a separate eligible building. 25 10. "Eligibility period." The period commencing April first, two thou- 26 sand twenty-three and terminating March thirty-first, two thousand 27 forty-one. 28 11. "Eligible premises." With respect to the abatement zone defined in 29 subdivision two of this section, premises located in an eligible build- 30 ing that (a) are occupied or used for retail purposes and (b) are occu- 31 pied or used by a tenant under a lease that meets the eligibility 32 requirements of section four hundred ninety-nine-cccccc of this title. 33 12. "Fiscal year." The fiscal year of any city having a population of 34 one million or more. 35 13. "Governmental agency." The United States of America or any agency 36 or instrumentality thereof, the state of New York, the city of New York, 37 any public corporation (including a body corporate and politic created 38 pursuant to agreement or compact between the state of New York and any 39 other state), public benefit corporation, public authority or other 40 political subdivision of the state. 41 14. "Landlord." Any person who (a) controls all non-residential 42 portions of an eligible building, including, without limitation, the 43 record owner, the lessee under a ground lease, any mortgagee in 44 possession or any receiver, and (b) who grants the right to use or occu- 45 py eligible premises to any tenant, provided that landlord shall not 46 include any lessee who at any time during the lease term occupied or 47 used or occupies or uses any part of the non-residential portions of 48 such eligible building, other than premises occupied or used by such 49 lessee to provide rental or management services to such building. 50 15. "Lease commencement date." The date set forth in the lease on 51 which the term of the lease commences. 52 16. "Mixed-use building." A building used for both residential and 53 commercial activities, provided that more than twenty-five per centum of 54 the aggregate floor area of such building is used or held out for use as 55 commercial, community facility or accessory use space.
S. 2962--A 3 1 17. "Person." An individual, corporation, limited liability company, 2 partnership, association, agency, trust, estate, foreign or domestic 3 government or subdivision thereof, or other entity. 4 18. "Renewal tenant." A person who (a) occupies premises in an eligi- 5 ble building under a lease which expires during the eligibility period 6 and (b) executes a lease for the continued occupancy of all or part of 7 such premises or all or part of such premises and additional premises in 8 such eligible building, provided such premises are eligible premises and 9 such lease meets the eligibility requirements of section four hundred 10 ninety-nine-cccccc of this title. 11 19. "Rent commencement date." The date set forth in the lease on which 12 the obligation to pay basic fixed rent shall commence. 13 20. "Retail purposes" means any activity that consists predominantly 14 of (a) the final sale of tangible personal property or services by a 15 vendor as defined in section eleven hundred one of the tax law, (b) the 16 sale of services that generally involve the physical, mental, and/or 17 spiritual care of individuals or the physical care of the personal prop- 18 erty of individuals, (c) the final sale of food and/or beverage by a 19 vendor as defined in section eleven hundred one of the tax law, includ- 20 ing the assembly, processing or packaging of goods, provided that sales 21 of such tangible personal property or services are predominantly to 22 purchasers who personally visit the facilities at which such sales are 23 made or such property and services are provided. "Retail purposes" shall 24 not include hotel uses as described in subdivision four of section four 25 hundred ninety-nine-cccccc of this article. 26 21. "Small business." A business engaged in commercial activities that 27 employs fifty or fewer persons. 28 22. "Subtenant." A person whose right to occupy and use the eligible 29 premises is not derived from a lease with the landlord. 30 23. "Tax commission." The tax commission in any city having a popu- 31 lation of one million or more. 32 24. "Tax liability." The product obtained by multiplying the billable 33 assessed value for the fiscal year in which the benefit period commences 34 by the tax rate applicable to the eligible building for such fiscal year 35 as set by the local legislative body of any city having a population of 36 one million or more. 37 25. "Tax liability per square foot." The tax liability divided by the 38 total number of square feet in the eligible building, as listed on the 39 records of the department of finance. 40 26. "Tenant." A person, including any successors in interest, who 41 executes a lease with the landlord for the right to occupy or use the 42 eligible premises and who occupies or uses the eligible premises pursu- 43 ant to such lease. Tenant shall not include any subtenant. When used in 44 this title, "tenant" includes "renewal tenant." 45 27. "Tenant's percentage share." The percentage of the eligible 46 building's aggregate floor area allocated to the eligible premises, 47 which shall be presumed to be such percentage as set forth in the lease 48 for the eligible premises. 49 § 499-bbbbbb. Authority to enact local law; real property tax abate- 50 ment. 1. Any city having a population of one million or more, acting 51 through its local legislative body, is authorized and empowered to 52 determine that incentives in the form of abatement of real property 53 taxes are necessary to encourage vibrant neighborhood small business 54 activity in designated areas of such city, to enact a local law provid- 55 ing that such benefits shall be provided in the manner set forth in this
S. 2962--A 4 1 title, and to designate by local law the boundaries of one or more 2 abatement zones in which such benefits shall be provided. 3 2. Within an abatement zone so designated, eligible buildings contain- 4 ing eligible premises shall receive an abatement of real property 5 taxes during the benefit period as follows: 6 (a) for each of the first five years of the benefit period, the abate- 7 ment shall be equal to the product obtained by (i) multiplying the 8 tenant's percentage share by the number of square feet in the eligible 9 building, as listed on the records of the department of finance and (ii) 10 multiplying the product obtained in subparagraph (i) of this paragraph 11 by the abatement base; 12 (b) for the sixth, seventh, and eighth year of the benefit period, the 13 abatement shall be equal to two-thirds of the abatement in the first 14 year of the benefit period; and 15 (c) for the ninth and tenth year of the benefit period, the abatement 16 shall be equal to one-third of the abatement in the first year of the 17 benefit period. 18 3. If, as a result of application to the tax commission or a court 19 order or action by the department of finance, the billable assessed 20 value is reduced, the department of finance shall recalculate the abate- 21 ment utilizing such reduced billable assessed value. The amount equal to 22 the difference between the abatement originally granted and the abate- 23 ment as so recalculated shall be deducted from any refund otherwise 24 payable or remission otherwise due as a result of such reduction in 25 billable assessed value, and any balance of such amount remaining unpaid 26 after making any such deduction shall be paid to the department of 27 finance within thirty days from the date of mailing by the department of 28 finance of a notice of the amount payable. Such amount payable shall 29 constitute a tax lien on the eligible building as of the date of such 30 notice and, if not paid within such thirty-day period, penalty and 31 interest at the rate applicable to delinquent taxes on such eligible 32 building shall be charged and collected on such amount from the date of 33 such notice to the date of payment. 34 4. In no event shall the abatement for the eligible premises granted 35 pursuant to this title exceed the tax liability allocable to the eligi- 36 ble premises. 37 5. Notwithstanding the provisions of any lease for occupancy of non- 38 eligible premises in an eligible building or for occupancy of eligible 39 premises for which no certificate of abatement has been issued pursuant 40 to this title, a lessee of non-eligible premises or of eligible premises 41 for which no certificate of abatement has been issued pursuant to this 42 title shall not be entitled to receive directly or indirectly a 43 reduction in either the real property taxes or any rent (including addi- 44 tional rent) payable pursuant to such lease where such reduction would 45 result from an abatement of real property taxes granted pursuant to this 46 title. A landlord of an eligible building shall not allocate, credit, 47 assign or disburse any portion of an abatement granted pursuant to this 48 title to a lessee of non-eligible premises or of eligible premises for 49 which no certificate of abatement has been issued pursuant to this 50 title. A landlord shall not be required to reduce the real property 51 taxes or any rent (including additional rent) payable by renewal tenants 52 by an amount that exceeds the full amount of the abatement granted 53 pursuant to this title, but a landlord shall be required to reduce the 54 real property taxes or any rent (including additional rent) payable by 55 renewal tenants by an amount that, in the aggregate, equals the full 56 amount of the abatement granted pursuant to this title. Such reduction
S. 2962--A 5 1 shall be allocated in accordance with the abatement granted for the 2 eligible premises occupied by each such tenant. 3 6. A tenant who occupies or uses eligible premises for which a certif- 4 icate of abatement is issued pursuant to this title shall not be eligi- 5 ble to receive a second certificate of abatement for the same eligible 6 premises. A tenant who occupies or uses eligible premises for which a 7 certificate of abatement is issued pursuant to this title and who, upon 8 the expiration of the lease for such eligible premises, relocates to 9 otherwise eligible premises, shall not be eligible to receive a certif- 10 icate of abatement for such otherwise eligible premises, except to the 11 extent that the square footage of such otherwise eligible premises 12 exceeds the square footage of all eligible premises previously occupied 13 or used by such tenant for which such tenant held a certificate of 14 abatement. If the square footage of such otherwise eligible premises 15 exceeds the square footage of all such eligible premises previously 16 occupied or used by such tenant and if there is any variation in the tax 17 liability per square foot of such otherwise eligible premises, then, for 18 purposes of determining which square footage in such otherwise eligible 19 premises is entitled to an abatement pursuant to this title, square 20 footage with the greatest tax liability per square foot, in an amount 21 equal to the square footage of all such eligible premises previously 22 occupied or used by such tenant, shall first be excluded. 23 § 499-cccccc. Eligibility requirements. 1. No abatement shall be 24 granted pursuant to this title unless: 25 (a) the landlord enters into a ten year lease for eligible premises 26 with a tenant and (b) such landlord includes within such lease with a 27 tenant a renewal clause that limits a rent increase to no more than 28 three percent annually. 29 2. No abatement shall be granted pursuant to this title if an appli- 30 cant shall fail to meet any of the requirements of this title within 31 sixty days of the rent commencement date. 32 3. For purposes of this title, the expiration date of a lease shall be 33 determined by the expiration date set forth in such lease, without 34 giving effect to any rights of the landlord or the tenant to terminate 35 such lease prior to the expiration date set forth therein. 36 4. The lease for the eligible premises shall contain the following 37 provisions: 38 (a) a statement of the tenant's percentage share; 39 (b) a statement certifying the percentage of eligible premises occu- 40 pied or used for retail purposes, as defined in subdivision twenty of 41 section four hundred ninety-nine-aaaaaa of this title; and 42 (c) a statement informing the tenant in at least twelve-point type 43 that: 44 (1) an application for abatement of real property taxes pursuant to 45 this title will be made for the premises; 46 (2) the rent, including amounts payable by the tenant for real proper- 47 ty taxes, will accurately reflect any abatement of real property taxes 48 granted pursuant to this title for the premises; 49 (3) a renewal of the lease will not increase rent by more than three 50 percent annually pursuant to the lease agreement; 51 (4) all abatements granted with respect to a building pursuant to this 52 title will be revoked if, during the benefit period, real estate taxes 53 or water or sewer charges or other lienable charges are unpaid for more 54 than one year, unless such delinquent amounts are paid as provided in 55 subdivision four of section four hundred ninety-nine-ffffff of this 56 title; and
S. 2962--A 6 1 (5) all benefits granted with respect to eligible premises will be 2 reduced if, during the benefit period, the aggregate floor area of such 3 eligible premises occupied or used for commercial activities, as defined 4 in subdivision seven of section four hundred ninety-nine-aaaaaa of this 5 title, is reduced. 6 5. No abatement shall be granted pursuant to this title if: 7 (a) the lease for the eligible premises provides that during the 8 initial lease term required by subdivision one of this section either 9 the landlord or the tenant may terminate such lease prior to the expira- 10 tion date of such required initial lease term; provided that such lease 11 may provide that either the landlord or the tenant may terminate such 12 lease if (1) the other party is in default of any of such party's obli- 13 gations under the lease, (2) the eligible premises are damaged or 14 destroyed by fire or other casualty, (3) the eligible premises are 15 rendered unusable for any reason not attributable to any act or failure 16 to act of either tenant or landlord, or (4) the eligible premises are 17 acquired by eminent domain; and 18 (b) there are real property taxes, water or sewer charges or other 19 lienable charges currently due and owing on the eligible building which 20 is the subject of an application for abatement pursuant to this title, 21 unless such real property taxes or charges are currently being paid in 22 timely installments pursuant to a written agreement with the department 23 of finance or other appropriate agency. 24 6. No abatement shall be granted pursuant to this title unless the 25 applicant shall file, together with the application, an affidavit 26 setting forth the following information: 27 (a) a statement that within the seven years immediately preceding the 28 date of application for a certificate of abatement, neither the appli- 29 cant nor any person owning a substantial interest in the eligible build- 30 ing as defined in paragraph (c) of this subdivision, nor any officer, 31 director or general partner of the applicant or such person was finally 32 adjudicated by a court of competent jurisdiction to have violated 33 section two hundred thirty-five of the real property law or any section 34 of article one hundred fifty of the penal law or any similar arson law 35 of another jurisdiction with respect to any building, or was an officer, 36 director or general partner of a person at the time such person was 37 finally adjudicated to have violated such law; and 38 (b) a statement setting forth any pending charges alleging violation 39 of section two hundred thirty-five of the real property law or any 40 section of article one hundred fifty of the penal law or any similar 41 arson law of another jurisdiction with respect to any building by the 42 applicant or any person owning a substantial interest in the eligible 43 building as defined in paragraph (c) of this subdivision, or any offi- 44 cer, director or general partner of the applicant or such person, or any 45 person for whom the applicant or person owning a substantial interest in 46 the eligible building is an officer, director or general partner. 47 (c) for purposes of this subdivision and subdivision seven of section 48 four hundred ninety-nine-ffffff of this title, "substantial interest" 49 shall mean ownership and control of an interest of ten per centum or 50 more in the eligible building or in any person owning the eligible 51 building. 52 § 499-dddddd. Application for certificate of abatement. 1. Applica- 53 tion for a certificate of abatement may be made on or after April first, 54 two thousand twenty-three and until sixty days after the end of the 55 eligibility period. Applications shall be filed with the department of
S. 2962--A 7 1 finance. No application may be filed prior to the date on which the 2 lease for the eligible premises is executed by the landlord and tenant. 3 2. No abatement pursuant to this title shall be granted unless the 4 applicant files an application for a certificate of abatement within 5 sixty days following the lease commencement date. 6 3. In addition to any other information required by the department of 7 finance, the application for a certificate of abatement shall include an 8 abstract of the lease for the eligible premises for which an abatement 9 is being sought, which abstract is signed by the landlord and the 10 tenant. Such abstract shall include the tenant's percentage share, the 11 lease commencement date, the rent commencement date, the expiration date 12 for such lease and a description of the lease renewal clause, including 13 the annual rent increase percentage. Such application shall also include 14 (i) a statement of the number of persons who will, on the rent commence- 15 ment date, be employed in the eligible premises, (ii) a statement of the 16 location of all commercial space in the city of New York occupied by the 17 tenant prior to the execution of the lease for the eligible premises, 18 (iii) the commencement and expiration dates of all leases for eligible 19 premises, and (iv) the aggregate floor area of the eligible building. 20 Such application shall also state that the applicant agrees to comply 21 with and be subject to the rules issued from time to time by the depart- 22 ment of finance. 23 4. Within one hundred eighty days following the lease commencement 24 date, the applicant shall provide, in addition to any other information 25 required by the department of finance, evidence acceptable to the 26 department of finance of the number of employees in the eligible prem- 27 ises. The department of finance shall issue a certificate of abatement 28 upon determining that the applicant has submitted proof acceptable to 29 the department of finance that the applicant has met the requirements 30 set forth in this title. 31 5. The burden of proof shall be on the applicant to show by clear and 32 convincing evidence that the requirements for granting a certificate of 33 abatement have been satisfied. The department of finance shall have the 34 authority to require that statements in connection with such application 35 be made under oath. 36 6. The department of finance may provide by rule for reasonable admin- 37 istrative charges or fees necessary to defray expenses in administering 38 the abatement program provided by this title. 39 § 499-eeeeee. Enforcement and administration. The department of 40 finance shall have, in addition to any other functions, powers and 41 duties which have been or may be conferred on it by law, the following 42 functions, powers and duties: 43 1. To receive and review applications for certificates of abatement 44 under this title and issue such certificates where authorized pursuant 45 to this title. 46 2. To receive all certificates of continuing eligibility required by 47 section four hundred ninety-nine-ffffff of this title. 48 3. To collect all real property taxes, with interest and penalty, due 49 and owing as a result of reduction, termination or revocation of any 50 abatement granted pursuant to this title. 51 4. To make and promulgate rules to carry out the purposes of this 52 title. 53 § 499-ffffff. Reporting requirements; revocation of abatements. 1. 54 For the duration of the applicant's benefit period, the applicant shall 55 file annually with the department of finance, on or before July first of 56 each year, a certificate of continuing eligibility confirming that the
S. 2962--A 8 1 eligible premises are occupied by the tenant who originally executed the 2 lease and that the eligible premises are being used for the purposes 3 described in the application. Such certificate of continuing eligibil- 4 ity shall be on a form prescribed by the department of finance and shall 5 contain such additional information as the department of finance shall 6 require. The department of finance shall have the authority to terminate 7 abatements granted pursuant to this title upon failure of an applicant 8 to file such certificate by such July first date. The burden of proof 9 shall be on the applicant to establish continuing eligibility for bene- 10 fits and the department of finance shall have the authority to require 11 that statements made in such certificate shall be made under oath. 12 2. The department of finance shall revoke any abatement granted pursu- 13 ant to this title when the tenant who originally executed the lease is 14 no longer occupying the eligible premises. Such revocation shall be 15 retroactive to the date that such tenant vacated the eligible premises 16 and the department of finance shall require the landlord to pay, with 17 interest, any taxes which become payable as a result of such revocation. 18 The landlord shall notify the department of finance within thirty days 19 following the date on which such tenant vacated the eligible premises 20 and, for failure to comply with this notification requirement, shall be 21 liable for a penalty calculated for the same period as interest is 22 calculated pursuant to the preceding sentence. 23 3. If any portion of the premises for which an abatement has been 24 granted pursuant to this title ceases to be occupied or used as eligible 25 premises or is occupied by a subtenant, the department of finance shall 26 reduce the abatement granted pursuant to this title by an amount equal 27 to the percentage of such eligible premises which has ceased to be occu- 28 pied or used as eligible premises or is occupied by a subtenant. Such 29 reduction shall be retroactive to the date that such premises ceased to 30 be occupied or used as eligible premises or was occupied by a subtenant, 31 and the department of finance shall require the landlord to pay, with 32 interest, any taxes which become payable as a result of such reduction. 33 The landlord shall notify the department of finance within thirty days 34 following the date on which the premises ceased to be occupied or used 35 as eligible premises or was occupied by a subtenant and, for failure to 36 comply with this notification requirement, shall be liable for penalty 37 calculated for the same period as interest is calculated pursuant to the 38 preceding sentence. 39 4. If, during the benefit period, any real property tax or water or 40 sewer charge or other lienable charge due and payable with respect to an 41 eligible building shall remain unpaid for at least one year following 42 the date upon which such tax or charge became due and payable, all 43 abatements granted pursuant to this title with respect to such building 44 shall be revoked, unless within thirty days from the mailing of a notice 45 of revocation by the department of finance satisfactory proof is 46 presented to the department of finance that any and all delinquent taxes 47 and charges owing with respect to such building as of the date of such 48 notice have been paid in full or are currently being paid in timely 49 installments pursuant to a written agreement with the department of 50 finance or other appropriate agency. Any revocation pursuant to this 51 subdivision shall be effective with respect to real property taxes which 52 become due and payable following the date of such revocation. 53 5. The department of finance may deny, reduce, suspend, terminate or 54 revoke any abatement granted pursuant to this title whenever:
S. 2962--A 9 1 (a) the landlord or the tenant receiving abatement pursuant to this 2 title fails to comply with the requirements of this title or the rules 3 promulgated hereunder; or 4 (b) an application, certificate, report or other document submitted by 5 the applicant contains a false or misleading statement as to a material 6 fact or omits to state any material fact necessary in order to make the 7 statement therein not false or misleading, and may declare any applicant 8 who makes such false or misleading statement or omission to be ineligi- 9 ble for future abatement pursuant to this title for the same or other 10 property. In addition, the department of finance shall require the 11 applicant to pay, with penalty and interest, any abatement received 12 pursuant to this title as a result of such false or misleading statement 13 or omission of a material fact. 14 6. Notwithstanding any other provision of this title, the department 15 of finance shall deny, terminate or revoke any abatement applied for or 16 granted pursuant to this title upon a determination that the lease 17 between the landlord and the tenant does not constitute a bona fide 18 arm's length lease. In making such determination, the department of 19 finance may consider, among other factors, the relationship, if any, 20 between the landlord and the tenant and whether the business terms of 21 such lease are consistent with the business terms generally found in 22 leases for comparable space. 23 7. (a) If any person described in the statement required by paragraph 24 (b) of subdivision six of section four hundred ninety-nine-cccccc of 25 this title or paragraph (b) of this subdivision is finally adjudicated 26 by a court of competent jurisdiction to be guilty of any charge listed 27 in such statement, the department of finance shall revoke the abatement 28 granted pursuant to this title and shall require the payment, with 29 interest, of any abatement received pursuant to this title. 30 (b) The applicant shall, on the certificate of continuing eligibility, 31 state whether any charges alleging violation by the applicant or any 32 person owning a substantial interest in the eligible building, or any 33 officer, director or general partner of the applicant or person owning a 34 substantial interest in the eligible building, or any person for whom 35 the applicant or person owning a substantial interest in the eligible 36 building is an officer, director or general partner, of section two 37 hundred thirty-five of the real property law or any section of article 38 one hundred fifty of the penal law or any similar arson law of another 39 jurisdiction, are pending. For purposes of this paragraph, "substantial 40 interest" shall have the same meaning as set forth in paragraph (c) of 41 subdivision six of section four hundred ninety-nine-cccccc of this 42 title. 43 § 499-gggggg. Tax lien; interest and penalty. All taxes, with inter- 44 est, required to be paid retroactively pursuant to this title shall 45 constitute a tax lien as of the date it is determined such taxes and 46 interest are owed. All interest shall be calculated from the date the 47 taxes would have been due but for the abatement granted pursuant to this 48 title at the applicable rate or rates of interest imposed by such city 49 generally for non-payment of real property tax with respect to the 50 eligible building for the period in question. When a provision of this 51 title requires the payment of a penalty in addition to interest, the 52 amount of such penalty shall be equal to the amount of interest that 53 would have been payable pursuant to such provision had such interest 54 been calculated at the rate of three percent per annum. 55 § 499-hhhhhh. Confidentiality. 1. Except in accordance with a proper 56 judicial order or as otherwise provided by law, it shall be unlawful for
S. 2962--A 10 1 the commissioner of finance, any officer or employee of the department 2 of finance, the president or a commissioner or employee of the tax 3 commission, any person engaged or retained by such department or such 4 commission on an independent contract basis, or any person who, pursuant 5 to this title, is permitted to inspect any information submitted by an 6 applicant to the department of finance pursuant to this title or to whom 7 a copy, an abstract or a portion of any such information is furnished, 8 to divulge or make known in any manner any such information to any 9 person not authorized pursuant to this title to inspect such informa- 10 tion. The officers charged with custody of such information shall not be 11 required to produce any of it or evidence of anything contained in it in 12 any action or proceeding in any court except on behalf of the commis- 13 sioner of finance in an action or proceeding under the provisions of 14 this title, or on behalf of any party to any action or proceeding under 15 the provisions of this title when such information or facts shown there- 16 by are directly involved in such action or proceeding, in either of 17 which events the court may require the production of, and may admit in 18 evidence so much of such information or of the facts shown thereby, as 19 are pertinent to the action or proceeding and no more. Nothing herein 20 shall be construed to prohibit the inspection by the legal represen- 21 tatives of the department of finance or the tax commission of such 22 information submitted by any applicant who shall bring an action to 23 correct an assessment. Nothing herein shall be construed to prohibit 24 the delivery to an applicant or the applicant's duly authorized repre- 25 sentative of a certified copy of any information submitted by an appli- 26 cant to the department of finance pursuant to this title; or to any 27 agency or any department of any city having a population of one million 28 or more provided the same is requested for official business; nor to 29 prohibit the inspection for official business of such information by the 30 corporation counsel or other legal representatives of a city having a 31 population of one million or more or by the district attorney of any 32 county within such city; nor to prohibit the publication of statistics 33 so classified as to prevent the identification of such information or 34 particular items thereof. Information submitted by an applicant to the 35 department of finance pursuant to this title shall not be subject to 36 disclosure pursuant to article six of the public officers law. 37 2. Any violation of the provisions of subdivision one of this section 38 shall be punishable by a fine not exceeding one thousand dollars or by 39 imprisonment not exceeding one year, or both, at the discretion of the 40 court, and if the offender be an officer or employee of the department 41 of finance or of the tax commission, the offender shall be dismissed 42 from office. 43 § 3. This act shall take effect immediately.