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New York State department of taxation and Finance - Office of Real Property Tax Services
real property tax incentive programs: business investment (outside NYC)

Purpose

This program seeks to encourage business/industrial development in New York State.

Two levels of exemption are authorized by ยง485-b:

10-year "basic exemption" beginning in the first year at 50% of the increase in assessed value due to the improvement and declining by 5% each following year.

  • The basic exemption is available to all taxing jurisdictions, which (a) may choose whether to disallow the exemption or (b) may reduce the percentage of exemption authorized by state law. The option to disallow or reduce the exemption must be exercised by counties, cities, towns, and villages through enactment of a local law and by school districts through adoption of a resolution

10-year "accelerated strategic exemption" at 50% of such value in the first three years and declining from 40% to 5% during the next seven years.

  • The accelerated strategic exemption is available only to those taxing jurisdictions which, upon the recommendation of an Industrial & Commercial Incentive Board (ICIB), restrict exemption both (a) to only certain types of business property within the categories specified by state law and (b) to such business property only within certain geographic areas. The option to restrict exemption must be exercised by counties, cities, towns, and villages through enactment of a local law and by school districts through adoption of a resolution. This local law or resolution may also permit eligible property to be granted the accelerated strategic exemption, provided that the law or resolution (a) contains findings that the adoption of the accelerated strategic exemption is necessary to encourage targeted economic development or create or retain permanent private-sector jobs and that the value of the exemptions to be provided is justified by the need to provide employment opportunities and broaden the tax base, (b) limits that applicability of the exemption to projects where the cost of construction, alteration, installation, or other improvement exceeds the sum of $50,000, and (c) provides that the exemption is restricted by property type and geographic area as recommended by the ICIB.

Eligibility

Commercial and industrial facilities, constructed or reconstructed outside of New York City at a cost of more than $10,000, may be eligible for a ten-year partial exemption from the real property tax levied by counties, cities, towns, villages and/or school districts.

Contact          

NYS Office of Real Property Tax Services
Local Assessor

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