A05308 Summary:
BILL NO | A05308 |
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SAME AS | SAME AS S05549 |
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SPONSOR | Lasher |
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COSPNSR | Carroll R |
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MLTSPNSR | |
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Add §498, RPT L | |
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Relates to prohibiting exemptions for owners of vacant or unoccupied storefront properties. |
A05308 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)   BILL NUMBER: A5308 SPONSOR: Lasher
  TITLE OF BILL: An act to amend the real property tax law, in relation to prohibiting exemptions for owners of vacant or unoccupied storefront properties   PURPOSE OR GENERAL IDEA OF BILL: This bill would incentivize owners of commercial storefronts to enter into leases with prospective tenants instead of keeping storefronts vacant for years while holding out for better deals.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the real property tax law by adding a new section 498, which prohibits exemptions for owners of vacant or unoccupied storefront properties if such property has been vacant or unoccupied for at least two years. Section 2 establishes the effective date.   JUSTIFICATION: The proliferation and persistence of vacant storefronts is a significant problem in many neighborhoods throughout the five boroughs. Long-term storefront vacancies deaden streetscapes, making communities less vibrant and giving rise to quality-of-life and public safety challenges. One reason that storefronts remain vacant for long periods is that owners seek long-term leases at high asking rents, even if either or both of the desired duration or amount is more than the market can bear. An owner may determine that the rental income lost by keeping a property vacant for some period will be less than the cost, over many years, of a reduction in the rent. The goal of this bill is to change these economics for owners by increasing the cost of keeping commercial properties vacant for many years, through the prohibition of property tax exemptions for such prop- erties. Faced with the loss of valuable tax exemptions, owners may be more willing to enter into leases with prospective tenants, even if the terms are at a discount. By filling vacant storefronts, we can revital- ize commercial thoroughfares, improve quality-of-life, and boost small business activity.   PRIOR LEGISLATIVE HISTORY: A.10132 (2017-18): Referred to real property taxation. A.4963 (2019-20): Referred to real property taxation. A.4412 (2021-22): Referred to real property taxation. A.1685 (2023-24): Referred to real property taxation.   FISCAL IMPLICATIONS: Net savings, as fewer property tax exemptions will be granted.   EFFECTIVE DATE: This act shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.
A05308 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 5308 2025-2026 Regular Sessions IN ASSEMBLY February 13, 2025 ___________ Introduced by M. of A. LASHER -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law, in relation to prohibiting exemptions for owners of vacant or unoccupied storefront properties The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property tax law is amended by adding a new 2 section 498 to read as follows: 3 § 498. Prohibition on eligibility of exemptions for owners of vacant 4 or unoccupied storefront properties. 1. Notwithstanding any other 5 provision of law, any owner of a commercial storefront property shall 6 not be eligible for an exemption under this chapter on such property if 7 the property has been vacant or unoccupied for at least two years. 8 2. For purposes of this section: 9 (a) "commercial storefront property" shall mean any non-residential 10 property that may be used primarily for the buying, selling or otherwise 11 providing of goods or services, which is located on the ground floor or 12 street level of a commercial building; 13 (b) "vacant" shall mean minimal or no inanimate objects on such prop- 14 erty; and 15 (c) "unoccupied" shall mean a lack of habitual presence of individuals 16 primarily engaged in buying, selling or otherwise providing goods or 17 services. 18 § 2. This act shall take effect immediately and shall apply to assess- 19 ment rolls prepared on the basis of taxable status dates occurring on or 20 after such date. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08493-01-5