§ 489-bbbbbb. Power to enact local law; industrial and commercial real\nproperty tax abatement. 1. Authority to enact local law. Any city having\na population of one million or more, acting through its local\nlegislative body, is authorized and empowered to determine that\nincentives in the form of abatement of real property taxes are necessary\nto encourage industrial and commercial development in such city and to\nenact a local law providing that such benefits shall be provided in the\nmanner set forth in this title.\n 2. Amount of abatement base. (a) Calculation of abatement base. Except\nas provided in paragraph (e) of subdivision three of this section, the\nabatement base used to determine the amount of the abatement provided\nunder this title shall be the amount by which the post-completion tax on\na building or structure exceeds one hundred fifteen percent of the\ninitial tax levied on a building or structure.\n (b) Initial tax on building or structure. (i) Determination of initial\ntax. The initial tax shall be determined by multiplying the final\ntaxable assessed value, without regard to any exemptions, shown on the\nassessment roll with a taxable status date immediately preceding the\nissuance of the first building permit by the initial tax rate. For\npurposes of this subdivision, the initial tax rate shall be the final\ntax rate applicable to the assessment roll with a taxable status date\nimmediately preceding the issuance of the first building permit. If no\npermit was required, the initial tax and the initial tax rate shall be\ndetermined based on the assessment roll with a taxable status date\nimmediately preceding the commencement of construction.\n (ii) Effect of tax lot apportionment or merger. For a property as to\nwhich an applicant has applied for benefits pursuant to this title, if\nsuch property is apportioned or merged and such apportionment or merger\nis not reflected in the assessment roll described in subparagraph (i) of\nthis paragraph, the initial tax for the newly created tax lot or lots\nshall be based on the initial tax of the lot or lots from which they\nhave been created, which shall be apportioned among the newly created\ntax lot or lots in the manner established by the department for purposes\nof assessed valuation of real property.\n (c) Post-completion tax on building or structure. For purposes of\ncalculating the abatement base only, the post-completion tax is\ndetermined by multiplying the initial tax rate by the final taxable\nassessed value, without regard to any exemptions, that would be shown on\nthe assessment roll but for the abatement, on the assessment roll with a\ntaxable status date immediately following the earlier of:\n (i) completion of construction; or\n (ii) four years from the date of issuance of the first building\npermit, or if no permit was required, the commencement of construction.\n (d) (i) If the taxable assessed value is later reduced by a court\norder or application to the tax commission, then the initial tax or the\npost-completion tax shall be the tax as reduced.\n (ii) The taxable assessed value used for the calculations in this\nsubdivision shall be the lower of the actual and transitional value as\nprovided in subdivision three of section eighteen hundred five of this\nchapter.\n (e) Mixed-use property. For a mixed-use property, the initial tax and\npost-completion tax shall be apportioned between the residential and\nnonresidential portions. The department may promulgate rules to\ndetermine the method of apportionment.\n (f) Initial taxes not to be reduced by abatement. Except as provided\nin paragraph (e) of subdivision three of this section, the abatement\nprovided under this title shall not be applicable in any year of the\nbenefit period to the initial tax or to the tax on the portion of the\nassessment attributable to land. Additionally, the abatement shall not\nresult in any credit or refund of real property taxes.\n 3. Industrial and comme
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