10-year phased tax payment plan is designed to encourage re-investment in commercial properties
As part of an effort to encourage re-investment in five commercially zoned properties and its Central Business District, the Village of Briarcliff Manor has adopted new zoning provisions including an innovative tax incentive program.
The plan phases in over 10 years the increase of real estate taxes when a commercial property is enhanced or improved. The tax benefits apply to any expenditures of at least $50,000 for new construction, renovations, or alterations.
While the plan had initially applied only to the Village taxes, which account for approximately 17 percent of an annual property tax bill, the value of the incentive has risen dramatically with the Ossining and Briarcliff Manor School Districts each agreeing to replicate the plan for school taxes. With the additional participation of these two school districts, each of which serves a portion of the Village, 85 percent of a qualifying property tax bill will be reduced under the new plan. Westchester County and Ossining Town taxes account for the balance of the total tax bill.
Under the Village’s Complementary Transition or CT Zoning, the tax increase on the new commercial investment is phased in over 10 years. The first year the increase is 50% of the additional assessed value. Each of the following nine years the tax increases by five percent until it reaches the full increase at 10 years.
Mayor Steven Vescio said the inclusion of school taxes is an important step forward. “We are pleased that the school boards agreed to participate. Clearly, we want owners enhancing the value of their properties which increases the Village commercial tax base. We’re not giving up tax revenues; we’re encouraging commercial investment in our community, increased commercial tax revenues, minimal cost impacts to municipal services, and reduced tax burden on residents.”
The Village Board was able to implement the program by reinstating a section of a 1976 New York State tax law that allows municipalities to provide a 10-year phase-in of increased taxes for improved commercial properties.
“Since commercial districts are only 6 percent of our Village’s land area, it’s critical that we maintain these parcels for tax-generating commercial use,” said Deputy Mayor Peter Chatzky. “Times have changed and so has our national economy. We reinstated an old incentive in the tax law with the goal of bringing new economic vitality to our community. The beauty of this incentive is that it does not deprive school districts of resources, but rather phases-in tax increases on improved properties.”
Several of the five corporate campuses rezoned by the Village Board have sat idle or underused for many years. The new uses at the five sites include multi-tenant office use, data storage, biotech facilities, medical offices and fitness clubs, among other new uses.
The five incentivized and rezoned campuses are:
- 333 Albany Post Road
- 600 Albany Post Road
- 320 Old Briarcliff Road
- 555 Pleasantville Road
- 345 Scarborough Road
The rezoning also applies to the Central Business District on Pleasantville Road between North State Road and Village Hall.
Details on the new zoning and tax incentives are available on the Village website at briarcliffmanor.org
