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Tonawanda council debates local vacancy tax to push reuse of long-empty commercial buildings
Summary
Council members discussed drafting a local law that would impose a vacancy tax on commercial properties left unoccupied past six months, citing examples of long-term downtown vacancies and potential revenue implications; legal and implementation hurdles were raised.
Tonawanda council members spent an extended portion of Monday’s meeting discussing whether the city could adopt a local law to tax long-term vacant commercial properties, an idea council members said could push owners to redevelop or lease empty storefronts.
A council member who spoke during the discussion outlined a model used in parts of New York State: after a property sits vacant for six months, a vacancy fee would “kick in” on the seventh month and be assessed to the property owner as an additional tax. The council member said “a 3%” rate was a common example cited in other municipalities and argued the tool could generate “potentially…hundreds of thousands of dollars a year” in a community with several high-value, empty commercial parcels.
Supporters framed the proposal as both a revenue source and an incentive for reuse. The council member noted multiple long-vacant downtown properties by name (e.g., the local Rite Aid site and a former McDonald’s) and described short-term seasonal tenancies such as a Spirit Halloween store as a loophole that can “reset the clock” on vacancy rules if a property is briefly reoccupied.
City staff and other council members cautioned that adopting such a policy is not purely a local administrative step. The council heard that Syracuse and other New York localities have experimented with vacancy taxes, and that a 2023 New York State Assembly bill on the topic had prompted interest, but the details vary and may not apply to a small city. One council member observed that some state laws apply only to cities with populations above specified thresholds and said a local law here would likely need review for compliance with state rules.
Legal and financial risks were the principal limits cited. A council member warned the city could face lawsuits by property owners challenging assessments and noted the city assessor could be drawn into appeals that would be costly to defend. Other council members asked whether a vacancy tax would require annual local approvals tied to the tax-cap/override process and whether it could apply retroactively; staff said those implementation details would require legal review.
No ordinance or formal motion to draft a vacancy tax law was filed at the meeting. Several council members asked the city attorney and staff to research legal authority, comparable local laws, and revenue estimates and return with a recommended draft and an assessment of litigation risk.
If the council chooses to proceed, staff said the next steps would include: (1) legal review on state law preemption and any population-based limitations; (2) a revenue estimate from the assessor’s office; and (3) drafting a local law that specifies the vacancy definition, trigger date, rate and administrative appeals process.
For now, the discussion concluded with instructions to staff to research and report back rather than with any vote to introduce a measure.
