Fifth Avenue Building Associates v. Finance Administration of the City of New York, 66 N.Y.2d 861 (1985)
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A property owner is liable for the City’s annual vault charge if they have the right or authority to use the vault, regardless of actual use, unless the vault is rendered unusable according to specific closure requirements.
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Summary
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Fifth Avenue Building Associates challenged the City of New York’s assessment of an annual vault charge for a vault adjacent to their property. The vault, accessible via a locked door to which the petitioner’s lessee had a key, was partially used for utility lines while the rest remained empty. The Court of Appeals held that the petitioner was liable for the vault charge on the entire vault area because the vault was not closed according to the Finance Administration’s requirements, thus the petitioner retained the ‘right or authority’ to use it, irrespective of actual usage. This decision emphasizes the importance of adhering to specific regulatory requirements for exemption from the vault charge.
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Facts
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Fifth Avenue Building Associates owned premises adjacent to a vault under a city street. The vault was divided into four sections by stanchions and accessible through a locked door. The lessee of the building had a key to this door. One section of the vault contained utility lines, electrical boxes, and part of the building’s boiler and heating system. The remaining three sections of the vault were empty. The Department of Finance assessed a vault charge for the entire area of the vault.
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Procedural History
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The Department of Finance determined that Fifth Avenue Building Associates was liable for the annual vault charge. The petitioner challenged this determination. The Appellate Division annulled the Department of Finance’s determination and remanded the matter for a new hearing, arguing that the tax should only apply to the section of the vault containing heating and electrical items. The Department of Finance appealed to the Court of Appeals.
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Issue(s)
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Whether the City can assess a vault charge against the whole area of an open vault, regardless of whether the owner of the adjoining property actually uses the entire area?
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Holding
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Yes, because the petitioner had the