NY State Senate Bill S6488

Archive: Last Bill Status - In Senate Committee Cities Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (2)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to cities
May 25, 2017	referred to cities

Co-Sponsors

S6488 (ACTIVE) - Details

See Assembly Version of this Bill:: A7406
Law Section:: New York City Administrative Code
Laws Affected:: Amd §11-2101, add §11-2120, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2019-2020: S3060, A5375
2021-2022: A3259
2023-2024: A2638

S6488 (ACTIVE) - Summary

Imposes a tax on the transfer of certain real property within two years of the prior transfer of such property and provides for exemptions from such tax.

S6488 (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S6488

 TITLE OF BILL :  An act to amend the administrative code of the city
of New York, in relation to a tax on the transfer of certain real
property within three years of the prior transfer of such property

 PURPOSE OR GENERAL IDEA OF BILL :

Incorporate an additional 15% tax on properties sold within one year
and 10% tax on properties sold after one year but less than two years
after purchase in an effort deter property speculation and flipping in
vulnerable neighborhoods.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 would amend the administration code of the city of New York
by adding four new subdivisions, which defines the prior conveyance of
property. Section 2 has a layout of the tax rate which will be imposed
within the two year prior conveyance of the property. This section
also lists the properties which will be exempt from the imposed tax.
Section 3 enacts the effective date.

 JUSTIFICATION :

Imposing a "flip-tax" on the transfers of multi-unit residential
buildings within two years of their acquisition is intended to

discourage short-term real estate speculation.

As such, all residential properties sold within one year of conveyance
would incur a 15% tax. If sold after one year, but less than two years
from purchase, the penalty would be reduced to 10%.

To avoid undue harm to private homeowners, this bill would exempt
transfers to family members and homeowners who can establish a
reasonable financial hardship; or properties sold within one year of
the death of the owner, sites which had no existing residential units,
and properties exempt from payment of property tax.

 PRIOR LEGISLATIVE HISTORY :

None

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become a law and shall apply to conveyances occurring on or after such
date.

S6488 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6488

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                              May 25, 2017
                               ___________

Introduced  by Sen. HAMILTON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation  to  a  tax  on  the transfer of certain real property within
  three years of the prior transfer of such property

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section 11-2101 of the administrative code of the city of
New York is amended by adding four new subdivisions 19, 20, 21 and 22 to
read as follows:
  19. "PRIOR CONVEYANCE OF THE PROPERTY." THE MOST RECENT CONVEYANCE  OF
THE  REAL  PROPERTY,  WHETHER CONVEYED ON ITS OWN OR AS PART OF A LARGER
CONVEYANCE.
  20. "FAMILY MEMBER."  A  PERSON'S  CHILD,  SPOUSE,  DOMESTIC  PARTNER,
PARENT,  SIBLING, GRANDCHILD OR GRANDPARENT, OR THE CHILD OR PARENT OF A
PERSON'S SPOUSE OR DOMESTIC PARTNER.
  21. "PRINCIPAL PLACE OF RESIDENCE." A PERSON'S  PERMANENT  OR  PRIMARY
HOME  THAT  THE  PERSON OCCUPIES FOR MORE THAN A TEMPORARY OR TRANSITORY
PURPOSE.
  22. "NEW HOUSING." A RESIDENTIAL UNIT OR UNITS THAT DID NOT  EXIST  AT
THE  TIME OF THE PRIOR CONVEYANCE OF THE PROPERTY TO THE EXTENT THAT THE
PROPERTY HAD NO RESIDENTIAL UNITS AT THE TIME OF  THE  PRIOR  CONVEYANCE
AND AT LEAST ONE RESIDENTIAL UNIT WAS SUBSEQUENTLY ADDED.
  §  2.  The  administrative  code of the city of New York is amended by
adding a new section 11-2120 to read as follows:
  § 11-2120 IMPOSITION OF FLIP TAX. A. IN ADDITION TO THE TAX IMPOSED BY
SECTION 11-2102 OF THIS CHAPTER, THERE IS HEREBY IMPOSED ON  EACH  DEED,
INSTRUMENT  OR TRANSACTION AT THE TIME OF THE TRANSFER WHEREBY ANY PROP-
ERTIES OF ONE TO FIVE SEPARATE RESIDENTIAL UNITS ARE  TRANSFERRED  BY  A
GRANTOR  TO  A  GRANTEE, AND SUCH TRANSFER IS MADE WITHIN TWO YEARS FROM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09992-05-7

S. 6488                             2

THE PRIOR CONVEYANCE OF THE PROPERTY. THE TAX, WHICH SHALL  BE  PAID  BY
THE GRANTOR, SHALL BE AT THE RATE OF:
  (1)  FIFTEEN  PERCENT  WHEN THE TIME SINCE THE PRIOR CONVEYANCE OF THE
PROPERTY IS LESS THAN ONE YEAR; AND
  (2) TEN PERCENT WHEN THE TIME SINCE THE PRIOR CONVEYANCE OF THE  PROP-
ERTY IS GREATER THAN OR EQUAL TO ONE YEAR BUT LESS THAN TWO YEARS.
  B.  THE TAX DEFINED IN SUBDIVISION A OF THIS SECTION SHALL EXPIRE WHEN
THE TIME SINCE THE PRIOR CONVEYANCE OF THE PROPERTY IS TWO YEARS.
  C. ALL REVENUES RESULTING FROM THE IMPOSITION OF THE  TAX  UNDER  THIS
SECTION SHALL BE PAID INTO THE TREASURY OF THE CITY AND SHALL BE CREDIT-
ED TO AND DEPOSITED IN THE GENERAL FUND OF THE CITY.
  D.  (1)  THE FOLLOWING PERSONS SHALL BE EXEMPT FROM THE PAYMENT OF THE
TAX IMPOSED BY THIS SECTION:
  (I) PROPERTY OWNERS CONVEYING PROPERTY TO A FAMILY MEMBER.
  (II) PROPERTY OWNERS WHO CAN DEMONSTRATE A  FINANCIAL  HARDSHIP  WHICH
JUSTIFIES A CONVEYANCE OF PROPERTY IN LESS THAN OR EQUAL TO TWO YEARS.
  (2)  THE  FOLLOWING PROPERTIES SHALL BE EXEMPT FROM THE PAYMENT OF THE
TAX IMPOSED BY THIS SECTION:
  (I) PROPERTY WHICH WAS CONVEYED WITHIN ONE YEAR OF THE  DEATH  OF  THE
PROPERTY OWNER.
  (II) PROPERTY BEING SOLD AS NEW HOUSING.
  (III)  PROPERTY  WHICH  THE  CONSIDERATION OR VALUE CONVEYED, WHICH IS
OTHERWISE SUBJECT TO THE TAX IMPOSED IN THIS SECTION, IS  LESS  THAN  OR
EQUAL  TO  THE  CONSIDERATION  OR VALUE OF SUCH PROPERTY CONVEYED AT THE
TIME OF THE PRIOR CONVEYANCE OF PROPERTY.
  (IV) PROPERTY WHICH IS OTHERWISE EXEMPT FROM PAYMENT OF A REAL PROPER-
TY TRANSFER TAX, AS DEFINED IN THIS CHAPTER.
  § 3. This act shall take effect on the ninetieth day  after  it  shall
have  become  a law and shall apply to conveyances occurring on or after
such date.

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The New York State Senate

senate Bill S6488

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Archive: Last Bill Status - In Senate Committee Cities Committee

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Co-Sponsors

S6488 (ACTIVE) - Details

S6488 (ACTIVE) - Summary

S6488 (ACTIVE) - Sponsor Memo

S6488 (ACTIVE) - Bill Text download pdf

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senate Bill S6488

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Sponsored By

Jesse Hamilton

Archive: Last Bill Status - In Senate Committee Cities Committee

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Co-Sponsors

Jamaal T. Bailey

Leroy Comrie

S6488 (ACTIVE) - Details

S6488 (ACTIVE) - Summary

S6488 (ACTIVE) - Sponsor Memo

S6488 (ACTIVE) - Bill Text download pdf

Comments