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.