Senate Bill S44B

2019-2020 Legislative Session

Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in N.Y. city

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Archive: Last Bill Status - In Senate Committee Cities Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 11, 2020	print number 44b
Sep 11, 2020	amend and recommit to cities
Aug 05, 2020	print number 44a
Aug 05, 2020	amend and recommit to cities
Jan 08, 2020	referred to cities
Jan 09, 2019	referred to cities

Bill Amendments

Original

B (Active)

co-Sponsors

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2019-S44 - Details

See Assembly Version of this Bill:: A4540
Current Committee:: Senate Cities
Law Section:: Real Property Tax Law
Laws Affected:: Add §307-b, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7941, A10192
2015-2016: S1053, A1641
2017-2018: S69, A3837
2021-2022: S4199, A5736
2023-2024: A1814
2025-2026: A1044

2019-S44 - Summary

Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in a city with a population of one million or more.

2019-S44 - Sponsor Memo

                                
 
BILL NUMBER: S44

SPONSOR: HOYLMAN
 
TITLE OF BILL:  An act to amend the real property tax law, in relation
to imposing an additional tax on certain non-primary residence class one
and class two properties in a city with a population of one million or
more

 
PURPOSE OF BILL:

The purpose of this legislation is to allow New York City to administer
an additional graduated property tax on certain non-primary residences
within the city with a market value of $5 million or more.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the Real Property Tax Law by adding a new section
307-b, authorizing the City of New York to enact a local law imposing an
additional property tax on certain non-primary residences with a market
value of $5 million or more.

The tax would apply to 1-3 family houses, condos, and co-ops that have a
market value of $5 million or more, and are not the primary residence of
the owner(s) of the property, or the primary residence of the parent(s)
or child(ren) of such owner(s).

For the purposes of this bill, "market value" is defined as a comparable
sales-based valuation method, a method currently used by the NYC Depart-
ment of Finance for determining the market value of class one proper-
ties.

The property shall be deemed to be the primary residence of the owner(s)
if the property would otherwise be eligible to receive the STAR property
tax exemption, regardless of whether or not the owner(s) applied for or
are actually receiving the STAR exemption.  The NYC Department of
Finance is charged with promulgating any other rules relating to the
establishment and/or certification of primary residency.

The tax would be administered as follows:

If the market value of the property is:             The tax is:
Over $5,000,000 but not over $6,000,000        $0 plus .5% of excess
over
                                               $5,000,000
Over $6,000,000 but not over $10,000,000       $5,000 plus 1% of excess
                                               over $6,000,000
Over $10,000,000 but not over $15,000,000      $45,000 plus 1.51 of
                                               excess over $10,000,000
Over $15,000,000 but not over $20,000,000      $120,000 plus 2% of
excess
                                               over $15,000,000
Over $20,000,000 but not over $25,000,000       $220,000 plus 3% of
                                                excess over $20,000,000
Over $25,000,000                               $370,000 plus 4% of
excess
                                               over $25,000,000

Section 2 states that this act shall take effect immediately.

 
JUSTIFICATION:

Out-of-state purchasers are increasingly buying up high-end properties
in New York City that they rarely, if ever, occupy. In one 42-square
block quadrant of Manhattan, bordered by 70th Street to the North, Park
Avenue to the East, 49th Street to the South, and Fifth Avenue to the
West, the U.S. Census Bureau estimates that 30% of the apartments are
vacant at least 10 months a year. At the same time, low-income New York-
ers continue to face a critical shortage of affordable housing.

The vast majority of absentee owners of luxury properties don't live and
work in New York City, and therefore do not pay city income taxes. Mean-
while, they benefit from New York City's outdated property tax laws,
paying very low property taxes relative to the value of their real
estate. High-end real estate development is often the recipient of
lucrative taxpayer-funded subsidies, further reducing the tax burden on
the owners of the most expensive residential properties in New York
City.

By imposing a modest, graduated "pied-a-terre" tax on the most expensive
non-primary residences, New York City can generate over $650 million in
tax revenue annually, according to estimates by the Fiscal Policy Insti-
tute, while affecting less than 2% of the non-primary residences city-
wide.

 
PRIOR LEGISLATIVE HISTORY:

S.0069 of 2017-2018 (Hoylman): Died in Cities
A.3837 of 2017-2018 (Glick): Died in Real Property Taxation
S.1053-A of 2015-2016 (Hoylman): Died in Local Government
A.1641-A of 2015-2016 (Glick): Died in Real Property Taxation
S.7941 of 2014 (Hoylman): Died in Rules
A.10192 of 2014 (Glick): Died in Rules

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S44 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    44
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by Sens. HOYLMAN, KENNEDY, KRUEGER -- read twice and ordered
   printed, and when printed to be committed to the Committee on Cities
 
 AN ACT to amend the real property tax law, in relation  to  imposing  an
   additional  tax  on  certain non-primary residence class one and class
   two properties in a city with a population of one million or more
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 307-b to read as follows:
   § 307-B. ADDITIONAL TAX ON CERTAIN NON-PRIMARY RESIDENCE PROPERTIES IN
 A CITY WITH A POPULATION OF ONE MILLION OR MORE. 1. GENERALLY.  NOTWITH-
 STANDING  ANY  PROVISION  OF  ANY  GENERAL, SPECIFIC OR LOCAL LAW TO THE
 CONTRARY, ANY CITY WITH A POPULATION OF ONE MILLION OR  MORE  IS  HEREBY
 AUTHORIZED  AND  EMPOWERED  TO  ADOPT AND AMEND LOCAL LAWS IN ACCORDANCE
 WITH THIS SECTION IMPOSING AN  ADDITIONAL  TAX  ON  CERTAIN  RESIDENTIAL
 PROPERTIES.
   2. DEFINITIONS. AS USED IN THIS SECTION: (A) "COMMISSIONER OF FINANCE"
 MEANS  THE  COMMISSIONER OF FINANCE OF A CITY HAVING A POPULATION OF ONE
 MILLION OR MORE, OR HIS OR HER DESIGNEE.
   (B) "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE OF A  CITY
 HAVING A POPULATION OF ONE MILLION OR MORE.
   (C)  "MARKET VALUE" SHALL MEAN THE CURRENT MONETARY VALUE OF THE PROP-
 ERTY, USING A COMPARABLE SALE-BASED VALUATION METHOD, AS  DETERMINED  BY
 THE DEPARTMENT OF FINANCE.
   3.  ADDITIONAL TAX.   A LOCAL LAW ENACTED PURSUANT TO THIS SECTION MAY
 PROVIDE FOR A REAL PROPERTY TAX IN ACCORDANCE WITH THE  FOLLOWING  TABLE
 FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND TWENTY:

 IF THE MARKET VALUE OF THE              THE TAX IS:
 PROPERTY IS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04076-01-9

 S. 44                               2
 
 OVER $5,000,000 BUT NOT                 $0 PLUS .5% OF EXCESS
 OVER $6,000,000                         OVER $5,000,000
 OVER $6,000,000                         $5,000 PLUS 1% OF EXCESS
 BUT NOT OVER $10,000,000                OVER $6,000,000
 OVER $10,000,000 BUT NOT                $45,000 PLUS 1.5% OF EXCESS
 OVER $15,000,000                        OVER $10,000,000
 OVER $15,000,000 BUT NOT                $120,000 PLUS 2% OF EXCESS
 OVER $20,000,000                        OVER $15,000,000
 OVER $20,000,000 BUT NOT                $220,000 PLUS 3% OF EXCESS
 OVER $25,000,000                        OVER $20,000,000
 OVER $25,000,000                        $370,000 PLUS 4% OF EXCESS
                                         OVER $25,000,000
 
   4.  PROPERTY  SUBJECT TO ADDITIONAL TAX.  SUCH TAX SHALL BE IMPOSED ON
 CLASS ONE PROPERTIES, AS  THAT  TERM  IS  DEFINED  IN  SECTION  EIGHTEEN
 HUNDRED  TWO OF THIS CHAPTER, EXCLUDING VACANT LAND, AND ALL OTHER RESI-
 DENTIAL REAL PROPERTY HELD IN CONDOMINIUM OR COOPERATIVE FORM OF  OWNER-
 SHIP,  THAT  HAS A MARKET VALUE OF FIVE MILLION DOLLARS OR HIGHER AND IS
 NOT THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS OF  SUCH  PROPERTY,  OR
 THE PRIMARY RESIDENCE OF THE PARENT OR CHILD OF SUCH OWNER OR OWNERS.
   5. PRIMARY RESIDENCE AND/OR RELATIONSHIP TO OWNER OR OWNERS. THE PROP-
 ERTY  SHALL BE DEEMED TO BE THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS
 THEREOF, IF SUCH PROPERTY WOULD BE ELIGIBLE TO RECEIVE THE REAL PROPERTY
 TAX EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAP-
 TER, REGARDLESS OF WHETHER SUCH OWNER OR OWNERS HAVE FILED  AN  APPLICA-
 TION  FOR, OR THE PROPERTY IS CURRENTLY RECEIVING SUCH EXEMPTION.  PROOF
 OF PRIMARY RESIDENCE AND THE RESIDENT'S OR  RESIDENTS'  RELATIONSHIP  TO
 THE  OWNER OR OWNERS SHALL BE IN THE FORM OF A CERTIFICATION AS REQUIRED
 BY LOCAL LAW OR THE RULES OF THE COMMISSIONER.
   6. RULES. THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A  LOCAL  LAW
 PURSUANT TO THIS SECTION SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS,
 POWERS  AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED ON IT BY LAW, THE
 POWER TO MAKE AND PROMULGATE RULES TO CARRY OUT  THE  PURPOSES  OF  THIS
 SECTION  INCLUDING,  BUT NOT LIMITED TO, RULES RELATING THE TIMING, FORM
 AND MANNER OF ANY CERTIFICATION REQUIRED  TO  BE  SUBMITTED  UNDER  THIS
 SECTION.
   7.  PENALTIES.  (A)  NOTWITHSTANDING  ANY  PROVISION  OF  ANY GENERAL,
 SPECIAL OR LOCAL LAW TO THE  CONTRARY,  AN  OWNER  OR  OWNERS  SHALL  BE
 PERSONALLY  LIABLE  FOR ANY TAXES OWED PURSUANT TO THIS SECTION WHENEVER
 SUCH OWNER OR OWNERS FAIL TO COMPLY WITH THIS SECTION OR THE  LOCAL  LAW
 OR  RULES  PROMULGATED  THEREUNDER,  OR  MAKES  SUCH FALSE OR MISLEADING
 STATEMENT OR OMISSION AND THE COMMISSIONER DETERMINES THAT SUCH ACT  WAS
 DUE  TO THE OWNER OR OWNERS' WILLFUL NEGLECT, OR THAT UNDER SUCH CIRCUM-
 STANCES SUCH ACT CONSTITUTED A  FRAUD  ON  THE  DEPARTMENT.  THE  REMEDY
 PROVIDED  HEREIN  FOR  AN ACTION IN PERSONAM SHALL BE IN ADDITION TO ANY
 OTHER REMEDY OR PROCEDURE FOR THE ENFORCEMENT OF  COLLECTION  OF  DELIN-
 QUENT TAXES PROVIDED BY ANY GENERAL, SPECIAL OR LOCAL LAW.
   (B)  IF THE COMMISSIONER SHOULD DETERMINE, WITHIN THREE YEARS FROM THE
 FILING OF AN APPLICATION OR CERTIFICATION PURSUANT TO THIS SECTION, THAT
 THERE WAS A MATERIAL MISSTATEMENT ON SUCH APPLICATION OR  CERTIFICATION,
 HE  OR SHE SHALL PROCEED TO IMPOSE A PENALTY TAX AGAINST THE PROPERTY OF
 TEN THOUSAND DOLLARS, IN ACCORDANCE WITH THE LOCAL LAW OR RULES  PROMUL-
 GATED HEREUNDER.
   8. CESSATION OF USE. IN THE EVENT THAT A PROPERTY GRANTED AN EXEMPTION
 FROM  TAXATION PURSUANT TO THIS SECTION CEASES TO BE USED AS THE PRIMARY
 RESIDENCE OF SUCH OWNER OR OWNERS OR HIS, HER OR THEIR PARENT OR  CHILD,

 S. 44                               3
 
 SUCH  OWNER  OR  OWNERS SHALL SO NOTIFY THE COMMISSIONER OF FINANCE IN A
 TIME, FORM AND MANNER AS SO REQUIRED BY LOCAL LAW OR THE  RULES  OF  THE
 COMMISSIONER.
   § 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2019-S44A - Details

See Assembly Version of this Bill:: A4540
Current Committee:: Senate Cities
Law Section:: Real Property Tax Law
Laws Affected:: Add §307-b, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7941, A10192
2015-2016: S1053, A1641
2017-2018: S69, A3837
2021-2022: S4199, A5736
2023-2024: A1814
2025-2026: A1044

2019-S44A - Summary

Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in a city with a population of one million or more.

2019-S44A - Sponsor Memo

                                
 
BILL NUMBER: S44a

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to imposing an
additional tax on certain non-primary residence class one and class two
properties in a city with a population of one million or more

 
PURPOSE OF BILL:

The purpose of this legislation is to allow New York City to administer
an additional tax on certain high value non-primary residences within
the city.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends the Real Property Tax Law by adding a new
section 307-b, authorizing cities with a population of one million or
more to enact a local law imposing an additional tax on certain non-pri-
mary residences.

*Sec. 307-b(1): authorizes the adoption of a local law by a city with a
population of one million or more in accordance with the provisions of
the rest of the section of law.

*Sec. 307-b(2): defines terms used throughout the section of law.

*Sec. 307-b(3): provides that a local law enacted pursuant to this
section of law may tax:

-1, 2 or 3 family residences with a five-year average market value of $5
million or higher at a rate between 0.5% and 4.0% on the excess market
value above $5 million

-Condos or dwelling units in a co-op with an assessed value or an
assessed value attributable to a tenant-stockholder, respectively, of
$300,000 or higher at a rate between 10% and 13.5% on the excess
assessed value or excess assessed value attributable to a tenant-stock-
holder above $300,000.

The local law may establish a graduated rate schedule for imposing such
a tax between the minimum and maximum rates established by this section
of law. The tax will be imposed, administered, collected and enforced by
the Commissioner of Finance by such means and in such manner as other
taxes currently imposed, administered, collected and enforced, unless
otherwise provided in the local law authorized by this section.

*Sec. 307-b(4): any local law adopted pursuant to this section of law
must include exemptions from the additional tax for residential proper-
ties or dwelling units that are the primary residence of the owner, the
primary residence of a parent or child of the owner, or that is rented
on a full-time basis to a tenant or tenants for whom the property or
dwelling unit is their primary residence. Proof of eligibility for one
or more of the required exemptions shall be in such form as determined
by the local law or the Commissioner of Finance, and the local law may
provide for additional exemptions.


*Sec. 307-b(5): authorizes the local Department of Finance of any city
that adopts a tax authorized by this section of law to promulgate rules
for carrying out the purposes of this section.

Section 2 of the bill is the effective date.

 
JUSTIFICATION:

Out-of-state purchasers are increasingly buying up high-end properties
in New York City that they rarely, if ever, occupy. In one 42-square
block quadrant of Manhattan, bordered by 70th Street to the North, Park
Avenue to the East, 49th Street to the South, and Fifth Avenue to the
West, the U.S. Census Bureau estimates that 30% of the apartments are
vacant at least 10 months a year. At the same time, low-income New York-
ers continue to face a critical shortage of affordable housing.

The vast majority of absentee owners of luxury properties don't live and
work in New York City, and therefore do not pay city income taxes. Mean-
while, they benefit from New York City's outdated property tax laws,
paying very low property taxes relative to the value of their real
estate. High-end real estate development is often the recipient of
lucrative taxpayer-funded subsidies, further reducing the tax burden on
the owners of the most expensive residential properties in. New York
City.

By imposing a modest, graduated "pied-a-terre" tax on the most expensive
non-primary residences, New York City can generate hundreds of millions
of dollar in tax revenue annually.

 
PRIOR LEGISLATIVE HISTORY:

S.0069 of 2017-2018 (Hoylman): Died in Cities
A.3837 of 2017-2018 (Glick): Died in Real Property Taxation
S.1053-A of 2015-2016 (Hoylman): Died in Local Government
A.1641-A of 2015-2016 (Glick): Died in Real Property Taxation
S.7941 of 2014 (Hoylman): Died in Rules
A.10192 of 2014 (Glick): Died in Rules

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S44A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   44--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced by Sens. HOYLMAN, BAILEY, BENJAMIN, BIAGGI, BROOKS, CARLUCCI,
   COMRIE,  GAUGHRAN,  GIANARIS,  GOUNARDES,  JACKSON,  KAPLAN, KAVANAGH,
   KENNEDY, KRUEGER, LIU, MAY, METZGER, MYRIE,  RAMOS,  RIVERA,  SALAZAR,
   SANDERS, SEPULVEDA, SERRANO, STAVISKY -- read twice and ordered print-
   ed,  and  when  printed  to be committed to the Committee on Cities --
   recommitted to the Committee on Cities in accordance with Senate  Rule
   6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the real property tax law, in relation  to  imposing  an
   additional  tax  on  certain non-primary residence class one and class
   two properties in a city with a population of one million or more
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 307-b to read as follows:
   § 307-B. ADDITIONAL TAX ON CERTAIN NON-PRIMARY RESIDENCE PROPERTIES IN
 A CITY WITH A POPULATION OF ONE MILLION OR MORE. 1. GENERALLY.  NOTWITH-
 STANDING  ANY  PROVISION  OF  ANY  GENERAL, SPECIFIC OR LOCAL LAW TO THE
 CONTRARY, ANY CITY WITH A POPULATION OF ONE MILLION OR  MORE  IS  HEREBY
 AUTHORIZED  AND  EMPOWERED  TO  ADOPT AND AMEND LOCAL LAWS IN ACCORDANCE
 WITH THIS SECTION IMPOSING AN  ADDITIONAL  TAX  ON  CERTAIN  RESIDENTIAL
 PROPERTIES AND DWELLING UNITS.
   2.  DEFINITIONS.  AS USED IN THIS SECTION:  (A) "ASSESSED VALUE" MEANS
 THE DETERMINATION MADE BY THE ASSESSORS OF A CITY HAVING A POPULATION OF
 ONE MILLION OR MORE OF THE VALUATION OF REAL PROPERTY.
   (B) "ASSESSED VALUE ATTRIBUTABLE TO A  TENANT-STOCKHOLDER"  MEANS  THE
 PROPORTION OF THE ASSESSED VALUE OF REAL PROPERTY OWNED BY A COOPERATIVE
 APARTMENT  CORPORATION,  REPRESENTED  BY A TENANT-STOCKHOLDER'S SHARE OR
 SHARES OF STOCK IN SUCH  CORPORATION  AS  DETERMINED  BY  ITS  OR  THEIR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04076-04-0

 S. 44--A                            2
 
 PROPORTIONAL  RELATIONSHIP  TO THE TOTAL OUTSTANDING STOCK OF THE CORPO-
 RATION, INCLUDING THAT OWNED BY THE CORPORATION.
   (C)  "COMMISSIONER  OF FINANCE" MEANS THE COMMISSIONER OF FINANCE OF A
 CITY HAVING A POPULATION OF ONE MILLION OR MORE, OR HIS OR HER DESIGNEE.
   (D) "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE OF A  CITY
 HAVING A POPULATION OF ONE MILLION OR MORE.
   (E)  "FIVE-YEAR  AVERAGE MARKET VALUE" SHALL MEAN THE AVERAGE MONETARY
 VALUE OF A PROPERTY FOR THE PREVIOUS  FIVE  YEARS,  USING  A  COMPARABLE
 SALE-BASED VALUATION METHOD, AS DETERMINED BY THE DEPARTMENT OF FINANCE.
   3.  ADDITIONAL  TAX.  (A) A LOCAL LAW ENACTED PURSUANT TO THIS SECTION
 MAY PROVIDE FOR A TAX AS FOLLOWS FOR FISCAL YEARS BEGINNING ON OR  AFTER
 JULY FIRST, TWO THOUSAND TWENTY-ONE:
   (I)  FOR  ONE, TWO OR THREE FAMILY RESIDENCES WITH A FIVE-YEAR AVERAGE
 MARKET VALUE OF FIVE MILLION DOLLARS OR HIGHER, A TAX OF AT  LEAST  ONE-
 HALF  PERCENT  AND  NO MORE THAN FOUR PERCENT ON THE EXCESS MARKET VALUE
 ABOVE FIVE MILLION DOLLARS.
   (II) FOR RESIDENTIAL REAL PROPERTY HELD IN  THE  CONDOMINIUM  FORM  OF
 OWNERSHIP  WITH  AN  ASSESSED VALUE OF THREE HUNDRED THOUSAND DOLLARS OR
 HIGHER, A TAX OF AT LEAST TEN PERCENT AND  NO  MORE  THAN  THIRTEEN  AND
 ONE-HALF  PERCENT OF THE EXCESS ASSESSED VALUE ABOVE THREE HUNDRED THOU-
 SAND DOLLARS.
   (III) FOR DWELLING UNITS IN A PROPERTY HELD IN THE COOPERATIVE FORM OF
 OWNERSHIP WITH AN ASSESSED VALUE ATTRIBUTABLE TO A TENANT-STOCKHOLDER OF
 THREE HUNDRED THOUSAND DOLLARS OR HIGHER, A TAX OF AT LEAST TEN  PERCENT
 AND  NO  MORE  THAN THIRTEEN AND ONE-HALF PERCENT OF THE EXCESS ASSESSED
 VALUE ABOVE THREE HUNDRED THOUSAND DOLLARS. THE ADDITIONAL TAXES ATTRIB-
 UTABLE TO EACH TENANT-STOCKHOLDER SHALL  BE  ADDED  BY  THE  COOPERATIVE
 APARTMENT  CORPORATION  TO THE AMOUNT OF SUCH TAXES OTHERWISE PAYABLE BY
 OR CHARGEABLE TO SUCH TENANT-STOCKHOLDER.
   (B) SUBJECT TO THE LIMITATIONS ESTABLISHED IN PARAGRAPH  (A)  OF  THIS
 SUBDIVISION,  ANY SUCH LOCAL LAW MAY ESTABLISH A GRADUATED RATE SCHEDULE
 FOR IMPOSING SUCH TAX, AT RATES AND EXCESS VALUE THRESHOLDS AS THE LOCAL
 LEGISLATIVE BODY DETERMINES APPROPRIATE.
   (C) EXCEPT AS OTHERWISE PROVIDED IN THIS  SECTION,  SUCH  TAX  MAY  BE
 IMPOSED,  ADMINISTERED,  COLLECTED  AND  ENFORCED BY THE COMMISSIONER OF
 FINANCE OF SUCH CITY BY SUCH MEANS AND IN SUCH  MANNER  AS  OTHER  TAXES
 THAT  ARE  NOW  IMPOSED,  ADMINISTERED,  COLLECTED  AND ENFORCED BY SUCH
 COMMISSIONER IN ACCORDANCE WITH THE CHARTER OR  ADMINISTRATIVE  CODE  OF
 ANY SUCH CITY OR AS OTHERWISE MAY BE PROVIDED BY ANY SUCH LOCAL LAW.
   4.  EXEMPTIONS. (A) A LOCAL LAW ENACTED PURSUANT TO THIS SECTION SHALL
 INCLUDE AN EXEMPTION FROM THE ADDITIONAL  TAX  IMPOSED  FOR  RESIDENTIAL
 PROPERTIES  OR  DWELLING UNITS THAT ARE: (I) THE PRIMARY RESIDENCE OF AT
 LEAST ONE OWNER OF THE PROPERTY OR DWELLING UNIT; (II) THE PRIMARY RESI-
 DENCE OF A PARENT OR CHILD OF AT LEAST ONE  OWNER  OF  THE  PROPERTY  OR
 DWELLING  UNIT;  OR  (III)  RENTED  ON  A FULL-TIME BASIS TO A TENANT OR
 TENANTS FOR WHOM THE PROPERTY OR DWELLING UNIT IS  THEIR  PRIMARY  RESI-
 DENCE.
   (B) PROOF THAT A RESIDENTIAL PROPERTY OR DWELLING UNIT IS ELIGIBLE FOR
 AN  EXEMPTION  PROVIDED IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE IN
 SUCH FORM AS REQUIRED BY LOCAL LAW OR THE RULES OF THE  COMMISSIONER  OF
 FINANCE.
   (C)  ANY  SUCH  LOCAL  LAW MAY PROVIDE FOR EXEMPTIONS FROM SUCH TAX IN
 ADDITION TO THOSE SPECIFIED IN THIS SUBDIVISION.
   (D) IN THE EVENT THAT A PROPERTY GRANTED AN  EXEMPTION  FROM  TAXATION
 PURSUANT  TO  THIS  SECTION  OR  LOCAL LAW CEASES TO BE USED IN A MANNER
 MAKING THE PROPERTY ELIGIBLE FOR SUCH EXEMPTION,  THE  OWNER  OR  OWNERS

 S. 44--A                            3
 
 SHALL  SO  NOTIFY THE COMMISSIONER OF FINANCE IN A TIME, FORM AND MANNER
 AS SO REQUIRED BY LOCAL LAW OR THE RULES OF THE COMMISSIONER.
   5.  RULES.  THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A LOCAL LAW
 PURSUANT TO THIS SECTION SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS,
 POWERS AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED ON IT BY LAW,  THE
 POWER  TO  MAKE  AND  PROMULGATE RULES TO CARRY OUT THE PURPOSES OF THIS
 SECTION.
   § 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2019-S44B (ACTIVE) - Details

See Assembly Version of this Bill:: A4540
Current Committee:: Senate Cities
Law Section:: Real Property Tax Law
Laws Affected:: Add §307-b, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7941, A10192
2015-2016: S1053, A1641
2017-2018: S69, A3837
2021-2022: S4199, A5736
2023-2024: A1814
2025-2026: A1044

2019-S44B (ACTIVE) - Summary

Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in a city with a population of one million or more.

2019-S44B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S44B

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to imposing an
additional tax on certain non-primary residence class one and class two
properties in a city with a population of one million or more

 
PURPOSE OF BILL:

The purpose of this legislation is to allow New York City to administer
an additional tax on certain high value non-primary residences' within
the city.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends the Real Property Tax Law by adding a new
section 307-b, authorizing cities with a population of one million or
more to enact a local law imposing an additional tax on certain non-pri-
mary residences.

*Sec. 307-b(1): authorizes the adoption of a local law by a city with a
population of one million or more in accordance with the provisions of
the rest of the section of law.

*Sec. 307-b(2): defines terms used throughout the section of law.

*Sec. 307-b(3): provides that a local law enacted pursuant to this
section of law may tax:

-1, 2 or 3 family residences with a five-year average market value of $5
million or higher at a rate between 0.5% and 4.0% on the excess market
value above $5 million.

-Condos or dwelling units in a co-op with an assessed value or an
assessed value attributable to a tenant-stockholder, respectively, of
$300,000 or higher at a rate between 10% and 13.5% on the excess
assessed value or excess assessed value attributable to a tenant-stock-
holder above $300,000.

The local law may establish a graduated rate schedule for imposing such
a tax between the minimum and maximum rates established by this section
of law. The tax will be imposed, administered, collected and enforced by
the Commissioner of Finance by such means and in such manner as other
taxes currently imposed, administered, collected and enforced, unless
otherwise provided in the local law authorized by this section.

*Sec. 307-b(4): any local law adopted pursuant to this section of law
must include exemptions from the additional tax for residential proper-
ties or dwelling units that are the primary residence of the owner, the
primary residence of a parent or child of the owner, a condo or co-op
with an assessed value of $300,000 or more that has received a state-
certified appraisal showing a market value of less than $5 million with-
in the prior three years, or that is rented on a full-time basis to a
tenant or tenants for whom the property or dwelling unit is their prima-
ry residence. Proof of eligibility for one or more of the required
exemptions shall be in such form as determined by the local law or the

Commissioner of Finance, and the local law may provide for additional
exemptions.

*Sec. 307-b(5): authorizes the local Department of Finance of any city
that adopts a tax authorized by this section of law to promulgate rules
for carrying out the purposes of this section.

Section 2 of the bill is the effective date.

 
JUSTIFICATION:

Out-of-state purchasers are increasingly buying up high-end properties
in New York City that they rarely, if ever, occupy. In one 42-square
block quadrant of Manhattan, bordered by 70th Street to the North, Park
Avenue to the East, 49th Street to the South, and Fifth Avenue to the
West, the U.S. Census Bureau estimates that 30t of the apartments are
vacant at least 10 months a year. At the same time, low-income New York-
ers continue to face a critical shortage of affordable housing.

The vast majority of absentee owners of luxury properties don't live and
work in New York City, and therefore do not pay city income taxes. Mean-
while, they benefit from New York City's outdated property tax laws,
paying very low property taxes relative to the value of their real
estate. High-end real estate development is often the recipient of
lucrative taxpayer-funded subsidies, further reducing the tax burden on
the owners of the most expensive residential properties in. New York
City.

By imposing a modest, graduated "pied-a-terre" tax on the most expensive
non-primary residences, New York City can generate hundreds of millions
of dollar in tax revenue annually.

 
PRIOR LEGISLATIVE HISTORY:

S.0069 of 2017-2018 (Hoylman): Died in Cities

A.3837 of 2017-2018 (Glick): Died in Real Property Taxation

S.1053-A of 2015-2016 (Hoylman): Died in Local Government

A.1641-A of 2015-2016 (Glick): Died in Real Property Taxation

S.7941 of 2014 (Hoylman): Died in Rules

A.10192 of 2014 (Glick): Died in Rules

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S44B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   44--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced by Sens. HOYLMAN, BAILEY, BENJAMIN, BIAGGI, BROOKS, CARLUCCI,
   COMRIE,  GAUGHRAN,  GIANARIS,  GOUNARDES,  JACKSON,  KAPLAN, KAVANAGH,
   KENNEDY, KRUEGER, LIU, MAY, METZGER, MYRIE,  RAMOS,  RIVERA,  SALAZAR,
   SANDERS, SEPULVEDA, SERRANO, STAVISKY -- read twice and ordered print-
   ed,  and  when  printed  to be committed to the Committee on Cities --
   recommitted to the Committee on Cities in accordance with Senate  Rule
   6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said  committee  --  committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 AN ACT to amend the real property tax law, in relation  to  imposing  an
   additional  tax  on  certain non-primary residence class one and class
   two properties in a city with a population of one million or more
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 307-b to read as follows:
   § 307-B. ADDITIONAL TAX ON CERTAIN NON-PRIMARY RESIDENCE PROPERTIES IN
 A CITY WITH A POPULATION OF ONE MILLION OR MORE. 1. GENERALLY.  NOTWITH-
 STANDING  ANY  PROVISION  OF  ANY  GENERAL, SPECIFIC OR LOCAL LAW TO THE
 CONTRARY, ANY CITY WITH A POPULATION OF ONE MILLION OR  MORE  IS  HEREBY
 AUTHORIZED  AND  EMPOWERED  TO  ADOPT AND AMEND LOCAL LAWS IN ACCORDANCE
 WITH THIS SECTION IMPOSING AN  ADDITIONAL  TAX  ON  CERTAIN  RESIDENTIAL
 PROPERTIES AND DWELLING UNITS.
   2.  DEFINITIONS.  AS USED IN THIS SECTION:  (A) "ASSESSED VALUE" MEANS
 THE DETERMINATION MADE BY THE ASSESSORS OF A CITY HAVING A POPULATION OF
 ONE MILLION OR MORE OF THE VALUATION OF REAL PROPERTY.
   (B) "ASSESSED VALUE ATTRIBUTABLE TO A  TENANT-STOCKHOLDER"  MEANS  THE
 PROPORTION OF THE ASSESSED VALUE OF REAL PROPERTY OWNED BY A COOPERATIVE
 APARTMENT  CORPORATION,  REPRESENTED  BY A TENANT-STOCKHOLDER'S SHARE OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04076-08-0

 S. 44--B                            2
 
 SHARES OF STOCK IN SUCH  CORPORATION  AS  DETERMINED  BY  ITS  OR  THEIR
 PROPORTIONAL  RELATIONSHIP  TO THE TOTAL OUTSTANDING STOCK OF THE CORPO-
 RATION, INCLUDING THAT OWNED BY THE CORPORATION.
   (C)  "COMMISSIONER  OF FINANCE" MEANS THE COMMISSIONER OF FINANCE OF A
 CITY HAVING A POPULATION OF ONE MILLION OR MORE, OR HIS OR HER DESIGNEE.
   (D) "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE OF A  CITY
 HAVING A POPULATION OF ONE MILLION OR MORE.
   (E)  "FIVE-YEAR  AVERAGE MARKET VALUE" SHALL MEAN THE AVERAGE MONETARY
 VALUE OF A PROPERTY FOR THE PREVIOUS  FIVE  YEARS,  USING  A  COMPARABLE
 SALE-BASED VALUATION METHOD, AS DETERMINED BY THE DEPARTMENT OF FINANCE.
   3.  ADDITIONAL  TAX.  (A) A LOCAL LAW ENACTED PURSUANT TO THIS SECTION
 MAY PROVIDE FOR A TAX AS FOLLOWS FOR FISCAL YEARS BEGINNING ON OR  AFTER
 JULY FIRST, TWO THOUSAND TWENTY-ONE:
   (I)  FOR  ONE, TWO OR THREE FAMILY RESIDENCES WITH A FIVE-YEAR AVERAGE
 MARKET VALUE OF FIVE MILLION DOLLARS OR HIGHER, A TAX OF AT  LEAST  ONE-
 HALF  PERCENT  AND  NO MORE THAN FOUR PERCENT ON THE EXCESS MARKET VALUE
 ABOVE FIVE MILLION DOLLARS.
   (II) FOR RESIDENTIAL REAL PROPERTY HELD IN  THE  CONDOMINIUM  FORM  OF
 OWNERSHIP  WITH  AN  ASSESSED VALUE OF THREE HUNDRED THOUSAND DOLLARS OR
 HIGHER, A TAX OF AT LEAST TEN PERCENT AND  NO  MORE  THAN  THIRTEEN  AND
 ONE-HALF  PERCENT OF THE EXCESS ASSESSED VALUE ABOVE THREE HUNDRED THOU-
 SAND DOLLARS.
   (III) FOR DWELLING UNITS IN A PROPERTY HELD IN THE COOPERATIVE FORM OF
 OWNERSHIP WITH AN ASSESSED VALUE ATTRIBUTABLE TO A TENANT-STOCKHOLDER OF
 THREE HUNDRED THOUSAND DOLLARS OR HIGHER, A TAX OF AT LEAST TEN  PERCENT
 AND  NO  MORE  THAN THIRTEEN AND ONE-HALF PERCENT OF THE EXCESS ASSESSED
 VALUE ABOVE THREE HUNDRED THOUSAND DOLLARS. THE ADDITIONAL TAXES ATTRIB-
 UTABLE TO EACH TENANT-STOCKHOLDER SHALL  BE  ADDED  BY  THE  COOPERATIVE
 APARTMENT  CORPORATION  TO THE AMOUNT OF SUCH TAXES OTHERWISE PAYABLE BY
 OR CHARGEABLE TO SUCH TENANT-STOCKHOLDER.
   (B) SUBJECT TO THE LIMITATIONS ESTABLISHED IN PARAGRAPH  (A)  OF  THIS
 SUBDIVISION,  ANY SUCH LOCAL LAW MAY ESTABLISH A GRADUATED RATE SCHEDULE
 FOR IMPOSING SUCH TAX, AT RATES AND EXCESS VALUE THRESHOLDS AS THE LOCAL
 LEGISLATIVE BODY DETERMINES APPROPRIATE.
   (C) EXCEPT AS OTHERWISE PROVIDED IN THIS  SECTION,  SUCH  TAX  MAY  BE
 IMPOSED,  ADMINISTERED,  COLLECTED  AND  ENFORCED BY THE COMMISSIONER OF
 FINANCE OF SUCH CITY BY SUCH MEANS AND IN SUCH  MANNER  AS  OTHER  TAXES
 THAT  ARE  NOW  IMPOSED,  ADMINISTERED,  COLLECTED  AND ENFORCED BY SUCH
 COMMISSIONER IN ACCORDANCE WITH THE CHARTER OR  ADMINISTRATIVE  CODE  OF
 ANY SUCH CITY OR AS OTHERWISE MAY BE PROVIDED BY ANY SUCH LOCAL LAW.
   4.  EXEMPTIONS. (A) A LOCAL LAW ENACTED PURSUANT TO THIS SECTION SHALL
 INCLUDE AN EXEMPTION FROM THE ADDITIONAL  TAX  IMPOSED  FOR  RESIDENTIAL
 PROPERTIES  OR  DWELLING UNITS THAT ARE: (I) THE PRIMARY RESIDENCE OF AT
 LEAST ONE OWNER OF THE PROPERTY OR DWELLING UNIT; (II) THE PRIMARY RESI-
 DENCE OF A PARENT OR CHILD OF AT LEAST ONE  OWNER  OF  THE  PROPERTY  OR
 DWELLING  UNIT;  (III)  HELD  IN  THE CONDOMINIUM OR COOPERATIVE FORM OF
 OWNERSHIP WITH AN ASSESSED VALUE OR ASSESSED  VALUE  ATTRIBUTABLE  TO  A
 TENANT-STOCKHOLDER  OF  THREE  HUNDRED THOUSAND DOLLARS OR HIGHER, WHERE
 THE OWNER HAS WITHIN THE PRIOR THREE YEARS OBTAINED AN APPRAISAL  REPORT
 CERTIFIED BY A STATE CERTIFIED REAL ESTATE APPRAISER OR AUTHENTICATED BY
 A  STATE  LICENSED  REAL ESTATE APPRAISER, AS THOSE TERMS ARE DEFINED IN
 SECTION ONE HUNDRED SIXTY-A OF THE EXECUTIVE LAW, SHOWING THAT THE RESI-
 DENTIAL PROPERTY OR DWELLING UNIT HAS AN APPRAISED VALUE  OF  LESS  THAN
 FIVE MILLION DOLLARS; OR (IV) RENTED ON A FULL-TIME BASIS TO A TENANT OR
 TENANTS  FOR  WHOM  THE PROPERTY OR DWELLING UNIT IS THEIR PRIMARY RESI-
 DENCE.

 S. 44--B                            3
 
   (B) PROOF THAT A RESIDENTIAL PROPERTY OR DWELLING UNIT IS ELIGIBLE FOR
 AN EXEMPTION PROVIDED IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL  BE  IN
 SUCH  FORM  AS REQUIRED BY LOCAL LAW OR THE RULES OF THE COMMISSIONER OF
 FINANCE.
   (C)  ANY  SUCH  LOCAL  LAW MAY PROVIDE FOR EXEMPTIONS FROM SUCH TAX IN
 ADDITION TO THOSE SPECIFIED IN THIS SUBDIVISION.
   (D) IN THE EVENT THAT A PROPERTY GRANTED AN  EXEMPTION  FROM  TAXATION
 PURSUANT  TO  THIS  SECTION  OR  LOCAL LAW CEASES TO BE USED IN A MANNER
 MAKING THE PROPERTY ELIGIBLE FOR SUCH EXEMPTION,  THE  OWNER  OR  OWNERS
 SHALL  SO  NOTIFY THE COMMISSIONER OF FINANCE IN A TIME, FORM AND MANNER
 AS SO REQUIRED BY LOCAL LAW OR THE RULES OF THE COMMISSIONER.
   5. RULES. THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A  LOCAL  LAW
 PURSUANT TO THIS SECTION SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS,
 POWERS  AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED ON IT BY LAW, THE
 POWER TO MAKE AND PROMULGATE RULES TO CARRY OUT  THE  PURPOSES  OF  THIS
 SECTION.
   § 2. This act shall take effect immediately.

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