NY State Senate Bill 2021-S4199

Senate Bill S4199

2021-2022 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 Local Government 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to local government
Feb 02, 2021	referred to local government

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2021-S4199 (ACTIVE) - Details

See Assembly Version of this Bill:: A5736
Current Committee:: Senate Local Government
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
2019-2020: S44, A4540
2023-2024: A1814
2025-2026: A1044

2021-S4199 (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.

2021-S4199 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4199

SPONSOR: HOYLMAN
 
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
within 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
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 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.0044-B of 2019-2020 (Hoylman): Died in Cities

A.4540-B of 2019-2020 (Glick): Died in Real Property Taxation

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.

2021-S4199 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4199
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 2, 2021
                                ___________
 
 Introduced   by   Sens.  HOYLMAN,  BAILEY,  BIAGGI,  GIANARIS,  JACKSON,
   KAVANAGH, KRUEGER, LIU, MAY, MYRIE, RAMOS, RIVERA,  SALAZAR,  SANDERS,
   SEPULVEDA,  SERRANO,  STAVISKY  -- read twice and ordered printed, and
   when printed to be committed to the Committee on Local Government
 
 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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05566-01-1

 S. 4199                             2
 
   (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-TWO:
   (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.
   (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.

 S. 4199                             3
 
   (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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