S T A T E O F N E W Y O R K
________________________________________________________________________
6574
2021-2022 Regular Sessions
I N A S S E M B L Y
March 19, 2021
___________
Introduced by M. of A. CRUZ -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the administrative code of the city of New York and the
tax law, in relation to the imposition of tax on the transfer of
certain properties in the city of New York
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "COVID-19
community protection act of 2021".
§ 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 RESIDENTIAL REAL PROPERTY SOLD WITHIN TWO YEARS. A. IN ADDI-
TION 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
TRANSFER WHEREBY ANY PROPERTIES OF ONE TO THREE RESIDENTIAL UNITS ARE
TRANSFERRED BY A GRANTOR TO A GRANTEE, AND SUCH TRANSFER IS MADE WITHIN
TWO YEARS FROM THE PRIOR CONVEYANCE OF THE PROPERTY, INCLUDING BUT NOT
LIMITED TO TRANSFERS WHICH ARE ALL CASH TRANSACTIONS AND TRANSFERS OF
PROPERTY WHICH HAVE BEEN RENTED OUT DURING SUCH TIME PERIOD. THE TAX
WHICH SHALL BE PAID BY THE GRANTOR SHALL BE AT THE RATE OF:
(1) SIXTY-FIVE PERCENT OF THE DIFFERENCE BETWEEN THE CURRENT SALES
PRICE AND THE SALES PRICE OF THE PRIOR CONVEYANCE WHEN THE TIME SINCE
THE PRIOR CONVEYANCE OF THE PROPERTY IS LESS THAN ONE YEAR; AND
(2) FIFTY PERCENT OF THE DIFFERENCE BETWEEN THE CURRENT SALES PRICE
AND THE SALES PRICE OF THE PRIOR CONVEYANCE WHEN THE TIME SINCE THE
PRIOR CONVEYANCE OF THE PROPERTY 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. (1) THE FOLLOWING QUALIFIED PERSONS SHALL BE EXEMPT FROM THE
PAYMENT OF THE TAX IMPOSED BY THIS SECTION:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09896-02-1
A. 6574 2
(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 FOLLOWING 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 TEN PERCENT MORE THAN THE CONSIDERATION OR VALUE OF SUCH PROP-
ERTY CONVEYED AT THE TIME OF THE PRIOR CONVEYANCE OF PROPERTY.
(IV) PROPERTY WHICH WAS CONVEYED TO A MORTGAGEE OR AN AFFILIATE AGENT
THEREOF BY A MORTGAGOR BE DEED IN LIEU OF FORECLOSURE OR IN SATISFACTION
OF THE MORTGAGE DEBT.
(V) PROPERTY WHICH WAS CONVEYED TO A MORTGAGEE OR AN AFFILIATE AGENT
THEREOF PURSUANT TO A FORECLOSURE SALE THAT FOLLOWS A DEFAULT IN THE
SATISFACTION OF AN OBLIGATION THAT IS SECURED BY A MORTGAGE.
(VI) PROPERTY WHICH IS OTHERWISE EXEMPT FROM PAYMENT OF A REAL PROPER-
TY TRANSFER TAX PURSUANT TO THIS CHAPTER.
§ 3. Section 252-a of the tax law is amended by adding a new subdivi-
sion 3 to read as follows:
3. PROPERTY ACQUISITIONS IN THE AMOUNT OF SEVEN HUNDRED FIFTY THOUSAND
DOLLARS OR LESS FOR ONE TO THREE RESIDENTIAL UNITS, INCLUDING ONE TO
THREE FAMILY HOMES AND CONDOMINIUMS, LOCATED WITHIN THE CITY OF NEW YORK
SHALL BE EXEMPT FROM ANY TAX OR FEE IMPOSED BY THIS ARTICLE; PROVIDED,
HOWEVER, THAT THIS EXEMPTION SHALL NOT APPLY TO LEGAL ENTITIES. FOR THE
PURPOSES OF THIS SUBDIVISION, THE TERM "LEGAL ENTITIES" SHALL MEAN BUSI-
NESS TRUSTS, ESTATES, TRUSTS, LIMITED LIABILITY COMPANIES, LIMITED
LIABILITY PARTNERSHIPS, LIMITED LIABILITY INVESTMENT COMPANIES, ASSOCI-
ATIONS, JOINT VENTURES, BUSINESS OR NONPROFIT ENTITIES, PUBLIC CORPO-
RATIONS, GOVERNMENT OR GOVERNMENTAL SUBDIVISIONS, AGENCIES, INSTRUMEN-
TALITIES, OR OTHER LEGAL OR COMMERCIAL ENTITIES.
§ 4. The administrative code of the city of New York is amended by
adding a new section 11-2121 to read as follows:
§ 11-2121 IMPOSITION OF TAX ON CERTAIN PROPERTIES. 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 PROPERTIES OF ONE TO THREE RESIDENTIAL UNITS, INCLUDING ONE
TO THREE FAMILY HOMES, CONDOMINIUMS OR COOPERATIVE UNITS, ARE TRANS-
FERRED BY A GRANTOR TO A GRANTEE FOR A SALES PRICE OF ONE MILLION
DOLLARS OR MORE. THE TAX, WHICH SHALL BE PAID BY THE GRANTEE, SHALL BE
AT THE RATE OF ONE PERCENT OF THE PURCHASE PRICE.
§ 5. Severability. If any clause, sentence, paragraph, section or part
of this act shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not affect, impair or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, section or part thereof directly involved in the
controversy in which such judgment shall have been rendered.
§ 6. This act shall take effect on the ninetieth day after it shall
have become a law.