Assembly Bill A1023A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1023--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2023
                                ___________
 
 Introduced by M. of A. CRUZ, MITAYNES, MAMDANI, GALLAGHER, REYES, SIMON,
   EPSTEIN,  L. ROSENTHAL, RAGA, ARDILA, WALKER, FORREST -- read once and
   referred to the Committee on Ways and  Means  --  recommitted  to  the
   Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  the imposition of tax on the transfer of certain proper-
   ties 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 "end toxic
 home flipping act".
   § 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00494-04-4
              

 A. 1023--A                          2
 
   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:
   (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. 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.
   § 4. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.