The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2638
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 26, 2023
                                ___________
 
 Introduced  by  M.  of  A.  DILAN,  CRUZ, EPSTEIN, WALKER, REYES, GLICK,
   WILLIAMS, HYNDMAN -- Multi-Sponsored by -- M. of  A.  COOK,  SIMON  --
   read once and referred to the Committee on Ways and Means
 
 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  two
   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. Short title. This act shall be known and may  be  cited  as
 the "New York state small home anti-speculation act".
   §  2.  Section  11-2101  of the administrative code of the city of New
 York is amended by adding six new subdivisions 19, 20, 21, 22, 23 and 24
 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.
   23.  "QUALIFIED PERSONS." QUALIFIED PERSONS SHALL NOT INCLUDE BUSINESS
 TRUSTS, ESTATES, TRUSTS, LIMITED LIABILITY COMPANIES, LIMITED  LIABILITY
 PARTNERSHIPS,  LIMITED  LIABILITY  INVESTMENT  COMPANIES,  ASSOCIATIONS,
 JOINT VENTURES, BUSINESS OR  NONPROFIT  ENTITIES,  PUBLIC  CORPORATIONS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03178-01-3
 A. 2638                             2

 
 GOVERNMENT OR GOVERNMENTAL SUBDIVISIONS, AGENCIES, INSTRUMENTALITIES, OR
 OTHER LEGAL OR COMMERCIAL ENTITIES.
   24. "MORTGAGEE." THE HOLDER OF A MORTGAGE AND/OR NOTE SECURED BY RESI-
 DENTIAL  REAL  PROPERTY,  INCLUDING,  AS APPLICABLE, THE ORIGINAL LENDER
 UNDER A MORTGAGE, ITS SUCCESSORS AND ASSIGNS, AND THE HOLDERS OF  CREDIT
 INSTRUMENTS  ISSUED  UNDER  A TRUST INDENTURE, MORTGAGE OR DEED OF TRUST
 PURSUANT TO WHICH SUCH HOLDERS ACT BY  AND  THROUGH  A  TRUSTEE  THEREIN
 NAMED.
   §  3.  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 SPECULATION 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 PROPERTIES OF ONE TO FIVE SEPARATE 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 TWO-YEAR PERIOD. THE TAX, WHICH
 SHALL BE PAID BY THE GRANTOR, SHALL BE AT THE RATE OF:
   (1) TWENTY PERCENT WHEN THE TIME SINCE THE  PRIOR  CONVEYANCE  OF  THE
 PROPERTY IS LESS THAN ONE YEAR; AND
   (2)  FIFTEEN  PERCENT  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.  ALL  REVENUES  RESULTING FROM THE IMPOSITION OF THE TAX UNDER THIS
 SECTION SHALL BE DEPOSITED INTO A SPECIAL ACCOUNT BY THE COMMISSIONER OF
 FINANCE. MONEYS IN SUCH ACCOUNT SHALL BE USED BY NEW  YORK  STATE  HOMES
 AND COMMUNITY RENEWAL THROUGH THE AFFORDABLE HOUSING CORPORATION AND THE
 NEIGHBORHOOD  PRESERVATION  PROGRAM  FOR  AFFORDABLE HOUSING PURPOSES IN
 CITIES OF ONE MILLION OR MORE.
   D. (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 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 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.
   § 4. 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.