Assembly Bill A342

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    342
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced by M. of A. CRUZ, MITAYNES, MAMDANI, GALLAGHER, REYES, SIMON,
   EPSTEIN, ROSENTHAL, RAGA, WALKER, FORREST -- 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 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.
   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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00739-01-5
 A. 342                              2
 
   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.