Assembly Bill A4074

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4074
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 31, 2025
                                ___________
 
 Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to imposing an additional  real
   estate  transfer  tax  on  conveyances  of single-family residences by
   specified large investors

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new section 1403 to read
 as follows:
   §  1403.  ADDITIONAL TAX ON CONVEYANCES OF SINGLE-FAMILY RESIDENCES BY
 SPECIFIED LARGE INVESTORS. (A) WHEN USED IN THIS SECTION, THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "SPECIFIED LARGE INVESTOR":
   (A) MEANS ANY PERSON FOR ANY TAXABLE YEAR IF THE AGGREGATE FAIR MARKET
 VALUE  OF  ALL  ASSETS OF SUCH PERSON, REDUCED BY THE AGGREGATE DEBTS OF
 THE TAXPAYER, EXCEEDS ONE HUNDRED MILLION DOLLARS  AT  ANY  TIME  DURING
 SUCH TAXABLE YEAR; AND
   (B)  SHALL NOT INCLUDE GOVERNMENT ENTITIES OR CHARITABLE CORPORATIONS,
 AS DEFINED BY SUBPARAGRAPH THREE-A  OF  PARAGRAPH  (A)  OF  SECTION  ONE
 HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW.
   (2)  "SINGLE-FAMILY  RESIDENCE"  MEANS REAL PROPERTY THAT IS OR MAY BE
 USED IN WHOLE OR IN PART AS A PERSONAL RESIDENCE, AND THAT  INCLUDES  AT
 LEAST ONE, BUT NO MORE THAN FOUR, DWELLING UNITS.
   (B) IN ADDITION TO THE TAXES IMPOSED BY SECTIONS FOURTEEN HUNDRED TWO,
 FOURTEEN HUNDRED TWO-A AND FOURTEEN HUNDRED TWO-B OF THIS ARTICLE, A TAX
 IS  HEREBY  IMPOSED  ON  EACH CONVEYANCE OF A SINGLE-FAMILY RESIDENCE OR
 INTEREST THEREIN BY A SPECIFIED LARGE INVESTOR. THE  RATE  OF  SUCH  TAX
 SHALL BE EQUAL TO THE CONSIDERATION OR PART THEREOF ATTRIBUTABLE TO SUCH
 SINGLE-FAMILY  RESIDENCE. SUCH TAX SHALL BE PAID AT THE SAME TIME AND IN
 THE SAME MANNER AS THE TAXES IMPOSED BY SECTIONS FOURTEEN  HUNDRED  TWO,
 FOURTEEN HUNDRED TWO-A AND FOURTEEN HUNDRED TWO-B OF THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06534-01-5
              

 A. 4074                             2
 
   (C) THE TAX IMPOSED BY SUBDIVISION (B) OF THIS SECTION SHALL NOT APPLY
 TO:
   (1)  IN  THE  CASE OF A SPECIFIED LARGE INVESTOR WHO IS AN INDIVIDUAL,
 ANY SINGLE-FAMILY RESIDENCE THAT IS USED AS THE PRINCIPAL  RESIDENCE  OF
 SUCH INVESTOR; AND
   (2) SINGLE-FAMILY RESIDENCES ORIGINALLY CONSTRUCTED BY THE TAXPAYER.
   (D) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF SECTION FOUR-
 TEEN  HUNDRED  FOUR  OF THIS ARTICLE, THE ADDITIONAL TAX IMPOSED BY THIS
 SECTION SHALL BE PAID BY THE GRANTEE. IF THE GRANTEE HAS FAILED  TO  PAY
 THE TAX IMPOSED BY THIS ARTICLE AT THE TIME REQUIRED BY SECTION FOURTEEN
 HUNDRED  TEN  OF THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX,
 THE GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE  THE  GRANTOR  HAS
 THE  DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY, SUCH TAX
 SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR AND THE GRANTEE.
   (E) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL  THE  PROVISIONS
 OF  THIS  ARTICLE  RELATING  TO  OR  APPLICABLE  TO  THE ADMINISTRATION,
 COLLECTION, DETERMINATION AND DISTRIBUTION OF THE TAX IMPOSED BY SECTION
 FOURTEEN HUNDRED TWO OF THIS ARTICLE SHALL  APPLY  TO  THE  TAX  IMPOSED
 UNDER  THE  AUTHORITY  OF THIS SECTION WITH SUCH MODIFICATIONS AS MAY BE
 NECESSARY TO  ADAPT  SUCH  LANGUAGE  TO  THE  TAX  SO  AUTHORIZED.  SUCH
 PROVISIONS  SHALL  APPLY  WITH  THE  SAME  FORCE  AND EFFECT AS IF THOSE
 PROVISIONS HAD BEEN SET FORTH IN THIS SECTION EXCEPT TO THE EXTENT  THAT
 ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR
 NOT RELEVANT TO THE TAX AUTHORIZED BY THIS SECTION.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2027.