Senate Bill S10197

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10197
 
                             I N  S E N A T E
 
                                May 5, 2026
                                ___________
 
 Introduced  by  Sen.  FAHY  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law, in  relation  to  authorizing
   certain  municipalities to impose a tax on certain high-value non-pri-
   mary residences
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  municipal  law  is  amended by adding a new
 section 3-d to read as follows:
   § 3-D. AUTHORIZATION TO IMPOSE A TAX ON CERTAIN HIGH-VALUE NON-PRIMARY
 RESIDENCES. 1. DEFINITIONS. FOR PURPOSES OF THIS SECTION  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "MUNICIPALITY"  MEANS  ANY CITY, TOWN, OR VILLAGE LOCATED OUTSIDE
 THE CITY OF NEW YORK.
   (B) "COVERED PROPERTY" MEANS REAL PROPERTY:
   (I) CLASSIFIED AS A ONE-FAMILY, TWO-FAMILY, OR  THREE-FAMILY  RESIDEN-
 TIAL PROPERTY;
   (II)  HAVING A FIVE-YEAR AVERAGE MARKET VALUE EQUAL TO OR GREATER THAN
 THE APPLICABLE THRESHOLD ESTABLISHED BY LOCAL LAW PURSUANT  TO  SUBDIVI-
 SION TWO OF THIS SECTION; AND
   (III) THAT:
   (A) IS NOT THE PRIMARY RESIDENCE OF ITS OWNER;
   (B)  IS  NOT LEASED OR RENTED TO A PERSON USING SUCH PROPERTY AS THEIR
 PRIMARY RESIDENCE; AND
   (C) IS NOT OCCUPIED AS A PRIMARY RESIDENCE BY A MEMBER OF THE  OWNER'S
 FAMILY.
   (C)  "PRIMARY  RESIDENCE" SHALL MEAN THE DWELLING UNIT WHERE A NATURAL
 PERSON RESIDES FOR THE MAJORITY OF THE CALENDAR YEAR AND WHICH IS DESIG-
 NATED AS SUCH FOR INCOME TAX PURPOSES.
   (D) "OWNER" SHALL MEAN ANY INDIVIDUAL OR ENTITY HOLDING LEGAL TITLE TO
 THE PROPERTY; PROVIDED, HOWEVER, THAT  ELIGIBILITY  FOR  TAXATION  UNDER
 THIS  SECTION SHALL REQUIRE THAT AT LEAST ONE BENEFICIAL OWNER MAINTAINS
 A PRIMARY RESIDENCE OUTSIDE THE MUNICIPALITY IN WHICH THE COVERED  PROP-
 ERTY IS LOCATED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15735-02-6
 S. 10197                            2
 
   (E)  "FIVE-YEAR  AVERAGE  MARKET  VALUE" SHALL MEAN THE AVERAGE OF THE
 FULL MARKET VALUE OF A PROPERTY AS DETERMINED  FOR  ASSESSMENT  PURPOSES
 OVER THE PRECEDING FIVE ASSESSMENT ROLLS.
   2.  AUTHORIZATION. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY
 MUNICIPALITY IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL
 LAWS IMPOSING A TAX ON COVERED PROPERTIES  WITHIN  ITS  JURISDICTION  IN
 ACCORDANCE WITH THIS SECTION.
   (B) (I) ANY MUNICIPALITY ADOPTING A LOCAL LAW PURSUANT TO THIS SECTION
 SHALL  ESTABLISH  A MINIMUM MARKET VALUE THRESHOLD FOR THE APPLICABILITY
 OF THE TAX AUTHORIZED HEREIN.
   (II) SUCH THRESHOLD SHALL NOT BE LESS THAN TWO  MILLION  FIVE  HUNDRED
 THOUSAND  DOLLARS  AND  SHALL NOT EXCEED FIVE MILLION DOLLARS, AS DETER-
 MINED BY LOCAL LAW.
   (III) A MUNICIPALITY MAY,  BY  LOCAL  LAW,  PERIODICALLY  ADJUST  SUCH
 THRESHOLD WITHIN THE RANGE AUTHORIZED BY THIS SUBDIVISION.
   3.  RATE OF TAX. (A) A TAX IMPOSED UNDER THIS SECTION SHALL BE IMPOSED
 ANNUALLY AT A RATE NOT LESS THAN ONE-HALF OF ONE PERCENT  AND  NOT  MORE
 THAN FOUR PERCENT.
   (B) A MUNICIPALITY MAY ESTABLISH A GRADUATED RATE SCHEDULE WITHIN SUCH
 MINIMUM AND MAXIMUM RATES UNDER PARAGRAPH (A) OF THIS SUBDIVISION.
   4.  ADMINISTRATION  AND  ENFORCEMENT.  (A)  THE TAX AUTHORIZED BY THIS
 SECTION SHALL BE IMPOSED, ADMINISTERED, COLLECTED, AND ENFORCED  IN  THE
 SAME  MANNER  AS REAL PROPERTY TAXES OR OTHER LOCAL TAXES, UNLESS OTHER-
 WISE PROVIDED BY LOCAL LAW.
   (B) THE DEPARTMENT OF TAXATION AND FINANCE IS  HEREBY  AUTHORIZED  AND
 DIRECTED,  UPON  REQUEST  OF ANY MUNICIPALITY IMPOSING A TAX PURSUANT TO
 THIS SECTION, TO PROVIDE SUCH ASSISTANCE AS MAY BE NECESSARY TO IDENTIFY
 WHETHER A PROPERTY CONSTITUTES A PRIMARY RESIDENCE FOR PURPOSES OF  THIS
 SECTION.
   (C) A MUNICIPALITY MAY REQUIRE ANNUAL FILINGS, CERTIFICATIONS OF RESI-
 DENCY  STATUS,  AND  SUCH  OTHER DOCUMENTATION AS NECESSARY TO DETERMINE
 APPLICABILITY FOR TAXATION UNDER THIS SECTION.
   5. REVENUE DISTRIBUTION. (A) FIFTY PERCENT OF ALL  REVENUES  COLLECTED
 PURSUANT  TO A LOCAL LAW AUTHORIZED BY THIS SECTION SHALL BE RETAINED BY
 THE MUNICIPALITY IMPOSING SUCH LOCAL LAW.
   (B) FIFTY PERCENT OF ALL REVENUES COLLECTED PURSUANT TO  A  LOCAL  LAW
 AUTHORIZED  BY  THIS  SECTION SHALL BE REMITTED TO THE STATE COMPTROLLER
 FOR DEPOSIT INTO THE  AID  AND  INCENTIVES  FOR  MUNICIPALITIES  PROGRAM
 PURSUANT TO THE PUBLIC PROTECTION AND GENERAL GOVERNMENT BUDGET, OR SUCH
 SUCCESSOR FUND OR PROGRAM AS MAY BE ESTABLISHED BY LAW, TO SUPPORT LOCAL
 GOVERNMENTS HAVING A POPULATION OF LESS THAN ONE MILLION.
   6.  SEVERABILITY.  IF ANY CLAUSE, SENTENCE, PARAGRAPH, OR PART OF THIS
 SECTION SHALL BE FOUND UNLAWFUL, SUCH  JUDGMENT  SHALL  NOT  AFFECT  THE
 REMAINDER THEREOF.
   § 2. This act shall take effect immediately.