Senate Bill S9867

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9867
 
                             I N  S E N A T E
 
                               April 9, 2026
                                ___________
 
 Introduced  by Sen. BOTTCHER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to enacting the "teardown tax act"
 
   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 "teardown tax act".
   § 2. The administrative code of the city of New  York  is  amended  by
 adding a new section 28-112.14 to read as follows:
   §  28-112.14  DWELLING  UNIT  REMOVAL SURCHARGE ON CERTAIN RESIDENTIAL
 PROPERTY. 1. A DWELLING UNIT REMOVAL SURCHARGE IS HEREBY IMPOSED ON  THE
 ISSUANCE  OF ANY PERMIT FOR DEMOLITION OR ALTERATION THAT REMOVES ONE OR
 MORE DWELLING UNITS FROM  THE  RESIDENTIAL  HOUSING  MARKET,  EXCEPT  AS
 OTHERWISE  PROVIDED  BY SUBDIVISION FOUR OF THIS SECTION. SUCH SURCHARGE
 SHALL BE TEN THOUSAND DOLLARS PER DWELLING UNIT REMOVED FROM  THE  RESI-
 DENTIAL HOUSING MARKET AS A RESULT OF SUCH DEMOLITION OR ALTERATION.
   2.  PRIOR  TO  ANY ISSUANCE OF A PERMIT FOR DEMOLITION OF ANY DWELLING
 UNIT, THE DEPARTMENT SHALL DETERMINE WHETHER THE  SURCHARGE  IMPOSED  BY
 SUBDIVISION  ONE OF THIS SECTION SHALL BE ASSESSED. WHERE THE DEPARTMENT
 DETERMINES THAT SUCH SURCHARGE SHALL BE ASSESSED,  THE  APPLICANT  SHALL
 PAY  TO  THE  DEPARTMENT  OF  FINANCE  AN  AMOUNT EQUAL TO THE SURCHARGE
 REQUIRED UNDER SUBDIVISION ONE OF THIS SECTION. NO PERMIT FOR DEMOLITION
 OF ANY DWELLING UNIT SUBJECT TO SUCH SURCHARGE SHALL BE  ISSUED  BY  THE
 DEPARTMENT  UNTIL:    (A)  THE  APPLICANT  FOR  SUCH PERMIT PROVIDES THE
 DEPARTMENT WITH A COPY OF THE RECEIPT OF PAYMENT ISSUED BY  THE  DEPART-
 MENT  OF  FINANCE SHOWING THAT SUCH SURCHARGE HAS BEEN PAID; AND (B) THE
 DEPARTMENT OF FINANCE PROVIDES WRITTEN NOTIFICATION OF SUCH FACT TO  THE
 DEPARTMENT.
   3.  PRIOR TO ANY ISSUANCE OF A PERMIT FOR THE ALTERATION OF ANY DWELL-
 ING UNIT, THE DEPARTMENT SHALL DETERMINE WHETHER THE PROPOSED ALTERATION
 WOULD RESULT IN THE REMOVAL OF A  DWELLING  UNIT  FROM  THE  RESIDENTIAL
 HOUSING  MARKET.  WHERE  THE  DEPARTMENT DETERMINES THAT SUCH ALTERATION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15389-04-6
 S. 9867                             2
 
 WOULD RESULT IN THE REMOVAL OF A  DWELLING  UNIT  FROM  THE  RESIDENTIAL
 HOUSING  MARKET, THE SURCHARGE IMPOSED BY SUBDIVISION ONE SHALL APPLY TO
 SUCH PERMIT AND BE PAYABLE IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVI-
 SION TWO OF THIS SECTION.
   4. THE SURCHARGE REQUIRED UNDER THIS SECTION SHALL NOT APPLY TO:
   (A) RESIDENTIAL DEVELOPMENTS THAT RESULT IN A NET INCREASE OF DWELLING
 UNITS;
   (B)  DEMOLITIONS  ORDERED BY A GOVERNMENT AGENCY OR COURT OF COMPETENT
 JURISDICTION DUE TO UNSAFE OR HAZARDOUS CONDITIONS;
   (C) THE DEVELOPMENT OF PUBLIC HOUSING BY THE  NEW  YORK  CITY  HOUSING
 AUTHORITY  OR  AFFORDABLE  HOUSING,  AS  SUCH TERM IS DEFINED BY SECTION
 26-2101 OF THIS CODE, AS ADDED BY LOCAL LAW ONE  HUNDRED  THIRTY-TWO  OF
 THE LAWS OF TWO THOUSAND EIGHTEEN; AND
   (D)  ANY  ADDITIONAL  EXEMPTIONS  PROMULGATED  BY  THE  DEPARTMENT AND
 CONSISTENT WITH THE PURPOSES OF THIS SECTION.
   5. THE DEPARTMENT SHALL HAVE, IN  ADDITION  TO  ANY  OTHER  FUNCTIONS,
 POWERS  AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED ON IT BY LAW, THE
 POWER TO MAKE AND PROMULGATE RULES TO CARRY OUT  THE  PURPOSES  OF  THIS
 SECTION.    SUCH  RULES SHALL INCLUDE, BUT NOT BE LIMITED TO, PROCEDURES
 FOR THE DEPARTMENT TO (A) MAKE A DETERMINATION AS TO WHETHER A  PROPOSED
 DEMOLITION  OR ALTERATION WILL RESULT IN A LOSS OF DWELLING UNITS IN THE
 RESIDENTIAL HOUSING MARKET AND (B) REQUIRE THAT THE APPROVAL OF A  DEMO-
 LITION  OR  ALTERATION  PERMIT  BE  CONDITIONED  UPON THE PAYMENT OF THE
 SURCHARGE IF SUCH PROPOSED DEMOLITION OR ALTERATION WOULD RESULT IN SUCH
 LOSS.
   6. ALL REVENUES GENERATED BY THE SURCHARGE SHALL BE TRANSFERRED TO THE
 LANDMARKS PRESERVATION COMMISSION, ESTABLISHED UNDER  CHAPTER  THREE  OF
 TITLE  TWENTY-FIVE OF THIS CODE, FOR THE PURPOSE OF ADMINISTERING GRANTS
 UNDER SUCH COMMISSION'S HISTORIC PRESERVATION GRANT PROGRAM.
   7. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  THE  TERMS "DWELLING UNIT REMOVAL SURCHARGE" OR "SURCHARGE" SHALL
 MEAN THE DWELLING UNIT REMOVAL PERMIT SURCHARGE ESTABLISHED UNDER SUBDI-
 VISION ONE OF THIS SECTION.
   (B) THE TERM "DWELLING UNIT" SHALL HAVE THE SAME MEANING AS SUCH  TERM
 IS DEFINED BY SECTION 27-2004 OF THIS CODE.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.