Legislation

* § 1351. Definitions. As used in this article, the following terms
shall have the following meanings:

(a) "Administrative code" means the administrative code of the city of
New York.

(b) "Class one property" means class one, as such class of property is
defined in section eighteen hundred two of the real property tax law,
other than such property described in subparagraph (c) of such
definition.

(c) "Class two property" means class two, as such class of property is
defined in section eighteen hundred two of the real property tax law.

(d) "Covered owner" means:

(1) an owner or owners of real property classified as class one
property;

(2) a tenant-stockholder of a cooperative corporation whose interest
in a portion of real property held by such corporation is represented by
shares of stock in such corporation;

(3) an owner or owners of a residential condominium dwelling unit;

(4) where real property classified as class one or a residential
condominium dwelling unit is held, or shares of stock in a cooperative
corporation are held, in trust, a beneficial owner or owners of such
trust, provided that such beneficial owner or owners are the sole
beneficiaries of such trust; or

(5) where real property classified as class one or a residential
condominium dwelling unit is held, or shares of stock in a cooperative
corporation are held, by a partnership, corporation or limited liability
company, a partner or partners, shareholder or shareholders or member or
members of such partnership, corporation, or limited liability company,
respectively, provided that such partner or partners, shareholder or
shareholders, or member or members hold a majority interest in such
partnership, corporation or limited liability company respectively.

(e) "Covered property" means real property, other than excluded
property, classified as:

(1) class one property, other than vacant land;

(2) class two property that is a residential cooperative property in
which at least one residential cooperative dwelling unit: (A) has a
phase one market value equal to or greater than one million dollars or
phase two market value equal to or greater than five million dollars;
and (B) is not a primary residence; and

(3) class two property that is a residential condominium dwelling
unit.

(f) "Department of finance" means the department of finance in a city
having a population of one million or more.

(g) "Excluded property" means a class one or class two property:

(1) for which a temporary or permanent certificate of occupancy is
required and has not yet been issued; or

(2) a residential condominium dwelling unit or residential cooperative
dwelling unit that is subject to an offering plan required by section
three hundred fifty-two-e of the general business law and such unit has
not been sold, or an economic interest in such unit has not been
transferred, by the person, partnership, corporation, company, trust or
association who has filed such plan.

(h) "Imputed cooperative phase one market value" means the market
value of a residential cooperative dwelling unit in a residential
cooperative property, calculated as the product of:

(1) the market value of such residential cooperative property as
determined by the department of finance pursuant to chapter fifty-eight
of the New York city charter for the fiscal year in which the surcharge
described in this article is imposed; and

(2) the quotient of (A) the shares in a cooperative corporation
representing an interest in such residential cooperative dwelling unit;
divided by (B) the total shares of stock in such cooperative
corporation.

(i) "Notice of surcharge" means a notice issued by the department of
finance to an owner indicating that a covered property, or, in the case
of a residential cooperative property, a residential cooperative
dwelling unit, is, or may be, subject to the surcharge authorized by
this article, including the phase one market value or phase two market
value, as applicable, of such covered property or residential
cooperative dwelling unit and a determination by the department of
finance that such covered property or residential cooperative dwelling
unit is not a primary residence.

(j) "Owner" means:

(1) an owner or owners of real property classified as class one
property;

(2) a tenant-stockholder of a cooperative corporation whose interest
in a portion of real property held by such corporation is represented by
shares of stock in such corporation, or such corporation; or

(3) an owner or owners of a residential condominium dwelling unit.

(k) "Phase one market value" means:

(1) for a class one property, the market value of a covered property
as determined by the department of finance pursuant to chapter
fifty-eight of the New York city charter for the fiscal year in which
the surcharge described in this article is imposed;

(2) for a class two property that is a residential condominium
dwelling unit, the market value of such residential condominium dwelling
unit as determined by the department of finance pursuant to chapter
fifty-eight of the New York city charter for the fiscal year in which
the surcharge described in this article is imposed; and

(3) for a class two property that is a residential cooperative
property, the imputed cooperative phase one market value for any
residential cooperative dwelling unit in such residential cooperative
property.

(l) "Phase two market value" means:

(1) for a class one property, the market value of a covered property
as determined by the department of finance pursuant to chapter
fifty-eight of the New York city charter for the fiscal year in which
the surcharge described in this article is imposed;

(2) for a class two property that is a residential condominium
dwelling unit, the market value of such residential condominium dwelling
unit, as determined by the department of finance pursuant to chapter
fifty-eight of the New York city charter for the fiscal year in which
the surcharge described in this article is imposed, provided that such
market value shall be determined using a method that considers sales of
comparable residential condominium dwelling units or comparable
residential cooperative dwelling units without regard to the
restrictions described in section five hundred eighty-one of the real
property tax law or section three hundred thirty-nine-y of the real
property law; and

(3) for a class two property that is a residential cooperative
property, the market value of any residential cooperative dwelling unit
in such residential cooperative property, as determined by the
department of finance pursuant to chapter fifty-eight of the New York
city charter for the fiscal year in which the surcharge described in
this article is imposed, provided that such market value shall be
determined using a method that considers sales of comparable residential
cooperative dwelling units or comparable residential condominium
dwelling units without regard to the restrictions found in section five
hundred eighty-one of the real property tax law.

(m) "Primary residence" means the use of a covered property, or, in
the case of a residential cooperative property, a residential
cooperative dwelling unit, as of the taxable status date immediately
preceding the fiscal year in which the surcharge described by this
article is imposed, as a primary residence of (1) one or more of the
covered owners, or an immediate family member of one or more of the
covered owners, provided such covered owners are natural persons; or (2)
one or more lessees, and any sub-lessees to which a lessee has sublet
the covered property or residential cooperative dwelling unit pursuant
to subdivision two of section two hundred twenty-six-b of the real
property law, provided any such lessee or sub-lessee is a natural person
occupying such covered property or residential cooperative dwelling unit
pursuant to a bona fide lease agreement negotiated in an arms-length
transaction with a term of not less than one year. For purposes of this
article, the phrase "immediate family member" means a spouse, child,
sibling, parent, grandparent, or grandchild.

(n) "Residential condominium dwelling unit" means a unit, as defined
in section three hundred thirty-nine-e of the real property law, held in
a condominium form of ownership and used as residential real property,
other than: (1) such a unit that is residential cooperative property; or
(2) such a unit that includes more than three dwelling units and all
such dwelling units are held by the same owner, except where the
department of finance determines that a unit has been divided into more
than three units to avoid application of the surcharge.

(o) "Residential cooperative dwelling unit" means a dwelling unit in
real property held by a cooperative corporation where an owner is a
tenant-stockholder of such cooperative corporation and such dwelling
unit is used as residential real property.

(p) "Residential cooperative property" means real property owned or
leased by a cooperative corporation and that contains one or more
residential cooperative dwelling units.

(q) "Taxable status date" means the January fifth immediately
preceding the fiscal year in which the surcharge is imposed pursuant to
this article.

* NB Repealed June 30, 2031