Legislation

* § 1354. Administration of surcharge. (a) The department of finance
shall add the surcharge authorized by this article to the statement of
account of a covered property. In the case of a residential cooperative
property, the department of finance shall add to the statement of
account of such residential cooperative property the sum of any
surcharges authorized by this article for each residential cooperative
dwelling unit in such residential cooperative property where such
dwelling unit: (1) has a phase one or phase two market value equal to,
or greater than, the threshold provided in section thirteen hundred
fifty of this article; and (2) does not serve as a primary residence.
Such surcharge shall be due and payable in the same manner as real
property taxes are due and payable pursuant to section fifteen hundred
nineteen-a of the New York city charter. The department of finance shall
administer and enforce this surcharge, to the greatest extent
practicable not inconsistent with this section, in the same manner used
to administer and enforce real property taxes, except that any
abatement, credit or exemption authorized by law shall not apply to such
surcharge.

(b) Notwithstanding subsection (a) of this section, any surcharge
imposed on a covered property in the fiscal year commencing on July
first, two thousand twenty-six, shall be due and payable on the same
date as the second semi-annual installment of real property taxes is
due, as described in section fifteen hundred nineteen-a of the charter
of the city of New York.

(c) Notwithstanding any provision of law to the contrary, where the
department of finance adds the sum of any surcharges authorized by this
article for a residential cooperative dwelling unit pursuant to
subdivision (a) of this section to the statement of account of a
residential cooperative property, each such surcharge shall be collected
by the cooperative corporation from the tenant-stockholder of such
cooperative corporation whose interest in each such residential
cooperative dwelling unit is represented by shares of stock in such
corporation.

(d) Notwithstanding any provision of law to the contrary, the
surcharge imposed on a covered property pursuant to this article shall
be separate and distinct from any other tax levied on real property. Any
revenue collected as a result of the imposition of this surcharge shall
not be included in the calculation of the tax levy for purposes of
determining class shares pursuant to article eighteen of the real
property tax law, shall not be subject to apportionment among classes of
real property, and shall not be considered when establishing tax rates
for any class of property. Such revenue shall be considered receipts
other than taxes on real property for the purposes of section fifteen
hundred fifteen of the New York city charter.

(e) The department of finance may promulgate any rules:

(1) necessary to implement this article, including, but not limited
to, rules:

(A) to address a change in ownership of a covered property or a
residential cooperative dwelling unit, or illness or death of an owner
of a covered property or residential cooperative dwelling unit;

(B) to authorize persons other than a covered owner to submit proof of
primary residency on behalf of a covered owner;

(C) relating to requirements for provision of notice of surcharge; or

(D) to establish when a sale of a residential condominium dwelling
unit, or a transfer of an economic interest in a residential cooperative
dwelling unit, has occurred for purposes of paragraph two of subdivision
(g) of section thirteen hundred fifty-one of this article.

(2) to establish penalties not exceeding fifty percent of the
surcharge imposed on a covered property by this article if, after notice
and a hearing, the department of finance determines that:

(A) any certification or documentation submitted to the department of
finance contains inaccurate or misleading information that: (i) is
material to the determination of the imposition of such surcharge,
including a determination relating to primary residence; and (ii) was
submitted negligently or in bad faith; or

(B) a covered property that is a residential condominium unit has been
divided into more than three units to avoid application of such
surcharge and the owner of such covered property has made such division
in bad faith.

(f) The department of finance may enforce and collect any penalty
imposed pursuant to the authority set forth in subsection (e) of this
section in the same manner as the department of finance enforces and
collects the surcharge authorized by this article.

(g) The commissioner of the department of finance may subpoena and
require the attendance of witnesses and the production of books, papers
and documents to secure information pertinent to the determination of
the surcharge, including a determination relating to primary residence.

* NB Repealed June 30, 2031