Establishes a tax on certain vacant land in the city of New York; provides exemptions for certain vacant land; establishes a tax credit for certain renovations to certain rent-stabilized properties.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9565
SPONSOR: Bores
 
TITLE OF BILL:
An act to amend the tax law, in relation to requiring any city having a
population of one million or more to impose and collect taxes on certain
vacant land; and to amend the real property tax law, in relation to
establishing a tax credit for certain renovations to rent-stabilized
properties
 
PURPOSE OR GENERAL IDEA OF BILL:
To tax certain vacant land at its market-rate value
 
SUMMARY OF PROVISIONS:
Section one of the bill provides the name of the bill.
Section two of the bill adds a new subdivision F to section 1201 of the
state tax law. Subdivision F taxes vacant land at full market value,
provides qualifications and penalties, directs the funds raised through
this tax to the treasury of the taxing city for the creation of tax
credits for renovation.
Section three adds a new subdivision P to section 421 of state real
property tax law to address the specifications of the tax credit created
by section two.
Section four provides the effective date.
 
JUSTIFICATION:
One of the worst-kept secrets in New York City is that land is never
taxed at market value - and that's a good thing. Housing in New York
City is incredibly expensive as it is, and the last thing New Yorker's
need is a rent increase. While this policy is sensible when taxing occu-
pied units, it's egregious when discussing unoccupied land. Unoccupied
land contributes to New York City's existential housing crisis, and
taxing this land below market value provides a subsidy not to build.
Taxing vacant land that does nothing to improve New York City would
raise around 800 million dollars in tax revenue while also incentivizing
further construction. If this legislation does have the intended effect
of increasing housing for New Yorkers, it will further grow the tax
base, leading to a further increase in revenue. There is no sense in New
York subsidizing empty holes in the ground where people could be living
and this bill would end that misguided policy.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None for the state
 
EFFECTIVE DATE:
90 days after the passage of this act.
STATE OF NEW YORK
________________________________________________________________________
9565
IN ASSEMBLY
March 20, 2024
___________
Introduced by M. of A. BORES -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to requiring any city having a
population of one million or more to impose and collect taxes on
certain vacant land; and to amend the real property tax law, in
relation to establishing a tax credit for certain renovations to rent-
stabilized properties
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "repairs to apartments act".
3 § 2. The tax law is amended by adding a new section 1201-f to read as
4 follows:
5 § 1201-f. Vacant land tax. (a) Notwithstanding any other provision of
6 law to the contrary, in any city having a population of one million or
7 more, the property taxes on property that is zoned as residential zoned
8 class one or commercially zoned class four which has been vacant for a
9 period of not less than one hundred eighty days, unless a building
10 permit has been issued for such vacant land, shall be taxed based on a
11 full market value assessment.
12 (b) Any such local law may provide for exclusions or exemptions from
13 such tax other than those specified in this section.
14 (c) In the case of a willfully false or fraudulent return with intent
15 to evade the tax, an additional fee of two percent of the market value
16 of the property shall be imposed.
17 (d) Revenues resulting from the imposition of tax authorized by this
18 section shall be paid into the treasury of any such city and shall be
19 credited to and deposited in the general fund of any such city for the
20 purpose of the creation of:
21 (i) a tax credit for rent-stabilized properties within such city which
22 undergo certain renovations pursuant to section four hundred
23 twenty-one-p of the real property tax law; and
24 (ii) insofar as revenues exceed the amount spent on the tax credit
25 pursuant to paragraph (i) of this subdivision, for a program or programs
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13178-06-4
A. 9565 2
1 to encourage development of vacant properties. Such program may take the
2 form of a tax break, direct subsidy, or other mechanism that such city
3 may define in local law.
4 § 3. The real property tax law is amended by adding a new section
5 421-p to read as follows:
6 § 421-p. Rent-stabilized unit and building renovation tax credit. 1.
7 An owner of real property in a city with a population of one million or
8 more may be eligible for a tax credit for renovations that are required
9 to be made to the property to get the property up to city-level or
10 state-level building code or housing requirements when such renovations
11 are entirely contained within a rent regulated unit or, when at least
12 fifty percent of the units within such real property are rent regulated
13 units, or when such renovations are to the common areas or infrastruc-
14 ture of the property itself (such as elevator repairs or installation or
15 heating, cooling, plumbing or electrical work).
16 2. The amount of such credit shall be determined by the department of
17 finance within such city and may be up to one hundred percent of the
18 total cost of the renovations; provided, however, that such determi-
19 nation shall be based upon the previous year's vacancy and vacant land
20 tax receipts pursuant to section twelve hundred one-f of the tax law.
21 3. Applications for such tax credit shall be processed by the depart-
22 ment of housing preservation and development of the city of New York.
23 4. In the case of a fraudulent claim of renovations, there shall be
24 assessed a fee of ten percent of the unit market value of such real
25 property.
26 § 4. This act shall take effect on the ninetieth day after it shall
27 have become a law.