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A09565 Summary:

BILL NOA09565
 
SAME ASNo Same As
 
SPONSORBores
 
COSPNSR
 
MLTSPNSR
 
Add 1201-f, Tax L; add 421-p, RPT L
 
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.
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A09565 Actions:

BILL NOA09565
 
03/20/2024referred to ways and means
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A09565 Memo:

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.
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A09565 Text:



 
                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.
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