A01641 Summary:

BILL NO    A01641A

SAME AS    
SAME AS S01053-A

SPONSOR    Glick

COSPNSR    O'Donnell, Gottfried

MLTSPNSR   


Add 307-b, RPT L


Imposes an additional tax surcharge on certain non-primary residence class
one
and class two properties in a city with a population of one million or
more.
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A01641 Actions:

BILL NO    A01641A

01/12/2015 referred to real property taxation
01/06/2016 referred to real property taxation
01/19/2016 amend and recommit to real property taxation
01/19/2016 print number 1641a
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A01641 Votes:

There are no votes for this bill in this legislative session.
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A01641 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1641A
 
SPONSOR: Glick (MS)
  TITLE OF BILL: An act to amend the real property tax law, in relation to imposing an additional tax on certain non-primary residence class one and class two properties in a city with a population of one million or more   PURPOSE OF BILL: The purpose of this legislation is to allow New York City to administer an additional graduated property tax on certain non-primary residences within the city with a market value of $5 million or more.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the Real Property Tax Law by adding a new section 307-b, authorizing the City of New York to enact a local law imposing an additional property tax on certain non-primary residences with a market value of $5 million or more. The tax would apply to 1-3 family houses, condos, and co-ops that have a market value of $5 million or more, and are not the primary residence of the owner(s) of the property, or the primary residence of the parent(s) or child(ren) of such owner(s). For the purposes of this bill, "market value" is defined as a comparable sales-based valuation method, a method currently used by the NYC Depart- ment of Finance for determining the market value of class one proper- ties. The property shall be deemed to be the primary residence of the owner(s) if the property would otherwise be eligible to receive the STAR property tax exemption, regardless of whether or not the owner(s) applied for or are actually receiving the STAR exemption. The NYC Department of Finance is charged with promulgating any other rules relating to the establishment and/or certification of primary residency. The tax would be administered as follows: If the market value of the property is: The tax is: Over $5,000,000 but not over $6,000,000 $0 plus .5% of excess over $5,000,000 Over $6,000,000 but not over $10,000,000 $5,000 plus 1% of excess over $6,000,000 Over $10,000,000 but not over $15,000,000 $45,000 plus 1.5% of excess over $10,000,000 Over $15,000,000 but not over $20,000,000 $120,000 plus 2% of excess over $15,000,000 Over $20,000,000 but not over $25,000,000 $220,000 plus 3% of excess over $20,000,000 Over $25,000,000 $370,000 plus 4% of excess over $25,000,000 Section 2 states that this act shall take effect immediately.   JUSTIFICATION: Out-of-state purchasers are increasingly buying up high-end properties in New York City that they rarely, if ever, occupy. In one 42-square block quadrant of Manhattan, bordered by 70th Street to the North, Park Avenue to the East, 49th Street to the South, and Fifth Avenue to the West, the U.S. Census Bureau estimates that 30% of the apartments are vacant at least 10 months a year. At the same time, low-income New York- ers continue to face a critical shortage of affordable housing. The vast majority of absentee owners of luxury properties don't live and work in New York City, and therefore do not pay city incomes. Mean- while, they benefit from New York City's outdated property tax laws, paying very low property taxes relative to the value of their real estate. High-end real estate development is often the recipient of lucrative taxpayer-funded subsidies, further reducing the tax burden on the owners of the most expensive residential properties in New York City. By imposing a modest, graduated "pied-a-terre" tax on the most expensive non-primary residences, New York City can generate over $650 million in tax revenue annually, according to estimates by the Fiscal Policy Insti- tute, while affecting less than 2% of the non-primary residences city- wide.   PRIOR LEGISLATIVE HISTORY: S.7941 of 2014 (Hoylman): Died in Rules A.10192 of 2014 (Glick): Died in Rules   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: Immediately.
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A01641 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1641--A
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 12, 2015
                                       ___________
 
        Introduced  by  M.  of  A.  GLICK, O'DONNELL, GOTTFRIED -- read once and
          referred to the Committee on Real Property Taxation -- recommitted  to
          the  Committee  on  Real Property Taxation in accordance with Assembly
          Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
 

        AN  ACT  to  amend the real property tax law, in relation to imposing an
          additional tax on certain non-primary residence class  one  and  class
          two properties in a city with a population of one million or more
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The real property tax  law  is  amended  by  adding  a  new
     2  section 307-b to read as follows:
     3    § 307-b. Additional tax on certain non-primary residence properties in
     4  a  city with a population of one million or more. 1. Generally. Notwith-
     5  standing any provision of any general, specific  or  local  law  to  the
     6  contrary,  any  city  with a population of one million or more is hereby
     7  authorized and empowered to adopt and amend  local  laws  in  accordance

     8  with  this  section  imposing  an  additional tax on certain residential
     9  properties.
    10    2. Definitions. As used in this section: (a) "Commissioner of finance"
    11  means the commissioner of finance of a city having a population  of  one
    12  million or more, or his or her designee.
    13    (b)  "Department of finance" means the department of finance of a city
    14  having a population of one million or more.
    15    (c) "Market value" shall mean the current monetary value of the  prop-
    16  erty,  using  a comparable sale-based valuation method, as determined by
    17  the department of finance.
    18    3. Additional tax.  A local law enacted pursuant to this  section  may
    19  provide  for  a real property tax in accordance with the following table

    20  for fiscal years beginning on or after July first, two  thousand  seven-
    21  teen:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01946-03-6

        A. 1641--A                          2
 
     1  If the market value of the              The tax is:
     2  property is:
     3  Over $5,000,000 but not                 $0 plus .5% of excess
     4  over $6,000,000                         over $5,000,000
     5  Over $6,000,000                         $5,000 plus 1% of excess
     6  but not over $10,000,000                over $6,000,000

     7  Over $10,000,000 but not                $45,000 plus 1.5% of excess
     8  over $15,000,000                        over $10,000,000
     9  Over $15,000,000 but not                $120,000 plus 2% of excess
    10  over $20,000,000                        over $15,000,000
    11  Over $20,000,000 but not                $220,000 plus 3% of excess
    12  over $25,000,000                        over $20,000,000
    13  Over $25,000,000                        $370,000 plus 4% of excess
    14                                          over $25,000,000
 
    15    4.  Property  subject to additional tax.  Such tax shall be imposed on
    16  class one properties, as  that  term  is  defined  in  section  eighteen

    17  hundred  two of this chapter, excluding vacant land, and all other resi-
    18  dential real property held in condominium or cooperative form of  owner-
    19  ship,  that  has a market value of five million dollars or higher and is
    20  not the primary residence of the owner or owners of  such  property,  or
    21  the primary residence of the parent or child of such owner or owners.
    22    5. Primary residence and/or relationship to owner or owners. The prop-
    23  erty  shall be deemed to be the primary residence of the owner or owners
    24  thereof, if such property would be eligible to receive the real property
    25  tax exemption pursuant to section four hundred twenty-five of this chap-
    26  ter, regardless of whether such owner or owners have filed  an  applica-

    27  tion  for, or the property is currently receiving such exemption.  Proof
    28  of primary residence and the resident's or  residents'  relationship  to
    29  the  owner or owners shall be in the form of a certification as required
    30  by local law or the rules of the commissioner.
    31    6. Rules. The department of finance of any city enacting a  local  law
    32  pursuant to this section shall have, in addition to any other functions,
    33  powers  and duties which have been or may be conferred on it by law, the
    34  power to make and promulgate rules to carry out  the  purposes  of  this
    35  section  including,  but not limited to, rules relating the timing, form
    36  and manner of any certification required  to  be  submitted  under  this
    37  section.

    38    7.  Penalties.  (a)  Notwithstanding  any  provision  of  any general,
    39  special or local law to the  contrary,  an  owner  or  owners  shall  be
    40  personally  liable  for any taxes owed pursuant to this section whenever
    41  such owner or owners fail to comply with this section or the  local  law
    42  or  rules  promulgated  thereunder,  or  makes  such false or misleading
    43  statement or omission and the commissioner determines that such act  was
    44  due  to the owner or owners' willful neglect, or that under such circum-
    45  stances such act constituted a  fraud  on  the  department.  The  remedy
    46  provided  herein  for  an action in personam shall be in addition to any
    47  other remedy or procedure for the enforcement of  collection  of  delin-

    48  quent taxes provided by any general, special or local law.
    49    (b)  If the commissioner should determine, within three years from the
    50  filing of an application or certification pursuant to this section, that
    51  there was a material misstatement on such application or  certification,
    52  he  or she shall proceed to impose a penalty tax against the property of
    53  ten thousand dollars, in accordance with the local law or rules  promul-
    54  gated hereunder.

        A. 1641--A                          3
 
     1    8. Cessation of use. In the event that a property granted an exemption
     2  from  taxation pursuant to this section ceases to be used as the primary
     3  residence of such owner or owners or his, her or their parent or  child,

     4  such  owner  or  owners shall so notify the commissioner of finance in a
     5  time,  form  and  manner as so required by local law or the rules of the
     6  commissioner.
     7    § 2. This act shall take effect immediately.
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