BILL NO A01641
SAME AS SAME AS S01053
SPONSOR Glick (MS)
COSPNSR O'Donnell, Gottfried
Add S307-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.
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 Department of Finance for determining the market value of
class one properties.
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
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
Over $6,000,000 but not over $10,000,000 $5,000 plus 1% of excess
Over $10,000,000 but not over $15,000,000 $45,000 plus 1.5% of
Over $15,000,000 but not over $20,000,000 $120,000 plus 2% of excess
Over $20,000,000 but not over $25,000,000 $220,000 plus 3% of excess
Over $25,000,000 $370,000 plus 4% of excess
Section 2 states that this act shall take effect immediately.
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
Yorkers 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.
Meanwhile, 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 Institute, while affecting less than 2% of the non-primary
PRIOR LEGISLATIVE HISTORY:
S T A T E O F N E W Y O R K
2015-2016 Regular Sessions
I N A S S E M B L Y
January 12, 2015
Introduced by M. of A. GLICK, O'DONNELL, GOTTFRIED -- read once and
referred to the Committee on Real Property Taxation
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 S 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
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 SIXTEEN:
21 IF THE MARKET VALUE OF THE THE TAX IS:
22 PROPERTY IS:
23 OVER $5,000,000 BUT NOT $0 PLUS .5% OF EXCESS
24 OVER $6,000,000 OVER $5,000,000
25 OVER $6,000,000 $5,000 PLUS 1% OF EXCESS
26 BUT NOT OVER $10,000,000 OVER $6,000,000
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
A. 1641 2
1 OVER $10,000,000 BUT NOT $45,000 PLUS 1.5% OF EXCESS
2 OVER $15,000,000 OVER $10,000,000
3 OVER $15,000,000 BUT NOT $120,000 PLUS 2% OF EXCESS
4 OVER $20,000,000 OVER $15,000,000
5 OVER $20,000,000 BUT NOT $220,000 PLUS 3% OF EXCESS
6 OVER $25,000,000 OVER $20,000,000
7 OVER $25,000,000 $370,000 PLUS 4% OF EXCESS
8 OVER $25,000,000
9 4. PROPERTY SUBJECT TO ADDITIONAL TAX. SUCH TAX SHALL BE IMPOSED ON
10 CLASS ONE PROPERTIES, AS THAT TERM IS DEFINED IN SECTION EIGHTEEN
11 HUNDRED TWO OF THIS CHAPTER, EXCLUDING VACANT LAND, AND ALL OTHER RESI-
12 DENTIAL REAL PROPERTY HELD IN CONDOMINIUM OR COOPERATIVE FORM OF OWNER-
13 SHIP, THAT HAS A MARKET VALUE OF FIVE MILLION DOLLARS OR HIGHER AND IS
14 NOT THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS OF SUCH PROPERTY, OR
15 THE PRIMARY RESIDENCE OF THE PARENT OR CHILD OF SUCH OWNER OR OWNERS.
16 5. PRIMARY RESIDENCE AND/OR RELATIONSHIP TO OWNER OR OWNERS. THE PROP-
17 ERTY SHALL BE DEEMED TO BE THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS
18 THEREOF, IF SUCH PROPERTY WOULD BE ELIGIBLE TO RECEIVE THE REAL PROPERTY
19 TAX EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAP-
20 TER, REGARDLESS OF WHETHER SUCH OWNER OR OWNERS HAVE FILED AN APPLICA-
21 TION FOR, OR THE PROPERTY IS CURRENTLY RECEIVING SUCH EXEMPTION. PROOF
22 OF PRIMARY RESIDENCE AND THE RESIDENT'S OR RESIDENTS' RELATIONSHIP TO
23 THE OWNER OR OWNERS SHALL BE IN THE FORM OF A CERTIFICATION AS REQUIRED
24 BY LOCAL LAW OR THE RULES OF THE COMMISSIONER.
25 6. RULES. THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A LOCAL LAW
26 PURSUANT TO THIS SECTION SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS,
27 POWERS AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED ON IT BY LAW, THE
28 POWER TO MAKE AND PROMULGATE RULES TO CARRY OUT THE PURPOSES OF THIS
29 SECTION INCLUDING, BUT NOT LIMITED TO, RULES RELATING THE TIMING, FORM
30 AND MANNER OF ANY CERTIFICATION REQUIRED TO BE SUBMITTED UNDER THIS
32 7. PENALTIES. (A) NOTWITHSTANDING ANY PROVISION OF ANY GENERAL,
33 SPECIAL OR LOCAL LAW TO THE CONTRARY, AN OWNER OR OWNERS SHALL BE
34 PERSONALLY LIABLE FOR ANY TAXES OWED PURSUANT TO THIS SECTION WHENEVER
35 SUCH OWNER OR OWNERS FAIL TO COMPLY WITH THIS SECTION OR THE LOCAL LAW
36 OR RULES PROMULGATED THEREUNDER, OR MAKES SUCH FALSE OR MISLEADING
37 STATEMENT OR OMISSION AND THE COMMISSIONER DETERMINES THAT SUCH ACT WAS
38 DUE TO THE OWNER OR OWNERS' WILLFUL NEGLECT, OR THAT UNDER SUCH CIRCUM-
39 STANCES SUCH ACT CONSTITUTED A FRAUD ON THE DEPARTMENT. THE REMEDY
40 PROVIDED HEREIN FOR AN ACTION IN PERSONAM SHALL BE IN ADDITION TO ANY
41 OTHER REMEDY OR PROCEDURE FOR THE ENFORCEMENT OF COLLECTION OF DELIN-
42 QUENT TAXES PROVIDED BY ANY GENERAL, SPECIAL OR LOCAL LAW.
43 (B) IF THE COMMISSIONER SHOULD DETERMINE, WITHIN THREE YEARS FROM THE
44 FILING OF AN APPLICATION OR CERTIFICATION PURSUANT TO THIS SECTION, THAT
45 THERE WAS A MATERIAL MISSTATEMENT ON SUCH APPLICATION OR CERTIFICATION,
46 HE OR SHE SHALL PROCEED TO IMPOSE A PENALTY TAX AGAINST THE PROPERTY OF
47 TEN THOUSAND DOLLARS, IN ACCORDANCE WITH THE LOCAL LAW OR RULES PROMUL-
48 GATED HEREUNDER.
49 8. CESSATION OF USE. IN THE EVENT THAT A PROPERTY GRANTED AN EXEMPTION
50 FROM TAXATION PURSUANT TO THIS SECTION CEASES TO BE USED AS THE PRIMARY
51 RESIDENCE OF SUCH OWNER OR OWNERS OR HIS, HER OR THEIR PARENT OR CHILD,
52 SUCH OWNER OR OWNERS SHALL SO NOTIFY THE COMMISSIONER OF FINANCE IN A
53 TIME, FORM AND MANNER AS SO REQUIRED BY LOCAL LAW OR THE RULES OF THE
55 S 2. This act shall take effect immediately.