|SAME AS||SAME AS S01053-A|
|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.|
|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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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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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. LBD01946-03-6A. 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.