Enacts the "teardown tax act"; establishes a dwelling unit removal surcharge on the conversion of multiple dwelling units into single-family dwellings in the city of New York.
STATE OF NEW YORK
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10999--A
IN ASSEMBLY
April 15, 2026
___________
Introduced by M. of A. LEE -- read once and referred to the Committee on
Cities -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the administrative code of the city of New York, in
relation to enacting the "teardown tax act"
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 "teardown tax act".
3 § 2. The administrative code of the city of New York is amended by
4 adding a new section 28-112.14 to read as follows:
5 § 28-112.14 Dwelling unit removal surcharge on certain residential
6 property. 1. A dwelling unit removal surcharge is hereby imposed prior
7 to the issuance of any new or amended certificate of occupancy for any
8 multiple dwelling converted into a single-family dwelling. Such
9 surcharge shall be fifty thousand dollars for each dwelling unit
10 lawfully existing in the multiple dwelling prior to the conversion,
11 excluding the single dwelling unit authorized following the conversion.
12 2. Prior to any issuance of any new or amended certificate of occupan-
13 cy, the department shall determine whether the surcharge imposed by
14 subdivision one of this section shall be assessed. Where the department
15 determines that such surcharge shall be assessed, the applicant shall
16 pay to the department of finance an amount equal to the surcharge
17 required under subdivision one of this section. No new or amended
18 certificate of occupancy of any dwelling unit subject to such surcharge
19 shall be issued by the department until: (a) the applicant for such
20 permit provides the department with a copy of the receipt of payment
21 issued by the department of finance showing that such surcharge has been
22 paid; and (b) the department of finance provides written notification of
23 such fact to the department.
24 3. The department shall have, in addition to any other functions,
25 powers and duties which have been or may be conferred on it by law, the
26 power to make and promulgate rules to carry out the purposes of this
27 section. Such rules shall include, but not be limited to, procedures
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15389-11-6
A. 10999--A 2
1 for the department to (a) make a determination as to whether a proposed
2 demolition or alteration will result in the conversion of a multiple
3 dwelling into a single-family dwelling and (b) require that the approval
4 of any new or amended certificate of occupancy be conditioned upon the
5 payment of the surcharge if such proposed demolition or alteration would
6 result in such loss.
7 4. All revenues generated by the surcharge shall be transferred to the
8 landmarks preservation commission, established under chapter three of
9 title twenty-five of this code, for the purpose of administering grants
10 under such commission's historic preservation grant program.
11 5. Definitions. For the purposes of this section, the following terms
12 shall have the following meanings:
13 (a) The terms "dwelling unit removal surcharge" or "surcharge" shall
14 mean the dwelling unit removal permit surcharge established under subdi-
15 vision one of this section.
16 (b) The term "dwelling unit" shall have the same meaning as such term
17 is defined by section 27-2004 of this code.
18 § 3. This act shall take effect on the ninetieth day after it shall
19 have become a law. Effective immediately, the addition, amendment and/or
20 repeal of any rule or regulation necessary for the implementation of
21 this act on its effective date are authorized to be made and completed
22 on or before such effective date.
