Authorizes municipalities located outside the city of New York to impose a tax on high-value non-primary residences having a five-year average market value threshold as set by the municipality between 2.5 and 5 million dollars or more; provides for authorized rates of taxation, administration and enforcement, and revenue distribution.
STATE OF NEW YORK
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10197
IN SENATE
May 5, 2026
___________
Introduced by Sen. FAHY -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law, in relation to authorizing
certain municipalities to impose a tax on certain high-value non-pri-
mary residences
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general municipal law is amended by adding a new
2 section 3-d to read as follows:
3 § 3-d. Authorization to impose a tax on certain high-value non-primary
4 residences. 1. Definitions. For purposes of this section the following
5 terms shall have the following meanings:
6 (a) "Municipality" means any city, town, or village located outside
7 the city of New York.
8 (b) "Covered property" means real property:
9 (i) classified as a one-family, two-family, or three-family residen-
10 tial property;
11 (ii) having a five-year average market value equal to or greater than
12 the applicable threshold established by local law pursuant to subdivi-
13 sion two of this section; and
14 (iii) that:
15 (A) is not the primary residence of its owner;
16 (B) is not leased or rented to a person using such property as their
17 primary residence; and
18 (C) is not occupied as a primary residence by a member of the owner's
19 family.
20 (c) "Primary residence" shall mean the dwelling unit where a natural
21 person resides for the majority of the calendar year and which is desig-
22 nated as such for income tax purposes.
23 (d) "Owner" shall mean any individual or entity holding legal title to
24 the property; provided, however, that eligibility for taxation under
25 this section shall require that at least one beneficial owner maintains
26 a primary residence outside the municipality in which the covered prop-
27 erty is located.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15735-02-6
S. 10197 2
1 (e) "Five-year average market value" shall mean the average of the
2 full market value of a property as determined for assessment purposes
3 over the preceding five assessment rolls.
4 2. Authorization. (a) Notwithstanding any other provision of law, any
5 municipality is hereby authorized and empowered to adopt and amend local
6 laws imposing a tax on covered properties within its jurisdiction in
7 accordance with this section.
8 (b) (i) Any municipality adopting a local law pursuant to this section
9 shall establish a minimum market value threshold for the applicability
10 of the tax authorized herein.
11 (ii) Such threshold shall not be less than two million five hundred
12 thousand dollars and shall not exceed five million dollars, as deter-
13 mined by local law.
14 (iii) A municipality may, by local law, periodically adjust such
15 threshold within the range authorized by this subdivision.
16 3. Rate of tax. (a) A tax imposed under this section shall be imposed
17 annually at a rate not less than one-half of one percent and not more
18 than four percent.
19 (b) A municipality may establish a graduated rate schedule within such
20 minimum and maximum rates under paragraph (a) of this subdivision.
21 4. Administration and enforcement. (a) The tax authorized by this
22 section shall be imposed, administered, collected, and enforced in the
23 same manner as real property taxes or other local taxes, unless other-
24 wise provided by local law.
25 (b) The department of taxation and finance is hereby authorized and
26 directed, upon request of any municipality imposing a tax pursuant to
27 this section, to provide such assistance as may be necessary to identify
28 whether a property constitutes a primary residence for purposes of this
29 section.
30 (c) A municipality may require annual filings, certifications of resi-
31 dency status, and such other documentation as necessary to determine
32 applicability for taxation under this section.
33 5. Revenue distribution. (a) Fifty percent of all revenues collected
34 pursuant to a local law authorized by this section shall be retained by
35 the municipality imposing such local law.
36 (b) Fifty percent of all revenues collected pursuant to a local law
37 authorized by this section shall be remitted to the state comptroller
38 for deposit into the aid and incentives for municipalities program
39 pursuant to the public protection and general government budget, or such
40 successor fund or program as may be established by law, to support local
41 governments having a population of less than one million.
42 6. Severability. If any clause, sentence, paragraph, or part of this
43 section shall be found unlawful, such judgment shall not affect the
44 remainder thereof.
45 § 2. This act shall take effect immediately.
