STATE OF NEW YORK
________________________________________________________________________
9823
IN SENATE
April 7, 2026
___________
Introduced by Sen. GIANARIS -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to enabling any city having a
population of one million or more to impose and collect taxes on
vacant ground floor commercial premises
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 1201-f to
2 read as follows:
3 § 1201-f. Commercial vacancy tax. (a) Notwithstanding any other
4 provision of law to the contrary, any city having a population of one
5 million or more is hereby authorized and empowered to adopt and amend
6 local laws imposing in any such city a tax such as the legislature has
7 or would have the power and authority to impose on any ground floor
8 commercial premises that have been vacant for a period of not less than
9 six months. The tax on such vacant ground floor commercial premises
10 shall be measured as determined and calculated in accordance with a
11 formula or formulas set forth in any such local law, provided that any
12 such tax shall not exceed two thousand dollars per square foot annually.
13 Any such local law may impose such tax at different rates in different
14 geographical areas of any such city. Such tax shall be imposed on the
15 owner of such premises.
16 (b) Any such local law shall define the meaning of the term vacancy,
17 provided that ground floor commercial premises that are not occupied by
18 a tenant, but for which construction documents for the alteration or
19 renovation of such premises have been filed with the department of
20 buildings of any such city, or are located in real property for which
21 construction documents for the alteration or renovation of such real
22 property have been filed with the department of buildings of any such
23 city, which alteration or renovation would render such premises uninha-
24 bitable, shall be deemed not to be vacant until the earlier of: (1) one
25 year from the filing of such construction documents; or (2) one month
26 following the completion of such alteration or renovation. Any such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06153-01-5
S. 9823 2
1 local law shall define any other terms necessary for the imposition,
2 administration, collection and enforcement of such tax.
3 (c) Any such local law may provide for exclusions or exemptions from
4 such tax other than those specified in this section.
5 (d) Any such local law may provide for the filing of returns and the
6 payment of the tax on a monthly basis or on the basis of any longer or
7 shorter period of time.
8 (e) For purposes of measuring the applicable period of vacancy, a
9 vacancy shall not be deemed to have begun until at least thirty days
10 following the date by which an owner of ground floor commercial premises
11 was first required to register such premises with the applicable agency
12 of such city in accordance with a local law establishing a vacancy
13 registration requirement.
14 (f) Such tax may be imposed, administered, collected and enforced by
15 the commissioner of finance of such city by such means and in such
16 manner as other taxes that are now imposed, administered, collected and
17 enforced by such commissioner in accordance with the charter or adminis-
18 trative code of any such city or as otherwise may be provided by any
19 such local law.
20 (g) Any final determination of the amount of any tax payable hereunder
21 shall be reviewable for error, illegality or unconstitutionality or any
22 other reason whatsoever by a proceeding under article seventy-eight of
23 the civil practice law and rules if application therefor is made to the
24 supreme court within four months after the giving of the notice of such
25 final determination, provided, however, that any such proceeding under
26 article seventy-eight of the civil practice law and rules shall not be
27 instituted by a taxpayer unless: (1) the amount of any tax sought to be
28 reviewed, with such interest and penalties thereon as may be provided
29 for by local law or regulation, shall be first deposited and there is
30 filed an undertaking, issued by a surety company authorized to transact
31 business in this state and approved by the superintendent of financial
32 services of this state as to solvency and responsibility, in such amount
33 as a justice of the supreme court shall approve to the effect that if
34 such proceeding be dismissed or the tax confirmed the taxpayer will pay
35 all costs and charges which may accrue in the prosecution of such
36 proceeding; or (2) at the option of the taxpayer such undertaking may be
37 in a sum sufficient to cover the taxes, interest and penalties stated in
38 such determination plus the costs and charges which may accrue against
39 such taxpayer in the prosecution of the proceeding, in which event the
40 taxpayer shall not be required to pay such taxes, interest or penalties
41 as a condition precedent to the application.
42 (h) Where any tax imposed hereunder shall have been erroneously, ille-
43 gally or unconstitutionally collected and application for the refund
44 thereof duly made to the proper fiscal officer or officers, and such
45 officer or officers or, in the case of a city of one million or more
46 which has established a tax appeals tribunal, such tax appeals tribunal,
47 shall have made a determination denying such refund, such determination
48 shall be reviewable by a proceeding under article seventy-eight of the
49 civil practice law and rules, provided, however, that such proceeding is
50 instituted within four months after the giving of the notice of such
51 denial, that a final determination of tax due was not previously made,
52 and that an undertaking is filed with the proper fiscal officer or offi-
53 cers in such amount and with such sureties as a justice of the supreme
54 court shall approve to the effect that if such proceeding be dismissed
55 or the tax confirmed, the taxpayer will pay all costs and charges which
56 may accrue in the prosecution of such proceeding.
S. 9823 3
1 (i) Except in the case of a willfully false or fraudulent return with
2 intent to evade the tax, no assessment of additional tax shall be made
3 after the expiration of more than three years from the date of the
4 filing of a return, provided, however, that where no return has been
5 filed as provided by law the tax may be assessed at any time.
6 (j) Revenues resulting from the imposition of tax authorized by this
7 section shall be paid into the treasury of any such city and shall be
8 credited to and deposited in the general fund of any such city.
9 (k) If any provision of this section or the application thereof to any
10 person or circumstance shall be held invalid, the remainder of this
11 section and the application of such provision to other persons or
12 circumstances shall not be affected thereby.
13 § 2. This act shall take effect thirty days after the commissioner of
14 finance for a city with a population of one million or more submits a
15 report required by a local law establishing a vacancy registration
16 requirement to the mayor, the speaker of the council and the comptroller
17 of such city. Such commissioner of finance shall notify the legislative
18 bill drafting commission upon the submission of such report in order
19 that the commission may maintain an accurate and timely effective data
20 base of the official text of the laws of the state of New York in furth-
21 erance of effectuating the provisions of section 44 of the legislative
22 law and section 70-b of the public officers law.
