Enacts the "teardown tax act"; establishes a dwelling unit removal surcharge on the removal of dwelling units from the residential housing market in the city of New York.
STATE OF NEW YORK
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9867
IN SENATE
April 9, 2026
___________
Introduced by Sen. BOTTCHER -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development
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 on the
7 issuance of any permit for demolition or alteration that removes one or
8 more dwelling units from the residential housing market, except as
9 otherwise provided by subdivision four of this section. Such surcharge
10 shall be ten thousand dollars per dwelling unit removed from the resi-
11 dential housing market as a result of such demolition or alteration.
12 2. Prior to any issuance of a permit for demolition of any dwelling
13 unit, 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 permit for demolition
18 of any dwelling unit subject to such surcharge shall be issued by the
19 department until: (a) the applicant for such permit provides the
20 department with a copy of the receipt of payment issued by the depart-
21 ment of finance showing that such surcharge has been paid; and (b) the
22 department of finance provides written notification of such fact to the
23 department.
24 3. Prior to any issuance of a permit for the alteration of any dwell-
25 ing unit, the department shall determine whether the proposed alteration
26 would result in the removal of a dwelling unit from the residential
27 housing market. Where the department determines that such alteration
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15389-04-6
S. 9867 2
1 would result in the removal of a dwelling unit from the residential
2 housing market, the surcharge imposed by subdivision one shall apply to
3 such permit and be payable in accordance with the provisions of subdivi-
4 sion two of this section.
5 4. The surcharge required under this section shall not apply to:
6 (a) residential developments that result in a net increase of dwelling
7 units;
8 (b) demolitions ordered by a government agency or court of competent
9 jurisdiction due to unsafe or hazardous conditions;
10 (c) the development of public housing by the New York city housing
11 authority or affordable housing, as such term is defined by section
12 26-2101 of this code, as added by local law one hundred thirty-two of
13 the laws of two thousand eighteen; and
14 (d) any additional exemptions promulgated by the department and
15 consistent with the purposes of this section.
16 5. The department shall have, in addition to any other functions,
17 powers and duties which have been or may be conferred on it by law, the
18 power to make and promulgate rules to carry out the purposes of this
19 section. Such rules shall include, but not be limited to, procedures
20 for the department to (a) make a determination as to whether a proposed
21 demolition or alteration will result in a loss of dwelling units in the
22 residential housing market and (b) require that the approval of a demo-
23 lition or alteration permit be conditioned upon the payment of the
24 surcharge if such proposed demolition or alteration would result in such
25 loss.
26 6. All revenues generated by the surcharge shall be transferred to the
27 landmarks preservation commission, established under chapter three of
28 title twenty-five of this code, for the purpose of administering grants
29 under such commission's historic preservation grant program.
30 7. Definitions. For the purposes of this section, the following terms
31 shall have the following meanings:
32 (a) The terms "dwelling unit removal surcharge" or "surcharge" shall
33 mean the dwelling unit removal permit surcharge established under subdi-
34 vision one of this section.
35 (b) The term "dwelling unit" shall have the same meaning as such term
36 is defined by section 27-2004 of this code.
37 § 3. This act shall take effect on the ninetieth day after it shall
38 have become a law. Effective immediately, the addition, amendment and/or
39 repeal of any rule or regulation necessary for the implementation of
40 this act on its effective date are authorized to be made and completed
41 on or before such effective date.
