Establishes the end toxic home flipping act; imposes a tax on the transfer of certain residential properties which are sold within two years of the prior conveyance of such property; exempts certain purchases of residential properties from mortgage recording taxes; imposes a tax on the transfer of certain properties in the city of New York which are sold for one million dollars or more.
STATE OF NEW YORK
________________________________________________________________________
1569--A
2023-2024 Regular Sessions
IN SENATE
January 12, 2023
___________
Introduced by Sens. SALAZAR, BRISPORT, CLEARE, GIANARIS, GONZALEZ, HOYL-
MAN-SIGAL, JACKSON, MYRIE, RAMOS, SANDERS, SEPULVEDA -- read twice and
ordered printed, and when printed to be committed to the Committee on
Cities 1 -- recommitted to the Committee on Cities 1 in accordance
with Senate Rule 6, sec. 8 -- 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 the imposition of tax on the transfer of certain proper-
ties in the city of New York
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "end toxic
2 home flipping act".
3 § 2. The administrative code of the city of New York is amended by
4 adding a new section 11-2120 to read as follows:
5 § 11-2120 Residential real property sold within two years. a. In addi-
6 tion to the tax imposed by section 11-2102 of this chapter, there is
7 hereby imposed on each deed, instrument or transaction at the time of
8 transfer whereby any properties of one to three residential units are
9 transferred by a grantor to a grantee, and such transfer is made within
10 two years from the prior conveyance of the property, including but not
11 limited to transfers which are all cash transactions and transfers of
12 property which have been rented out during such time period. The tax
13 which shall be paid by the grantor shall be at the rate of:
14 (1) sixty-five percent of the difference between the current sales
15 price and the sales price of the prior conveyance when the time since
16 the prior conveyance of the property is less than one year; and
17 (2) fifty percent of the difference between the current sales price
18 and the sales price of the prior conveyance when the time since the
19 prior conveyance of the property is greater than or equal to one year
20 but less than two years.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00494-03-4
S. 1569--A 2
1 b. The tax defined in subdivision a of this section shall expire when
2 the time since the prior conveyance of the property is two years.
3 c. (1) The following qualified persons shall be exempt from the
4 payment of the tax imposed by this section:
5 (i) Property owners conveying property to a family member.
6 (ii) Property owners who can demonstrate a financial hardship which
7 justifies a conveyance of property in less than or equal to two years.
8 (2) The following properties shall be exempt from the payment of the
9 tax imposed by this section:
10 (i) Property which was conveyed following the death of the property
11 owner.
12 (ii) Property being sold as new housing.
13 (iii) Property which the consideration or value conveyed, which is
14 otherwise subject to the tax imposed in this section, is less than or
15 equal to ten percent more than the consideration or value of such prop-
16 erty conveyed at the time of the prior conveyance of property.
17 (iv) Property which was conveyed to a mortgagee or an affiliate agent
18 thereof by a mortgagor be deed in lieu of foreclosure or in satisfaction
19 of the mortgage debt.
20 (v) Property which was conveyed to a mortgagee or an affiliate agent
21 thereof pursuant to a foreclosure sale that follows a default in the
22 satisfaction of an obligation that is secured by a mortgage.
23 (vi) Property which is otherwise exempt from payment of a real proper-
24 ty transfer tax pursuant to this chapter.
25 § 3. Severability. If any clause, sentence, paragraph, section or part
26 of this act shall be adjudged by any court of competent jurisdiction to
27 be invalid, such judgment shall not affect, impair or invalidate the
28 remainder thereof, but shall be confined in its operation to the clause,
29 sentence, paragraph, section or part thereof directly involved in the
30 controversy in which such judgment shall have been rendered.
31 § 4. This act shall take effect on the ninetieth day after it shall
32 have become a law.
