Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in a city with a population of one million or more.
STATE OF NEW YORK
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4199
2021-2022 Regular Sessions
IN SENATE
February 2, 2021
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Introduced by Sens. HOYLMAN, BAILEY, BIAGGI, GIANARIS, JACKSON,
KAVANAGH, KRUEGER, LIU, MAY, MYRIE, RAMOS, RIVERA, SALAZAR, SANDERS,
SEPULVEDA, SERRANO, STAVISKY -- read twice and ordered printed, and
when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to imposing an
additional tax on certain non-primary residence class one and class
two properties in a city with a population of one million or more
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The real property tax law is amended by adding a new
2 section 307-b to read as follows:
3 § 307-b. Additional tax on certain non-primary residence properties in
4 a city with a population of one million or more. 1. Generally. Notwith-
5 standing any provision of any general, specific or local law to the
6 contrary, any city with a population of one million or more is hereby
7 authorized and empowered to adopt and amend local laws in accordance
8 with this section imposing an additional tax on certain residential
9 properties and dwelling units.
10 2. Definitions. As used in this section: (a) "Assessed value" means
11 the determination made by the assessors of a city having a population of
12 one million or more of the valuation of real property.
13 (b) "Assessed value attributable to a tenant-stockholder" means the
14 proportion of the assessed value of real property owned by a cooperative
15 apartment corporation, represented by a tenant-stockholder's share or
16 shares of stock in such corporation as determined by its or their
17 proportional relationship to the total outstanding stock of the corpo-
18 ration, including that owned by the corporation.
19 (c) "Commissioner of finance" means the commissioner of finance of a
20 city having a population of one million or more, or his or her designee.
21 (d) "Department of finance" means the department of finance of a city
22 having a population of one million or more.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05566-01-1
S. 4199 2
1 (e) "Five-year average market value" shall mean the average monetary
2 value of a property for the previous five years, using a comparable
3 sale-based valuation method, as determined by the department of finance.
4 3. Additional tax. (a) A local law enacted pursuant to this section
5 may provide for a tax as follows for fiscal years beginning on or after
6 July first, two thousand twenty-two:
7 (i) For one, two or three family residences with a five-year average
8 market value of five million dollars or higher, a tax of at least one-
9 half percent and no more than four percent on the excess market value
10 above five million dollars.
11 (ii) For residential real property held in the condominium form of
12 ownership with an assessed value of three hundred thousand dollars or
13 higher, a tax of at least ten percent and no more than thirteen and
14 one-half percent of the excess assessed value above three hundred thou-
15 sand dollars.
16 (iii) For dwelling units in a property held in the cooperative form of
17 ownership with an assessed value attributable to a tenant-stockholder of
18 three hundred thousand dollars or higher, a tax of at least ten percent
19 and no more than thirteen and one-half percent of the excess assessed
20 value above three hundred thousand dollars. The additional taxes attrib-
21 utable to each tenant-stockholder shall be added by the cooperative
22 apartment corporation to the amount of such taxes otherwise payable by
23 or chargeable to such tenant-stockholder.
24 (b) Subject to the limitations established in paragraph (a) of this
25 subdivision, any such local law may establish a graduated rate schedule
26 for imposing such tax, at rates and excess value thresholds as the local
27 legislative body determines appropriate.
28 (c) Except as otherwise provided in this section, such tax may be
29 imposed, administered, collected and enforced by the commissioner of
30 finance of such city by such means and in such manner as other taxes
31 that are now imposed, administered, collected and enforced by such
32 commissioner in accordance with the charter or administrative code of
33 any such city or as otherwise may be provided by any such local law.
34 4. Exemptions. (a) A local law enacted pursuant to this section shall
35 include an exemption from the additional tax imposed for residential
36 properties or dwelling units that are: (i) the primary residence of at
37 least one owner of the property or dwelling unit; (ii) the primary resi-
38 dence of a parent or child of at least one owner of the property or
39 dwelling unit; (iii) held in the condominium or cooperative form of
40 ownership with an assessed value or assessed value attributable to a
41 tenant-stockholder of three hundred thousand dollars or higher, where
42 the owner has within the prior three years obtained an appraisal report
43 certified by a state certified real estate appraiser or authenticated by
44 a state licensed real estate appraiser, as those terms are defined in
45 section one hundred sixty-a of the executive law, showing that the resi-
46 dential property or dwelling unit has an appraised value of less than
47 five million dollars; or (iv) rented on a full-time basis to a tenant or
48 tenants for whom the property or dwelling unit is their primary resi-
49 dence.
50 (b) Proof that a residential property or dwelling unit is eligible for
51 an exemption provided in paragraph (a) of this subdivision shall be in
52 such form as required by local law or the rules of the commissioner of
53 finance.
54 (c) Any such local law may provide for exemptions from such tax in
55 addition to those specified in this subdivision.
S. 4199 3
1 (d) In the event that a property granted an exemption from taxation
2 pursuant to this section or local law ceases to be used in a manner
3 making the property eligible for such exemption, the owner or owners
4 shall so notify the commissioner of finance in a time, form and manner
5 as so required by local law or the rules of the commissioner.
6 5. Rules. The department of finance of any city enacting a local law
7 pursuant to this section shall have, in addition to any other functions,
8 powers and duties which have been or may be conferred on it by law, the
9 power to make and promulgate rules to carry out the purposes of this
10 section.
11 § 2. This act shall take effect immediately.